House File 2021 - Introduced
HOUSE FILE
BY ZIRKELBACH
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing an income tax credit for a fitness club
2 membership purchased by a member of the Iowa national guard or
3 a volunteer fire fighter and including effective and
4 retroactive applicability date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 5113HH 82
7 mg/sc/14
PAG LIN
1 1 Section 1. NEW SECTION. 422.11V FITNESS CLUB MEMBERSHIP
1 2 TAX CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under section 422.12, shall be reduced by a fitness
1 5 club membership tax credit for members of the Iowa national
1 6 guard and for volunteer fire fighters. The amount of the tax
1 7 credit equals twenty=five percent of the contract price paid
1 8 by the member of the Iowa national guard or volunteer fire
1 9 fighter, not to exceed one hundred dollars, for membership in
1 10 or use of services or facilities of a fitness club.
1 11 2. For purposes of this section:
1 12 a. "Contract price" means the same as defined in section
1 13 552.1.
1 14 b. "Fitness club" means a physical exercise club as
1 15 defined in section 552.1, except that it includes a physical
1 16 exercise club owned by a nonprofit organization organized and
1 17 operating as a nonprofit organization.
1 18 c. "Volunteer fire fighter" means a volunteer fire fighter
1 19 as defined in section 85.61 who has met the minimum training
1 20 standards established by the fire service training bureau
1 21 pursuant to chapter 100B.
1 22 3. If a credit is taken under this section, the amount of
1 23 the credit shall not be considered medical care expenses under
1 24 section 213 of the Internal Revenue Code for state tax
1 25 purposes.
1 26 4. Any credit in excess of the tax liability is not
1 27 refundable but the excess for the tax year may be credited to
1 28 the tax liability for the following five tax years or until
1 29 depleted, whichever is the earlier.
1 30 5. Married taxpayers who file separate returns or file
1 31 separately on a combined return form must determine the tax
1 32 credit under subsection 1 based upon their combined net income
1 33 and allocate the total credit amount to each spouse in the
1 34 proportion that each spouse's respective net income bears to
1 35 the total combined net income. Nonresidents or part=year
2 1 residents of Iowa must determine their tax credit in the ratio
2 2 of their Iowa source net income to their all source net
2 3 income. Nonresidents or part=year residents who are married
2 4 and elect to file separate returns or to file separately on a
2 5 combined return form must allocate the tax credit between the
2 6 spouses in the ratio of each spouse's Iowa source net income
2 7 to the combined Iowa source net income of the taxpayers.
2 8 Sec. 2. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
2 9 This Act, being deemed of immediate importance, takes effect
2 10 upon enactment and applies retroactively to January 1, 2008,
2 11 for tax years beginning on or after that date.
2 12 EXPLANATION
2 13 This bill provides an individual income tax credit of 25
2 14 percent, up to $100, of the purchase of a membership in or
2 15 paid for the use of services or facilities of a fitness club.
2 16 For purposes of the bill, a fitness club is defined as a
2 17 physical exercise club as defined in Code section 552.1.
2 18 Examples of physical exercise clubs are facilities commonly
2 19 used for physical fitness or well=being and referred to as
2 20 health spas, sports and health clubs, tennis clubs,
2 21 racquetball courts, golf clubs, gymnasiums, figure salons,
2 22 health studies, and weight control studios. Certain
2 23 facilities are not included. These include a private club
2 24 owned and operated by its members, an entity primarily engaged
2 25 in rehabilitation services, or a facility where the membership
2 26 is for 30 days or less. The tax credit is only available for
2 27 memberships purchased by members of the Iowa national guard or
2 28 by volunteer fire fighters. The tax credit is nonrefundable
2 29 but can be carried forward for up to five tax years until
2 30 depleted.
2 31 The bill takes effect upon enactment and applies
2 32 retroactively to January 1, 2008, for tax years beginning on
2 33 or after that date.
2 34 LSB 5113HH 82
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