House File 2407 - Introduced HOUSE FILE BY REICHERT, SCHUELLER, MILLER, and MAY Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a sales, services, and use tax refund and 2 income tax deduction for activities related to a cultural and 3 entertainment district and including a retroactive 4 applicability date provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6162HH 81 7 mg/cf/24 PAG LIN 1 1 Section 1. Section 303.3B, Code Supplement 2005, is 1 2 amended by adding the following new subsection: 1 3 NEW SUBSECTION. 4. An eligible business may claim a 1 4 sales, services, and use tax refund as provided in section 1 5 15.331A for sales, services, and use tax paid by the eligible 1 6 business for gas, electricity, water, or sewer utility 1 7 services, goods, wares, or merchandise, or for services 1 8 rendered, furnished, or performed by the eligible business in 1 9 the construction or equipping of a facility located in a 1 10 cultural and entertainment district. For purposes of this 1 11 subsection, "eligible business" means a contractor or 1 12 subcontractor performing the construction or equipping of a 1 13 facility located in a cultural and entertainment district. 1 14 Sec. 2. Section 422.7, Code Supplement 2005, is amended by 1 15 adding the following new subsection: 1 16 NEW SUBSECTION. 45. Subtract, to the extent not otherwise 1 17 excluded, the first twenty=five thousand dollars of the gain 1 18 from the sale of a unique work of art, provided the artist 1 19 lives and works in a cultural and entertainment district 1 20 certified pursuant to section 303.3B. 1 21 Sec. 3. RETROACTIVE APPLICABILITY. The section of this 1 22 Act amending section 422.7, relating to an income tax 1 23 deduction, applies retroactively to January 1, 2006, for tax 1 24 years beginning on or after that date. 1 25 EXPLANATION 1 26 This bill allows a contractor or subcontractor to claim a 1 27 sales, services, and use tax refund for sales, services, and 1 28 use tax paid for gas, electricity, water, or sewer utility 1 29 services, goods, wares, or merchandise, or for services 1 30 rendered, furnished, or performed by the contractor or 1 31 subcontractor in the construction or equipping of a facility 1 32 located in a cultural and entertainment district established 1 33 in Code section 303.3B. 1 34 The bill provides a deduction from the income tax of up to 1 35 $25,000 of the gain from the sale of a unique work of art, 2 1 provided the artist lives and works in a cultural and 2 2 entertainment district. The deduction applies retroactively 2 3 to January 1, 2006, for tax years beginning on or after that 2 4 date. 2 5 LSB 6162HH 81 2 6 mg:rj/cf/24