House File 2036 - Introduced



                                       HOUSE FILE       
                                       BY  JENKINS

                                       (COMPANION TO LSB 5231SS
                                        BY BEALL)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the amount of the charitable deduction for
  2    host families of foreign exchange and other students under the
  3    individual income tax and including a retroactive
  4    applicability date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5231HH 81
  7 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 422.9, subsection 2, Code Supplement
  1  2 2005, is amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  j.  (1)  If the taxpayer has a charitable
  1  4 deduction for maintaining certain students in the taxpayer's
  1  5 household under section 170(g) of the Internal Revenue Code,
  1  6 the limitation under section 170(g)(2) of the Internal Revenue
  1  7 Code for state tax purposes for tax year 2006 equals two
  1  8 hundred dollars.
  1  9    (2)  The two hundred dollar limitation in subparagraph (1)
  1 10 shall be increased for each tax year beginning in the 2007 or
  1 11 subsequent calendar year by an amount equal to the product of
  1 12 two hundred dollars multiplied by a cost=of=living adjustment.
  1 13 Any increase computed under this subparagraph that is not a
  1 14 multiple of ten dollars shall be rounded to the next highest
  1 15 ten dollars.
  1 16    (3)  For purposes of this lettered paragraph, "cost=of=
  1 17 living adjustment" is the percentage determined under section
  1 18 1(f)(3) of the Internal Revenue Code for the calendar year in
  1 19 which the tax year begins where "calendar year 2005" is
  1 20 substituted for the reference to "calendar year 1992" in
  1 21 section 1(f)(3)(B) of the Internal Revenue Code.
  1 22    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 23 retroactively to January 1, 2006, for tax years beginning on
  1 24 or after that date.
  1 25                           EXPLANATION
  1 26    This bill provides for an increase in the amount that a
  1 27 taxpayer may claim as a charitable deduction for nonreimbursed
  1 28 amounts paid per month to maintain certain students as members
  1 29 of the taxpayer's household.  Present federal law allows a
  1 30 deduction of up to $50 per month.  The bill increases the
  1 31 state deduction to $200 for the 2006 tax year and increases
  1 32 that amount further by a cost=of=living adjustment for
  1 33 subsequent tax years.
  1 34    The bill applies retroactively to January 1, 2006, for tax
  1 35 years beginning on or after that date.
  2  1 LSB 5231HH 81
  2  2 mg:rj/sh/8