Senate Study Bill 3059 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 date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5496DP 82 6 sc/rj/5 PAG LIN 1 1 Section 1. Section 15.335, subsection 4, unnumbered 1 2 paragraph 2, Code Supplement 2007, is amended to read as 1 3 follows: 1 4 For purposes of this section, "Internal Revenue Code" means 1 5 the Internal Revenue Code in effect on January 1,20072008. 1 6 Sec. 2. Section 15A.9, subsection 8, paragraph e, 1 7 unnumbered paragraph 2, Code Supplement 2007, is amended to 1 8 read as follows: 1 9 For purposes of this subsection, "Internal Revenue Code" 1 10 means the Internal Revenue Code in effect on January 1,20071 11 2008. 1 12 Sec. 3. Section 422.3, subsection 5, Code Supplement 2007, 1 13 is amended to read as follows: 1 14 5. "Internal Revenue Code" means the Internal Revenue Code 1 15 of 1954, prior to the date of its redesignation as the 1 16 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 1 17 or means the Internal Revenue Code of 1986 as amended to and 1 18 including January 1,20072008. 1 19 Sec. 4. Section 422.10, subsection 3, unnumbered paragraph 1 20 2, Code Supplement 2007, is amended to read as follows: 1 21 For purposes of this section, "Internal Revenue Code" means 1 22 the Internal Revenue Code in effect on January 1,20072008. 1 23 Sec. 5. Section 422.32, subsection 7, Code Supplement 1 24 2007, is amended to read as follows: 1 25 7. "Internal Revenue Code" means the Internal Revenue Code 1 26 of 1954, prior to the date of its redesignation as the 1 27 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 1 28 or means the Internal Revenue Code of 1986 as amended to and 1 29 including January 1,20072008. 1 30 Sec. 6. Section 422.33, subsection 5, paragraph d, 1 31 unnumbered paragraph 2, Code Supplement 2007, is amended to 1 32 read as follows: 1 33 For purposes of this subsection, "Internal Revenue Code" 1 34 means the Internal Revenue Code in effect on January 1,20071 35 2008. 2 1 Sec. 7. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 2 2 This Act, being deemed of immediate importance, takes effect 2 3 upon enactment and applies retroactively to January 1, 2007, 2 4 for tax years beginning on or after that date. 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 2007 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 2007 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, 2007, for tax years beginning on 2 21 or after that date. 2 22 LSB 5496DP 82 2 23 sc/rj/5