HSB 125 (LSB 1473YC (2) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON BAUDLER)

A BILL FOR

An Act providing for an individual income tax credit for the purchase of a gun safe under certain conditions and including effective date and retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.11E  Gun safe tax credit.
   1.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a gun safe tax credit equal to fifty percent of the purchase price of a qualified gun safe, not to exceed one thousand dollars. For purposes of this section, “qualified gun safe” means a safe specifically manufactured to store firearms and constructed of steel or a material of equal or greater strength, which safe is purchased new from a firearm dealer licensed under federal law, or a retailer as defined in section 423.1, and which safe is purchased for the personal, noncommercial use of the taxpayer.
   2.  Any credit in excess of the taxpayer’s tax liability for the tax year is not refundable but may be credited to the tax liability for the following five years or until depleted, whichever occurs first. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer claims the credit.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  APPLICABILITY.  This Act applies to a qualified gun safe purchased on or after the effective date of this Act.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2013, for tax years beginning on or after that date.
EXPLANATION
   This bill creates an individual income tax credit for the purchase of a qualified gun safe. “Qualified gun safe” is defined as a safe specifically manufactured to store firearms and constructed of steel or a material of equal or greater strength, which safe is purchased new from a firearm dealer licensed under federal law, or a retailer as defined in Code section 423.1, and which is purchased for the personal, noncommercial use of the taxpayer.
   The credit is equal to 50 percent of the purchase price, not to exceed $1,000. Any credit in excess of the taxpayer’s liability is not refundable but may be carried forward for five years or until depleted, whichever occurs first.
   The bill takes effect upon enactment and applies to qualified gun safes purchased on or after that date, and applies retroactively to January 1, 2013, for tax years beginning on or after that date.