Senate File 132 - Introduced SENATE FILE BY HATCH, BEALL, DVORSKY, and PUTNEY Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an individual income tax credit for charitable 2 contributions of fine art or written materials made by the 3 artist or author and including retroactive applicability date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1018XS 81 7 mg/gg/14 PAG LIN 1 1 Section 1. NEW SECTION. 422.11I ART CONTRIBUTION TAX 1 2 CREDIT. 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under section 422.12, shall be reduced by an art 1 5 contribution tax credit as provided in this section. A 1 6 taxpayer who is an artist of a work of fine art or an author 1 7 of written materials who makes a charitable contribution is 1 8 eligible for the tax credit. The amount of the credit equals 1 9 the fair market value of the work of fine art or written 1 10 materials which is the subject of the charitable contribution. 1 11 If the taxpayer elects to claim the tax credit under this 1 12 section, the taxpayer shall not deduct for Iowa tax purposes 1 13 any amount of the charitable contribution of the fine art or 1 14 written materials upon which the tax credit is based. 1 15 2. Any credit in excess of the tax liability for the tax 1 16 year is not refundable but may be credited to the tax 1 17 liability for the following ten years or until depleted, 1 18 whichever is the earlier. 1 19 3. For purposes of this section: 1 20 a. "Artist" and "fine art" mean the same as those terms 1 21 are defined in section 556D.1. 1 22 b. "Charitable contribution" means the same as that term 1 23 is defined in section 170(c) of the Internal Revenue Code, 1 24 except for paragraph (1) of section 170(c). 1 25 c. "Fair market value" means the appraised value of the 1 26 fine art or written materials as established pursuant to 1 27 requirements set by rules adopted by the director. 1 28 d. "Written materials" means an article, book, essay, 1 29 poetry, play, script, or story written by an individual on a 1 30 professional, freelance basis and not as an employee of 1 31 another person. 1 32 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 1 33 retroactively to January 1, 2005, for tax years beginning on 1 34 or after that date. 1 35 EXPLANATION 2 1 This bill provides for an individual income tax credit 2 2 equal to the value of a charitable contribution of a work of 2 3 fine art or written materials by the artist or author. The 2 4 credit is in lieu of the present charitable contribution tax 2 5 deduction. The charitable contribution is generally one made 2 6 to a nonprofit tax=exempt organization which is operated for 2 7 religious, charitable, scientific, literary, or educational 2 8 purposes and does not include gifts for the use of 2 9 governmental entities. 2 10 The bill applies retroactively to January 1, 2005, for tax 2 11 years beginning on or after that date. 2 12 LSB 1018XS 81 2 13 mg:rj/gg/14