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