House Study Bill 107 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            REVENUE BILL)


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

                                      A BILL FOR

  1 An Act updating the Code references to the Internal Revenue Code
  2    and including effective date and retroactive applicability
  3    provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1273DP 82
  6 mg/je/5

PAG LIN



  1  1    Section 1.  Section 15.335, subsection 4, unnumbered
  1  2 paragraph 2, Code 2007, is amended to read as follows:
  1  3    For purposes of this section, "Internal Revenue Code" means
  1  4 the Internal Revenue Code in effect on January 1, 2006 2007.
  1  5    Sec. 2.  Section 15A.9, subsection 8, paragraph e,
  1  6 unnumbered paragraph 2, Code 2007, is amended to read as
  1  7 follows:
  1  8    For purposes of this subsection, "Internal Revenue Code"
  1  9 means the Internal Revenue Code in effect on January 1, 2006
  1 10 2007.
  1 11    Sec. 3.  Section 422.3, subsection 5, Code 2007, is amended
  1 12 to read as follows:
  1 13    5.  "Internal Revenue Code" means the Internal Revenue Code
  1 14 of 1954, prior to the date of its redesignation as the
  1 15 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  1 16 or means the Internal Revenue Code of 1986 as amended to and
  1 17 including January 1, 2006 2007.
  1 18    Sec. 4.  Section 422.10, subsection 3, unnumbered paragraph
  1 19 2, Code 2007, is amended to read as follows:
  1 20    For purposes of this section, "Internal Revenue Code" means
  1 21 the Internal Revenue Code in effect on January 1, 2006 2007.
  1 22    Sec. 5.  Section 422.32, subsection 7, Code 2007, is
  1 23 amended to read as follows:
  1 24    7.  "Internal Revenue Code" means the Internal Revenue Code
  1 25 of 1954, prior to the date of its redesignation as the
  1 26 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  1 27 or means the Internal Revenue Code of 1986 as amended to and
  1 28 including January 1, 2006 2007.
  1 29    Sec. 6.  Section 422.33, subsection 5, paragraph d,
  1 30 unnumbered paragraph 2, Code 2007, is amended to read as
  1 31 follows:
  1 32    For purposes of this subsection, "Internal Revenue Code"
  1 33 means the Internal Revenue Code in effect on January 1, 2006
  1 34 2007.
  1 35    Sec. 7.  RETROACTIVE APPLICABILITY.  This Act applies
  2  1 retroactively to January 1, 2006, for tax years beginning on
  2  2 or after that date.
  2  3    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of
  2  4 immediate importance, takes effect upon enactment.
  2  5                           EXPLANATION
  2  6    This bill updates the references to the Internal Revenue
  2  7 Code to make the federal income tax revisions enacted by
  2  8 Congress in 2006 applicable for Iowa income tax purposes.
  2  9 Code sections 422.3 and 422.32, general definition sections in
  2 10 the income tax chapter of the Code, are amended to update the
  2 11 reference to the Internal Revenue Code.
  2 12    Code sections 15.335, 15A.9, 422.10 and 422.33 are amended
  2 13 to update the Code references to the state research activities
  2 14 credit for individuals, corporations, corporations in economic
  2 15 development areas, and corporations in quality jobs enterprise
  2 16 zones to include the 2006 federal changes in the research
  2 17 activities credit and the alternative incremental research
  2 18 credit.
  2 19    The bill takes effect upon enactment and applies
  2 20 retroactively to January 1, 2006, for tax years beginning on
  2 21 or after that date.
  2 22 LSB 1273DP 82
  2 23 mg:rj/je/5.1