Senate
File
2419
-
Introduced
SENATE
FILE
2419
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3202)
A
BILL
FOR
An
Act
relating
to
state
and
local
taxation
and
regulation,
the
1
Iowa
reinvestment
Act,
innovation
fund,
hunting
and
fees,
2
and
providing
for
properly
related
matters,
and
including
3
effective
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS
2
Section
1.
Section
421.6,
Code
2020,
is
amended
to
read
as
3
follows:
4
421.6
Definition
of
return.
5
For
purposes
of
this
title
,
unless
the
context
otherwise
6
requires,
“return”
means
any
tax
or
information
return,
amended
7
return,
declaration
of
estimated
tax,
or
claim
for
refund
8
that
is
required
by,
provided
for,
or
permitted
under,
the
9
provisions
of
this
title
or
section
533.329,
and
which
is
filed
10
with
the
department
by,
on
behalf
of,
or
with
respect
to
any
11
person.
“Return”
includes
any
amendment
or
supplement
to
these
12
items,
including
supporting
schedules,
attachments,
or
lists
13
which
are
supplemental
to
or
part
of
the
filed
return.
14
Sec.
2.
Section
421.17,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
36.
To
enter
into
an
agreement
pursuant
17
to
chapter
28E
with
the
state
fair
organized
under
chapter
173
18
or
with
a
fair
defined
in
section
174.1,
to
collect
and
remit
19
taxes
and
fees
from
sellers
making
sales
at
retail
on
property
20
owned,
controlled,
or
operated
by
a
fair
or
through
events
21
conducted
by
a
fair.
22
Sec.
3.
Section
421.27,
subsections
1,
4,
and
6,
Code
2020,
23
are
amended
to
read
as
follows:
24
1.
Failure
to
timely
file
a
return
or
deposit
form.
a.
If
25
a
person
fails
to
file
with
the
department
on
or
before
the
due
26
date
a
return
or
deposit
form
there
shall
be
added
to
the
tax
27
shown
due
or
required
to
be
shown
due
a
penalty
of
ten
percent
28
of
the
tax
shown
due
or
required
to
be
shown
due.
29
b.
In
the
case
of
a
specified
business
with
no
tax
shown
30
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
31
income
return,
the
specified
business
shall
pay
the
greater
of
32
the
following
penalty
amounts:
33
(1)
Two
hundred
dollars.
34
(2)
An
amount
equal
to
ten
percent
of
the
imputed
Iowa
35
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liability
of
the
specified
business,
not
to
exceed
twenty-five
1
thousand
dollars.
2
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
3
“b”
,
shall
be
waived
by
the
department
upon
a
showing
of
any
of
4
the
following
conditions:
5
a.
(1)
At
An
amount
of
tax
greater
than
zero
is
required
to
6
be
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
7
be
shown
due
has
been
paid
by
the
due
date
of
the
tax.
8
b.
(2)
Those
taxpayers
who
are
required
to
file
quarterly
9
returns,
or
monthly
or
semimonthly
deposit
forms
may
have
one
10
late
return
or
deposit
form
within
a
three-year
period.
The
11
use
of
any
other
penalty
exception
will
not
count
as
a
late
12
return
or
deposit
form
for
purposes
of
this
exception.
13
c.
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
14
the
immediate
family
of
the
taxpayer,
or
death
of
the
person
15
directly
responsible
for
filing
the
return
and
paying
the
tax,
16
when
the
death
interferes
with
timely
filing.
17
d.
(4)
The
onset
of
serious,
long-term
illness
or
18
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
19
family
of
the
taxpayer,
or
of
the
person
directly
responsible
20
for
filing
the
return
and
paying
the
tax.
21
e.
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
22
of
God.
23
f.
(6)
The
taxpayer
presents
proof
that
the
taxpayer
24
relied
upon
applicable,
documented,
written
advice
specifically
25
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
26
association
representative
of
the
taxpayer
from
the
department,
27
state
department
of
transportation,
county
treasurer,
or
28
federal
internal
revenue
service,
whichever
is
appropriate,
29
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
30
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
31
a
rule
or
law.
32
g.
(7)
Reliance
upon
results
in
a
previous
audit
was
a
33
direct
cause
for
the
failure
to
file
where
the
previous
audit
34
expressly
and
clearly
addressed
the
issue
and
the
previous
35
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audit
results
have
not
been
superseded
by
a
court
decision,
or
1
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
2
h.
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
3
presents
documented
proof
of
substantial
authority
to
rely
4
upon
a
particular
position
or
upon
proof
that
all
facts
and
5
circumstances
are
disclosed
on
a
return
or
deposit
form.
6
i.
(9)
The
return,
deposit
form,
or
payment
is
timely,
7
but
erroneously,
mailed
with
adequate
postage
to
the
internal
8
revenue
service,
another
state
agency,
or
a
local
government
9
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
10
adequate
postage.
11
j.
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
12
payments
were
timely
remitted
to
the
department
for
one
or
more
13
tax
periods
prior
to
notification
by
the
department.
14
k.
(11)
The
failure
to
file
was
discovered
through
a
15
sanctioned
self-audit
program
conducted
by
the
department.
16
l.
(12)
If
the
availability
of
funds
in
payment
of
tax
17
required
to
be
made
through
electronic
funds
transfer
is
18
delayed
and
the
delay
of
availability
is
due
to
reasons
beyond
19
the
control
of
the
taxpayer.
“Electronic
funds
transfer”
means
20
any
transfer
of
funds,
other
than
a
transaction
originated
21
by
check,
draft,
or
similar
paper
instrument,
that
is
22
initiated
through
an
electronic
terminal
telephone,
computer,
23
magnetic
tape,
or
similar
device
for
the
purpose
of
ordering,
24
instructing,
or
authorizing
a
financial
institution
to
debit
or
25
credit
an
account.
26
m.
(13)
The
failure
to
file
a
timely
inheritance
tax
return
27
resulting
solely
from
a
disclaimer
that
required
the
personal
28
representative
to
file
an
inheritance
tax
return.
The
penalty
29
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
30
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
31
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
32
section
633E.12
.
33
n.
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
34
an
estate
within
the
later
of
nine
months
from
the
date
of
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death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
1
beneficiary
of
the
estate
refusing
to
take
the
property
or
2
right
or
interest
in
the
property.
3
4.
Willful
failure
to
file
or
deposit.
4
a.
(1)
In
case
of
willful
failure
to
file
a
return
5
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
6
requirement
,
or
in
case
of
willfully
filing
a
false
return
7
or
deposit
form
with
the
intent
to
evade
tax,
in
lieu
of
the
8
penalties
otherwise
provided
in
this
section
,
a
penalty
of
9
seventy-five
percent
shall
be
added
to
the
amount
shown
due
or
10
required
to
be
shown
as
tax
on
the
return
or
deposit
form.
11
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
12
file
an
income
return
with
no
tax
shown
due
or
required
to
be
13
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
14
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
15
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
16
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
17
of
the
following
amounts:
18
(a)
One
thousand
five
hundred
dollars.
19
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
20
Iowa
liability
of
the
specified
business.
21
(3)
If
penalties
are
applicable
for
failure
to
file
a
22
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
23
required
to
be
shown
due
on
the
return
or
deposit
form,
the
24
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
25
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
26
required
to
be
shown
due
on
the
return
or
deposit
form,
except
27
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
28
or
willfully
filing
a
false
return
or
deposit
form
with
intent
29
to
evade
tax.
30
b.
The
penalties
imposed
under
this
subsection
are
not
31
subject
to
waiver.
32
6.
Improper
receipt
of
payments
Liability
——
fraudulent
33
practice
.
A
person
who
makes
an
erroneous
application
for
34
refund,
credit,
reimbursement,
rebate,
or
other
payment
shall
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be
liable
for
any
overpayment
received
or
tax
liability
reduced
1
plus
interest
at
the
rate
in
effect
under
section
421.7
.
2
a.
In
addition,
a
person
who
willfully
commits
a
fraudulent
3
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
4
percent
of
the
refund,
credit,
exemption,
reimbursement,
5
rebate,
or
other
payment
or
benefit
being
claimed
if
the
person
6
does
any
of
the
following:
7
(1)
Willfully
makes
a
false
or
frivolous
application
for
8
refund,
credit,
reimbursement,
rebate,
or
other
payment
or
9
benefit
with
intent
to
evade
tax
or
with
intent
to
receive
10
a
refund,
credit,
reimbursement,
rebate,
or
other
payment
or
11
benefit,
to
which
the
person
is
not
entitled
is
guilty
of
12
a
fraudulent
practice
and
is
liable
for
a
penalty
equal
to
13
seventy-five
percent
of
the
refund,
credit,
reimbursement,
14
rebate,
or
other
payment
being
claimed
.
15
(2)
Willfully
submits
any
false
information,
document,
16
or
document
containing
false
information
in
support
of
an
17
application
for
refund,
credit,
exemption,
reimbursement,
18
rebate,
or
other
payment
or
benefit
with
the
intent
to
evade
19
tax.
20
(3)
Willfully
submits
with
any
false
information,
document,
21
or
document
containing
false
information
in
support
of
an
22
application
for
refund
with
the
intent
to
receive
a
refund,
23
credit,
exemption,
reimbursement,
rebate,
or
other
payment
24
benefit,
to
which
the
person
is
not
entitled.
25
b.
Payments,
penalties,
and
interest
due
under
this
26
subsection
may
be
collected
and
enforced
in
the
same
manner
as
27
the
tax
imposed.
28
Sec.
4.
Section
421.27,
Code
2020,
is
amended
by
adding
the
29
following
new
subsections:
30
NEW
SUBSECTION
.
8.
Definitions.
As
used
in
this
section:
31
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
32
(1)
In
the
case
of
corporations
other
than
corporations
33
described
in
section
422.34
or
section
422.36,
subsection
5,
34
the
corporation’s
Iowa
net
income
after
the
application
of
the
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Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
1
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
2
year.
3
(2)
In
the
case
of
financial
institutions
as
defined
in
4
section
422.61,
the
financial
institution’s
Iowa
net
income
5
after
the
application
of
the
Iowa
business
activity
ratio,
if
6
applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
7
section
422.63
for
the
tax
year.
8
(3)
In
the
case
of
all
other
entities,
including
9
corporations
described
in
section
422.36,
subsection
5,
and
all
10
other
entities
required
to
file
an
information
return
under
11
section
422.15,
subsection
2,
the
entity’s
Iowa
net
income
12
after
the
application
of
the
Iowa
business
activity
ratio,
if
13
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
14
section
422.5A
for
the
tax
year.
15
b.
“Income
return”
means
an
income
tax
return
or
information
16
return
required
under
section
422.15,
subsection
2,
or
section
17
422.36,
422.37,
or
422.62.
18
c.
“Specified
business”
means
a
partnership
or
other
entity
19
required
to
file
an
information
return
under
section
422.15,
20
subsection
2,
a
corporation
required
to
file
a
return
under
21
section
422.36
or
422.37,
or
a
financial
institution
required
22
to
file
a
return
under
section
422.62.
23
NEW
SUBSECTION
.
9.
Additional
penalty.
In
addition
to
the
24
penalties
imposed
by
this
section,
if
a
taxpayer
fails
to
file
25
a
return
within
ninety
days
of
written
notice
by
the
department
26
that
the
taxpayer
is
required
to
do
so,
there
shall
be
added
to
27
the
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
28
the
amount
of
one
thousand
dollars.
29
Sec.
5.
NEW
SECTION
.
421.27A
Perjury.
30
1.
For
purposes
of
this
title,
a
form,
application,
or
any
31
other
documentation
required
or
requested
by
the
department
32
shall
be
required
to
be
certified
under
penalty
of
perjury
that
33
the
information
contained
in
the
form,
application,
or
other
34
documentation
is
true
and
correct.
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2.
A
person
commits
a
class
“D”
felony
under
any
of
the
1
following
circumstances:
2
a.
The
person
makes
a
form,
application,
or
other
document
3
containing
false
information
in
support
of
an
application
for
4
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
5
payment
or
benefit
with
intent
to
evade
tax.
6
b.
The
person
makes
a
form,
application,
or
other
document
7
containing
false
information
with
intent
to
unlawfully
receive
8
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
9
payment
or
benefit,
to
which
the
person
is
not
entitled.
10
c.
The
person
knowingly
makes
any
false
affidavit.
11
d.
The
person
knowingly
swears
or
affirms
falsely
to
any
12
matter
or
thing
required
by
the
terms
of
this
title
to
be
sworn
13
to
or
affirmed.
14
Sec.
6.
NEW
SECTION
.
421.59
Power
of
attorney
——
authority
15
to
act
on
behalf
of
taxpayer.
16
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
17
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
18
department,
on
a
form
prescribed
by
the
department.
19
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
20
filed
with
the
department
pursuant
to
subsection
1.
Upon
21
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
22
the
department
shall
cease
honoring
the
power
of
attorney.
23
2.
The
department
may
authorize
the
following
persons
to
act
24
and
receive
information
on
behalf
of
and
exercise
all
of
the
25
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
26
has
been
filed
pursuant
to
subsection
1:
27
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
28
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
29
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
30
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
31
the
order
of
appointment.
32
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
33
a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
34
order
appointing
the
guardian,
conservator,
or
custodian.
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(2)
The
department
may
petition
the
court
that
appointed
the
1
guardian,
conservator,
or
custodian
to
verify
the
appointment
2
or
to
determine
the
scope
of
the
appointment.
3
b.
A
receiver
appointed
pursuant
to
chapter
680.
An
4
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
5
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
6
(1)
Upon
the
request
of
the
department,
a
receiver
shall
7
submit
to
the
department
a
copy
of
the
court
order
appointing
8
the
receiver.
9
(2)
The
department
may
petition
the
court
that
appointed
the
10
receiver
to
verify
the
appointment
or
to
determine
the
scope
11
of
the
appointment.
12
c.
An
individual
who
has
been
named
as
an
authorized
13
representative
on
a
fiduciary
return
of
income
filed
under
14
section
422.14
or
a
tax
return
filed
under
chapter
450.
15
d.
(1)
An
individual
holding
the
following
title
or
16
position
within
a
corporation,
association,
partnership,
or
17
other
business
entity:
18
(a)
A
president
or
chief
executive
officer,
or
any
other
19
officer
of
the
corporation
or
association
if
the
president
or
20
chief
executive
officer
certifies
that
the
officer
has
the
21
authority
to
legally
bind
the
corporation
or
association.
22
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
23
of
the
partnership.
24
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
25
liability
company
in
tax
matters
pursuant
to
a
valid
statement
26
of
authority.
27
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
28
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
29
department
attesting
to
the
identity
and
qualifications
of
the
30
individual
and
any
necessary
certifications
required
under
this
31
paragraph.
The
department
may
require
any
documents
or
other
32
evidence
to
demonstrate
the
individual
has
authority
to
act
on
33
behalf
of
the
taxpayer
before
the
department.
34
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
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taxpayer
or
the
taxpayer’s
estate
in
a
court
proceeding.
1
Authorization
under
this
paragraph
is
limited
to
those
matters
2
within
the
scope
of
the
representation.
3
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
4
the
age
of
majority
where
the
parent
or
guardian
has
signed
the
5
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
6
under
this
paragraph
is
limited
to
those
matters
relating
to
7
the
return
signed
by
the
parent
or
guardian.
Authorization
8
under
this
paragraph
automatically
terminates
when
the
taxpayer
9
reaches
the
age
of
majority
pursuant
to
section
599.1.
10
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
11
to
subsection
1,
the
department
may
enter
into
a
memorandum
of
12
understanding
with
the
taxpayer
for
each
employee,
officer,
13
or
member
of
a
third-party
entity
engaged
with
or
otherwise
14
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
15
to
permit
the
disclosure
of
confidential
tax
information
to
16
the
third-party
entity
and
the
authority
to
act
on
behalf
of
17
the
taxpayer.
The
memorandum
of
understanding
shall
adhere
to
18
requirements
as
established
by
the
director.
19
b.
The
memorandum
of
understanding
shall
be
signed
by
20
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
21
authorized
representative
of
the
third-party
entity.
22
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
23
a
memorandum
of
understanding
entered
into
pursuant
to
24
this
subsection
by
filing
a
notice
of
revocation
with
the
25
department.
Upon
the
filing
of
such
a
revocation
by
the
26
taxpayer,
the
department
shall
cease
honoring
the
memorandum
27
of
understanding.
28
4.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
29
to
administer
this
section.
30
Sec.
7.
Section
421.60,
subsection
2,
paragraph
a,
31
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
32
(2)
The
statement
prepared
in
accordance
with
this
33
paragraph
shall
be
available
on
the
department’s
internet
site.
34
The
internet
site
for
this
information
shall
be
distributed
by
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the
department
to
all
taxpayers
at
the
first
contact
by
the
1
department
with
respect
to
the
determination
or
collection
of
2
any
tax,
except
in
the
case
of
simply
providing
tax
forms.
3
Sec.
8.
Section
421.60,
Code
2020,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
11.
Electronic
communication.
6
Notwithstanding
any
provision
of
the
law
to
the
contrary,
for
7
purposes
of
this
title
and
sections
321.105A
and
533.329,
a
8
taxpayer
may
elect
to
receive
any
notices,
correspondence,
9
or
other
communication
electronically
that
the
department
is
10
required
to
send
by
regular
mail.
The
director
may
establish
11
procedures
and
limitations
for
obtaining
this
election
from
the
12
taxpayer.
13
Sec.
9.
Section
421.62,
subsection
1,
Code
2020,
is
amended
14
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
0b.
“Income
tax
return
or
claim
for
refund”
16
means
any
tax
return
or
claim
for
refund
under
chapter
422,
17
excluding
withholding
returns
under
section
422.16.
18
Sec.
10.
Section
421.62,
subsection
1,
paragraph
c,
19
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
20
(1)
“Tax
return
preparer”
means
any
individual
who,
for
21
a
fee
or
other
consideration,
prepares
ten
or
more
income
22
tax
returns
or
claims
for
refund
under
chapter
422
during
23
a
calendar
year,
or
who
assumes
final
responsibility
for
24
completed
work
on
such
income
tax
returns
or
claims
for
refund
25
under
chapter
422
on
which
preliminary
work
has
been
done
by
26
another
individual.
27
Sec.
11.
Section
421.62,
subsection
2,
paragraph
a,
Code
28
2020,
is
amended
to
read
as
follows:
29
a.
On
or
after
January
1,
2020,
a
tax
return
preparer
30
is
required
to
include
the
tax
return
preparer’s
PTIN
on
31
any
income
tax
return
or
claim
for
refund
prepared
by
the
32
tax
return
preparer
and
filed
under
chapter
422
with
the
33
department
.
34
Sec.
12.
Section
421.64,
subsection
1,
Code
2020,
is
amended
35
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to
read
as
follows:
1
1.
For
purposes
of
this
section
,
“tax
return
preparer”
means
2
the
same
as
defined
in
section
421.61
421.62
.
3
Sec.
13.
Section
422.20,
subsections
1
and
2,
Code
2020,
are
4
amended
to
read
as
follows:
5
1.
It
shall
be
unlawful
for
any
present
or
former
officer
6
or
employee
of
the
state
to
willfully
or
recklessly
divulge
or
7
to
make
known
in
any
manner
whatever
not
provided
by
law
to
8
any
person
the
amount
or
source
of
income,
profits,
losses,
9
expenditures,
or
any
particular
thereof,
set
forth
or
disclosed
10
in
any
income
return,
or
to
permit
any
income
return
or
copy
11
thereof
or
any
book
containing
any
abstract
or
particulars
12
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
13
by
law;
and
it
shall
be
unlawful
for
any
person
to
willfully
or
14
recklessly
print
or
publish
in
any
manner
whatever
not
provided
15
by
law
any
income
return,
or
any
part
thereof
or
source
of
16
income,
profits,
losses,
or
expenditures
appearing
in
any
17
income
return;
and
any
person
committing
an
offense
against
the
18
foregoing
provision
shall
be
guilty
of
a
serious
misdemeanor.
19
If
the
offender
is
an
officer
or
employee
of
the
state,
such
20
person
shall
also
be
dismissed
from
office
or
discharged
from
21
employment.
Nothing
herein
shall
prohibit
turning
over
to
duly
22
authorized
officers
of
the
United
States
or
tax
officials
of
23
other
states
state
information
and
income
returns
pursuant
24
to
agreement
between
the
director
and
the
secretary
of
the
25
treasury
of
the
United
States
or
the
secretary’s
delegate
or
26
pursuant
to
a
reciprocal
agreement
with
another
state.
27
2.
It
is
unlawful
for
an
officer,
employee,
or
agent,
or
28
former
officer,
employee,
or
agent
of
the
state
to
willfully
29
or
recklessly
disclose
to
any
person,
except
as
authorized
30
in
subsection
1
of
this
section
,
any
federal
tax
return
31
or
return
information
as
defined
in
section
6103(b)
of
the
32
Internal
Revenue
Code.
It
is
unlawful
for
a
person
to
whom
33
any
federal
tax
return
or
return
information,
as
defined
in
34
section
6103(b)
of
the
Internal
Revenue
Code,
is
disclosed
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in
a
manner
unauthorized
by
subsection
1
of
this
section
1
to
thereafter
willfully
or
recklessly
print
or
publish
in
2
any
manner
not
provided
by
law
any
such
return
or
return
3
information.
A
person
violating
this
provision
is
guilty
of
4
a
serious
misdemeanor.
5
Sec.
14.
Section
422.20,
subsection
3,
paragraph
a,
Code
6
2020,
is
amended
to
read
as
follows:
7
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
8
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
9
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
10
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
11
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
12
421.19
,
421.28
,
421.59,
422.72
,
and
452A.63
,
this
section
,
or
13
another
provision
of
law,
a
tax
return,
return
information,
or
14
investigative
or
audit
information
shall
not
be
divulged
to
any
15
person
or
entity,
other
than
the
taxpayer,
the
department,
or
16
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
17
administration.
18
Sec.
15.
Section
422.20,
Code
2020,
is
amended
by
adding
the
19
following
new
subsections:
20
NEW
SUBSECTION
.
3A.
The
director
may
disclose
the
tax
21
return
of
a
partnership,
limited
liability
company,
or
S
22
corporation,
any
such
return
information,
or
any
investigative
23
information
related
to
the
return,
to
any
person
who
was
a
24
partner,
shareholder,
or
member
of
such
an
entity
during
any
25
part
of
the
period
covered
by
the
return.
26
NEW
SUBSECTION
.
3B.
a.
Prior
to
being
made
available
for
27
public
inspection,
the
department
shall
redact
from
the
record
28
in
an
appeal
or
contested
case
the
following
information
from
29
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
30
final
order,
decision,
or
opinion:
31
(1)
A
financial
account
number.
32
(2)
An
account
number
generated
by
the
department
to
33
identify
an
audit
or
examination.
34
(3)
A
social
security
number.
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(4)
A
federal
employer
identification
number.
1
(5)
The
name
of
a
minor.
2
(6)
A
medical
record
or
other
medical
information.
3
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
4
may
redact
from
the
record
in
an
appeal
or
contested
case
any
5
other
information
from
a
pleading,
exhibit,
attachment,
motion,
6
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
7
convincing
evidence
that
the
release
of
such
information
would
8
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
9
personal
privacy.
