House File 916 - Introduced



                                       HOUSE FILE       
                                       BY  BELL

                                       (COMPANION TO LSB 2165SS BY
                                        BLACK)


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

                                      A BILL FOR

  1 An Act excluding certain severance pay from the individual income
  2    tax and including a retroactive applicability date provision.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2165HH 82
  5 mg/es/88

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  50.  Subtract, to the extent included, the
  1  4 amount of separation allowance, severance pay, dismissal pay,
  1  5 or similar remuneration received by the taxpayer from an
  1  6 employer as a result of the taxpayer's loss of employment.
  1  7    This subsection does not apply to a taxpayer who was
  1  8 employed in a management position.
  1  9    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 10 retroactively to January 1, 2007, for tax years beginning on
  1 11 or after that date.
  1 12                           EXPLANATION
  1 13    This bill excludes from the individual income tax severance
  1 14 pay, separation allowance, or dismissal pay received from an
  1 15 employer as a result of the taxpayer's loss of employment if
  1 16 the taxpayer is a nonmanagerial worker.
  1 17    The bill applies retroactively to January 1, 2007, for tax
  1 18 years beginning on or after that date.
  1 19 LSB 2165HH 82
  1 20 mg:sc/es/88