Senate
File
397
-
Introduced
SENATE
FILE
397
BY
EDLER
A
BILL
FOR
An
Act
coupling
for
Iowa
tax
purposes
with
certain
federal
1
changes
made
to
the
expensing
of
certain
depreciable
2
business
assets
under
section
179
of
the
Internal
Revenue
3
Code,
and
including
effective
date
and
retroactive
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
2386XS
(2)
87
mm/sc/rn
S.F.
397
Section
1.
Section
422.7,
Code
2017,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
52.
Notwithstanding
any
provision
of
law
3
to
the
contrary,
a
taxpayer
is
allowed
to
take
the
increased
4
expensing
allowance
under
section
179
of
the
Internal
Revenue
5
Code,
as
amended
by
Pub.
L.
No.
114-113,
§124,
in
computing
6
adjusted
gross
income
for
state
tax
purposes.
7
Sec.
2.
Section
422.35,
Code
2017,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
26.
Notwithstanding
any
provision
of
law
10
to
the
contrary,
a
taxpayer
is
allowed
to
take
the
increased
11
expensing
allowance
under
section
179
of
the
Internal
Revenue
12
Code,
as
amended
by
Pub.
L.
No.
114-113,
§124,
in
computing
13
taxable
income
for
state
tax
purposes.
14
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
15
immediate
importance,
takes
effect
upon
enactment.
16
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
17
retroactively
to
January
1,
2016,
for
tax
years
beginning
on
18
or
after
that
date.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
couples
for
the
Iowa
individual
and
corporate
23
income
tax
and
franchise
tax
with
federal
changes
made
to
the
24
expensing
of
certain
depreciable
business
assets
under
section
25
179
of
the
Internal
Revenue
Code
in
the
federal
Protecting
26
Americans
from
Tax
Hikes
Act
of
2015
(PATH
Act)
for
tax
years
27
beginning
on
or
after
January
1,
2016.
The
PATH
Act,
in
part,
28
increased
the
maximum
section
179
deduction
from
$25,000
to
29
$500,000,
and
increased
the
investment
limitation
at
which
the
30
amount
of
the
deduction
begins
to
be
reduced
from
$200,000
to
31
$2
million,
for
tax
years
beginning
in
2015
or
later.
The
32
PATH
Act
also
made
these
increases
permanent
and
provided
for
33
adjustments
to
these
amounts
in
the
future
for
inflation.
34
The
bill
takes
effect
upon
enactment
and
applies
35
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2386XS
(2)
87
mm/sc/rn
1/
2
S.F.
397
retroactively
to
tax
years
beginning
on
or
after
January
1,
1
2016.
2
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2386XS
(2)
87
mm/sc/rn
2/
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