10
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
11
decisions,
or
opinions
available
for
public
inspection,
the
12
department
may
disclose
the
items
in
paragraph
“a”
if
the
13
department
determines
such
information
is
necessary
to
the
14
resolution
or
decision
of
the
appeal
or
case.
15
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
16
information
contained
in
a
pleading,
exhibit,
attachment,
17
motion,
written
evidence,
final
order,
decision,
opinion,
18
and
the
record
in
an
appeal
or
contested
case
is
subject
to
19
examination
to
the
extent
provided
by
chapter
22.
20
Sec.
16.
Section
422.25,
subsection
1,
Code
2020,
is
amended
21
by
adding
the
following
new
paragraph:
22
NEW
PARAGRAPH
.
c.
The
period
of
examination
and
23
determination
is
unlimited
under
this
title
in
the
case
of
24
any
action
by
the
department
to
recover
or
rescind
any
tax
25
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
26
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
27
maintain
the
requirements
of
a
program
administered
by
the
28
economic
development
authority.
29
Sec.
17.
Section
422.69,
subsection
1,
Code
2020,
is
amended
30
to
read
as
follows:
31
1.
All
fees,
taxes,
interest,
and
penalties
imposed
under
32
this
chapter
shall
be
paid
to
the
department
in
the
form
of
33
remittances
payable
to
the
state
treasurer
department
and
the
34
department
shall
transmit
each
payment
daily
to
the
state
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treasurer.
1
Sec.
18.
Section
422.72,
subsection
1,
paragraph
a,
2
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
3
(1)
It
is
unlawful
for
the
director,
or
any
person
having
4
an
administrative
duty
under
this
chapter
,
or
any
present
or
5
former
officer
or
other
employee
of
the
state
authorized
by
the
6
director
to
examine
returns,
to
willfully
or
recklessly
divulge
7
in
any
manner
whatever,
the
business
affairs,
operations,
or
8
information
obtained
by
an
investigation
under
this
chapter
of
9
records
and
equipment
of
any
person
visited
or
examined
in
the
10
discharge
of
official
duty,
or
the
amount
or
source
of
income,
11
profits,
losses,
expenditures
or
any
particular
thereof,
set
12
forth
or
disclosed
in
any
return,
or
to
willfully
or
recklessly
13
permit
any
return
or
copy
of
a
return
or
any
book
containing
14
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
15
any
person
except
as
provided
by
law.
16
Sec.
19.
Section
422.72,
Code
2020,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
7A.
a.
Prior
to
being
made
available
for
19
public
inspection,
the
department
shall
redact
from
the
record
20
in
an
appeal
or
contested
case
the
following
information
from
21
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
22
final
order,
decision,
or
opinion:
23
(1)
A
financial
account
number.
24
(2)
An
account
number
generated
by
the
department
to
25
identify
an
audit
or
examination.
26
(3)
A
social
security
number.
27
(4)
A
federal
employer
identification
number.
28
(5)
The
name
of
a
minor.
29
(6)
A
medical
record
or
other
medical
information.
30
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
31
may
redact
from
the
record
in
an
appeal
or
contested
case
any
32
other
information
from
a
pleading,
exhibit,
attachment,
motion,
33
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
34
convincing
evidence
that
the
release
of
such
information
would
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disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
1
personal
privacy.
2
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
3
decisions,
or
opinions
available
for
public
inspection,
the
4
department
may
disclose
the
items
in
paragraph
“a”
if
the
5
department
determines
such
information
is
necessary
to
the
6
resolution
or
decision
of
the
appeal
or
case.
7
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
8
information
contained
in
a
pleading,
exhibit,
attachment,
9
motion,
written
evidence,
final
order,
decision,
opinion,
10
and
the
record
in
an
appeal
or
contested
case
is
subject
to
11
examination
to
the
extent
provided
by
chapter
22.
12
Sec.
20.
Section
423.37,
Code
2020,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
4.
The
period
of
limitation
on
examination
15
and
determination
is
unlimited
under
this
title
in
the
case
16
of
any
action
by
the
department
to
recover
or
rescind
any
tax
17
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
18
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
19
maintain
the
requirements
of
a
program
administered
by
the
20
economic
development
authority.
21
Sec.
21.
Section
428A.1,
subsection
3,
Code
2020,
is
amended
22
to
read
as
follows:
23
3.
The
declaration
of
value
shall
state
the
full
24
consideration
paid
for
the
real
property
transferred.
If
25
agricultural
land,
as
defined
in
section
9H.1
,
is
purchased
by
26
a
corporation,
limited
partnership,
trust,
alien
or
nonresident
27
alien,
the
declaration
of
value
shall
include
the
name
and
28
address
of
the
buyer,
the
name
and
address
of
the
seller,
a
29
legal
description
of
the
agricultural
land,
and
identify
the
30
buyer
as
a
corporation,
limited
partnership,
trust,
alien,
or
31
nonresident
alien.
The
county
recorder
shall
not
record
the
32
declaration
of
value,
but
shall
enter
on
the
declaration
of
33
value
information
the
director
of
revenue
requires
for
the
34
production
of
the
sales/assessment
ratio
study
and
transmit
35
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all
declarations
of
value
to
the
city
or
county
assessor
in
1
whose
jurisdiction
the
property
is
located.
The
city
or
county
2
assessor
shall
enter
on
the
declaration
of
value
provide
the
3
information
the
director
of
revenue
requires
for
the
production
4
of
the
sales/assessment
ratio
study
and
transmit
one
copy
of
5
each
declaration
of
value
to
the
director
of
revenue,
at
times
6
as
directed
by
the
director
of
revenue.
The
assessor
shall
7
retain
one
copy
of
each
declaration
of
value
for
three
years
8
from
December
31
of
the
year
in
which
the
transfer
of
realty
9
for
which
the
declaration
was
filed
took
place.
The
director
10
of
revenue
shall,
upon
receipt
of
the
information
required
to
11
be
filed
under
this
chapter
by
the
city
or
county
assessor,
12
send
to
the
office
of
the
secretary
of
state
that
part
of
the
13
declaration
of
value
which
identifies
a
corporation,
limited
14
partnership,
trust,
alien,
or
nonresident
alien
as
a
purchaser
15
of
agricultural
land
as
defined
in
section
9H.1
.
16
Sec.
22.
Section
441.48,
Code
2020,
is
amended
to
read
as
17
follows:
18
441.48
Notice
of
adjustment.
19
1.
Before
the
department
of
revenue
shall
adjust
the
20
valuation
of
any
class
of
property
any
such
percentage,
the
21
department
shall
first
serve
ten
days’
notice
by
mail,
on
the
22
county
auditor
of
the
county
whose
valuation
is
proposed
to
be
23
adjusted.
The
department
shall
hold
an
adjourned
meeting
after
24
such
25
2.
If
the
county
or
assessing
jurisdiction
intends
to
26
protest
the
proposed
adjustment,
the
board
of
supervisors
or
27
city
council,
as
applicable,
shall
provide
the
department
with
28
notice
of
intent
to
protest
prior
to
expiration
of
the
ten
29
days’
notice.
30
3.
After
expiration
of
the
ten
days’
notice,
at
which
time
31
the
county
or
assessing
jurisdiction
may
appear
by
its
city
32
council
or
board
of
supervisors,
city
or
county
attorney,
and
33
other
assessing
jurisdiction,
or
city
or
county
officials,
and
34
make
written
or
oral
protest
against
such
proposed
adjustment.
35
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4.
The
protest
shall
consist
simply
of
a
statement
of
the
1
error,
or
errors,
complained
of
with
such
facts
as
may
lead
to
2
their
correction.
At
the
adjourned
meeting
3
5.
After
written
protest
is
received,
or
an
oral
protest
4
is
heard,
the
final
action
may
be
taken
in
reference
to
the
5
proposed
adjustment.
6
Sec.
23.
Section
489.706,
subsection
2,
Code
2020,
is
7
amended
to
read
as
follows:
8
2.
The
secretary
of
state
shall
refer
the
federal
tax
9
identification
number
contained
in
the
application
for
10
reinstatement
to
the
departments
department
of
revenue
and
11
workforce
development.
The
departments
department
of
revenue
12
and
workforce
development
shall
report
to
the
secretary
of
13
state
the
tax
status
of
the
limited
liability
company.
If
14
either
the
department
reports
to
the
secretary
of
state
that
15
a
filing
delinquency
or
liability
exists
against
the
limited
16
liability
company,
the
secretary
of
state
shall
not
cancel
the
17
declaration
of
dissolution
until
the
filing
delinquency
or
18
liability
is
satisfied.
19
Sec.
24.
Section
490.1422,
subsection
2,
paragraph
a,
Code
20
2020,
is
amended
to
read
as
follows:
21
a.
The
secretary
of
state
shall
refer
the
federal
tax
22
identification
number
contained
in
the
application
for
23
reinstatement
to
the
departments
department
of
revenue
and
24
workforce
development.
The
departments
department
of
revenue
25
and
workforce
development
shall
report
to
the
secretary
26
of
state
the
tax
status
of
the
corporation.
If
either
the
27
department
reports
to
the
secretary
of
state
that
a
filing
28
delinquency
or
liability
exists
against
the
corporation,
29
the
secretary
of
state
shall
not
cancel
the
certificate
of
30
dissolution
until
the
filing
delinquency
or
liability
is
31
satisfied.
32
Sec.
25.
Section
501.813,
subsection
2,
paragraph
a,
Code
33
2020,
is
amended
to
read
as
follows:
34
a.
The
secretary
of
state
shall
refer
the
federal
tax
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identification
number
contained
in
the
application
for
1
reinstatement
to
the
departments
department
of
revenue
and
2
workforce
development.
The
departments
department
of
revenue
3
and
workforce
development
shall
report
to
the
secretary
4
of
state
the
tax
status
of
the
cooperative.
If
either
the
5
department
reports
to
the
secretary
of
state
that
a
filing
6
delinquency
or
liability
exists
against
the
cooperative,
7
the
secretary
of
state
shall
not
cancel
the
certificate
of
8
dissolution
until
the
filing
delinquency
or
liability
is
9
satisfied.
10
Sec.
26.
Section
504.1423,
subsection
2,
paragraph
a,
Code
11
2020,
is
amended
to
read
as
follows:
12
a.
The
secretary
of
state
shall
refer
the
federal
tax
13
identification
number
contained
in
the
application
for
14
reinstatement
to
the
departments
department
of
revenue
and
15
workforce
development.
The
departments
department
of
revenue
16
and
workforce
development
shall
report
to
the
secretary
17
of
state
the
tax
status
of
the
corporation.
If
either
the
18
department
reports
to
the
secretary
of
state
that
a
filing
19
delinquency
or
liability
exists
against
the
corporation,
20
the
secretary
of
state
shall
not
cancel
the
certificate
of
21
dissolution
until
the
filing
delinquency
or
liability
is
22
satisfied.
23
Sec.
27.
Section
533.329,
Code
2020,
is
amended
by
adding
24
the
following
new
subsection:
25
NEW
SUBSECTION
.
03.
Returns
shall
be
in
the
form
the
26
director
of
revenue
prescribes,
and
shall
be
filed
with
the
27
department
of
revenue
on
or
before
the
last
day
of
the
fourth
28
month
after
the
expiration
of
the
tax
year.
The
moneys
and
29
credits
tax
is
due
and
payable
on
the
last
day
of
the
fourth
30
month
after
the
expiration
of
the
tax
year.
31
Sec.
28.
Section
533.329,
subsection
3,
Code
2020,
is
32
amended
to
read
as
follows:
33
3.
The
department
of
revenue
shall
administer
and
enforce
34
the
provisions
of
this
section
,
and
except
as
explicitly
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provided
in
this
section
or
another
provision
of
law,
shall
1
apply
all
applicable
penalty,
interest,
and
administrative
2
provisions
of
chapters
421
and
422
as
nearly
as
possible
in
3
administering
and
enforcing
the
moneys
and
credits
tax
imposed
4
by
this
section
.
5
Sec.
29.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
6
general
assembly
that
the
sections
of
this
division
amending
7
Code
sections
422.25
and
423.37
are
conforming
amendments
8
consistent
with
current
state
law,
and
that
the
amendments
9
do
not
change
the
application
of
current
law
but
instead
10
reflect
current
law
both
before
and
after
the
enactment
of
this
11
division
of
this
Act.
12
Sec.
30.
EFFECTIVE
DATE.
The
following,
being
deemed
of
13
immediate
importance,
take
effect
upon
enactment:
14
1.
The
section
of
this
division
of
this
Act
amending
section
15
422.25.
16
2.
The
section
of
this
division
of
this
Act
amending
section
17
423.37.
18
Sec.
31.
APPLICABILITY.
The
following
applies
to
any
19
return
for
which
a
written
notice
that
the
taxpayer
is
required
20
to
file
such
return
is
issued
by
the
department
on
or
after
21
January
1,
2022:
22
The
portion
of
the
section
of
this
division
of
this
Act
23
enacting
section
421.27,
subsection
9.
24
Sec.
32.
APPLICABILITY.
The
following
apply
to
tax
years
25
beginning
on
or
after
January
1,
2022:
26
1.
The
section
of
this
division
of
this
Act
amending
section
27
421.27,
subsection
1.
28
2.
The
portion
of
the
section
of
this
division
of
this
Act
29
amending
section
421.27,
subsection
4.
30
3.
The
portion
of
the
section
of
this
division
of
this
Act
31
enacting
section
421.27,
subsection
8.
32
DIVISION
II
33
SALES
AND
USE
TAX
34
Sec.
33.
Section
321G.4,
subsection
2,
Code
2020,
is
amended
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to
read
as
follows:
1
2.
a.
The
owner
of
the
snowmobile
shall
file
an
application
2
for
registration
with
the
department
through
the
county
3
recorder
of
the
county
of
residence
in
the
manner
established
4
by
the
commission.
The
application
shall
be
completed
by
the
5
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
6
a
writing
fee
as
provided
in
section
321G.27
.
A
snowmobile
7
shall
not
be
registered
by
the
county
recorder
until
the
8
county
recorder
is
presented
with
receipts,
bills
of
sale,
9
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
10
been
paid
for
the
purchase
of
the
snowmobile
or
that
the
11
owner
is
exempt
from
paying
the
tax.
A
snowmobile
that
has
12
an
expired
registration
certificate
from
another
state
may
be
13
registered
in
this
state
upon
proper
application,
payment
of
14
all
applicable
registration
and
writing
fees,
and
payment
of
a
15
penalty
of
five
dollars.
16
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
17
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
18
the
county
recorder
shall
collect
the
tax.
On
or
before
the
19
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
20
the
department
of
revenue
the
amount
of
the
taxes
collected
21
during
the
preceding
month,
together
with
an
itemized
statement
22
on
forms
furnished
by
the
department
of
revenue
showing
the
23
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
24
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
25
as
the
department
of
revenue
requires.
26
Sec.
34.
Section
321I.4,
subsection
2,
Code
2020,
is
amended
27
to
read
as
follows:
28
2.
a.
The
owner
of
the
all-terrain
vehicle
shall
file
an
29
application
for
registration
with
the
department
through
the
30
county
recorder
of
the
county
of
residence,
or
in
the
case
31
of
a
nonresident
owner,
in
the
county
of
primary
use,
in
the
32
manner
established
by
the
commission.
The
application
shall
33
be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
34
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
35
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321I.29
.
An
all-terrain
vehicle
shall
not
be
registered
by
the
1
county
recorder
until
the
county
recorder
is
presented
with
2
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
3
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
4
all-terrain
vehicle
or
that
the
owner
is
exempt
from
paying
the
5
tax.
An
all-terrain
vehicle
that
has
an
expired
registration
6
certificate
from
another
state
may
be
registered
in
this
state
7
upon
proper
application,
payment
of
all
applicable
registration
8
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
9
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
10
present
satisfactory
evidence
that
the
sales
or
use
tax
has
11
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
12
before
the
tenth
day
of
each
month,
the
county
recorder
shall
13
remit
to
the
department
of
revenue
the
amount
of
the
taxes
14
collected
during
the
preceding
month,
together
with
an
itemized
15
statement
on
forms
furnished
by
the
department
of
revenue
16
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
17
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
18
other
information
as
the
department
of
revenue
requires.
19
Sec.
35.
Section
423.2,
subsection
6,
paragraph
bs,
Code
20
2020,
is
amended
to
read
as
follows:
21
bs.
Services
arising
from
or
related
to
installing,
22
maintaining,
servicing,
repairing,
operating,
upgrading,
or
23
enhancing
either
specified
digital
products
or
software
sold
24
as
tangible
personal
property
.
25
Sec.
36.
Section
423.2,
subsection
8,
paragraph
d,
26
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
27
(1)
The
retail
sale
of
tangible
personal
property
or
28
specified
digital
product
and
a
service
,
where
the
tangible
29
personal
property
or
specified
digital
product
is
essential
30
to
the
use
of
the
service,
and
is
provided
exclusively
in
31
connection
with
the
service,
and
the
true
object
of
the
32
transaction
is
the
service.
33
Sec.
37.
Section
423.3,
subsection
3A,
Code
2020,
is
amended
34
to
read
as
follows:
35
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3A.
The
sales
price
from
the
sale
of
a
commercial
recreation
1
service
offering
the
opportunity
to
hunt
a
preserve
whitetail
2
as
defined
in
section
484C.1
if
the
sale
occurred
between
July
3
1,
2005,
and
December
31,
2015.
4
Sec.
38.
Section
423.3,
subsection
31,
unnumbered
paragraph
5
1,
Code
2020,
is
amended
to
read
as
follows:
6
The
sales
price
of
tangible
personal
property
or
specified
7
digital
products
sold
to
and
of
services
furnished
to
a
tribal
8
government
as
defined
in
216A.161,
or
the
sales
price
of
9
tangible
personal
property
or
specified
digital
products
sold
10
to
and
of
services
furnished
,
and
used
for
public
purposes
11
sold
to
a
tax-certifying
or
tax-levying
body
of
the
state
or
a
12
governmental
subdivision
of
the
state,
including
the
following:
13
regional
transit
systems,
as
defined
in
section
324A.1
,
;
14
the
state
board
of
regents
,
;
department
of
human
services
,
;
15
state
department
of
transportation
,
;
any
municipally
owned
16
solid
waste
facility
which
sells
all
or
part
of
its
processed
17
waste
as
fuel
to
a
municipally
owned
public
utility
,
;
and
all
18
divisions,
boards,
commissions,
agencies,
or
instrumentalities
19
of
state,
federal,
county,
or
municipal
government
,
or
tribal
20
government
which
have
no
earnings
going
to
the
benefit
of
an
21
equity
investor
or
stockholder,
except
any
of
the
following:
22
Sec.
39.
Section
423.3,
subsection
80,
paragraphs
b
and
c,
23
Code
2020,
are
amended
to
read
as
follows:
24
b.
Subject
to
the
limitations
in
paragraph
“c”
,
if
a
25
contractor,
subcontractor,
or
builder
is
to
use
building
26
materials,
supplies,
and
equipment
,
or
services
in
the
27
performance
of
a
written
construction
contract
with
a
28
designated
exempt
entity,
the
person
shall
purchase
such
29
items
of
tangible
personal
property
or
services
without
30
liability
for
the
tax
if
such
property
or
services
will
be
31
used
in
the
performance
of
the
written
construction
contract
32
and
a
purchasing
agent
authorization
letter
and
an
exemption
33
certificate,
issued
by
the
designated
exempt
entity,
are
34
presented
to
the
retailer.
35
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c.
(1)
With
regard
to
a
written
construction
contract
1
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
2
subparagraph
(1),
the
sales
price
of
building
materials,
3
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
4
subsection
only
to
the
extent
the
building
materials,
supplies,
5
or
equipment
,
or
services
are
completely
consumed
in
the
6
performance
of
the
construction
contract
with
the
designated
7
exempt
entity
,
and
only
if
the
property
that
is
the
subject
8
of
the
construction
project
becomes
public
property
or
the
9
property
of
the
designated
exempt
entity
.
10
(2)
With
regard
to
a
written
construction
contract
with
11
a
designated
exempt
entity
described
in
paragraph
“a”
,
12
subparagraph
(2),
the
sales
price
of
building
materials,
13
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
14
subsection
only
to
the
extent
the
building
materials,
supplies,
15
or
equipment
,
or
services
are
completely
consumed
in
the
16
performance
of
a
construction
contract
to
construct
a
project,
17
as
defined
in
section
15J.2,
subsection
10
,
which
project
has
18
been
approved
by
the
economic
development
authority
board
in
19
accordance
with
chapter
15J
.
20
Sec.
40.
Section
423.4,
subsection
1,
Code
2020,
is
amended
21
to
read
as
follows:
22
1.
a.
For
purposes
of
this
subsection,
a
“designated
exempt
23
entity”
means
any
of
the
following:
24
(1)
A
private
nonprofit
educational
institution
in
this
25
state
,
.
26
(2)
A
nonprofit
Iowa
affiliate
of
a
nonprofit
international
27
organization
whose
primary
activity
is
the
promotion
of
the
28
construction,
remodeling,
or
rehabilitation
of
one-family
or
29
two-family
dwellings
for
low-income
families
,
.
30
(3)
A
nonprofit
private
museum
in
this
state
,
.
31
(4)
A
tax-certifying
or
tax-levying
body
or
governmental
32
subdivision
of
the
state,
including
the
state
board
of
regents,
33
state
department
of
human
services,
state
department
of
34
transportation
,
a
.
35
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(5)
A
municipally
owned
solid
waste
facility
which
sells
all
1
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
2
public
utility
,
and
all
.
3
(6)
The
state
of
Iowa.
4
(7)
Any
political
subdivision
of
the
state.
5
(8)
All
divisions,
boards,
commissions,
agencies,
or
6
instrumentalities
of
state,
federal,
county,
or
municipal
7
government
which
do
not
have
earnings
going
to
the
benefit
of
8
an
equity
investor
or
stockholder
,
.
9
(9)
A
tribal
government
as
defined
in
section
216A.161,
10
and
any
instrumentalities
of
the
tribal
government
which
do
11
not
have
earnings
going
to
the
benefit
of
an
equity
investor
12
or
stockholder.
13
b.
A
designated
exempt
entity
may
make
application
apply
14
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
15
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
16
building
materials,
supplies,
equipment
,
or
from
services
17
furnished
to
a
contractor,
used
in
the
fulfillment
performance
18
of
a
written
contract
with
the
state
of
Iowa,
any
political
19
subdivision
of
the
state,
or
a
division,
board,
commission,
20
agency,
or
instrumentality
of
the
state
or
a
political
21
subdivision,
a
private
nonprofit
educational
institution
in
22
this
state,
a
nonprofit
Iowa
affiliate
described
in
this
23
subsection
,
or
a
nonprofit
private
museum
in
this
state
if
the
24
property
becomes
an
integral
part
of
the
project
under
contract
25
and
at
the
completion
of
the
project
becomes
public
property,
26
is
devoted
to
educational
uses,
becomes
part
of
a
low-income
27
one-family
or
two-family
dwelling
in
the
state,
or
becomes
a
28
nonprofit
private
museum;
except
goods,
wares,
or
merchandise,
29
designated
exempt
entity
if
all
of
the
following
apply:
30
(1)
The
building
materials,
supplies,
equipment,
or
31
services
are
completely
consumed
in
the
performance
of
a
32
construction
project
with
the
designated
entity.
