SF 2334 (LSB 5934XS (2) 85)

SENATE FILE 2334

BY  ZAUN

A BILL FOR

An Act exempting from the individual income tax the wages of individuals who provide services to disabled individuals and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  18.  Subtract the amount of wages received by an individual from an organization organized under chapter 504 and qualifying under section 501(c)(3) of the Internal Revenue Code as an organization exempt from federal income tax under section 501(a) of the Internal Revenue Code for services provided to individuals domiciled in this state who have a physical or mental impairment which substantially limits one or more major life activities.
    Sec. 2.  EFFECTIVE DATE.  This Act takes effect January 1, 2015.
    Sec. 3.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2015. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill exempts from the individual income tax wages received by an individual from a nonprofit, tax-exempt organization organized under Code chapter 504 (revised Iowa nonprofit corporation Act) for services provided to individuals domiciled in this state who have a physical or mental impairment which substantially limits one or more major life activities.
   The bill takes effect January 1, 2015, and applies to tax years beginning on or after that date.