House File 812 - Introduced



                                     HOUSE FILE       
                                     BY  COMMITTEE ON ECONOMIC GROWTH

                                     (SUCCESSOR TO HF 456)


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

                                      A BILL FOR

  1 An Act relating to income tax deductions for the sale or
  2    charitable contribution of art and including a retroactive
  3    applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2055HV 82
  6 tm/je/5

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2007, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  50.  a.  Subtract, to the extent not
  1  4 otherwise excluded, the appraised value of a work of fine art
  1  5 or written material that is a charitable contribution donated
  1  6 by the artist or author.
  1  7    b.  For purposes of this subsection, unless the context
  1  8 otherwise requires:
  1  9    (1)  "Artist" and "fine art" mean the same as those terms
  1 10 are defined in section 556D.1.
  1 11    (2)  "Charitable contribution" means the same as that term
  1 12 is defined in section 170(c) of the Internal Revenue Code,
  1 13 excluding a contribution or gift to or for the use of a public
  1 14 entity described in section 170(c) of the Internal Revenue
  1 15 Code.
  1 16    (3)  "Written material" means an article, book, essay,
  1 17 poetry, play, script, or story written by an individual on a
  1 18 professional, freelance basis and not as an employee of
  1 19 another person.
  1 20    NEW SUBSECTION.  51.  Subtract, to the extent not otherwise
  1 21 excluded, the first twenty=five thousand dollars of the gain
  1 22 from the sale of a unique work of art, provided the artist
  1 23 lives and works in a cultural and entertainment district
  1 24 certified pursuant to section 303.3B.
  1 25    Sec. 2.  RETROACTIVE APPLICABILITY.  The section of this
  1 26 Act amending section 422.7, relating to income tax deductions,
  1 27 applies retroactively to January 1, 2007, for tax years
  1 28 beginning on or after that date.
  1 29                           EXPLANATION
  1 30    This bill relates to income tax deductions for the sale or
  1 31 charitable contribution of art.
  1 32    The bill allows a taxpayer to exempt from income the amount
  1 33 of the appraised value of a work of fine art or written
  1 34 material that is a charitable contribution donated by the
  1 35 artist or author.  The deduction applies retroactively to
  2  1 January 1, 2007, for tax years beginning on or after that
  2  2 date.
  2  3    The bill allows a taxpayer to exempt from income an amount
  2  4 up to $25,000 of the gain from the sale of a unique work of
  2  5 art, provided the artist lives and works in a cultural and
  2  6 entertainment district.  The deduction applies retroactively
  2  7 to January 1, 2007, for tax years beginning on or after that
  2  8 date.
  2  9 LSB 2055HV 82
  2 10 tm:sc/je/5