33
(2)
The
property
that
is
subject
of
the
construction
project
34
becomes
public
property
or
the
property
of
an
exempt
entity.
35
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(3)
The
building
materials,
supplies,
equipment,
or
1
services
furnished
which
are
not
used
in
the
performance
of
2
any
contract
in
connection
with
the
operation
of
any
municipal
3
utility
engaged
in
selling
gas,
electricity,
or
heat
to
4
the
general
public
or
in
connection
with
the
operation
of
a
5
municipal
pay
television
system;
and
except
goods,
wares,
and
6
merchandise
are
not
used
in
the
performance
of
a
contract
for
a
7
“project”
under
chapter
419
as
defined
in
that
chapter
other
8
than
goods,
wares,
or
merchandise
used
in
the
performance
of
9
a
contract
for
a
“project”
under
chapter
419
for
which
a
bond
10
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
11
for
which
the
goods,
wares,
or
merchandise
becomes
an
integral
12
part
of
the
project
under
contract
and
at
the
completion
of
the
13
project
becomes
public
property
or
is
devoted
to
educational
14
uses.
15
a.
c.
Such
A
contractor
shall
state
under
oath,
on
forms
16
provided
by
the
department,
the
amount
of
such
sales
of
goods,
17
wares,
or
merchandise,
or
services
furnished
and
used
in
the
18
performance
of
such
contract,
and
upon
which
sales
or
use
tax
19
has
been
paid,
and
shall
file
such
forms
with
the
governmental
20
unit,
private
nonprofit
educational
institution,
nonprofit
Iowa
21
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
22
which
has
made
any
written
contract
for
performance
by
the
23
contractor.
The
forms
shall
be
filed
by
the
contractor
with
24
the
governmental
unit,
educational
institution,
nonprofit
Iowa
25
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
26
before
final
settlement
is
made.
27
b.
d.
Such
governmental
unit,
educational
institution,
28
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
A
29
designated
exempt
entity
shall,
not
more
than
one
year
after
30
the
final
settlement
has
been
made,
make
application
apply
31
to
the
department
for
any
refund
of
the
amount
of
the
sales
32
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
33
or
merchandise
building
materials,
supplies,
equipment
,
34
or
services
furnished,
the
application
to
be
made
in
the
35
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2419
manner
and
upon
forms
to
be
provided
by
the
department,
1
and
the
department
shall
forthwith
audit
the
claim
and,
if
2
approved,
issue
a
warrant
to
the
governmental
unit,
educational
3
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
4
museum
designated
exempt
entity
in
the
amount
of
the
sales
or
5
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
6
contract.
7
c.
e.
Refunds
authorized
under
this
subsection
shall
accrue
8
interest
in
accordance
with
section
421.60,
subsection
2
,
9
paragraph
“e”
.
10
d.
f.
Any
contractor
who
willfully
makes
a
false
report
of
11
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
12
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
13
payment
of
the
tax
and
any
applicable
penalty
and
interest.
14
Sec.
41.
Section
423.4,
subsection
2,
paragraphs
a
and
b,
15
Code
2020,
are
amended
to
read
as
follows:
16
a.
A
contractor
awarded
a
contract
for
a
transportation
17
construction
project
is
considered
the
consumer
of
all
building
18
materials,
building
supplies,
and
equipment
,
and
services
and
19
shall
pay
sales
tax
to
the
supplier
or
remit
consumer
use
tax
20
directly
to
the
department.
21
b.
The
contractor
is
not
required
to
file
information
with
22
the
state
department
of
transportation
stating
the
amount
of
23
goods,
wares,
or
merchandise,
or
services
rendered,
furnished,
24
or
performed
and
building
materials,
supplies,
equipment,
or
25
services
used
in
the
performance
of
the
contract
or
the
amount
26
of
sales
or
use
tax
paid.
27
Sec.
42.
Section
423.4,
subsection
6,
paragraph
a,
28
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
29
(1)
The
owner
of
a
collaborative
educational
facility
30
in
this
state
may
make
application
to
the
department
for
the
31
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
32
of
goods,
wares,
or
merchandise
building
materials,
supplies,
33
equipment
,
or
from
services
furnished
to
a
contractor,
used
34
in
the
fulfillment
of
a
written
construction
contract
with
35
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2419
the
owner
of
the
collaborative
educational
facility
for
the
1
original
construction,
or
additions
or
modifications
to,
a
2
building
or
structure
to
be
used
as
part
of
the
collaborative
3
educational
facility.
4
Sec.
43.
Section
423.4,
subsection
6,
paragraphs
b
and
c,
5
Code
2020,
are
amended
to
read
as
follows:
6
b.
Such
A
contractor
shall
state
under
oath,
on
forms
7
provided
by
the
department,
the
amount
of
such
sales
of
goods,
8
wares,
or
merchandise
building
materials,
supplies,
equipment
,
9
or
services
furnished
and
used
in
the
performance
of
such
10
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
11
shall
file
such
forms
with
the
owner
of
the
collaborative
12
educational
facility
which
has
made
any
written
contract
for
13
performance
by
the
contractor.
14
c.
(1)
The
owner
of
the
collaborative
educational
facility
15
shall,
not
more
than
one
year
after
the
final
settlement
has
16
been
made,
make
application
to
the
department
for
any
refund
17
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
18
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
19
supplies,
equipment
,
or
services
furnished,
the
application
20
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
21
the
department,
and
the
department
shall
forthwith
audit
the
22
claim
and,
if
approved,
issue
a
warrant
to
the
owner
of
the
23
collaborative
educational
facility
in
the
amount
of
the
sales
24
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
25
contract.
26
(2)
Refunds
authorized
under
this
subsection
shall
accrue
27
interest
in
accordance
with
section
421.60,
subsection
2
,
28
paragraph
“e”
.
29
Sec.
44.
Section
423.5,
subsection
1,
paragraph
b,
Code
30
2020,
is
amended
by
striking
the
paragraph.
31
Sec.
45.
Section
423.29,
subsection
1,
Code
2020,
is
amended
32
to
read
as
follows:
33
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
34
sales
of
tangible
personal
property
or
specified
digital
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products
in
Iowa
or
who
is
a
retailer
maintaining
a
place
1
of
business
in
this
state
making
taxable
sales
of
tangible
2
personal
property
or
specified
digital
products
shall,
at
3
the
time
of
making
the
sale,
collect
the
sales
tax.
Every
4
seller
who
is
a
retailer
that
is
not
otherwise
required
to
5
collect
sales
tax
under
the
provisions
of
this
chapter
and
who
6
is
selling
tangible
personal
property
or
specified
digital
7
products
for
use
in
Iowa
shall,
at
the
time
of
making
the
sale,
8
whether
within
or
without
the
state,
collect
the
use
tax.
9
Sellers
required
to
collect
sales
or
use
tax
shall
give
to
any
10
purchaser
a
receipt
for
the
tax
collected
in
the
manner
and
11
form
prescribed
by
the
director.
12
Sec.
46.
Section
423.33,
subsection
1,
Code
2020,
is
amended
13
to
read
as
follows:
14
1.
Liability
of
purchaser
for
sales
tax
and
retailer
.
15
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
16
required
to
collect
the
tax,
then
in
addition
to
all
of
the
17
rights,
obligations,
and
remedies
provided,
the
a
use
tax
18
is
payable
by
the
purchaser
directly
to
the
department,
and
19
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
20
423.41
,
and
423.42
apply
to
the
purchaser.
21
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
22
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
23
liable,
unless
the
circumstances
described
in
section
29C.24,
24
subsection
3,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
25
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
26
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
27
paragraph
“c”
or
“e”
,
are
applicable.
28
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
29
of
the
transaction,
the
retailer
shall
thereafter
remit
the
30
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
31
the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
32
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
33
services
tax
under
chapter
423B
that
the
retailer
failed
to
34
collect.
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Sec.
47.
REFUNDS
RELATED
TO
PRESERVE
WHITETAIL
DEER
1
HUNTING.
Refunds
of
taxes,
interest,
or
penalties
that
arise
2
from
claims
resulting
from
the
amendment
of
section
423.3,
3
subsection
3A,
for
sales
occurring
between
July
1,
2005,
4
and
the
effective
date
of
the
amendment
to
section
423.3,
5
subsection
3A,
shall
not
be
allowed,
notwithstanding
any
other
6
law
to
the
contrary.
7
Sec.
48.
LEGISLATIVE
INTENT.
8
1.
It
is
the
intent
of
the
general
assembly
that
the
section
9
of
this
division
of
this
Act
amending
section
423.29
is
a
10
conforming
amendment
consistent
with
current
state
law,
and
11
that
the
amendment
does
not
change
the
application
of
current
12
law
but
instead
reflects
current
law
both
before
and
after
the
13
enactment
of
this
division
of
this
Act.
14
2.
It
is
the
intent
of
the
general
assembly
that
the
15
addition
of
“jointly”
in
the
section
of
this
division
of
16
this
Act
amending
section
423.33
is
a
conforming
amendment
17
consistent
with
current
state
law,
and
that
the
amendment
18
does
not
change
the
application
of
current
law
but
instead
19
reflects
current
law
both
before
and
after
the
enactment
of
20
this
division
of
this
Act.
21
Sec.
49.
EFFECTIVE
DATE.
The
following,
being
deemed
of
22
immediate
importance,
take
effect
upon
enactment:
23
1.
The
section
of
this
division
of
this
Act
amending
section
24
423.3A.
25
2.
The
section
of
this
division
of
this
Act
relating
26
to
refunds
for
commercial
recreation
services
offering
an
27
opportunity
to
hunt
preserve
whitetail
deer.
28
Sec.
50.
RETROACTIVE
APPLICABILITY.
The
following
applies
29
retroactively
to
July
1,
2005:
30
The
section
of
this
division
of
this
Act
amending
section
31
423.3A.
32
DIVISION
III
33
INCOME
TAX
34
Sec.
51.
Section
422.9,
subsection
3,
paragraph
c,
Code
35
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2020,
is
amended
by
striking
the
paragraph
and
inserting
in
1
lieu
thereof
the
following:
2
c.
A
taxpayer
may
elect
to
waive
the
entire
carryback
period
3
with
respect
to
an
Iowa
net
operating
loss
for
any
taxable
year
4
beginning
on
or
after
January
1,
2020.
The
election
shall
be
5
made
in
the
manner
and
form
prescribed
by
the
department,
and
6
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
Iowa
7
return,
including
extensions
of
time.
After
the
election
is
8
made
for
any
taxable
year,
the
election
shall
be
irrevocable
9
for
such
taxable
year.
When
an
election
has
been
properly
10
made,
the
Iowa
net
operating
loss
shall
be
carried
forward
11
twenty
taxable
years.
12
Sec.
52.
Section
422.9,
subsection
3,
paragraph
d,
Code
13
2020,
is
amended
to
read
as
follows:
14
d.
Notwithstanding
paragraph
“a”
,
for
a
taxpayer
who
is
15
engaged
in
the
trade
or
business
of
farming
,
which
means
the
16
same
as
a
“farming
business”
as
defined
in
section
263A(e)(4)
of
17
the
Internal
Revenue
Code
,
and
has
a
farming
loss
from
farming
18
as
defined
in
section
172(b)(1)(B)
of
the
Internal
Revenue
Code
19
including
modifications
prescribed
by
rule
by
the
director,
20
the
Iowa
farming
loss
from
the
trade
or
business
of
farming
is
21
a
net
operating
loss
which
may
,
at
the
time
of
the
election
of
22
the
taxpayer,
be
carried
back
five
taxable
years
prior
to
the
23
taxable
year
of
the
loss.
The
election
shall
be
made
in
the
24
manner
and
form
prescribed
by
the
department,
and
shall
be
made
25
by
the
due
date
for
filing
the
taxpayer’s
return,
including
26
extensions
of
time.
After
the
election
is
made
for
any
taxable
27
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
28
Sec.
53.
APPLICABILITY.
This
division
of
this
Act
applies
29
to
tax
years
beginning
on
or
after
January
1,
2020.
30
DIVISION
IV
31
RESEARCH
ACTIVITIES
CREDIT
32
Sec.
54.
Section
15.335,
subsection
4,
paragraph
a,
Code
33
2020,
is
amended
to
read
as
follows:
34
a.
In
lieu
of
the
credit
amount
computed
in
subsection
2
,
an
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eligible
business
may
elect
to
compute
the
credit
amount
for
1
qualified
research
expenses
incurred
in
this
state
in
a
manner
2
consistent
with
the
alternative
simplified
credit
described
in
3
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
4
taxpayer
may
make
this
election
regardless
of
the
method
used
5
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
6
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
7
another
or
the
same
method
for
any
subsequent
year.
8
Sec.
55.
Section
15.335,
subsection
4,
paragraph
b,
9
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
10
follows:
11
For
purposes
of
the
alternate
credit
computation
method
in
12
paragraph
“a”
,
the
credit
percentages
applicable
to
qualified
13
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
14
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
15
Internal
Revenue
Code
are
as
follows:
16
Sec.
56.
Section
422.10,
subsection
1,
paragraphs
c
and
d,
17
Code
2020,
are
amended
to
read
as
follows:
18
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“b”
,
19
subparagraph
(1),
subparagraph
division
(a),
a
taxpayer
may
20
elect
to
compute
the
credit
amount
for
qualified
research
21
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
22
alternative
simplified
credit
described
in
section
41(c)(5)
23
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
24
this
election
regardless
of
the
method
used
for
the
taxpayer’s
25
federal
income
tax.
The
election
made
under
this
paragraph
is
26
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
27
method
for
any
subsequent
year.
28
d.
For
purposes
of
the
alternate
credit
computation
29
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
30
qualified
research
expenses
described
in
section
41(c)(5)(A)
31
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
32
of
the
Internal
Revenue
Code
are
four
and
fifty-five
33
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
34
respectively.
35
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Sec.
57.
Section
422.33,
subsection
5,
paragraphs
c
and
d,
1
Code
2020,
are
amended
to
read
as
follows:
2
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
3
“a”
,
subparagraph
(1),
a
corporation
may
elect
to
compute
the
4
credit
amount
for
qualified
research
expenses
incurred
in
this
5
state
in
a
manner
consistent
with
the
alternative
simplified
6
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
7
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
8
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
9
election
made
under
this
paragraph
is
for
the
tax
year
and
the
10
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
11
year.
12
d.
For
purposes
of
the
alternate
credit
computation
13
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
14
qualified
research
expenses
described
in
section
41(c)(5)(A)
15
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
16
of
the
Internal
Revenue
Code
are
four
and
fifty-five
17
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
18
respectively.
19
Sec.
58.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
20
deemed
of
immediate
importance,
takes
effect
upon
enactment.
21
Sec.
59.
RETROACTIVE
APPLICABILITY.
This
division
of
this
22
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
23
beginning
on
or
after
that
date.
24
DIVISION
V
25
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
OF
26
FEDERAL
ADJUSTMENTS
27
Sec.
60.
Section
421.27,
subsection
2,
paragraph
c,
Code
28
2020,
is
amended
to
read
as
follows:
29
c.
(1)
The
taxpayer
provides
written
notification
to
the
30
department
of
a
federal
audit
while
it
is
in
progress
and
31
voluntarily
files
an
amended
return
which
includes
a
copy
of
32
the
federal
document
showing
the
final
disposition
or
final
33
federal
adjustments
and
pays
any
additional
Iowa
tax
due
34
within
sixty
one
hundred
eighty
days
of
the
final
disposition
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determination
date
of
the
federal
government’s
audit.
For
1
purposes
of
this
subparagraph,
“final
determination
date”
means
2
the
same
as
defined
in
section
422.25.
3
(2)
(a)
In
the
case
of
a
final
federal
partnership
4
adjustment
arising
from
a
partnership
level
audit,
with
respect
5
to
the
audited
partnership
or
a
direct
partner
or
indirect
6
partner
of
the
audited
partnership,
the
audited
partnership,
7
direct
partner,
or
indirect
partner
voluntarily
and
timely
8
complies
with
its
reporting
and
payment
requirements
under
9
section
422.25A,
subsection
4
or
5.
10
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
11
defined
in
section
422.25A
shall
have
the
same
meaning
given
12
them
by
that
section.
13
Sec.
61.
Section
422.7,
Code
2020,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
59.
Any
income
subtracted
from
federal
16
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
17
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
18
shall
be
added
back
in
computing
net
income
for
state
tax
19
purposes
for
the
adjustment
year.
20
Sec.
62.
Section
422.25,
subsections
1
and
2,
Code
2020,
21
are
amended
by
striking
the
subsections
and
inserting
in
lieu
22
thereof
the
following:
23
1.
a.
For
purposes
of
this
subsection:
24
(1)
“Federal
adjustment”
means
a
change
to
an
item
or
amount
25
required
to
be
determined
under
the
Internal
Revenue
Code
and
26
the
regulations
thereunder
that
is
used
by
the
taxpayer
to
27
compute
state
tax
owed
whether
such
change
results
from
action
28
by
the
internal
revenue
service,
or
the
filing
of
a
timely
29
amended
federal
return
or
timely
federal
refund
claim.
A
30
federal
adjustment
is
positive
to
the
extent
that
it
increases
31
Iowa
taxable
income
as
determined
under
this
title
and
is
32
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
33
as
determined
under
this
title.
34
(2)
“Federal
adjustments
report”
means
the
method
or
form
35
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required
by
the
department
by
rule
to
report
final
federal
1
adjustments
or
final
federal
partnership
adjustments
as
defined
2
in
section
422.25A,
and
in
the
case
of
any
entity
taxed
as
a
3
partnership
or
S
corporation
for
federal
income
tax
purposes,
4
identifies
all
owners
that
hold
an
interest
directly
in
such
5
entity
and
provides
the
effect
of
the
final
federal
adjustments
6
on
such
owner’s
Iowa
income.
7
(3)
“Final
determination
date”
means
the
following:
8
(a)
Except
as
provided
in
subparagraph
divisions
(b)
and
9
(c),
for
federal
adjustments
arising
from
an
internal
revenue
10
service
audit
or
other
action
by
the
internal
revenue
service,
11
the
final
determination
date
is
the
first
day
on
which
no
12
federal
adjustments
arising
from
that
audit
or
other
action
13
remain
to
be
finally
determined,
whether
by
internal
revenue
14
service
decision
with
respect
to
which
all
rights
of
appeal
15
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
16
or
contested,
by
a
final
decision
with
respect
to
which
all
17
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
18
required
to
be
signed
by
the
internal
revenue
service
and
the
19
taxpayer,
the
final
determination
date
is
the
date
on
which
the
20
last
party
signed
the
agreement.
21
(b)
For
federal
adjustments
arising
from
an
internal
22
revenue
service
audit
or
other
action
by
the
internal
revenue
23
service,
if
the
taxpayer
filed
as
a
member
of
a
consolidated
24
return
under
section
422.37,
the
final
determination
date
25
is
the
first
day
on
which
no
related
federal
adjustments
26
arising
from
that
audit
or
other
action
remain
to
be
finally
27
determined,
as
described
in
subparagraph
division
(a),
for
the
28
entire
group.
29
(c)
For
federal
adjustments
arising
from
a
timely
filed
30
amended
federal
return
or
a
timely
filed
federal
refund
31
claim,
or
if
it
is
a
federal
adjustment
reported
on
a
timely
32
amended
federal
return
or
other
similar
report
filed
pursuant
33
to
section
6225(c)
of
the
Internal
Revenue
Code,
the
final
34
determination
date
is
the
day
on
which
the
amended
return,
35
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refund
claim,
or
other
similar
report
was
filed.
1
(4)
“Final
federal
adjustment”
means
a
federal
adjustment
2
after
the
final
determination
date
for
that
federal
adjustment
3
has
passed.
4
b.
Within
three
years
after
the
return
is
filed
or
within
5
three
years
after
the
return
became
due,
including
any
6
extensions
of
time
for
filing,
whichever
time
is
the
later,
7
the
department
shall
examine
the
return
and
determine
the
tax.
8
However,
if
the
taxpayer
omits
from
income
an
amount
which
9
will,
under
the
Internal
Revenue
Code,
extend
the
statute
of
10
limitations
for
assessment
of
federal
tax
to
six
years
under
11
the
federal
law,
the
period
for
examination
and
determination
12
is
six
years.
13
c.
The
period
for
examination
and
determination
of
the
14
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
15
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
16
case
of
a
failure
to
file
a
return.
17
d.
In
lieu
of
the
period
of
limitation
for
any
prior
year
18
for
which
an
overpayment
of
tax
or
an
elimination
or
reduction
19
of
an
underpayment
of
tax
due
for
that
prior
year
results
from
20
the
carryback
to
that
prior
year
of
a
net
operating
loss
or
21
net
capital
loss,
the
period
is
the
period
of
limitation
for
22
the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
23
which
results
in
the
carryback.
24
e.
(1)
In
addition
to
the
applicable
period
of
limitation
25
for
examination
and
determination
in
paragraph
“b”
,
“c”
,
or
“d”
,
26
the
department
may
make
an
examination
and
determination
at
any
27
time
within
one
year
from
the
date
of
receipt
by
the
department
28
of
a
federal
adjustments
report
with
respect
to
a
final
29
federal
adjustment
or
final
federal
partnership
adjustment
30
as
defined
in
section
422.25A
for
a
particular
tax
year.
In
31
order
to
begin
the
running
of
the
one-year
period,
the
federal
32
adjustments
report
related
to
the
final
federal
adjustment
or
33
final
federal
partnership
adjustment
shall
be
transmitted
to
34
the
department
by
the
taxpayer
in
the
form
and
manner
specified
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by
the
department
by
rule.
1
(2)
The
department
in
its
discretion
may
adopt
rules
to
2
establish
a
de
minimis
amount
for
which
subparagraph
(1)
shall
3
not
apply
and
the
taxpayer
shall
not
be
required
to
file
a
4
federal
adjustments
report.
5
(3)
The
department
may
in
its
discretion
and
when
6
administratively
feasible
adopt
a
process
through
rule
by
7
which
a
taxpayer
may
make
estimated
payments
of
tax
expected
8
to
result
from
a
pending
internal
revenue
service
audit
9
prior
to
the
filing
of
a
federal
adjustments
report
with
the
10
department.
The
process
shall
provide
that
the
estimated
11
tax
payments
shall
be
credited
against
any
tax
liability
12
ultimately
found
to
be
due
to
the
state
from
the
internal
13
revenue
service
audit
and
will
limit
the
accrual
of
further
14
statutory
interest
on
that
liability.
The
process
shall
also
15
provide
that
if
the
estimated
tax
payments
exceed
the
final
16
tax
liability
and
statutory
interest
ultimately
determined
to
17
be
due,
the
taxpayer
is
entitled
to
a
refund
or
credit
for
18
the
excess,
without
interest,
provided
the
taxpayer
files
a
19
federal
adjustments
report,
or
a
claim
for
refund
or
credit
of
20
tax
under
section
422.73,
no
later
than
one
year
following
the
21
final
determination
date.
22
2.
a.
