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 2 35 mg/sc/14