House Study Bill 593
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
REVENUE BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act updating the Code references to the Internal Revenue Code
2 and including retroactive applicability and effective date
3 provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 15.335, subsection 4, unnumbered
1 2 paragraph 2, Code Supplement 2005, is amended to read as
1 3 follows:
1 4 For purposes of this section, "Internal Revenue Code" means
1 5 the Internal Revenue Code in effect on January 31 1, 2005
1 6 2006.
1 7 Sec. 2. Section 15A.9, subsection 8, paragraph e,
1 8 unnumbered paragraph 2, Code Supplement 2005, is amended to
1 9 read as follows:
1 10 For purposes of this subsection, "Internal Revenue Code"
1 11 means the Internal Revenue Code in effect on January 31 1,
1 12 2005 2006.
1 13 Sec. 3. Section 422.3, subsection 5, Code Supplement 2005,
1 14 is amended to read as follows:
1 15 5. "Internal Revenue Code" means the Internal Revenue Code
1 16 of 1954, prior to the date of its redesignation as the
1 17 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
1 18 or means the Internal Revenue Code of 1986 as amended to and
1 19 including January 31 1, 2005 2006.
1 20 Sec. 4. Section 422.10, subsection 3, unnumbered paragraph
1 21 2, Code Supplement 2005, is amended to read as follows:
1 22 For purposes of this section, "Internal Revenue Code" means
1 23 the Internal Revenue Code in effect on January 31 1, 2005
1 24 2006.
1 25 Sec. 5. Section 422.32, subsection 7, Code Supplement
1 26 2005, is amended to read as follows:
1 27 7. "Internal Revenue Code" means the Internal Revenue Code
1 28 of 1954, prior to the date of its redesignation as the
1 29 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
1 30 or means the Internal Revenue Code of 1986 as amended to and
1 31 including January 31 1, 2005 2006.
1 32 Sec. 6. Section 422.33, subsection 5, paragraph d,
1 33 unnumbered paragraph 2, Code Supplement 2005, is amended to
1 34 read as follows:
1 35 For purposes of this subsection, "Internal Revenue Code"
2 1 means the Internal Revenue Code in effect on January 31 1,
2 2 2005 2006.
2 3 Sec. 7. Section 504B.5, Code 2005, is amended to read as
2 4 follows:
2 5 504B.5 INTERNAL REVENUE CODE UPDATED.
2 6 All references to sections of the Internal Revenue Code
2 7 shall mean the Code as amended to and including January 1,
2 8 1971 defined in section 422.3.
2 9 Sec. 8. Section 633.266, Code 2005, is amended to read as
2 10 follows:
2 11 633.266 ADJUSTED GROSS ESTATE.
2 12 Unless otherwise defined, "adjusted gross estate" in a will
2 13 means the entire value of the gross estate as determined under
2 14 the federal estate tax less the aggregate amount of the
2 15 deductions allowed by sections 2053 and 2054 of the Internal
2 16 Revenue Code as amended to and including January 1, 1982
2 17 defined in section 422.3.
2 18 Sec. 9. RETROACTIVE APPLICABILITY. This Act applies
2 19 retroactively to January 1, 2005, for tax years beginning on
2 20 or after that date.
2 21 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
2 22 immediate importance, takes effect upon enactment.
2 23 EXPLANATION
2 24 This bill updates the references to the Internal Revenue
2 25 Code to make the federal income tax revisions enacted by
2 26 Congress in 2005 applicable for Iowa income tax purposes.
2 27 Code sections 422.3 and 422.32, general definitions sections
2 28 in the income tax chapter of the Code, are amended to update
2 29 the reference to the Internal Revenue Code.
2 30 Code sections 15.335, 15A.9, 422.10, and 422.33 are amended
2 31 to update the Code references to the state research activities
2 32 credit for individuals, corporations, corporations in economic
2 33 development areas, and corporations in quality jobs enterprise
2 34 zones to include the 2005 federal changes in the research
2 35 activities credit.
3 1 Code section 504B.5, relating to nonprofit corporations and
3 2 federal tax liability, and Code section 633.266, relating to
3 3 the probate code, are amended to reference the Internal
3 4 Revenue Code as defined in the definitions section of the
3 5 income tax chapter of the Code.
3 6 The bill takes effect upon enactment and applies
3 7 retroactively to January 1, 2005, for tax years beginning on
3 8 or after that date.
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