If
the
tax
found
due
under
subsection
1
is
greater
23
than
the
amount
paid,
the
department
shall
compute
the
amount
24
due,
together
with
interest
and
penalties
as
provided
in
25
paragraph
“b”
,
and
shall
mail
a
notice
of
assessment
to
the
26
taxpayer
and,
if
applicable,
to
the
taxpayer’s
authorized
27
representative
of
the
total,
which
shall
be
computed
as
a
sum
28
certain,
with
interest
computed
to
the
last
day
of
the
month
29
in
which
the
notice
is
dated.
30
b.
In
addition
to
the
tax
or
additional
tax
determined
31
by
the
department
under
subsection
1,
the
taxpayer
shall
pay
32
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
33
under
section
421.7
for
each
month
counting
each
fraction
of
34
a
month
as
an
entire
month,
computed
from
the
date
the
return
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was
required
to
be
filed.
In
addition
to
the
tax
or
additional
1
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
section
2
421.27.
3
Sec.
63.
NEW
SECTION
.
422.25A
Reporting
and
treatment
of
4
certain
partnership
adjustments.
5
1.
Definitions.
As
used
in
this
section
and
sections
6
422.25B
and
422.25C,
unless
the
context
otherwise
requires:
7
a.
“Administrative
adjustment
request”
means
the
same
as
8
provided
in
section
6227
of
the
Internal
Revenue
Code.
9
b.
“Audited
partnership”
means
a
partnership
subject
10
to
a
final
federal
partnership
adjustment
resulting
from
a
11
partnership
level
audit.
12
c.
“C
corporation”
means
an
entity
that
elects
or
is
13
required
to
be
taxed
as
a
corporation
under
title
26,
chapter
14
1,
subchapter
A,
part
2,
of
the
Internal
Revenue
Code.
15
d.
“Corporate
partner”
means
a
C
corporation
partner
that
is
16
subject
to
tax
pursuant
to
section
422.33.
17
e.
“Direct
partner”
means
a
person
that
holds
an
interest
18
directly
in
a
partnership
or
pass-through
entity.
19
f.
“Exempt
partner”
means
a
partner
that
is
exempt
from
20
taxation
pursuant
to
section
422.34.
21
g.
“Federal
adjustments
report”
means
the
same
as
defined
22
in
section
422.25.
23
h.
“Federal
partnership
adjustment”
means
a
change
to
an
24
item
or
amount
required
to
be
determined
under
the
Internal
25
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
a
26
partnership
and
its
direct
and
indirect
partners
to
compute
27
state
tax
owed
for
the
reviewed
year
where
such
change
results
28
from
a
partnership
level
audit
or
an
administrative
adjustment
29
request.
A
federal
partnership
adjustment
is
positive
to
the
30
extent
that
it
increases
Iowa
taxable
income
as
determined
31
under
this
title
and
is
negative
to
the
extent
that
it
32
decreases
Iowa
taxable
income
as
determined
under
this
title.
33
A
federal
adjustment
reported
on
an
amended
federal
return
34
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
35
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the
Internal
Revenue
Code
shall
not
be
considered
a
federal
1
partnership
adjustment
for
purposes
of
this
section.
2
i.
“Federal
partnership
representative”
means
the
person
3
the
partnership
designates
for
the
taxable
year
as
the
4
partnership’s
representative,
or
the
person
the
internal
5
revenue
service
has
appointed
to
act
as
the
federal
partnership
6
representative,
pursuant
to
section
6223(a)
of
the
Internal
7
Revenue
Code
and
the
regulations
thereunder.
8
j.
“Fiduciary
partner”
means
a
partner
that
is
a
fiduciary
9
that
is
subject
to
tax
pursuant
to
sections
422.5
and
422.6.
10
k.
“Final
determination
date”
means
any
one
of
the
following
11
dates:
12
(1)
In
the
case
of
a
federal
partnership
adjustment
that
13
arises
from
a
partnership
level
audit,
the
first
day
on
which
14
no
federal
adjustments
arising
from
that
audit
remain
to
be
15
finally
determined,
whether
by
agreement,
or,
if
appealed
16
or
contested,
by
a
final
decision
with
respect
to
which
all
17
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
18
required
to
be
signed
by
the
internal
revenue
service
and
the
19
audited
partnership,
the
final
determination
date
is
the
date
20
on
which
the
last
party
signed
the
agreement.
21
(2)
In
the
case
of
a
federal
partnership
adjustment
that
22
results
from
a
timely
filed
administrative
adjustment
request,
23
the
day
on
which
the
administrative
adjustment
request
was
24
filed
with
the
internal
revenue
service.
25
l.
“Final
federal
partnership
adjustment”
means
a
federal
26
partnership
adjustment
after
the
final
determination
date
for
27
that
federal
partnership
adjustment
has
passed.
28
m.
“Indirect
partner”
means
a
partner
in
a
partnership
or
29
pass-through
entity
where
such
partnership
or
pass-through
30
entity
itself
holds
an
interest
directly,
or
through
another
31
indirect
partner,
in
a
partnership
or
pass-through
entity.
32
n.
“Individual
partner”
means
a
partner
who
is
a
natural
33
person
that
is
subject
to
tax
pursuant
to
section
422.5.
34
o.
“Nonresident
partner”
means
a
partner
that
is
not
a
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resident
partner
as
defined
in
this
subsection.
1
p.
“Partner”
means
a
person
that
holds
an
interest,
directly
2
or
indirectly,
in
a
partnership
or
pass-through
entity.
3
q.
“Partnership”
means
an
entity
subject
to
taxation
4
under
subchapter
K
of
the
Internal
Revenue
Code
and
the
5
regulations
thereunder
and
includes
but
is
not
limited
to
a
6
syndicate,
group,
pool,
joint
venture,
or
other
unincorporated
7
organization
through
or
by
means
of
which
any
business,
8
financial
operation,
or
venture
is
carried
on
and
which
is
9
not,
within
the
meaning
of
this
chapter,
a
trust,
estate,
or
10
corporation.
11
r.
“Partnership
level
audit”
means
an
examination
by
the
12
internal
revenue
service
at
the
partnership
level
pursuant
to
13
subchapter
C,
title
26,
subtitle
F,
chapter
63,
of
the
Internal
14
Revenue
Code,
as
enacted
by
the
Bipartisan
Budget
Act
of
2015,
15
Pub.
L.
No.
114-74,
and
as
amended,
which
results
in
final
16
federal
partnership
adjustments
initiated
and
made
by
the
17
internal
revenue
service.
18
s.
“Pass-through
entity”
means
an
entity,
other
than
19
a
partnership,
that
is
not
subject
to
tax
under
section
20
422.33
for
C
corporations
but
excluding
an
exempt
partner.
21
“Pass-through
entity”
includes
but
is
not
limited
to
S
22
corporations,
estates,
and
trusts
other
than
grantor
trusts.
23
t.
“Reallocation
adjustment”
means
a
final
federal
24
partnership
adjustment
that
changes
the
shares
of
items
of
25
partnership
income,
gain,
loss,
expense,
or
credit
allocated
26
to
a
partner
that
holds
an
interest
directly
in
a
partnership
27
or
pass-through
entity.
A
positive
reallocation
adjustment
28
means
the
portion
of
a
reallocation
adjustment
that
would
29
increase
Iowa
taxable
income
for
such
partners,
and
a
negative
30
reallocation
adjustment
means
the
portion
of
a
reallocation
31
adjustment
that
would
decrease
Iowa
taxable
income
for
such
32
partners.
33
u.
“Resident
partner”
means
any
of
the
following:
34
(1)
For
an
individual
partner,
a
“resident”
as
defined
in
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section
422.4.
1
(2)
For
a
fiduciary
partner,
one
with
situs
in
Iowa.
2
(3)
For
all
other
partners,
a
partner
whose
headquarters
or
3
principal
place
of
business
is
located
in
Iowa.
4
v.
“Reviewed
year”
means
the
taxable
year
of
a
partnership
5
that
is
subject
to
a
partnership
level
audit
from
which
final
6
federal
partnership
adjustments
arise,
or
otherwise
means
the
7
taxable
year
of
the
partnership
or
pass-through
entity
that
is
8
the
subject
of
a
state
partnership
audit.
9
w.
“State
partnership
audit”
means
an
examination
by
the
10
director
at
the
partnership
or
pass-through
entity
level
which
11
results
in
adjustments
to
partnership
or
pass-through
entity
12
related
items
or
reallocations
of
income,
gains,
losses,
13
expenses,
credits,
and
other
attributes
among
such
partners
for
14
the
reviewed
year.
15
x.
“Tiered
partner”
means
any
partner
that
is
a
partnership
16
or
pass-through
entity.
17
y.
“Unrelated
business
income”
means
the
income
which
is
18
defined
in
section
512
of
the
Internal
Revenue
Code
and
the
19
regulations
thereunder.
20
2.
Application.
Partnerships
and
their
direct
partners
21
and
indirect
partners
shall
report
final
federal
partnership
22
adjustments
as
provided
in
this
section.
23
3.
State
partnership
representative.
Notwithstanding
any
24
other
law
to
the
contrary,
the
state
partnership
representative
25
for
the
reviewed
year
shall
have
the
sole
authority
to
act
on
26
behalf
of
the
partnership
or
pass-through
entity
with
respect
27
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
28
or
pass-through
entity
under
this
section
or
section
422.28
or
29
422.29
with
respect
to
final
federal
partnership
adjustments
30
arising
from
a
partnership
level
audit
or
an
administrative
31
adjustment
request,
and
its
direct
partners
and
indirect
32
partners
shall
be
bound
by
those
actions.
33
4.
Reporting
and
payment
requirements
for
audited
34
partnerships
and
their
partners
subject
to
final
federal
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partnership
adjustments.
1
a.
Unless
an
audited
partnership
makes
the
election
in
2
subsection
5,
the
audited
partnership
shall
do
all
of
the
3
following
for
all
final
federal
partnership
adjustments
no
4
later
than
ninety
days
after
the
final
determination
date
of
5
the
audited
partnership:
6
(1)
File
a
completed
federal
adjustments
report.
7
(2)
Notify
each
direct
partner
of
such
partner’s
8
distributive
share
of
the
adjustments
in
the
manner
and
form
9
prescribed
by
the
department
by
rule.
10
(3)
File
an
amended
composite
return
under
section
422.13
11
if
one
was
originally
filed,
and
if
applicable
for
withholding
12
from
partners,
file
an
amended
withholding
report
under
13
section
422.16,
and
pay
the
additional
amount
under
this
title
14
that
would
have
been
due
had
the
final
federal
partnership
15
adjustments
been
reported
properly
as
required,
including
any
16
applicable
interest
and
penalties.
17
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
18
of
the
direct
partners
of
the
audited
partnership
pursuant
to
19
subsection
5,
all
direct
partners
of
the
audited
partnership
20
shall
do
all
of
the
following
no
later
than
one
hundred
21
eighty
days
after
the
final
determination
date
of
the
audited
22
partnership:
23
(1)
File
a
completed
federal
adjustments
report
reporting
24
the
direct
partner’s
distributive
share
of
the
adjustments
25
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
26
(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
27
partners
that
hold
an
interest
directly
in
the
tiered
partner
28
of
such
partner’s
distributive
share
of
the
adjustments
in
the
29
manner
and
form
prescribed
by
the
department
by
rule.
30
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
31
section
422.13,
file
an
amended
composite
return
under
section
32
422.13
if
such
return
was
originally
filed,
and
if
applicable
33
for
withholding
from
partners
file
an
amended
withholding
34
report
under
section
422.16
if
one
was
originally
required
to
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be
filed.
1
(4)
Pay
any
additional
amount
under
this
title
that
would
2
have
been
due
had
the
final
federal
partnership
adjustments
3
been
reported
properly
as
required,
including
any
applicable
4
penalty
and
interest.
5
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
6
behalf
of
the
partners
pursuant
to
subsection
5,
each
indirect
7
partner
shall
do
all
of
the
following:
8
(1)
Within
ninety
days
after
the
time
for
filing
and
9
furnishing
statements
to
tiered
partners
and
their
partners
10
as
established
by
section
6226
of
the
Internal
Revenue
Code
11
and
the
regulations
thereunder,
file
a
completed
federal
12
adjustments
report.
13
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
14
ninety
days
after
the
time
for
filing
and
furnishing
statements
15
to
tiered
partners
and
their
partners
as
established
by
16
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
17
thereunder
but
within
sufficient
time
for
all
indirect
partners
18
to
also
complete
the
requirements
of
this
subsection,
notify
19
all
of
the
partners
that
hold
an
interest
directly
in
the
20
tiered
partner
of
such
partner’s
distributive
share
of
the
21
adjustments
in
the
manner
and
form
prescribed
by
the
department
22
by
rule.
23
(3)
Within
ninety
days
after
the
time
for
filing
and
24
furnishing
statements
to
tiered
partners
and
their
partners
25
as
established
by
section
6226
of
the
Internal
Revenue
Code
26
and
the
regulations
thereunder,
if
the
indirect
partner
27
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
28
amended
composite
return
under
section
422.13
if
such
return
29
was
originally
filed,
and
if
applicable
for
withholding
from
30
partners,
file
an
amended
withholding
report
under
section
31
422.16
if
one
was
originally
required
to
be
filed.
32
(4)
Within
ninety
days
after
the
time
for
filing
and
33
furnishing
statements
to
tiered
partners
and
the
partners
of
34
the
tiered
partners
as
established
by
section
6226
of
the
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Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
1
additional
amount
due
under
this
title,
including
any
penalty
2
and
interest
that
would
have
been
due
had
the
final
federal
3
partnership
adjustments
been
reported
properly
as
required.
4
5.
Election
for
partnership
or
tiered
partners
to
pay.
5
a.
An
audited
partnership,
or
a
tiered
partner
that
receives
6
a
notification
of
a
final
federal
partnership
adjustment
under
7
subsection
4,
may
make
an
election
to
pay
as
provided
under
8
this
subsection.
9
b.
An
audited
partnership
or
tiered
partner
makes
an
10
election
to
pay
under
this
subsection
by
filing
a
completed
11
federal
adjustments
report,
notifying
the
department
in
the
12
manner
and
form
prescribed
by
the
department
that
it
is
making
13
the
election
under
this
subsection,
notifying
each
of
the
14
direct
partners
of
such
partner’s
distributive
share
of
the
15
adjustments,
and
paying
on
behalf
of
its
partners
an
amount
16
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
17
and
interest.
These
requirements
shall
all
be
fulfilled
within
18
one
of
the
following
time
periods:
19
(1)
For
the
audited
partnership,
no
later
than
ninety
days
20
after
the
final
determination
date
of
the
audited
partnership.
21
(2)
For
a
direct
tiered
partner,
no
later
than
one
hundred
22
eighty
days
after
the
final
determination
date
of
the
audited
23
partnership.
24
(3)
For
an
indirect
tiered
partner,
within
ninety
days
25
after
the
time
for
filing
and
furnishing
statements
to
a
26
tiered
partner
and
the
partner
of
the
tiered
partner,
as
27
established
by
section
6226
of
the
Internal
Revenue
Code
and
28
the
regulations
thereunder.
29
c.
The
amount
due
under
this
subsection
from
an
audited
30
partnership
or
tiered
partner
shall
be
calculated
as
follows:
31
(1)
Exclude
from
final
federal
partnership
adjustments
and
32
any
positive
reallocation
adjustments
the
distributive
share
33
of
such
adjustments
reported
to
an
exempt
partner
that
holds
34
an
interest
directly
in
the
audited
partnership
if
the
audited
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partnership
is
making
the
election
or
that
holds
an
interest
1
directly
in
the
tiered
partner
if
the
tiered
partner
is
making
2
the
election,
but
only
to
the
extent
the
distributive
share
is
3
not
unrelated
business
income.
4
(2)
Determine
the
total
distributive
share
of
all
final
5
federal
partnership
adjustments
and
positive
reallocation
6
adjustments
as
modified
by
this
title
that
are
reported
to
7
corporate
partners,
and
to
exempt
partners
to
the
extent
the
8
distributive
share
is
unrelated
business
income,
and
allocate
9
and
apportion
such
adjustments
as
provided
in
section
422.33
10
at
the
partnership
or
tiered
partner
level,
and
multiply
the
11
resulting
amount
by
the
maximum
state
corporate
income
tax
rate
12
pursuant
to
section
422.33
for
the
reviewed
year.
13
(3)
Determine
the
total
distributive
share
of
all
final
14
federal
partnership
adjustments
and
positive
reallocation
15
adjustments
as
modified
by
this
title
that
are
reported
to
16
nonresident
individual
partners
and
nonresident
fiduciary
17
partners
and
allocate
and
apportion
such
adjustments
as
18
provided
in
section
422.33
at
the
partnership
or
tiered
19
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
20
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
21
reviewed
year.
22
(4)
For
the
total
distributive
share
of
all
final
federal
23
partnership
adjustments
and
positive
reallocation
adjustments
24
as
modified
by
this
title
that
are
reported
to
tiered
partners:
25
(a)
Determine
the
amount
of
such
adjustments
which
are
of
a
26
type
that
would
be
subject
to
sourcing
to
Iowa
under
section
27
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident,
and
then
28
determine
the
portion
of
this
amount
that
would
be
sourced
to
29
Iowa
under
those
provisions
as
if
the
tiered
partner
were
a
30
nonresident.
31
(b)
Determine
the
amount
of
such
adjustments
which
are
of
32
a
type
that
would
not
be
subject
to
sourcing
to
Iowa
under
33
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident.
34
(c)
Determine
the
portion
of
the
amount
in
subparagraph
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division
(b)
that
can
be
established,
as
prescribed
by
the
1
department
by
rule,
to
be
properly
allocable
to
indirect
2
partners
that
are
nonresident
partners
or
other
partners
not
3
subject
to
tax
on
the
adjustments.
4
(d)
Multiply
the
total
of
the
amounts
determined
in
5
subparagraph
divisions
(a)
and
(b),
reduced
by
any
amount
6
determined
in
subparagraph
division
(c),
by
the
highest
7
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
8
reviewed
year.
9
(5)
For
the
total
distributive
share
of
all
final
federal
10
partnership
adjustments
and
positive
reallocation
adjustments
11
as
modified
by
this
title
that
are
reported
to
resident
12
individual
partners
and
resident
fiduciary
partners,
multiply
13
that
amount
by
the
highest
individual
income
tax
rate
pursuant
14
to
section
422.5A
for
the
reviewed
year.
15
(6)
Total
the
amounts
computed
pursuant
to
subparagraphs
16
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
17
provided
under
this
title.
Notwithstanding
any
provision
of
18
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
19
by
the
audited
partnership
or
tiered
partner
shall
be
computed
20
from
the
day
after
the
due
date
of
the
reviewed
year
return
21
without
extension,
and
shall
be
imposed
as
if
the
audited
22
partnership
or
tiered
partner
was
required
to
pay
tax
or
show
23
tax
due
on
the
original
return
for
the
reviewed
year.
24
d.
Adjustments
subject
to
the
election
in
this
subsection
25
do
not
include
any
adjustments
arising
from
an
administrative
26
adjustment
request.
27
e.
An
audited
partnership
or
tiered
partner
not
otherwise
28
subject
to
any
reporting
or
payment
obligation
to
Iowa
that
29
makes
an
election
under
this
subsection
consents
to
be
subject
30
to
the
Iowa
laws
related
to
reporting,
assessment,
collection,
31
and
payment
of
Iowa
tax,
interest,
and
penalties
calculated
32
under
the
election.
33
6.
Modified
reporting
and
payment
method.
The
department
may
34
adopt
procedures
for
an
audited
partnership
or
tiered
partner
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to
enter
into
an
agreement
with
the
department
to
use
an
1
alternative
reporting
and
payment
method,
including
applicable
2
time
requirements
or
any
other
provision
of
this
section.
The
3
audited
partnership
or
tiered
partner
must
demonstrate
that
4
the
requested
method
will
reasonably
provide
for
the
reporting
5
and
payment
of
taxes,
penalties,
and
interest
due
under
the
6
provisions
of
this
section.
Application
for
approval
of
an
7
alternative
reporting
and
payment
method
must
be
made
by
the
8
audited
partnership
or
tiered
partner
within
the
time
for
9
making
an
election
to
pay
under
subsection
5
and
in
the
manner
10
prescribed
by
the
department.
Approval
of
such
an
alternative
11
reporting
and
payment
method
shall
be
at
the
discretion
of
the
12
department.
13
7.
Effect
of
election
by
partnership
or
tiered
partner
and
14
payment
of
amount
due.
15
a.
The
election
made
under
subsection
5
is
irrevocable,
16
unless
in
the
discretion
of
the
director,
the
director
17
determines
otherwise.
18
b.
The
amount
determined
in
subsection
5,
when
properly
19
reported
and
paid
by
the
audited
partnership
or
tiered
partner,
20
shall
be
treated
as
paid
on
behalf
of
the
partners
of
such
21
audited
partnership
or
tiered
partner
on
the
same
final
federal
22
partnership
adjustments,
provided,
however,
that
no
partner
may
23
take
any
deduction
or
credit
for
the
amount,
claim
a
refund
of
24
the
amount,
or
include
the
amount
on
such
partner’s
Iowa
return
25
in
any
manner.
26
c.
In
the
event
another
state
offers
to
an
audited
27
partnership
or
tiered
partner
a
similar
election
to
pay
state
28
tax
resulting
from
final
federal
partnership
adjustments,
29
nothing
in
this
subsection
shall
prohibit
a
resident
who
holds
30
an
interest
directly
in
that
audited
partnership
or
tiered
31
partner,
as
the
case
may
be,
from
claiming
a
credit
for
taxes
32
paid
by
the
resident
to
another
state
under
section
422.8,
33
subsection
1,
for
any
amounts
paid
by
the
audited
partnership
34
or
tiered
partner
on
such
resident
partner’s
behalf
to
another
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state,
provided
such
payment
otherwise
meets
the
requirements
1
of
section
422.8,
subsection
1.
2
d.
Nothing
in
this
section
shall
prohibit
the
department
3
from
assessing
direct
partners
and
indirect
partners
for
taxes
4
they
owe
in
the
event
that
an
audited
partnership
or
tiered
5
partner
fails
to
timely
make
any
report
or
payment
required
by
6
this
section
for
any
reason.
7
8.
Assessments
of
additional
Iowa
income
tax,
interest,
and
8
penalties,
and
claims
for
refund,
arising
from
final
federal
9
partnership
adjustments.
10
a.
The
department
shall
assess
additional
Iowa
income
11
tax,
interest,
and
penalties
arising
from
final
federal
12
partnership
adjustments
in
the
same
manner
as
provided
in
13
this
title
unless
a
different
treatment
is
provided
by
this
14
subsection.
Since
final
federal
partnership
adjustments
are
15
determined
at
the
audited
partnership
level,
any
assessment
16
issued
to
partners
shall
not
be
appealable
by
the
partner.
17
The
department
may
assess
any
taxes,
including
on-behalf-of
18
amounts,
interest,
and
penalties
arising
from
the
final
federal
19
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
20
the
audited
partnership,
tiered
partner,
or
other
direct
or
21
indirect
partner
on
or
before
the
expiration
of
the
applicable
22
limitations
period
specified
in
section
422.25.
23
b.
