Senate File 2355 - Introduced



                                       SENATE FILE       
                                       BY  BOLKCOM


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the reporting of income tax liability by
  2    public utilities with the Iowa utilities board.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6028XS 81
  5 kk/je/5

PAG LIN



  1  1    Section 1.  Section 476.8, Code 2005, is amended by adding
  1  2 the following new unnumbered paragraph:
  1  3    NEW UNNUMBERED PARAGRAPH.  The board, in determining the
  1  4 rates for a public utility which participates in the filing of
  1  5 a consolidated income tax return with an affiliate, shall
  1  6 calculate the amount of income tax liability of the public
  1  7 utility to be included in the revenues of the utility as a
  1  8 share of the consolidated income tax liability reported in the
  1  9 return in proportion to the public utility's and affiliate's
  1 10 respective positive taxable income, excluding from the
  1 11 allocation an affiliate, if any, reporting no positive taxable
  1 12 income on the consolidated income tax return.  The board shall
  1 13 include the lesser of the amount of income tax in the revenues
  1 14 of the public utility calculated under this paragraph or the
  1 15 income tax liability of the public utility calculated as
  1 16 though the utility did not participate in the filing of a
  1 17 consolidated income tax return with an affiliate.
  1 18                           EXPLANATION
  1 19    This bill relates to the reporting of income taxes by a
  1 20 public utility.  The bill requires the board to calculate the
  1 21 amount of income tax liability of a public utility that files
  1 22 a consolidated tax return with an affiliate as a proportional
  1 23 share of the total income tax liability of the return based on
  1 24 the positive taxable income of the public utility and
  1 25 affiliate.  The bill requires the board to use for determining
  1 26 rates the lesser of the amount of calculated proportional
  1 27 share of public utility from a consolidated tax return or the
  1 28 amount of income tax liability of the public utility without
  1 29 considering whether or not the utility had filed a
  1 30 consolidated tax return.
  1 31 LSB 6028XS 81
  1 32 kk:nh/je/5