House Study Bill 544 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act updating the Code references to the Internal Revenue 1 Code, and including effective date and retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5300DP (2) 84 mm/sc

S.F. _____ H.F. _____ Section 1. Section 15.335, subsection 7, paragraph b, Code 1 Supplement 2011, is amended to read as follows: 2 b. For purposes of this section , “Internal Revenue Code” 3 means the Internal Revenue Code in effect on January 1, 2011 4 2012 . 5 Sec. 2. Section 15A.9, subsection 8, paragraph e, 6 subparagraph (2), Code Supplement 2011, is amended to read as 7 follows: 8 (2) For purposes of this subsection , “Internal Revenue Code” 9 means the Internal Revenue Code in effect on January 1, 2011 10 2012 . 11 Sec. 3. Section 422.3, subsection 5, Code Supplement 2011, 12 is amended to read as follows: 13 5. “Internal Revenue Code” means the Internal Revenue Code 14 of 1954, prior to the date of its redesignation as the Internal 15 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 16 the Internal Revenue Code of 1986 as amended to and including 17 January 1, 2011 2012 . 18 Sec. 4. Section 422.10, subsection 3, paragraph b, Code 19 Supplement 2011, is amended to read as follows: 20 b. For purposes of this section , “Internal Revenue Code” 21 means the Internal Revenue Code in effect on January 1, 2011 22 2012 . 23 Sec. 5. Section 422.32, subsection 1, paragraph g, Code 24 Supplement 2011, is amended to read as follows: 25 g. “Internal Revenue Code” means the Internal Revenue Code 26 of 1954, prior to the date of its redesignation as the Internal 27 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 28 the Internal Revenue Code of 1986 as amended to and including 29 January 1, 2011 2012 . 30 Sec. 6. Section 422.33, subsection 5, paragraph d, 31 subparagraph (2), Code Supplement 2011, is amended to read as 32 follows: 33 (2) For purposes of this subsection , “Internal Revenue Code” 34 means the Internal Revenue Code in effect on January 1, 2011 35 -1- LSB 5300DP (2) 84 mm/sc 1/ 2

S.F. _____ H.F. _____ 2012 . 1 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 Sec. 8. RETROACTIVE APPLICABILITY. This Act applies 4 retroactively to January 1, 2011, for tax years beginning on 5 or after that date. 6 EXPLANATION 7 This bill updates the Iowa Code references to the Internal 8 Revenue Code to make federal income tax revisions enacted by 9 Congress in 2011 applicable for Iowa income tax purposes. 10 Code sections 422.3 and 422.32, general definitions 11 sections in the chapter of the Code that governs corporate 12 and individual income tax and the franchise tax on financial 13 institutions, are amended to update the references to the 14 Internal Revenue Code to make certain federal income tax 15 revisions enacted by Congress in 2011 applicable for purposes 16 of the corporate and individual income taxes and the franchise 17 tax on financial institutions. 18 Code sections 15.335, 15A.9, 422.10, and 422.33 are amended 19 to update the Internal Revenue Code references to the state 20 research activities credit for individuals, corporations, 21 corporations in economic development areas, and corporations 22 in quality jobs enterprise zones to include the 2011 federal 23 changes to the research activities credit and the alternative 24 simplified research activities credit. 25 The bill takes effect upon enactment and applies 26 retroactively to January 1, 2011, for tax years beginning on 27 or after that date. 28 -2- LSB 5300DP (2) 84 mm/sc 2/ 2