In
addition
to
the
period
for
claiming
a
refund
or
credit
24
provided
in
section
422.73,
subsection
1,
paragraph
“a”
,
and
25
notwithstanding
section
422.73,
subsection
1,
paragraph
“b”
,
26
a
partnership,
tiered
partner,
or
other
direct
or
indirect
27
partner,
as
the
case
may
be,
may
file
a
claim
for
refund
of
28
Iowa
income
tax
arising
directly
or
indirectly
from
a
final
29
federal
partnership
adjustment
arising
from
a
partnership
level
30
audit
on
or
before
the
date
which
is
one
year
from
the
date
the
31
federal
adjustments
report
for
that
final
federal
partnership
32
adjustment
was
required
to
be
filed
by
such
person
under
this
33
section.
34
9.
Rules.
The
department
may
adopt
any
rules
pursuant
to
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chapter
17A
to
implement
this
section.
1
Sec.
64.
NEW
SECTION
.
422.25B
State
partnership
2
representative.
3
1.
As
used
in
this
section,
all
words
and
phrases
defined
4
in
section
422.25A
shall
have
the
same
meaning
given
them
by
5
that
section.
6
2.
The
state
partnership
representative
for
the
reviewed
7
year
for
a
partnership
shall
be
the
partnership’s
federal
8
partnership
representative
with
respect
to
an
action
required
9
or
permitted
to
be
taken
by
a
state
partnership
representative
10
under
this
chapter
for
a
reviewed
year,
unless
the
partnership
11
designates
in
writing
another
person
as
the
state
partnership
12
representative
as
provided
in
subsection
3.
The
state
13
partnership
representative
for
the
reviewed
year
for
a
14
pass-through
entity
is
the
person
designated
in
subsection
3.
15
3.
The
department
may
establish
reasonable
qualifications
16
for
a
person
to
be
a
state
partnership
representative.
If
17
a
partnership
desires
to
designate
a
person
other
than
the
18
federal
partnership
representative,
the
partnership
shall
19
designate
such
person
in
the
manner
and
form
prescribed
by
the
20
department.
A
pass-through
entity
shall
designate
a
person
as
21
the
state
partnership
representative
in
the
manner
and
form
22
prescribed
by
the
department.
A
partnership
or
pass-through
23
entity
shall
be
allowed
to
change
such
designation
by
notifying
24
the
department
at
the
time
the
change
occurs
in
the
manner
and
25
form
prescribed
by
the
department.
26
4.
The
department
may
adopt
any
rules
pursuant
to
chapter
27
17A
to
implement
this
section.
28
Sec.
65.
NEW
SECTION
.
422.25C
Partnership
and
pass-through
29
entity
audits
and
examinations
——
consistent
treatment
of
30
entity-level
items
——
binding
actions
——
amended
returns.
31
1.
As
used
in
this
section,
all
words
and
phrases
defined
32
in
section
422.25A
shall
have
the
same
meaning
given
them
by
33
that
section.
34
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
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adjustments
to
a
partnership’s
or
pass-through
entity’s
items
1
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
2
to
such
items
allocated
to
a
partner
that
holds
an
interest
3
in
a
partnership
or
pass-through
entity
for
the
reviewed
year
4
by
the
department
as
a
result
of
a
state
partnership
audit,
5
shall
be
determined
at
the
partnership
level
or
pass-through
6
entity
level
in
the
same
manner
as
provided
by
section
6221(a)
7
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
8
unless
a
different
treatment
is
specifically
provided
in
this
9
title.
The
provisions
of
sections
6222,
6223,
and
6227
of
the
10
Internal
Revenue
Code
and
the
regulations
thereunder
shall
also
11
apply
to
a
partnership
or
pass-through
entity
and
its
direct
12
or
indirect
partners
in
the
same
manner
as
provided
in
such
13
sections
unless
a
different
treatment
is
specifically
provided
14
in
this
title.
For
purposes
of
applying
such
sections,
due
15
account
shall
be
made
for
differences
in
federal
and
Iowa
16
terminology.
The
adjustment
provided
by
section
6221(a)
of
17
the
Internal
Revenue
Code
shall
be
determined
as
provided
in
18
such
section
but
shall
be
based
on
Iowa
taxable
income
or
19
other
tax
attributes
of
the
partnership
as
determined
pursuant
20
to
this
chapter
for
the
reviewed
year.
The
department
shall
21
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
22
entity.
Such
notice
shall
be
treated
as
an
assessment
for
23
the
purposes
of
section
422.25,
and
the
notice
shall
be
24
appealable
by
the
partnership
or
pass-through
entity
pursuant
25
to
sections
422.28
and
422.29
and
shall
be
issued
within
the
26
time
period
provided
by
section
422.25.
Once
the
adjustments
27
to
partnership-related
or
pass-through
entity-related
items
or
28
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
29
other
attributes
among
such
partners
for
the
reviewed
year
are
30
finally
determined,
the
partnership
or
pass-through
entity
and
31
any
direct
partners
or
indirect
partners
shall
then
be
subject
32
to
the
provisions
of
section
422.25,
subsection
1,
paragraph
33
“e”
,
and
section
422.25A
in
the
same
manner
as
if
the
state
34
partnership
audit
were
a
federal
partnership
level
audit,
and
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as
if
the
final
state
partnership
audit
adjustment
were
a
final
1
federal
partnership
adjustment.
The
penalty
exceptions
in
2
section
421.27,
subsection
2,
paragraphs
“b”
and
“c”
,
shall
not
3
apply
to
a
state
partnership
audit.
4
3.
The
state
partnership
representative
for
the
reviewed
5
year
as
determined
under
section
422.25B
shall
have
the
sole
6
authority
to
act
on
behalf
of
the
partnership
or
pass-through
7
entity
with
respect
to
an
action
required
or
permitted
to
8
be
taken
by
a
partnership
or
pass-through
entity
under
this
9
section,
including
proceedings
under
section
422.28
or
422.29,
10
and
the
partnership’s
or
pass-through
entity’s
direct
partners
11
and
indirect
partners
shall
be
bound
by
those
actions.
12
4.
If
the
department,
the
partnership
or
pass-through
13
entity,
and
the
partnership
or
pass-through
entity
owners
14
agree,
the
provisions
of
this
section
may
be
applied
to
tax
15
years
beginning
before
January
1,
2020.
16
5.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
17
implement
this
section.
18
Sec.
66.
Section
422.35,
Code
2020,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
26.
Any
income
subtracted
from
federal
21
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
22
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
23
shall
be
added
back
in
computing
net
income
for
state
tax
24
purposes
for
the
adjustment
year.
25
Sec.
67.
Section
422.39,
Code
2020,
is
amended
by
striking
26
the
section
and
inserting
in
lieu
thereof
the
following:
27
422.39
Statutes
applicable
to
corporations
and
corporation
28
tax.
29
All
the
provisions
of
sections
422.24
through
422.27
30
of
division
II,
respecting
payment,
collection,
reporting,
31
examination,
and
assessment,
shall
apply
in
respect
to
a
32
corporation
subject
to
the
provisions
of
this
division
and
to
33
the
tax
due
and
payable
by
a
corporation
taxable
under
this
34
division.
This
includes
but
is
not
limited
to
a
corporation
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that
is
a
pass-through
entity
as
defined
in
section
422.25A.
1
Sec.
68.
Section
422.73,
Code
2020,
is
amended
by
adding
the
2
following
new
subsection:
3
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
“federal
4
adjustment”
,
“final
determination
date”
,
and
“final
federal
5
adjustment”
all
mean
the
same
as
defined
in
section
422.25.
6
Sec.
69.
Section
422.73,
subsections
1
and
3,
Code
2020,
are
7
amended
to
read
as
follows:
8
1.
a.
If
it
appears
that
an
amount
of
tax,
penalty,
or
9
interest
has
been
paid
which
was
not
due
under
division
II
,
10
III
or
V
of
this
chapter
,
then
that
amount
shall
be
credited
11
against
any
tax
due
on
the
books
of
the
department
by
the
12
person
who
made
the
excessive
payment,
or
that
amount
shall
be
13
refunded
to
the
person
or
with
the
person’s
approval,
credited
14
to
tax
to
become
due.
A
claim
for
refund
or
credit
that
has
15
not
been
filed
with
the
department
within
three
years
after
16
the
return
upon
which
a
refund
or
credit
claimed
became
due,
17
or
within
one
year
after
the
payment
of
the
tax
upon
which
a
18
refund
or
credit
is
claimed
was
made,
whichever
time
is
the
19
later,
shall
not
be
allowed
by
the
director.
If,
as
a
result
of
20
a
carryback
of
a
net
operating
loss
or
a
net
capital
loss,
the
21
amount
of
tax
in
a
prior
period
is
reduced
and
an
overpayment
22
results,
the
claim
for
refund
or
credit
of
the
overpayment
23
shall
be
filed
with
the
department
within
the
three
years
after
24
the
return
for
the
taxable
year
of
the
net
operating
loss
or
25
net
capital
loss
became
due.
26
b.
Notwithstanding
the
period
of
limitation
specified
in
27
paragraph
“a”
,
the
taxpayer
shall
have
six
months
one
year
from
28
the
day
of
final
disposition
final
determination
date
of
any
29
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
30
service
final
federal
adjustment
arising
from
an
internal
31
revenue
service
audit
or
other
similar
action
by
the
internal
32
revenue
service
with
respect
to
the
particular
tax
year
to
33
claim
an
income
tax
refund
or
credit
arising
from
that
final
34
federal
adjustment
.
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3.
The
department
shall
enter
into
an
agreement
with
the
1
internal
revenue
service
for
the
transmission
of
federal
income
2
tax
reports
on
individuals
required
to
file
an
Iowa
income
tax
3
return
who
have
been
involved
in
an
income
tax
matter
with
the
4
internal
revenue
service.
After
final
disposition
the
final
5
determination
date
of
the
income
tax
matter
that
involves
a
6
final
federal
adjustment
between
the
taxpayer
and
the
internal
7
revenue
service,
the
department
shall
determine
whether
the
8
individual
is
due
a
state
income
tax
refund
as
a
result
of
that
9
final
disposition
of
federal
adjustment
from
such
income
tax
10
matter.
If
the
individual
is
due
a
state
income
tax
refund,
11
the
department
shall
notify
the
individual
within
thirty
days
12
and
request
the
individual
to
file
a
claim
for
refund
or
credit
13
with
the
department.
14
Sec.
70.
APPLICABILITY.
This
division
of
this
Act
applies
15
to
federal
adjustments
and
federal
partnership
adjustments
that
16
have
a
final
determination
date
after
the
effective
date
of
17
this
division
of
this
Act.
18
DIVISION
VI
19
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE
20
Sec.
71.
RULES.
The
following
applies
to
2020
Iowa
Acts,
21
Senate
File
2328
or
House
File
2565,
if
enacted:
22
The
department
of
revenue
shall
adopt
rules
governing
23
setoffs
that
occur
during
the
transition
from
the
department
of
24
administrative
services
to
the
department
of
revenue.
25
Sec.
72.
2020
Iowa
Acts,
Senate
File
2328,
if
enacted,
is
26
amended
by
adding
the
following
new
section:
27
NEW
SECTION
.
Sec.
___.
EFFECTIVE
DATE.
This
Act
takes
28
effect
on
the
later
of
January
1,
2021,
or
the
effective
date
29
of
the
rules
adopted
by
the
department
of
revenue
pursuant
30
to
chapter
17A
implementing
this
Act
other
than
transitional
31
rules.
32
Sec.
73.
2020
Iowa
Acts,
House
File
2565,
section
28,
if
33
enacted,
is
amended
to
read
as
follows:
34
SEC.
28.
EFFECTIVE
DATE.
This
Act
takes
effect
on
the
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later
of
January
1,
2021
,
or
the
effective
date
of
the
rules
1
adopted
by
the
department
of
revenue
pursuant
to
chapter
17A
2
implementing
this
Act
other
than
transitional
rules
.
3
Sec.
74.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
4
deemed
of
immediate
importance,
takes
effect
upon
enactment.
5
Sec.
75.
RETROACTIVE
APPLICABILITY.
This
division
of
this
6
Act
applies
retroactively
to
the
effective
date
of
2020
Iowa
7
Acts,
Senate
File
2328
or
House
File
2565,
if
enacted.
8
DIVISION
VII
9
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
SHAREHOLDERS
10
OR
BENEFICIARIES
11
Sec.
76.
Section
422.8,
subsection
1,
Code
2020,
is
amended
12
to
read
as
follows:
13
1.
a.
The
amount
of
income
tax
paid
to
another
state
or
14
foreign
country
by
a
resident
taxpayer
of
this
state
on
income
15
derived
from
sources
outside
of
Iowa
shall
be
allowed
as
a
16
credit
against
the
tax
computed
under
this
chapter
,
except
that
17
the
credit
shall
not
exceed
what
the
amount
of
the
Iowa
tax
18
would
have
been
on
the
same
income
which
was
taxed
by
the
other
19
state
or
foreign
country.
The
limitation
on
this
credit
shall
20
be
computed
according
to
the
following
formula:
Income
earned
21
outside
of
Iowa
and
taxed
by
another
state
or
foreign
country
22
shall
be
divided
by
the
total
income
of
the
resident
taxpayer
23
of
Iowa.
This
quotient
multiplied
times
by
the
net
Iowa
tax
as
24
determined
on
the
total
income
of
the
taxpayer
as
if
entirely
25
earned
in
Iowa
shall
be
the
maximum
tax
credit
against
the
Iowa
26
net
tax.
27
b.
(1)
For
purposes
of
paragraph
“a”
,
a
resident
partner
28
of
an
entity
taxed
as
a
partnership
for
federal
tax
purposes,
29
a
resident
shareholder
of
an
S
corporation,
or
a
resident
30
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
31
the
resident
partner’s,
resident
shareholder’s,
or
resident
32
beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
33
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
34
state
or
foreign
country
on
income
that
is
also
subject
to
35
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tax
under
this
division,
but
only
if
the
entity
provides
the
1
resident
partner,
resident
shareholder,
or
resident
beneficiary
2
a
statement
that
documents
the
resident
partner’s,
resident
3
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
4
derived
in
the
other
state
or
foreign
country,
the
income
tax
5
liability
of
the
entity
in
that
state
or
foreign
country,
and
6
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
7
country.
8
(2)
For
purposes
of
paragraph
“a”
,
a
resident
shareholder
of
9
a
regulated
investment
company
shall
be
deemed
to
have
paid
the
10
shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
11
the
regulated
investment
company
to
another
state
or
foreign
12
country
and
treated
as
paid
by
its
shareholders
pursuant
to
13
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
14
regulated
investment
company
provides
the
resident
shareholder
15
a
statement
that
documents
the
resident
shareholder’s
share
of
16
the
income
derived
in
the
other
state
or
foreign
country,
the
17
income
tax
liability
of
the
regulated
investment
company
in
18
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
19
regulated
investment
company
to
that
state
or
foreign
country.
20
Sec.
77.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
21
deemed
of
immediate
importance,
takes
effect
upon
enactment.
22
Sec.
78.
RETROACTIVE
APPLICABILITY.
This
division
of
this
23
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
24
beginning
on
or
after
that
date.
25
DIVISION
VIII
26
BONUS
DEPRECIATION
27
Sec.
79.
Section
422.7,
subsections
51
and
52,
Code
2020,
28
are
amended
by
striking
the
subsections.
29
Sec.
80.
Section
422.9,
subsection
2,
paragraph
h,
Code
30
2020,
is
amended
to
read
as
follows:
31
h.
For
purposes
of
calculating
the
deductions
in
this
32
subsection
that
are
authorized
under
the
Internal
Revenue
Code,
33
and
to
the
extent
that
any
of
such
deductions
is
determined
by
34
an
individual’s
federal
adjusted
gross
income,
the
individual’s
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federal
adjusted
gross
income
is
computed
in
accordance
with
1
section
422.7,
subsections
39,
39A,
39B,
51,
52,
and
53
.
2
Sec.
81.
Section
422.35,
subsections
14
and
15,
Code
2020,
3
are
amended
by
striking
the
subsections.
4
Sec.
82.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
5
this
division
striking
section
422.7,
subsections
51
and
52,
6
and
section
422.35,
subsections
14
and
15,
respectively,
shall
7
not
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
8
right
to
deduct
for
a
tax
year
beginning
on
or
after
January
1,
9
2020,
any
amount
determined
under
section
422.7,
subsection
52,
10
paragraph
“b”,
subparagraph
(3),
Code
2020,
or
under
section
11
422.35,
subsection
15,
paragraph
“b”,
subparagraph
(3),
Code
12
2020,
for
a
tax
year
beginning
prior
to
January
1,
2020.
13
Sec.
83.
RETROACTIVE
APPLICABILITY.
This
division
of
this
14
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
15
beginning
on
or
after
that
date.
16
DIVISION
IX
17
MARRIED
TAXPAYERS
——
JOINT
LIABILITY
18
Sec.
84.
Section
422.21,
subsection
7,
Code
2020,
is
amended
19
to
read
as
follows:
20
7.
If
married
taxpayers
file
a
joint
return
or
file
21
separately
on
a
combined
return
in
accordance
with
rules
22
prescribed
by
the
director,
both
spouses
are
jointly
and
23
severally
liable
for
the
total
tax
due
on
the
return,
except
24
when
one
spouse
is
considered
to
be
an
innocent
spouse
eligible
25
for
relief
under
criteria
established
pursuant
to
section
6015
26
of
the
Internal
Revenue
Code.
The
department
may
notify
the
27
nonrequesting
spouse
or
former
spouse
and
permit,
by
rule,
the
28
intervention
of
a
nonrequesting
spouse
or
former
spouse
when
29
relief
from
joint
and
several
liability
is
requested.
30
Sec.
85.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
31
deemed
of
immediate
importance,
takes
effect
upon
enactment.
32
DIVISION
X
33
SALES
TAX
PAID
BY
THIRD-PARTY
DEVELOPERS
34
Sec.
86.
Section
15.331C,
subsection
2,
Code
2020,
is
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amended
to
read
as
follows:
1
2.
A
third-party
developer
shall
state
under
oath,
on
2
forms
provided
by
the
department
of
revenue,
the
amount
of
3
taxes
paid
as
described
in
subsection
1
and
shall
submit
such
4
forms
to
the
department
of
revenue.
The
taxes
paid
shall
be
5
itemized
to
allow
identification
of
the
taxes
attributable
6
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
7
warehouse
or
distribution
center.
After
receiving
the
form
8
from
the
third-party
developer,
the
department
of
revenue
shall
9
issue
a
tax
credit
certificate
to
the
eligible
business
equal
10
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
11
under
chapter
423
for
gas,
electricity,
water,
or
sewer
12
utility
services,
goods,
wares,
or
merchandise,
or
on
services
13
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
14
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
15
relating
to
the
construction
or
equipping
of
a
facility.
16
The
department
of
revenue
shall
also
issue
a
tax
credit
17
certificate
to
the
eligible
business
equal
to
the
taxes
paid
18
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
19
be
used
in
a
warehouse
or
distribution
center.
The
aggregate
20
combined
total
amount
of
tax
refunds
under
section
15.331A
for
21
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
22
to
be
used
in
a
warehouse
or
distribution
center
and
of
tax
23
credit
certificates
issued
by
the
department
of
revenue
for
the
24
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
25
equipment
to
be
used
in
a
warehouse
or
distribution
center
26
shall
not
exceed
five
hundred
thousand
dollars
in
a
fiscal
27
year.
If
an
applicant
for
a
tax
credit
certificate
does
not
28
receive
a
certificate
for
the
taxes
paid
and
attributable
29
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
30
warehouse
or
distribution
center,
the
application
shall
be
31
considered
in
succeeding
fiscal
years.
The
eligible
business
32
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
33
credit
certificate
issued
by
the
department
of
revenue
is
34
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
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which
the
tax
credit
is
claimed.
A
tax
credit
certificate
1
shall
contain
the
eligible
business’s
name,
address,
tax
2
identification
number,
the
amount
of
the
tax
credit,
and
other
3
information
deemed
necessary
by
the
department
of
revenue.
4
An
individual
under
this
section
may
claim
a
tax
credit
of
5
a
partnership,
limited
liability
company,
S
corporation,
6
estate,
or
trust
electing
to
have
income
taxed
directly
to
7
the
individual.
The
amount
claimed
by
the
individual
shall
8
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
9
from
the
partnership,
limited
liability
company,
S
corporation,
10
estate,
or
trust.
11
Sec.
87.
NEW
SECTION
.
422.12O
Corporate
tax
credit
for
12
certain
sales
taxes
paid
by
third-party
developer.
13
The
taxes
imposed
under
this
division,
less
the
credits
14
allowed
under
section
422.12,
shall
be
reduced
by
a
corporate
15
tax
credit
authorized
pursuant
to
section
15.331C
for
certain
16
sales
taxes
paid
by
a
third-party
developer.
17
Sec.
88.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
18
deemed
of
immediate
importance,
takes
effect
upon
enactment.
19
Sec.
89.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
21
beginning
on
or
after
that
date.
22
DIVISION
XI
23
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
(529
PLANS)
24
Sec.
90.
Section
12D.1,
subsection
2,
paragraph
k,
Code
25
2020,
is
amended
to
read
as
follows:
26
k.
“Qualified
education
expenses”
means
the
same
as
27
“qualified
higher
education
expenses”
as
defined
in
section
28
529(e)(3)
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
29
No.
115-97,
and
shall
include
elementary
and
secondary
school
30
expenses
for
tuition
described
in
section
529(c)(7)
of
the
31
Internal
Revenue
Code,
subject
to
the
limitations
imposed
by
32
section
529(e)(3)(A)
of
the
Internal
Revenue
Code.
“Qualified
33
education
expenses”
includes
expenses
for
the
participation
34
in
an
apprenticeship
program
registered
and
certified
with
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the
United
States
secretary
of
labor
under
section
1
of
the
1
National
Apprenticeship
Act,
29
U.S.C.
§50,
and
amounts
paid
as
2
principal
or
interest
on
any
qualified
education
loan
on
behalf
3
of
a
beneficiary
or
a
sibling
of
the
beneficiary,
subject
to
4
the
limitations
imposed
by
section
529(c)(9)(B)
and
(C)
of
the
5
Internal
Revenue
Code.
6
Sec.
91.
Section
12D.1,
subsection
2,
Code
2020,
is
amended
7
by
adding
the
following
new
paragraphs:
8
NEW
PARAGRAPH
.
0l.
“Qualified
education
loan”
means
the
9
same
as
“qualified
education
loan”
as
defined
in
section
221(d)
10
of
the
Internal
Revenue
Code.
11
NEW
PARAGRAPH
.
0m.
“Sibling”
means
a
brother,
sister,
12
stepbrother,
or
stepsister
of
the
beneficiary.
13
Sec.
92.
Section
422.7,
subsection
32,
paragraph
c,
14
subparagraph
(1),
Code
2020,
is
amended
by
adding
the
following
15
new
subparagraph
divisions:
16
NEW
SUBPARAGRAPH
DIVISION
.
(d)
The
payment
of
expenses
17
for
fees,
books,
supplies,
and
equipment
required
for
the
18
participation
of
a
beneficiary
in
an
apprenticeship
program.
19
NEW
SUBPARAGRAPH
DIVISION
.
(e)
The
payment
of
qualified
20
education
loan
repayments.
21
Sec.
93.
