Senate File 2003 - Introduced SENATE FILE BY BEALL and BOETTGER (COMPANION TO LSB 5231HH BY JENKINS) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the amount of the charitable deduction for 2 host families of foreign exchange and other students under the 3 individual income tax and including a retroactive 4 applicability date provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5231SS 81 7 mg/sh/8 PAG LIN 1 1 Section 1. Section 422.9, subsection 2, Code Supplement 1 2 2005, is amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. j. (1) If the taxpayer has a charitable 1 4 deduction for maintaining certain students in the taxpayer's 1 5 household under section 170(g) of the Internal Revenue Code, 1 6 the limitation under section 170(g)(2) of the Internal Revenue 1 7 Code for state tax purposes for tax year 2006 equals two 1 8 hundred dollars. 1 9 (2) The two hundred dollar limitation in subparagraph (1) 1 10 shall be increased for each tax year beginning in the 2007 or 1 11 subsequent calendar year by an amount equal to the product of 1 12 two hundred dollars multiplied by a cost=of=living adjustment. 1 13 Any increase computed under this subparagraph that is not a 1 14 multiple of ten dollars shall be rounded to the next highest 1 15 ten dollars. 1 16 (3) For purposes of this lettered paragraph, "cost=of= 1 17 living adjustment" is the percentage determined under section 1 18 1(f)(3) of the Internal Revenue Code for the calendar year in 1 19 which the tax year begins where "calendar year 2005" is 1 20 substituted for the reference to "calendar year 1992" in 1 21 section 1(f)(3)(B) of the Internal Revenue Code. 1 22 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 1 23 retroactively to January 1, 2006, for tax years beginning on 1 24 or after that date. 1 25 EXPLANATION 1 26 This bill provides for an increase in the amount that a 1 27 taxpayer may claim as a charitable deduction for nonreimbursed 1 28 amounts paid per month to maintain certain students as members 1 29 of the taxpayer's household. Present federal law allows a 1 30 deduction of up to $50 per month. The bill increases the 1 31 state deduction to $200 for the 2006 tax year and increases 1 32 that amount further by a cost=of=living adjustment for 1 33 subsequent tax years. 1 34 The bill applies retroactively to January 1, 2006, for tax 1 35 years beginning on or after that date. 2 1 LSB 5231SS 81 2 2 mg:rj/sh/8