House File 23 - Introduced



                                       HOUSE FILE       
                                       BY  CARROLL


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

                                      A BILL FOR

  1 An Act to allow the additional first=year depreciation allowance
  2    and the increased expensing allowance which were deductible
  3    for a tax year for which a tax return was filed prior to
  4    September 7, 2004, to be deducted on the return filed for the
  5    subsequent tax year and including an effective date provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 1394HH 81
  8 mg/sh/8

PAG LIN



  1  1    Section 1.  SPECIAL FILING PROVISIONS.  Adjustments to
  1  2 federal adjusted gross income for individuals and federal
  1  3 taxable income for corporations made on previous tax returns
  1  4 filed prior to September 7, 2004, may be required.  These
  1  5 adjustments relate to the disallowance of both the additional
  1  6 fifty percent first=year depreciation allowance authorized in
  1  7 section 168(k) of the Internal Revenue Code for assets
  1  8 acquired after May 5, 2003, and before January 1, 2005, and
  1  9 the increase in the expensing allowance authorized in section
  1 10 179(b) of the Internal Revenue Code for tax periods beginning
  1 11 on or after January 1, 2003.  In lieu of filing an amended tax
  1 12 return, taxpayers may make these adjustments, pursuant to
  1 13 rules adopted by the director, on the next return filed
  1 14 subsequent to September 6, 2004.
  1 15    Sec. 2.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  1 16 This Act, being deemed of immediate importance, takes effect
  1 17 upon enactment.
  1 18                           EXPLANATION
  1 19    This bill allows a taxpayer that was eligible, under the
  1 20 individual or corporate income tax, for the additional first=
  1 21 year (bonus) depreciation allowance or the increased expensing
  1 22 allowance for a tax year for which an income tax return for
  1 23 that tax year was filed prior to September 7, 2004, to elect,
  1 24 in lieu of filing an amended return, to take the bonus
  1 25 depreciation allowance or increased expensing allowance in the
  1 26 taxpayer's subsequent tax year.  The amount of the deduction
  1 27 and any other adjustment as a result of this deduction is to
  1 28 be computed pursuant to rules adopted by the director of
  1 29 revenue.
  1 30    The bill takes effect upon enactment.
  1 31 LSB 1394HH 81
  1 32 mg/sh/8