Section
422.7,
subsection
32,
paragraph
c,
22
subparagraph
(2),
Code
2020,
is
amended
by
adding
the
following
23
new
subparagraph
divisions:
24
NEW
SUBPARAGRAPH
DIVISION
.
(0a)
“Apprenticeship
program”
25
means
a
program
registered
and
certified
with
the
United
26
States
secretary
of
labor
under
section
1
of
the
National
27
Apprenticeship
Act,
29
U.S.C.
§50.
28
NEW
SUBPARAGRAPH
DIVISION
.
(0c)
“Qualified
education
loan”
29
means
the
same
as
defined
in
section
12D.1,
subsection
2.
30
NEW
SUBPARAGRAPH
DIVISION
.
(00c)
“Qualified
education
loan
31
repayments”
means
amounts
paid
as
principal
or
interest
on
any
32
qualified
education
loan
of
the
beneficiary
or
a
sibling
of
33
the
beneficiary.
The
repayment
amounts
shall
not
exceed
ten
34
thousand
dollars
in
the
aggregate
for
the
beneficiary
or
the
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sibling,
respectively.
1
NEW
SUBPARAGRAPH
DIVISION
.
(d)
“Sibling”
means
the
same
as
2
defined
in
section
12D.1,
subsection
2.
3
Sec.
94.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
4
deemed
of
immediate
importance,
takes
effect
upon
enactment.
5
Sec.
95.
RETROACTIVE
APPLICABILITY.
This
division
of
this
6
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
7
beginning
on
or
after
that
date.
8
DIVISION
XII
9
IOWA
EDUCATIONAL
SAVINGS
ACCOUNT
AND
FIRST-TIME
HOMEBUYER
10
ACCOUNT
——
EXTENSIONS
11
Sec.
96.
EXTENSION
OF
IOWA
EDUCATIONAL
SAVINGS
ACCOUNT
12
CONTRIBUTION
DEDUCTION
FOR
TAX
YEAR
2019.
Notwithstanding
any
13
provision
of
law
to
the
contrary,
in
determining
the
deduction
14
provided
under
section
422.7,
subsection
32,
paragraph
“a”,
15
for
tax
years
beginning
during
the
2019
calendar
year,
a
16
participant
who
makes
a
contribution
to
the
Iowa
educational
17
savings
plan
trust
pursuant
to
section
12D.3,
subsection
1,
on
18
or
after
January
1,
2020,
but
on
or
before
July
31,
2020,
may
19
elect
to
be
deemed
to
have
made
the
contribution
on
the
last
20
day
of
calendar
year
2019.
21
Sec.
97.
EXTENSION
OF
IOWA
FIRST-TIME
HOMEBUYER
ACCOUNT
AND
22
BENEFICIARY
DESIGNATION
FOR
ACCOUNTS
OPENED
IN
2019.
23
1.
Notwithstanding
section
541B.3,
subsection
1,
paragraph
24
“a”,
or
any
other
provision
of
law
to
the
contrary,
an
25
individual
who
opened
a
first-time
homebuyer
account
during
26
calendar
year
2019
and
who
wishes
to
participate
in
the
Iowa
27
first-time
homebuyer
savings
account
program
shall
designate
28
the
account
as
a
first-time
homebuyer
account
on
or
before
July
29
31,
2020,
on
forms
provided
by
the
department
of
revenue.
30
2.
Notwithstanding
section
541B.3,
subsection
2,
paragraph
31
“a”,
or
any
other
provision
of
law
to
the
contrary,
an
32
individual
who
opened
a
first-time
homebuyer
account
during
33
calendar
year
2019
and
who
wishes
to
participate
in
the
Iowa
34
first-time
homebuyer
savings
account
program
shall
designate
an
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individual
as
beneficiary
of
the
first-time
homebuyer
savings
1
account
on
or
before
July
31,
2020,
on
forms
provided
by
the
2
department
of
revenue.
3
Sec.
98.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
4
deemed
of
immediate
importance,
takes
effect
upon
enactment.
5
DIVISION
XIII
6
QUALIFYING
PERSONAL
PROTECTION
EQUIPMENT
——
DONATION
7
Sec.
99.
Section
423.6,
Code
2020,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
18.
Qualifying
personal
protective
10
equipment
and
materials
which
are
assembled
to
become
11
qualifying
personal
protective
equipment.
For
purposes
of
this
12
subsection,
“qualifying
personal
protective
equipment”
means
13
personal
protective
equipment
that
is
assembled
and
donated
by
14
a
person
during
the
period
beginning
with
a
state
of
disaster
15
emergency
proclamation
by
the
governor
under
section
29C.6
and
16
ending
one
hundred
eighty
days
after
the
expiration
of
such
17
proclamation.
18
Sec.
100.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
19
that
arise
from
claims
resulting
from
the
enactment
of
this
20
division
of
this
Act,
for
donations
occurring
prior
to
the
21
effective
date
of
this
division
of
this
Act,
shall
not
be
22
allowed
unless
claims
are
filed
prior
to
October
1,
2020,
23
notwithstanding
any
other
provision
of
the
law
to
the
contrary.
24
Sec.
101.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
102.
RETROACTIVE
APPLICABILITY.
This
division
of
this
27
Act
applies
retroactively
to
January
1,
2020,
for
qualifying
28
personal
protective
equipment
and
materials
assembled
and
29
donated
on
or
after
that
date.
30
DIVISION
XIV
31
SHORT-TERM
RENTAL
PROPERTIES
32
Sec.
103.
Section
331.301,
Code
2020,
is
amended
by
adding
33
the
following
new
subsection:
34
NEW
SUBSECTION
.
18.
a.
For
purposes
of
this
subsection,
35
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“short-term
rental
property”
means
any
individually
or
1
collectively
owned
single-family
house
or
dwelling
unit;
2
any
unit
or
group
of
units
in
a
condominium,
cooperative,
3
or
timeshare;
or
an
owner-occupied
residential
home
that
is
4
offered
for
a
fee
for
thirty
days
or
less.
“Short-term
rental
5
property”
does
not
include
a
unit
that
is
used
for
any
retail,
6
restaurant,
banquet
space,
event
center,
or
other
similar
use.
7
b.
A
county
shall
not
adopt
or
enforce
any
ordinance
8
prohibiting
short-term
rental
properties
within
the
county.
A
9
short-term
rental
property
shall
be
classified
as
a
residential
10
land
use
for
zoning
purposes.
11
c.
Notwithstanding
paragraph
“b”
,
a
county
may
enact
or
12
enforce
an
ordinance
that
regulates,
prohibits,
or
otherwise
13
limits
short-term
rental
properties
for
the
following
primary
14
purposes
if
enforcement
is
performed
in
the
same
manner
as
15
enforcement
applicable
to
similar
properties
that
are
not
16
short-term
rental
properties:
17
(1)
Protection
of
public
health
and
safety
related
to
fire
18
and
building
safety,
sanitation,
or
traffic
control.
19
(2)
Residential
use
and
zoning
purposes
related
to
noise,
20
property
maintenance,
or
nuisance
issues.
21
(3)
Limitation
or
prohibition
of
use
of
property
to
house
22
sex
offenders;
to
manufacture,
exhibit,
distribute,
or
sell
23
illegal
drugs,
liquor,
pornography,
or
obscenity;
or
to
operate
24
an
adult-oriented
entertainment
establishment
as
described
in
25
section
239B.5,
subsection
4,
paragraph
“a”
.
26
(4)
To
provide
the
county
with
an
emergency
contact
for
a
27
short-term
rental
property.
28
Sec.
104.
Section
414.1,
subsection
1,
Code
2020,
is
amended
29
by
adding
the
following
new
paragraphs:
30
NEW
PARAGRAPH
.
e.
A
city
shall
not
adopt
or
enforce
any
31
regulation,
restriction,
or
other
ordinance
related
to
distance
32
separation
requirements
for
single-family
homes
or
duplexes.
33
NEW
PARAGRAPH
.
f.
(1)
For
purposes
of
this
paragraph,
34
“short-term
rental
property”
means
any
individually
or
35
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collectively
owned
single-family
house
or
dwelling
unit;
1
any
unit
or
group
of
units
in
a
condominium,
cooperative,
2
or
timeshare;
or
an
owner-occupied
residential
home
that
is
3
offered
for
a
fee
for
thirty
days
or
less.
“Short-term
rental
4
property”
does
not
include
a
unit
that
is
used
for
any
retail,
5
restaurant,
banquet
space,
event
center,
or
other
similar
use.
6
(2)
A
city
shall
not
adopt
or
enforce
any
ordinance
7
prohibiting
short-term
rental
properties
within
the
city.
A
8
short-term
rental
property
shall
be
classified
as
a
residential
9
land
use
for
zoning
purposes.
10
(3)
Notwithstanding
subparagraph
(2),
a
city
may
enact
or
11
enforce
an
ordinance
that
regulates,
prohibits,
or
otherwise
12
limits
short-term
rental
properties
for
the
following
primary
13
purposes
if
enforcement
is
performed
in
the
same
manner
as
14
enforcement
applicable
to
similar
properties
that
are
not
15
short-term
rental
properties:
16
(a)
Protection
of
public
health
and
safety
related
to
fire
17
and
building
safety,
sanitation,
or
traffic
control.
18
(b)
Residential
use
and
zoning
purposes
related
to
noise,
19
property
maintenance,
or
nuisance
issues.
20
(c)
Limitation
or
prohibition
of
use
of
property
to
house
21
sex
offenders;
to
manufacture,
exhibit,
distribute,
or
sell
22
illegal
drugs,
liquor,
pornography,
or
obscenity;
or
to
operate
23
an
adult-oriented
entertainment
establishment
as
described
in
24
section
239B.5,
subsection
4,
paragraph
“a”
.
25
(d)
To
provide
the
city
with
an
emergency
contact
for
a
26
short-term
rental
property.
27
DIVISION
XV
28
FUTURE
TAX
CHANGES
29
Sec.
105.
2018
Iowa
Acts,
chapter
1161,
section
133,
is
30
amended
by
striking
the
section
and
inserting
in
lieu
thereof
31
the
following:
32
SEC.
133.
This
division
of
this
Act
takes
effect
January
1,
33
2023.
34
DIVISION
XVI
35
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BUSINESS
INTEREST
EXPENSE
DEDUCTION
AND
GLOBAL
INTANGIBLE
1
LOW-TAXED
INCOME
2
Sec.
106.
Section
422.7,
Code
2020,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
59.
a.
Section
163(j)
of
the
Internal
5
Revenue
Code
does
not
apply
in
computing
net
income
for
state
6
tax
purposes.
If
the
taxpayer’s
federal
adjusted
gross
income
7
for
the
tax
year
was
increased
or
decreased
by
reason
of
the
8
application
of
section
163(j)
of
the
Internal
Revenue
Code,
9
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
10
under
rules
prescribed
by
the
director.
11
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
12
in
which
the
additional
first-year
depreciation
allowance
13
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
14
applies
in
computing
net
income
for
state
tax
purposes.
15
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
16
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
17
interest
expense
paid
or
accrued
in
a
previous
taxable
year
18
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
19
reason
of
the
carryforward
of
disallowed
business
interest
20
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
21
if
either
of
the
following
apply:
22
(1)
The
interest
expense
was
originally
paid
or
accrued
23
during
a
tax
year
in
which
paragraph
“a”
applied.
24
(2)
The
interest
expense
was
originally
paid
or
accrued
25
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
26
file
an
Iowa
return.
27
Sec.
107.
Section
422.35,
Code
2020,
is
amended
by
adding
28
the
following
new
subsections:
29
NEW
SUBSECTION
.
26.
a.
Section
163(j)
of
the
Internal
30
Revenue
Code
does
not
apply
in
computing
net
income
for
state
31
tax
purposes.
If
the
taxpayer’s
federal
taxable
income
for
32
the
tax
year
was
increased
or
decreased
by
reason
of
the
33
application
of
section
163(j)
of
the
Internal
Revenue
Code,
34
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
35
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under
rules
prescribed
by
the
director.
1
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
2
in
which
the
additional
first-year
depreciation
allowance
3
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
4
applies
in
computing
net
income
for
state
tax
purposes.
5
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
6
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
7
interest
expense
paid
or
accrued
in
a
previous
taxable
year
8
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
9
reason
of
the
carryforward
of
disallowed
business
interest
10
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
11
if
either
of
the
following
apply:
12
(1)
The
interest
expense
was
originally
paid
or
accrued
13
during
a
tax
year
in
which
paragraph
“a”
applied.
14
(2)
The
interest
expense
was
originally
paid
or
accrued
15
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
16
file
an
Iowa
return.
17
NEW
SUBSECTION
.
27.
Subtract,
to
the
extent
included,
18
global
intangible
low-taxed
income
under
section
951A
of
the
19
Internal
Revenue
Code.
20
Sec.
108.
RESCISSION
OF
ADMINISTRATIVE
RULES.
21
1.
Contingent
upon
the
enactment
of
the
section
of
this
22
Act
amending
section
422.35,
subsection
27,
the
following
Iowa
23
administrative
rules
are
rescinded:
24
a.
701
Iowa
administrative
code,
rule
54.2,
subrule
3,
25
paragraph
“i”.
26
b.
701
Iowa
administrative
code,
rule
59.28,
subrule
2,
27
paragraph
“p”.
28
2.
As
soon
as
practicable,
the
Iowa
administrative
code
29
editor
shall
remove
the
language
of
the
Iowa
administrative
30
rules
referenced
in
subsection
1
of
this
section
from
the
Iowa
31
administrative
code.
32
Sec.
109.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
33
immediate
importance,
takes
effect
upon
enactment.
34
Sec.
110.
RETROACTIVE
APPLICABILITY.
The
following
applies
35
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retroactively
to
January
1,
2019,
for
tax
years
beginning
on
1
or
after
that
date:
2
The
portion
of
the
section
of
this
division
of
this
Act
3
enacting
section
422.35,
subsection
27.
4
Sec.
111.
RETROACTIVE
APPLICABILITY.
The
following
apply
5
retroactively
to
January
1,
2020
for
tax
years
beginning
on
or
6
after
that
date:
7
1.
The
section
of
this
division
of
this
Act
enacting
section
8
422.7,
subsection
59.
9
2.
The
portion
of
the
section
of
this
division
of
this
Act
10
enacting
section
422.35,
subsection
26.
11
DIVISION
XVII
12
REINVESTMENT
ACT
13
Sec.
112.
Section
15J.2,
subsections
4,
7,
8,
and
9,
Code
14
2020,
are
amended
to
read
as
follows:
15
4.
“District”
means
the
area
within
a
municipality
that
is
16
designated
a
reinvestment
district
pursuant
to
section
15J.4
.
17
7.
“Municipality”
means
a
county
or
an
incorporated
city.
18
any
of
the
following:
19
a.
A
county.
20
b.
An
incorporated
city.
21
c.
A
joint
board
or
other
legal
entity
established
or
22
designated
in
an
agreement
between
two
or
more
contiguous
23
municipalities
identified
in
paragraph
“a”
or
“b”
pursuant
to
24
chapter
28E.
25
8.
a.
“New
lessor”
means
a
lessor,
as
defined
in
section
26
423A.2
,
operating
a
business
in
the
district
that
was
not
in
27
operation
in
the
area
of
the
district
before
the
effective
28
date
of
the
ordinance
or
resolution
establishing
the
district,
29
regardless
of
ownership.
30
b.
“New
lessor”
also
includes
any
lessor,
defined
in
section
31
423A.2
,
operating
a
business
in
the
district
if
the
place
of
32
business
for
that
business
is
the
subject
of
a
project
that
was
33
approved
by
the
board.
34
9.
a.
“New
retail
establishment”
means
a
business
operated
35
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in
the
district
by
a
retailer,
as
defined
in
section
423.1
,
1
that
was
not
in
operation
in
the
area
of
the
district
before
2
the
effective
date
of
the
ordinance
or
resolution
establishing
3
the
district,
regardless
of
ownership.
4
b.
“New
retail
establishment”
also
includes
any
business
5
operated
in
the
district
by
a
retailer,
as
defined
in
section
6
423.1
,
if
the
place
of
business
for
that
retail
establishment
7
is
the
subject
of
a
project
that
was
approved
by
the
board.
8
Sec.
113.
Section
15J.4,
subsection
1,
unnumbered
paragraph
9
1,
Code
2020,
is
amended
to
read
as
follows:
10
A
municipality
that
has
an
area
suitable
for
development
11
within
the
boundaries
of
the
municipality
or
within
the
12
combined
boundaries
of
a
municipality
under
section
15J.2,
13
subsection
7,
paragraph
“c”
,
is
eligible
to
seek
approval
from
14
the
board
to
establish
a
reinvestment
district
under
this
15
section
consisting
of
the
area
suitable
for
development.
To
16
be
designated
a
reinvestment
district,
an
area
shall
meet
the
17
following
requirements:
18
Sec.
114.
Section
15J.4,
subsection
1,
paragraphs
c
and
d,
19
Code
2020,
are
amended
to
read
as
follows:
20
c.
The
For
districts
approved
before
July
1,
2018,
the
area
21
consists
of
contiguous
parcels
and
does
not
exceed
twenty-five
22
acres
in
total.
For
districts
approved
on
or
after
July
1,
23
2020,
the
area
consists
of
contiguous
parcels
and
does
not
24
exceed
seventy-five
acres
in
total.
25
d.
For
a
municipality
that
is
a
city
or
for
a
city
that
26
is
party
to
an
agreement
under
section
15J.2,
subsection
7,
27
paragraph
“c”
,
the
area
does
not
include
the
entire
incorporated
28
area
of
the
city.
29
Sec.
115.
Section
15J.4,
subsection
3,
paragraph
a,
Code
30
2020,
is
amended
to
read
as
follows:
31
a.
The
municipality
shall
submit
a
copy
of
the
resolution,
32
the
proposed
district
plan,
and
all
accompanying
materials
33
adopted
pursuant
to
this
section
to
the
board
for
evaluation.
34
The
board
shall
not
approve
a
proposed
district
plan
on
or
35
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after
July
1,
2018
2025
.
1
Sec.
116.
Section
15J.4,
subsection
3,
paragraph
b,
2
subparagraph
(6),
Code
2020,
is
amended
to
read
as
follows:
3
(6)
The
amount
of
proposed
capital
investment
within
the
4
proposed
district
related
to
retail
businesses
in
the
proposed
5
district
does
not
exceed
fifty
percent
of
the
total
capital
6
investment
for
all
proposed
projects
in
the
proposed
district
7
plan.
For
the
purposes
of
this
subparagraph,
“retail
business”
8
means
any
business
engaged
in
the
business
of
selling
tangible
9
personal
property
or
taxable
services
at
retail
in
this
state
10
that
is
obligated
to
collect
state
sales
or
use
tax
under
11
chapter
423
.
However,
for
the
purposes
of
this
subparagraph,
12
“retail
business”
does
not
include
a
new
lessor
or
a
business
13
engaged
in
an
activity
subject
to
tax
under
section
423.2,
14
subsection
3
.
15
Sec.
117.
Section
15J.4,
subsection
3,
paragraph
f,
Code
16
2020,
is
amended
to
read
as
follows:
17
f.
(1)
The
total
aggregate
amount
of
state
sales
tax
18
revenues
and
state
hotel
and
motel
tax
revenues
that
may
be
19
approved
by
the
board
for
remittance
to
all
municipalities
and
20
that
may
be
transferred
to
the
state
reinvestment
district
21
fund
under
section
423.2A
or
423A.6
,
and
remitted
to
all
22
municipalities
having
a
reinvestment
district
under
this
23
chapter
for
districts
approved
by
the
board
before
July
1,
24
2018,
shall
not
exceed
one
hundred
million
dollars.
25
(2)
The
total
aggregate
amount
of
state
sales
tax
revenues
26
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
27
the
board
for
remittance
to
all
municipalities
and
that
may
28
be
transferred
to
the
state
reinvestment
district
fund
under
29
section
423.2A
or
423A.6,
and
remitted
to
all
municipalities
30
having
a
reinvestment
district
under
this
chapter
for
districts
31
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025,
32
shall
not
exceed
one
hundred
million
dollars.
33
Sec.
118.
Section
15J.4,
subsections
4
and
5,
Code
2020,
are
34
amended
to
read
as
follows:
35
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4.
a.
Upon
receiving
the
approval
of
the
board,
the
1
municipality
may
shall
adopt
an
ordinance
,
or
in
the
case
of
2
a
municipality
under
section
15J.2,
subsection
7,
paragraph
3
“c”
,
a
resolution,
establishing
the
district
and
shall
notify
4
the
director
of
revenue
of
the
district’s
commencement
date
5
established
by
the
board
and
the
information
required
under
6
paragraph
“b”
no
later
than
thirty
days
after
adoption
of
the
7
ordinance
or
resolution
.
8
b.
For
each
district
approved
by
the
board
on
or
after
July
9
1,
2020,
the
municipality
shall
include
in
the
notification
10
under
paragraph
“a”
and
in
the
statement
required
under
11
paragraph
“c”
all
of
the
following:
12
(1)
For
each
new
retail
establishment
under
section
15J.2,
13
subsection
9,
paragraph
“b”
,
that
was
in
operation
before
14
the
establishment
of
the
district,
the
monthly
amount
of
15
sales
subject
to
the
state
sales
tax
from
the
most
recently
16
available
twelve-month
period
preceding
the
establishment
of
17
the
district.
18
(2)
For
each
new
lessor
under
section
15J.2,
subsection
8,
19
paragraph
“b”
,
that
was
in
operation
before
the
establishment
20
of
the
district,
the
monthly
amount
of
sales
subject
to
the
21
state
hotel
and
motel
tax
from
the
most
recently
available
22
twelve-month
period
preceding
the
establishment
of
the
23
district.
24
c.
The
ordinance
or
resolution
adopted
by
the
municipality
25
shall
include
the
district’s
commencement
date
and
a
detailed
26
statement
of
the
manner
in
which
the
approved
projects
to
be
27
undertaken
in
the
district
will
be
financed,
including
but
not
28
limited
to
the
financial
information
included
in
the
project
29
plan
under
subsection
2
,
paragraph
“d”
.
30
d.
Following
establishment
of
the
district,
a
municipality
31
may
use
the
moneys
deposited
in
the
municipality’s
reinvestment
32
project
fund
created
pursuant
to
section
15J.7
to
fund
the
33
development
of
those
projects
included
within
the
district
34
plan.
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5.
A
municipality
may
amend
the
district
plan
to
add
1
or
modify
projects.
However,
a
proposed
modification
to
a
2
project
and
each
project
proposed
to
be
added
shall
first
be
3
approved
by
the
board
in
the
same
manner
as
provided
for
the
4
original
plan.
In
no
case,
however,
shall
an
amendment
to
the
5
district
plan
result
in
the
extension
of
the
commencement
date
6
established
by
the
board.
If
a
district
plan
is
amended
to
7
add
or
modify
a
project,
the
municipality
shall
,
if
necessary,
8
amend
the
ordinance
or
resolution,
as
applicable
,
if
necessary,
9
to
reflect
any
changes
to
the
financial
information
required
to
10
be
included
under
subsection
4
.
11
Sec.
119.
Section
15J.5,
subsection
1,
paragraph
b,
Code
12
2020,
is
amended
to
read
as
follows:
13
b.
