Senate File 529 - Introduced SENATE FILE 529 BY CHELGREN A BILL FOR An Act excluding from the computation of net income for state 1 tax purposes the net capital gain from sales or exchanges of 2 assets and including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2372XS (2) 84 tw/sc

S.F. 529 Section 1. Section 422.7, subsection 21, Code 2011, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 21. Subtract, to the extent not otherwise excluded, the 4 taxpayer’s net capital gain as defined in section 1222 of the 5 Internal Revenue Code. 6 Sec. 2. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 7 APPLICABILITY. This Act, being deemed of immediate importance, 8 takes effect upon enactment and applies retroactively to 9 January 1, 2011, for tax years beginning on or after that date. 10 EXPLANATION 11 This bill eliminates the taxation of an individual’s net 12 capital gain under the individual income tax. An individual’s 13 net capital gain equals the excess of the gains from the sales 14 or exchanges of long-term capital assets over the losses from 15 such sales or exchanges minus the excess of losses from the 16 sales or exchanges of short-term capital assets over the gains 17 from such sales or exchanges. 18 The bill takes effect upon enactment and applies 19 retroactively to January 1, 2011, for tax years beginning on 20 or after that date. 21 -1- LSB 2372XS (2) 84 tw/sc 1/ 1