Senate File 191 - Introduced SENATE FILE 191 BY ZAUN A BILL FOR An Act exempting from the individual income tax the wages of 1 individuals who provide services to disabled individuals and 2 including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1616XS (1) 87 mm/sc
S.F. 191 Section 1. Section 422.7, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 18. Subtract the amount of wages received 3 by an individual from an organization organized under chapter 4 504 and qualifying under section 501(c)(3) of the Internal 5 Revenue Code as an organization exempt from federal income tax 6 under section 501(a) of the Internal Revenue Code for services 7 provided to individuals domiciled in this state who have a 8 physical or mental impairment that substantially limits one or 9 more major life activities. 10 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 11 2018. 12 Sec. 3. APPLICABILITY. This Act applies to tax years 13 beginning on or after January 1, 2018. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill exempts from the individual income tax wages 18 received by an individual from a nonprofit, tax-exempt 19 organization organized under Code chapter 504 (revised Iowa 20 nonprofit corporation Act) for services provided to individuals 21 domiciled in this state who have a physical or mental 22 impairment that substantially limits one or more major life 23 activities. 24 The bill takes effect January 1, 2018, and applies to tax 25 years beginning on or after that date. 26 -1- LSB 1616XS (1) 87 mm/sc 1/ 1