(1)
The
For
districts
established
before
July
1,
14
2020,
the
amount
of
new
state
sales
tax
revenue
for
purposes
15
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
sales
16
subject
to
the
state
sales
tax
in
the
district
during
the
17
quarter
from
new
retail
establishments
times
four
percent.
18
(2)
For
districts
established
on
or
after
July
1,
2020,
the
19
amount
of
new
state
sales
tax
revenue
for
purposes
of
paragraph
20
“a”
shall
be
the
product
of
four
percent
times
the
remainder
of
21
amount
of
sales
subject
to
the
state
sales
tax
in
the
district
22
during
the
quarter
from
new
retail
establishments
minus
the
sum
23
of
the
sales
from
the
corresponding
quarter
of
the
twelve-month
24
period
determined
under
section
15J.4,
subsection
4,
paragraph
25
“b”
,
subparagraph
(1),
for
new
retail
establishments
identified
26
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
27
(1),
that
were
in
operation
at
the
end
of
the
quarter.
28
Sec.
120.
Section
15J.5,
subsection
2,
paragraph
b,
Code
29
2020,
is
amended
to
read
as
follows:
30
b.
(1)
The
For
districts
established
before
July
1,
31
2020,
the
amount
of
new
state
hotel
and
motel
tax
revenue
for
32
purposes
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
33
sales
subject
to
the
state
hotel
and
motel
tax
in
the
district
34
during
the
quarter
from
new
lessors
times
the
state
hotel
and
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motel
tax
rate
imposed
under
section
423A.3
.
1
(2)
For
districts
established
on
or
after
July
1,
2020,
the
2
amount
of
new
state
hotel
and
motel
tax
revenue
for
purposes
of
3
paragraph
“a”
shall
be
the
product
of
the
state
hotel
and
motel
4
tax
rate
imposed
under
section
423A.3
times
the
remainder
of
5
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
in
the
6
district
during
the
quarter
from
new
lessors
minus
the
sum
of
7
the
sales
from
the
corresponding
quarter
of
the
twelve
month
8
period
determined
under
section
15J.4,
subsection
4,
paragraph
9
“b”
,
subparagraph
(2),
for
new
lessors
identified
under
section
10
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(2),
that
were
11
in
operation
at
the
end
of
the
quarter.
12
Sec.
121.
Section
15J.7,
subsection
4,
paragraph
b,
Code
13
2020,
is
amended
to
read
as
follows:
14
b.
For
the
purposes
of
this
subsection
,
“relocation”
15
means
the
closure
or
substantial
reduction
of
an
enterprise’s
16
existing
operations
in
one
area
of
the
state
and
the
initiation
17
of
substantially
the
same
operation
in
the
same
county
or
a
18
contiguous
county
in
the
state.
However,
if
the
initiation
19
of
operations
includes
an
expanded
scope
or
nature
of
the
20
enterprise’s
existing
operations,
the
new
operation
shall
21
not
be
considered
to
be
substantially
the
same
operation.
22
“Relocation”
does
not
include
an
enterprise
expanding
its
23
operations
in
another
area
of
the
state
provided
that
existing
24
operations
of
a
similar
nature
are
not
closed
or
substantially
25
reduced.
26
Sec.
122.
Section
15J.7,
subsection
6,
Code
2020,
is
amended
27
to
read
as
follows:
28
6.
Upon
dissolution
of
a
district
pursuant
to
section
15J.8
,
29
moneys
remaining
in
the
reinvestment
project
fund
that
were
30
deposited
pursuant
to
subsection
2
and
all
interest
remaining
31
in
the
fund
that
was
earned
on
such
amounts
shall
be
deposited
32
in
the
general
fund
of
the
municipality
or,
for
a
municipality
33
under
section
15J.2,
subsection
7,
paragraph
“c”
,
the
governing
34
body
shall
allocate
such
amounts
to
the
participating
cities
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and
counties
for
deposit
in
each
city
or
county
general
fund
1
according
to
the
chapter
28E
agreement
.
2
Sec.
123.
Section
15J.8,
Code
2020,
is
amended
to
read
as
3
follows:
4
15J.8
End
of
deposits
——
district
dissolution.
5
1.
As
of
the
date
twenty
years
after
the
district’s
6
commencement
date,
the
department
shall
cease
to
deposit
state
7
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
into
8
the
district’s
account
within
the
fund,
unless
the
municipality
9
dissolves
the
district
by
ordinance
or
resolution
prior
to
that
10
date.
Following
the
expiration
of
the
twenty-year
period,
the
11
district
shall
be
dissolved
by
ordinance
or
resolution
of
the
12
municipality
adopted
within
twelve
months
of
the
conclusion
of
13
the
twenty-year
period.
14
2.
If
the
municipality
dissolves
the
district
by
ordinance
15
or
resolution
prior
to
the
expiration
of
the
twenty-year
16
period
specified
in
subsection
1
,
the
municipality
shall
17
notify
the
director
of
revenue
of
the
dissolution
as
soon
as
18
practicable
after
adoption
of
the
ordinance
or
resolution
,
and
19
the
department
shall,
as
of
the
effective
date
of
dissolution,
20
cease
to
deposit
state
sales
tax
revenues
and
state
hotel
and
21
motel
tax
revenues
into
the
district’s
account
within
the
fund.
22
3.
Upon
request
of
the
municipality
prior
to
the
dissolution
23
of
the
district,
and
following
a
determination
by
the
board
24
that
the
amounts
of
new
state
sales
tax
revenue
and
new
state
25
hotel
and
motel
tax
revenue
deposited
in
the
municipality’s
26
reinvestment
project
fund
under
section
15J.7
are
substantially
27
lower
than
the
amounts
established
by
the
board
under
section
28
15J.4,
subsection
3,
paragraph
“e”
,
the
board
may
extend
29
the
district’s
twenty-year
period
of
time
for
depositing
and
30
receiving
revenues
under
this
chapter
by
up
to
five
additional
31
years
if
such
an
extension
is
in
the
best
interest
of
the
32
public.
33
DIVISION
XVIII
34
INNOVATION
FUNDS
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Sec.
124.
Section
15.119,
subsection
2,
paragraphs
d
and
e,
1
Code
2020,
are
amended
to
read
as
follows:
2
d.
The
tax
credits
for
investments
in
qualifying
businesses
3
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
4
pursuant
to
this
subsection
,
the
authority
shall
allocate
at
5
least
two
million
and
not
more
than
four
million
dollars
for
6
purposes
of
this
paragraph,
unless
the
authority
determines
7
that
the
tax
credits
awarded
will
be
less
than
that
amount.
8
e.
The
tax
credits
for
investments
in
an
innovation
fund
9
pursuant
to
section
15E.52
.
In
allocating
tax
credits
pursuant
10
to
this
subsection
,
the
authority
shall
allocate
at
least
six
11
million
and
not
more
than
eight
million
dollars
for
purposes
of
12
this
paragraph,
unless
the
authority
determines
that
the
tax
13
credits
awarded
will
be
less
than
that
amount.
14
Sec.
125.
Section
15.119,
Code
2020,
is
amended
by
adding
15
the
following
new
subsection:
16
NEW
SUBSECTION
.
2A.
On
or
before
June
30
of
each
year,
17
the
authority
shall
determine
the
amount
of
tax
credits
that
18
shall
be
issued
pursuant
to
sections
15E.43
and
15E.52
for
19
the
following
fiscal
year.
In
allocating
the
amount
of
tax
20
credits
authorized
pursuant
to
subsection
1
among
the
programs
21
specified
in
subsection
2,
the
aggregate
amount
allocated
by
22
the
authority
for
purposes
of
subsection
2,
paragraphs
“d”
and
23
“e”
,
shall
not
exceed
ten
million
dollars.
24
Sec.
126.
Section
15E.43,
subsection
2,
paragraphs
b
and
c,
25
Code
2020,
are
amended
to
read
as
follows:
26
b.
The
maximum
amount
of
a
tax
credit
that
may
be
issued
27
per
calendar
fiscal
year
to
a
natural
person
and
the
person’s
28
spouse
or
dependent
shall
not
exceed
one
hundred
thousand
29
dollars
combined.
For
purposes
of
this
paragraph,
a
tax
30
credit
issued
to
a
partnership,
limited
liability
company,
S
31
corporation,
estate,
or
trust
electing
to
have
income
taxed
32
directly
to
the
individual
shall
be
deemed
to
be
issued
to
33
the
individual
owners
based
upon
the
pro
rata
share
of
the
34
individual’s
earnings
from
the
entity.
For
purposes
of
this
35
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paragraph,
“dependent”
has
the
same
meaning
as
provided
by
the
1
Internal
Revenue
Code.
2
c.
The
maximum
amount
of
tax
credits
that
may
be
issued
3
per
calendar
fiscal
year
for
equity
investments
in
any
one
4
qualifying
business
shall
not
exceed
five
hundred
thousand
5
dollars.
6
Sec.
127.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
7
deemed
of
immediate
importance,
takes
effect
upon
enactment.
8
DIVISION
XIX
9
CAPITAL
GAINS
10
Sec.
128.
Section
422.7,
Code
2020,
is
amended
by
adding
the
11
following
new
subsection:
12
NEW
SUBSECTION
.
21A.
Subtract,
to
the
extent
included,
13
for
tax
years
beginning
on
or
after
the
2020
calendar
year
and
14
not
already
deducted
under
another
provision
of
this
section,
15
fifteen
percent
of
the
taxpayer’s
net
capital
gain
as
defined
16
in
section
1222
of
the
Internal
Revenue
Code.
17
Sec.
129.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
18
deemed
of
immediate
importance,
takes
effect
upon
enactment.
19
Sec.
130.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
21
beginning
on
or
after
that
date.
22
DIVISION
XX
23
LOCAL
ASSESSORS
24
Sec.
131.
Section
441.6,
subsection
2,
Code
2020,
is
amended
25
to
read
as
follows:
26
2.
Upon
receipt
of
the
report
of
the
examining
board,
the
27
chairperson
of
the
conference
board
shall
by
written
notice
28
call
a
meeting
of
the
conference
board
to
appoint
an
assessor.
29
The
meeting
shall
be
held
not
later
than
seven
days
after
the
30
receipt
of
the
report
of
the
examining
board
by
the
conference
31
board.
At
the
meeting,
the
conference
board
shall
appoint
an
32
assessor
from
the
register
of
eligible
candidates.
However,
33
if
a
special
examination
has
not
been
conducted
previously
for
34
the
same
vacancy,
the
conference
board
may
request
the
director
35
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of
revenue
to
hold
a
special
examination
pursuant
to
section
1
441.7
.
The
chairperson
of
the
conference
board
shall
give
2
written
notice
to
the
director
of
revenue
of
the
appointment
3
and
its
effective
date
within
ten
days
of
the
decision
of
the
4
board.
5
Sec.
132.
Section
441.6,
Code
2020,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
3.
The
appointee
selected
by
the
conference
8
board
under
subsection
2
shall
not
assume
the
office
of
city
9
or
county
assessor
until
such
appointment
is
confirmed
by
10
the
director
of
revenue.
If
the
director
of
revenue
rejects
11
the
appointment,
the
examining
board
shall
conduct
a
new
12
examination
and
submit
a
new
report
to
the
conference
board
13
under
subsection
1.
The
director
of
revenue
shall
adopt
rules
14
pursuant
to
chapter
17A
to
implement
and
administer
this
15
subsection.
16
Sec.
133.
Section
441.17,
subsection
2,
Code
2020,
is
17
amended
to
read
as
follows:
18
2.
Cause
to
be
assessed,
in
accordance
with
section
441.21
,
19
all
the
property
in
the
assessor’s
county
or
city,
except
20
property
exempt
from
taxation,
or
the
assessment
of
which
is
21
otherwise
provided
for
by
law.
However,
an
assessor
or
deputy
22
assessor
shall
not
personally
assess
a
property
if
the
person
23
or
a
member
of
the
person’s
immediate
family
owns
the
property,
24
has
a
financial
interest
in
the
property,
or
has
a
financial
25
interest
in
the
entity
that
owns
the
property.
The
director
of
26
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
27
and
administer
this
subsection.
28
Sec.
134.
Section
441.41,
Code
2020,
is
amended
to
read
as
29
follows:
30
441.41
Legal
counsel.
31
In
the
case
of
cities
having
an
assessor,
the
city
legal
32
department
shall
represent
the
assessor
and
board
of
review
33
in
all
litigation
dealing
with
assessments.
In
the
case
of
34
counties,
the
county
attorney
shall
represent
the
assessor
and
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board
of
review
in
all
litigation
dealing
with
assessments.
1
Any
taxing
district
interested
in
the
taxes
received
from
such
2
assessments
may
be
represented
by
an
attorney
and
shall
be
3
required
to
appear
by
attorney
upon
written
request
of
the
4
assessor
to
the
presiding
officer
of
any
such
taxing
district.
5
The
Subject
to
review
and
prior
approval
by
either
the
city
6
legal
department
in
the
case
of
a
city
or
the
county
attorney
7
in
the
case
of
a
county,
the
conference
board
may
employ
8
special
counsel
to
assist
the
city
legal
department
or
county
9
attorney
as
the
case
may
be.
10
DIVISION
XXI
11
RURAL
IMPROVEMENT
ZONES
12
Sec.
135.
Section
357H.1,
subsection
1,
Code
2020,
is
13
amended
to
read
as
follows:
14
1.
The
board
of
supervisors
of
a
county
with
less
than
15
twenty
thousand
residents,
not
counting
persons
admitted
or
16
committed
to
an
institution
enumerated
in
section
218.1
or
17
904.102
,
based
upon
the
most
recent
certified
federal
census,
18
and
with
a
private
lake
real
estate
development
adjacent
to
or
19
abutting
in
part
a
lake
may
designate
an
area
surrounding
the
20
lake,
if
it
is
an
unincorporated
area
of
the
county,
a
rural
21
improvement
zone
upon
receipt
of
a
petition
pursuant
to
section
22
357H.2
,
and
upon
the
board’s
determination
that
the
area
is
in
23
need
of
improvements.
24
Sec.
136.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
137.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
rural
improvement
zones
in
existence
on
or
established
on
or
28
after
the
effective
date
of
this
division
of
this
Act.
29
DIVISION
XXII
30
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
31
Sec.
138.
Section
422.11S,
subsection
8,
paragraph
a,
32
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
33
(2)
(a)
“Total
approved
tax
credits”
means
for
the
2006
34
calendar
year,
two
million
five
hundred
thousand
dollars,
for
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the
2007
calendar
year,
five
million
dollars,
for
calendar
1
years
beginning
on
or
after
January
1,
2008,
but
before
January
2
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
3
calendar
years
beginning
on
or
after
January
1,
2012,
but
4
before
January
1,
2014,
eight
million
seven
hundred
fifty
5
thousand
dollars,
for
calendar
years
beginning
on
or
after
6
January
1,
2014,
but
before
January
1,
2019,
twelve
million
7
dollars,
and
for
calendar
years
beginning
on
or
after
January
8
1,
2019,
but
before
January
1,
2020,
thirteen
million
dollars,
9
and
for
calendar
years
beginning
on
or
after
January
1,
2020,
10
fifteen
million
dollars.
11
(b)
(i)
During
any
calendar
year
beginning
on
or
after
12
January
1,
2022,
if
the
amount
of
awarded
tax
credits
from
the
13
preceding
calendar
year
are
equal
to
or
greater
than
ninety
14
percent
of
the
total
approved
tax
credits
for
the
current
15
calendar
year,
the
total
approved
tax
credits
for
the
current
16
calendar
year
shall
equal
the
product
of
ten
percent
multiplied
17
by
the
total
approved
tax
credits
for
the
current
calendar
year
18
plus
the
total
approved
tax
credits
for
the
current
calendar
19
year.
20
(ii)
If
total
approved
tax
credits
are
recomputed
pursuant
21
to
subparagraph
subdivision
(i),
the
total
approved
tax
credits
22
shall
equal
the
previous
total
approved
tax
credits
recomputed
23
pursuant
to
subparagraph
subdivision
(i)
for
purposes
of
future
24
recomputations
under
subparagraph
subdivision
(i),
provided
25
that
the
maximum
total
approved
tax
credits
recomputed
pursuant
26
to
this
subparagraph
division
(b)
shall
not
exceed
twenty
27
million
dollars
in
a
calendar
year.
28
Sec.
139.
Section
422.33,
subsection
28,
Code
2020,
is
29
amended
to
read
as
follows:
30
28.
The
taxes
imposed
under
this
division
shall
be
reduced
31
by
a
school
tuition
organization
tax
credit
allowed
under
32
section
422.11S
.
The
maximum
amount
of
tax
credits
that
33
may
be
approved
under
this
subsection
for
a
tax
year
equals
34
twenty-five
percent
of
the
school
tuition
organization’s
tax
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credits
that
may
be
approved
pursuant
to
section
422.11S,
1
subsection
8
,
for
a
tax
year.
2
DIVISION
XXIII
3
PAYCHECK
PROTECTION
PROGRAM
4
Sec.
140.
IOWA
NET
INCOME
EXCLUSION
FOR
FEDERAL
PAYCHECK
5
PROTECTION
PROGRAM
LOAN
FORGIVENESS
FOR
CERTAIN
FISCAL-YEAR
6
FILERS
IN
TAX
YEAR
2019.
Notwithstanding
any
other
provision
7
of
law
to
the
contrary,
for
any
tax
year
beginning
on
or
after
8
January
1,
2019,
and
ending
after
March
27,
2020,
Pub.
L.
No.
9
116-136,
§1106(i),
applies
in
computing
net
income
for
state
10
tax
purposes
under
section
422.7
or
422.35.
11
Sec.
141.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
12
deemed
of
immediate
importance,
takes
effect
upon
enactment.
13
DIVISION
XXIV
14
INCOME
TAX
EXCLUSION
——
EMERGENCY
STUDENT
GRANT
MONEY
15
Sec.
142.
Section
422.7,
Code
2020,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
59.
Notwithstanding
any
other
provision
of
18
law
to
the
contrary,
any
funds
received
by
a
student
through
a
19
higher
education
institution
to
support
the
student’s
financial
20
needs
as
a
result
of
the
COVID-19
pandemic
pursuant
to
§§3504,
21
18004,
or
18008
of
Pub.
L.
No.
116-136
shall
not
be
included
22
in
the
student’s
Iowa
net
income
for
any
tax
year
ending
after
23
March
27,
2020.
24
Sec.
143.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
144.
RETROACTIVE
APPLICABILITY.
This
division
of
this
27
Act
applies
retroactively
to
March
27,
2020,
for
tax
years
28
ending
on
or
after
that
date.
29
DIVISION
XXV
30
IOWA
INCOME
EXCLUSION
——
STIMULUS
CHECKS
31
Sec.
145.
IOWA
INCOME
TAX
EXCLUSION
FOR
ECONOMIC
IMPACT
32
PAYMENTS.
In
determining
the
amount
of
deduction
for
federal
33
income
tax
under
section
422.9
for
tax
years
beginning
in
34
the
2020
calendar
year,
the
amount
of
the
deduction
for
the
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tax
year
shall
not
be
adjusted
by
the
amount
received
during
1
the
tax
year
of
the
income
tax
rebate
provided
pursuant
to
2
the
federal
Recovery
Rebates
and
Coronavirus
Aid,
Relief,
3
and
Economic
Security
Act,
Pub.
L.
No.
116-136,
§2201,
and
4
the
amount
of
such
income
tax
rebate
shall
not
be
subject
to
5
taxation
under
chapter
422,
division
II.
6
DIVISION
XXVI
7
HUNTING
DEER
AND
TURKEY
ON
A
FARM
UNIT
8
Sec.
146.
Section
483A.24,
subsection
2,
paragraphs
b
and
c,
9
Code
2019,
are
amended
to
read
as
follows:
10
b.
Upon
written
application
on
forms
furnished
by
the
11
department,
the
department
shall
issue
annually
without
fee
one
12
wild
turkey
license
to
the
owner
of
a
farm
unit
or
to
a
member
13
of
the
owner’s
family,
but
not
to
both,
and
to
the
tenant
or
14
to
a
member
of
the
tenant’s
family,
but
not
to
both.
The
wild
15
turkey
hunting
licenses
issued
shall
be
valid
only
on
the
16
farm
unit
for
which
an
applicant
qualifies
pursuant
to
this
17
subsection
and
shall
be
equivalent
to
the
least
restrictive
18
license
issued
under
section
481A.38
.
The
owner
or
the
tenant
19
need
not
reside
on
the
farm
unit
to
qualify
for
a
free
license
20
to
hunt
on
that
farm
unit.
The
free
turkey
hunting
licenses
21
issued
pursuant
to
this
paragraph
shall
be
valid
and
may
be
22
used
during
any
bow
or
firearm
established
turkey
hunting
23
season
using
the
method
of
take
authorized
by
rule
for
each
24
season
being
hunted.
If
a
tag
is
filled
during
one
of
the
25
seasons,
the
license
will
not
be
valid
in
subsequent
seasons
.
26
c.
Upon
written
application
on
forms
furnished
by
the
27
department,
the
department
shall
issue
annually
without
fee
two
28
deer
hunting
licenses,
one
antlered
or
any
sex
deer
hunting
29
license
and
one
antlerless
deer
only
deer
hunting
license,
to
30
the
owner
of
a
farm
unit
or
a
member
of
the
owner’s
family,
31
but
only
a
total
of
two
licenses
for
both,
and
to
the
tenant
32
of
a
farm
unit
or
a
member
of
the
tenant’s
family,
but
only
33
a
total
of
two
licenses
for
both.
The
deer
hunting
licenses
34
issued
shall
be
valid
only
for
use
on
the
farm
unit
for
which
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the
applicant
applies
pursuant
to
this
paragraph.
The
owner
or
1
the
tenant
need
not
reside
on
the
farm
unit
to
qualify
for
the
2
free
deer
hunting
licenses
to
hunt
on
that
farm
unit.
The
free
3
deer
hunting
licenses
issued
pursuant
to
this
paragraph
shall
4
be
valid
and
may
be
used
during
any
bow
or
firearm
established
5
deer
hunting
season
using
the
method
of
take
authorized
by
rule
6
for
each
season
being
hunted.
If
a
tag
is
filled
during
one
7
of
the
seasons,
the
license
will
not
be
valid
in
subsequent
8
seasons
.
The
licenses
may
be
used
to
harvest
deer
in
two
9
different
seasons.
In
addition,
a
person
who
receives
a
free
10
deer
hunting
license
pursuant
to
this
paragraph
shall
pay
a
one
11
dollar
twenty-five
cent
fee
for
each
license
that
shall
be
used
12
and
is
appropriated
for
the
purpose
of
deer
herd
population
13
management,
including
assisting
with
the
cost
of
processing
14
deer
donated
to
the
help
us
stop
hunger
program
administered
15
by
the
commission.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
state
and
local
taxation,
regulation,
20
the
Iowa
reinvestment
act,
innovation
fund,
hunting
and
fees,
21
and
provides
for
properly
related
matters.
22
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS.
23
The
amendment
to
Code
section
421.6
enhances
the
readability
of
24
the
Code
section
by
including
in
the
definition
of
“return”
the
25
moneys
and
credits
tax
turn
administered
by
the
department
of
26
revenue
under
Code
section
533.329.
