Senate Study Bill 1059 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 1,20062007. 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 1,20061 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 1,20062007. 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 1,20062007. 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 1,20062007. 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 1,20061 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