27
The
bill
enacts
new
Code
section
421.17(36)
which
permits
28
the
director
of
revenue
to
enter
into
Code
chapter
28E
29
agreements
with
the
state
fair
or
a
county
or
district
fair
30
to
collect
and
remit
sales
taxes
and
fees
from
sellers
making
31
retail
sales
on
the
grounds
owned
by
the
fair
or
through
events
32
conducted
by
the
fair.
33
The
amendment
to
Code
section
421.27(1)
provides
that
in
34
the
case
of
a
specified
business
with
no
tax
shown
due
or
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required
to
be
shown
due
that
fails
to
timely
file
their
1
income
tax
return
or
information
return
shall
pay
the
greater
2
of
the
following
penalty
amounts:
$200;
or
an
amount
equal
3
to
10
percent
of
the
imputed
Iowa
liability
of
the
specified
4
business,
not
to
exceed
$25,000.
5
The
amendment
to
Code
section
421.27(1)
provides
that
the
6
penalty
for
individuals
or
specified
businesses
that
fail
to
7
timely
file
a
return
may
be
waived
under
certain
circumstances.
8
The
provision
applies
to
tax
years
beginning
on
or
after
9
January
1,
2022.
10
The
amendment
to
Code
section
421.27(4)
provides
that
the
11
penalty
for
a
specified
business
that
willfully
fails
to
file
a
12
return
with
no
tax
shown
due
or
required
to
be
shown
due
with
13
the
intent
to
evade
such
a
filing
requirement
or
reporting
14
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
15
of
$1,500
or
an
amount
equal
to
75
percent
of
the
imputed
Iowa
16
liability
of
the
specified
business.
The
provision
applies
to
17
tax
years
beginning
on
or
after
January
1,
2022.
18
The
amendment
to
Code
section
421.27(4)
expands
penalty
19
provisions
by
providing
that
a
person
who
willfully
fails
to
20
file
a
return
or
deposit
form
with
intent
to
evade
a
filing
21
requirement
shall
be
subject
to
a
penalty
of
75
percent
of
the
22
tax
added
to
the
amount
of
tax
shown
due
or
required
to
be
shown
23
due,
in
lieu
of
other
penalties.
The
provision
applies
to
tax
24
years
beginning
on
or
after
January
1,
2022.
25
The
amendment
to
Code
section
421.27(6)
makes
numerous
26
changes
to
the
criminal
offense
of
fraudulent
practice
27
by
expanding
the
criminal
offense
to
include
a
person
who
28
willfully
makes
a
false
application
for
an
exemption
or
benefit
29
with
the
intent
to
receive
the
exemption
or
benefit
to
which
30
the
person
is
not
entitled.
31
The
amendment
to
Code
section
421.27(6)
also
expands
the
32
fraudulent
practice
criminal
offense
to
include
when
a
person
33
willfully
submits
any
false
information,
document,
or
document
34
containing
false
information
in
support
of
an
application
35
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for
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
1
other
payment
or
benefit
with
the
intent
to
evade
taxes;
2
and
to
include
when
a
person
willfully
submits
any
false
3
information,
document,
or
document
containing
false
information
4
in
support
of
an
application
for
a
refund,
credit,
exemption,
5
reimbursement,
rebate,
or
other
payment
or
benefit
to
which
the
6
person
is
not
entitled.
7
A
person
who
commits
fraudulent
practice
under
Code
section
8
421.76(6),
in
addition
to
the
criminal
penalties,
is
liable
for
9
a
penalty
equal
to
75
percent
of
the
refund,
credit,
exemption,
10
reimbursement,
rebate,
or
other
payment
or
benefit
being
11
fraudulently
claimed.
12
The
bill
enacts
new
Code
section
421.27(8)
which
defines
13
“imputed
Iowa
liability”
and
“specified
business”.
The
14
provision
applies
to
tax
years
beginning
on
or
after
January
15
1,
2022.
16
The
bill
enacts
new
Code
section
421.27(9)
by
adding
an
17
additional
penalty
under
Code
section
421.27
in
the
amount
18
of
$1,000
if
a
taxpayer
fails
to
file
a
tax
return
within
90
19
days
of
written
notice
by
the
department
that
the
taxpayer
is
20
required
to
file
such
a
return.
The
provision
applies
to
a
21
return
a
taxpayer
is
required
to
file
on
or
after
January
1,
22
2022.
23
The
bill
enacts
new
Code
section
421.27A
by
creating
a
24
criminal
offense
for
perjury.
Currently,
a
different
perjury
25
criminal
offense
exists
in
Code
section
720.2.
A
person
26
commits
perjury
under
the
following
circumstances
in
the
bill:
27
the
person
makes
a
document
containing
false
information
in
28
support
of
an
application
for
refund,
credit,
exemption,
29
reimbursement,
rebate,
or
other
payment
or
benefit
with
intent
30
to
evade
tax;
the
person
makes
a
document
containing
false
31
information
with
intent
to
unlawfully
receive
a
refund,
credit,
32
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit,
33
to
which
the
person
is
not
entitled;
the
person
knowingly
makes
34
any
false
affidavit;
the
person
knowingly
swears
or
affirms
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falsely
to
any
matter
or
thing
required
by
the
terms
of
title
X
1
of
the
Code
(financial
resources)
to
be
sworn
to
or
affirmed.
2
A
person
who
commits
the
criminal
offense
of
perjury
under
new
3
Code
section
421.27A
commits
a
class
“D”
felony.
A
class
“D”
4
felony
is
punishable
by
confinement
for
no
more
than
five
years
5
and
a
fine
of
at
least
$750
but
not
more
than
$7,500.
6
The
bill
enacts
new
Code
section
421.59
relating
to
a
7
power
of
attorney
or
other
authority
to
act
on
behalf
of
the
8
taxpayer.
The
bill
formalizes
a
process
for
the
following
9
persons
to
act
and
receive
information
on
behalf
of
and
10
exercise
all
of
the
rights
of
a
taxpayer,
regardless
of
whether
11
a
power
of
attorney
has
been
filed
with
the
department:
a
12
guardian,
conservator,
or
custodian
appointed
by
the
court;
a
13
receiver
appointed
pursuant
to
Code
chapter
680;
an
individual
14
who
has
been
named
as
an
authorized
representative
on
a
15
fiduciary
return
filed
under
Code
section
422.14
(fiduciary
16
return)
or
Code
chapter
450
(inheritance
tax);
an
individual
17
holding
a
title
or
position
within
a
corporation,
association,
18
partnership,
or
other
business
entity;
a
licensed
attorney
19
who
has
appeared
on
behalf
of
the
taxpayer
or
the
taxpayer’s
20
estate;
and
a
parent
or
legal
guardian
of
the
taxpayer
who
has
21
not
reached
the
age
of
majority.
22
New
Code
section
421.59
also
authorizes
the
department
to
23
enter
into
a
memorandum
of
understanding
with
the
taxpayer
24
for
each
employee,
officer,
or
member
of
a
third-party
entity
25
engaged
with
or
otherwise
hired
by
a
taxpayer
to
manage
26
the
taxpayer’s
tax
matters,
in
lieu
of
requiring
a
power
of
27
attorney
for
each
person.
28
The
bill
enacts
new
Code
section
421.60(11)
which
allows
a
29
taxpayer
to
elect
to
receive
correspondence
electronically
from
30
the
department
rather
than
by
regular
mail.
31
The
amendments
to
Code
section
421.62
provide
that
the
32
regulations
relating
to
tax
return
preparers
apply
to
an
33
income
tax
return
or
claim
or
refund
under
Code
chapter
422
34
(individual,
corporate,
and
franchise
taxes),
but
do
not
apply
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to
withholding
returns
under
Code
section
422.16.
1
The
amendment
to
Code
section
421.64
enhances
the
2
readability
of
the
Code
section.
3
The
amendment
to
Code
section
422.20(1)
adds
an
intent
4
element
“willfully
or
recklessly”
to
the
criminal
offense
5
related
to
the
unlawful
disclosure
of
tax
return
information
6
by
state
personnel
or
former
state
personnel.
A
person
who
7
commits
a
violation
under
Code
section
422.20(1)
commits
a
8
serious
misdemeanor.
A
serious
misdemeanor
is
punishable
by
9
confinement
for
no
more
than
one
year
and
a
fine
of
at
least
10
$315
but
not
more
than
$1,875.
11
The
amendment
to
Code
section
422.20(3)
provides
that
tax
12
return
information
may
be
disclosed
to
authorized
individuals
13
pursuant
to
new
Code
section
421.59
created
in
the
bill.
14
The
bill
enacts
new
Code
section
422.20(3A)
permitting
the
15
director
of
revenue
to
disclose
the
tax
return
information
of
16
a
partnership,
limited
liability
company,
or
S
corporation
to
17
a
person
who
was
a
partner,
shareholder,
or
member
of
such
an
18
entity
during
any
part
of
the
period
covered
by
the
tax
return.
19
The
bill
enacts
new
Code
section
422.20(3B)
specifying
the
20
information
the
department
is
required
to
redact
prior
to
21
the
disclosure
of
the
record
in
an
appeal
or
contested
case.
22
The
bill
specifies
the
department
may
also
redact
other
tax
23
information
from
the
record
in
an
appeal
or
contested
case,
if
24
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
25
release
of
the
tax
information
would
disclose
a
trade
secret
26
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
27
permits
the
department
to
disclose
information
that
is
required
28
to
be
redacted
if
the
department
determines
such
information
is
29
necessary
to
the
resolution
or
decision
of
the
case.
30
The
bill
enacts
new
Code
section
422.25(1)(c)
(income
tax)
31
that
provides
the
period
of
examination
and
determination
is
32
unlimited
under
title
X
(financial
resources)
in
any
action
33
by
the
department
to
recover
or
rescind
a
tax
expenditure
34
as
defined
in
Code
section
2.48,
or
any
other
incentive
or
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assistance
administered
by
the
economic
development
authority.
1
The
amendment
takes
effect
upon
enactment.
The
bill
also
2
provides
that
it
is
the
intent
of
the
general
assembly
that
the
3
amendment
to
Code
section
422.25(1)
is
a
conforming
amendment
4
consistent
with
current
law,
and
that
the
amendment
does
not
5
change
the
application
of
current
law.
This
provision
takes
6
effect
upon
enactment.
7
The
amendment
to
Code
section
422.69
requires
that
all
8
fees,
taxes,
interest,
and
penalties
under
Code
chapter
422
9
(individual
income,
corporate,
and
franchise
taxes)
shall
10
be
paid
to
the
department
of
revenue
rather
than
the
state
11
treasurer.
12
The
amendment
to
Code
section
422.72(1)(a)
adds
the
intent
13
element
of
“willfully
or
recklessly”
to
the
criminal
offense
14
related
to
the
unlawful
disclosure
by
state
personnel
or
15
former
state
personnel
of
the
business
affairs,
operations,
16
or
information
obtained
through
a
tax-related
investigation.
17
A
person
who
unlawfully
discloses
such
information
commits
a
18
serious
misdemeanor
under
Code
section
422.72(4).
A
serious
19
misdemeanor
is
punishable
by
confinement
for
no
more
than
one
20
year
and
a
fine
of
at
least
$315
but
not
more
than
$1,875.
21
The
bill
enacts
new
Code
section
422.72(7A),
a
similar
22
provision
to
new
Code
section
422.20(3B)
in
the
bill.
New
Code
23
section
422.72(7A)
specifies
the
information
the
department
24
is
required
to
redact
prior
to
the
disclosure
to
the
general
25
public
of
the
record
in
an
appeal
or
contested
case.
The
26
bill
specifies
that
the
department
may
also
redact
other
tax
27
information
from
the
record
in
an
appeal
or
contested
case,
if
28
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
29
release
of
the
tax
information
would
disclose
a
trade
secret
30
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
31
permits
the
department
to
disclose
information
that
is
required
32
to
be
redacted
if
the
department
determines
such
information
is
33
necessary
to
the
resolution
or
decision
of
the
case.
34
The
bill
enacts
new
Code
section
423.37(4)
(sales
and
use
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tax)
that
provides
the
period
of
examination
and
determination
1
is
unlimited
under
title
X
(financial
resources)
in
any
action
2
by
the
department
to
recover
or
rescind
a
tax
expenditure
3
as
defined
in
Code
section
2.48
or
any
other
incentive
or
4
assistance
administered
by
the
economic
development
authority.
5
The
amendment
takes
effect
upon
enactment.
The
bill
also
6
provides
that
it
is
the
intent
of
the
general
assembly
that
the
7
amendment
to
Code
section
423.37(4)
is
a
conforming
amendment
8
consistent
with
current
law,
and
that
the
amendment
does
not
9
change
the
application
of
current
law.
This
provision
takes
10
effect
upon
enactment.
11
The
amendment
to
Code
section
428A.1
(real
estate
12
transfer
tax)
provides
that
a
county
recorder
shall
record
13
the
declaration
of
value
but
is
prohibited
from
charging
a
14
recording
fee
for
the
filing.
15
The
amendment
to
Code
section
441.48
enhances
the
16
readability
of
the
Code
section
by
specifying
the
board
of
17
supervisors
or
city
council,
as
applicable,
shall
provide
18
the
department
with
notice
of
intent
to
protest
prior
to
the
19
expiration
of
the
10
days’
notice
to
adjust
the
valuation
of
20
any
class
of
property
issued
by
the
department.
21
The
amendments
to
Code
sections
489.706,
490.1422,
501.813,
22
and
504.1423,
remove
the
role
of
the
department
in
the
23
application
for
reinstatement
by
a
limited
liability
company,
24
corporation,
cooperative,
or
nonprofit
corporation
after
the
25
dissolution
of
such
an
entity.
26
The
bill
enacts
new
Code
section
533.329(03)
by
specifying
27
that
a
money
and
credit
tax
return
prepared
by
a
credit
union
28
shall
be
on
a
form
prepared
by
the
department
of
revenue,
and
29
shall
be
filed
with
the
department
on
or
before
the
last
day
of
30
April.
31
The
bill
amends
Code
section
533.329(3)
relating
to
32
enforcement
of
the
moneys
and
credits
tax
paid
by
credit
33
unions.
34
SALES
AND
USE
TAX.
The
amendments
to
Code
sections
321G.4
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(snowmobiles)
and
321I.4
(all-terrain
vehicles)
require
the
1
county
recorder
to
collect
sales
or
use
tax
if
an
owner
of
such
2
a
vehicle
is
unable
to
present
satisfactory
evidence
that
the
3
sales
or
use
tax
has
been
paid.
4
The
amendment
to
Code
section
423.2(6)(bs)
specifies
that
5
any
services
arising
from
or
related
to
software
sold
as
6
tangible
personal
property
are
subject
to
the
sales
tax.
7
The
amendment
to
Code
section
423.2(8)(d)(1)
specifies
that
8
the
following
is
not
subject
to
the
sales
tax:
the
retail
9
sale
of
a
specified
digital
product
and
a
service
where
the
10
specified
digital
product
is
essential
and
exclusive
to
the
use
11
of
the
service,
and
the
true
object
of
the
transaction
is
the
12
service.
13
The
amendment
to
Code
section
423.3(3A)
provides
that
the
14
sales
price
from
the
sale
of
a
commercial
recreation
service
15
offering
the
opportunity
to
hunt
a
preserve
whitetail
is
16
exempt
from
the
sales
tax
if
the
sale
occurred
between
July
17
1,
2005,
and
December
31,
2015.
This
provision
takes
effect
18
upon
enactment
an
applies
retroactively
to
July
1,
2005.
The
19
bill
prohibits
any
refunds
resulting
from
the
amendment
to
Code
20
section
423.3(3A).
21
The
amendment
to
Code
section
423.3(31)
specifies
that
22
the
sales
price
of
tangible
personal
property
or
specified
23
digital
products
sold
to,
or
of
services
furnished
to
a
24
tribal
government
as
defined
in
Code
section
216A.161,
or
the
25
instrumentalities
of
such
tribal
government
are
exempt
from
the
26
sales
tax
under
most
circumstances.
27
The
amendments
to
Code
section
423.3(80)(b)
and
(c)
specify
28
that
services
performed
pursuant
to
a
written
construction
29
contract
with
a
designated
exempt
entity
as
defined
in
Code
30
section
423.3(80)(a)(1)
are
exempt
from
the
sales
tax.
31
Currently,
the
construction
contract
is
not
required
to
be
a
32
written
contract
and
only
building
materials,
supplies,
and
33
equipment
used
in
such
a
contract
are
exempt
from
the
sales
34
tax.
The
bill
also
provides
that
the
building
materials,
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supplies,
equipment,
and
services
are
exempt
from
the
sales
1
tax
only
if
the
property
that
is
subject
to
the
construction
2
project
becomes
public
property
or
the
property
of
a
designated
3
exempt
entity,
in
addition
to
the
requirement
that
the
4
exempt
items
be
completely
consumed
in
the
performance
of
the
5
construction
contract.
6
The
amendment
to
Code
section
423.4(1),
relating
to
refunds
7
of
sales
or
use
taxes
to
tax-exempt
entities,
enhances
the
8
readability
of
the
Code
section
by
defining
a
“designated
9
exempt
entity”
and
thus
removing
repeated
references
to
each
10
exempt
entity
in
the
Code
section.
The
bill
also
adds
a
tribal
11
government
to
the
definition
of
a
designated
exempt
entity.
12
The
bill
strikes
the
terms
“goods,
wares,
and
merchandise”
and
13
uses
the
terms
“building
materials,
supplies,
and
equipment”
14
for
purposes
of
claiming
the
exemption,
when
a
designated
15
exempt
entity
makes
an
application
to
the
department
for
the
16
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
17
sales
or
services
related
to
the
performance
of
a
written
18
construction
contract.
Additionally,
if
the
sales
price
of
19
all
building
materials,
supplies,
equipment,
or
services
20
related
to
the
performance
of
a
written
construction
contract
21
are
to
be
exempt
from
the
sales
or
use
tax
under
the
bill,
22
all
of
the
following
must
apply:
the
building
materials,
23
supplies,
equipment,
or
services
are
completely
consumed
in
the
24
performance
of
a
construction
project;
the
property
that
is
the
25
subject
of
the
construction
project
becomes
public
property
or
26
the
property
of
an
exempt
entity;
and
the
building
materials,
27
supplies,
equipment,
or
services
furnished
are
not
used
in
28
the
performance
of
a
construction
contract
with
a
designated
29
exempt
entity
in
connection
with
the
construction
of
certain
30
facilities.
31
The
amendments
to
Code
section
423.4(2)(a)
and
(b)
relate
32
to
construction
contracts
for
transportation
projects
by
33
specifying
the
contractor
shall
pay
sales
or
use
tax
for
the
34
services
related
to
such
contracts,
and
by
making
terminology
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more
consistent
in
the
subsection.
1
The
amendments
to
Code
sections
423.4(2)
and
423.4(6)
make
2
the
terminology
more
consistent
with
other
changes
in
the
bill.
3
The
amendment
to
Code
section
423.5(1)(b)
strikes
the
4
imposition
of
a
6
percent
excise
tax
on
the
use
of
manufactured
5
housing,
or
the
purchase
price
if
such
housing
is
sold
in
the
6
form
of
tangible
personal
property,
or
the
installed
purchase
7
price
if
such
housing
is
sold
in
the
form
of
realty.
8
The
amendment
to
Code
section
423.29(1)
provides
that
a
9
retailer
maintaining
a
place
of
business
in
this
state
and
10
making
taxable
sales
shall,
at
the
time
of
making
such
sales,
11
collect
the
sales
tax.
The
bill
also
provides
that
it
is
12
the
intent
of
the
general
assembly
that
the
amendment
to
13
Code
section
423.29(1)
is
a
conforming
amendment
consistent
14
with
current
law,
and
that
the
amendment
does
not
change
the
15
application
of
current
law.
16
The
amendment
to
Code
section
423.33(1)
enhances
the
17
readability
of
the
Code
section
by
specifying
that
if
a
18
purchaser
fails
to
pay
sales
tax
to
a
retailer
required
to
19
collect
the
sales
tax,
then
the
purchaser
shall
pay
a
use
20
tax
directly
to
the
department.
The
bill
specifies
that
the
21
retailer
and
purchaser
are
jointly
liable
for
the
failure
22
to
pay
either
the
sales
or
use
tax
in
most
circumstances.
23
Additionally,
the
bill
provides
that
it
is
the
intent
of
the
24
general
assembly
that
the
addition
of
“joint
liability”
is
a
25
conforming
amendment
consistent
with
current
law,
and
that
26
the
amendment
does
not
change
the
application
of
current
law.
27
The
bill
provides
that
if
the
purchaser
pays
the
use
tax,
28
the
retailer
remains
liable
for
any
local
option
sales
and
29
services
tax
under
Code
chapter
423B
that
the
retailer
failed
30
to
collect.
31
INCOME
TAX.
The
bill
strikes
and
replaces
Code
section
32
422.9(3)(c).
The
bill
provides
that
a
taxpayer
may
elect
33
to
waive
the
entire
carryback
period
with
respect
to
an
34
Iowa
net
operating
loss
for
any
taxable
year,
in
the
manner
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prescribed
by
the
department,
and
by
the
due
date
for
filing
1
the
taxpayer’s
return,
including
extensions
of
time.
After
the
2
election
is
made
for
any
taxable
year,
the
election
shall
be
3
irrevocable
for
such
taxable
year.
If
an
election
has
been
4
properly
made,
the
bill
provides
that
the
Iowa
net
operating
5
loss
shall
be
carried
forward
20
taxable
years.
6
The
amendment
to
Code
section
422.9(3)(d)
modifies
the
7
election
for
an
Iowa
farming
loss,
which
may
be
carried
back
8
for
five
taxable
years
prior
to
the
taxable
year
of
the
loss.
9
The
bill
specifies
that
a
farming
business
that
has
an
Iowa
10
farming
loss
may
make
an
election
to
carry
back
the
loss
for
11
five
taxable
years,
in
the
manner
prescribed
by
the
department,
12
and
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
13
return,
including
extensions
of
time.
After
the
election
is
14
made
for
any
taxable
year,
the
bill
provides
the
election
shall
15
be
irrevocable
for
such
taxable
year.
16
The
division
applies
to
tax
years
beginning
on
or
after
17
January
1,
2020.
18
RESEARCH
ACTIVITIES
TAX
CREDIT.
The
amendments
to
Code
19
sections
15.335,
422.10,
and
422.33
update
references
to
the
20
Internal
Revenue
Code
relating
to
the
alternative
simplified
21
credit
for
increasing
research
activities.
22
The
division
takes
effect
upon
enactment
and
applies
23
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
24
or
after
that
date.
25
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
26
OF
FEDERAL
ADJUSTMENTS.
The
amendment
to
Code
section
27
421.27(2)(c)
specifies
that
a
taxpayer
is
required
to
pay
28
a
penalty
of
5
percent
of
the
tax
due,
unless
the
taxpayer
29
provides
written
notification
to
the
department
of
a
federal
30
audit
while
it
is
in
progress
and
voluntarily
files
an
amended
31
return
which
includes
the
final
disposition
of
the
audit
32
and
final
federal
adjustments
to
taxes
paid
within
180
days
33
of
the
final
determination
date.
The
bill
defines
“final
34
determination
date”
to
generally
mean
the
first
day
on
which
no
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federal
adjustments
to
taxes
arising
from
the
audit
or
other
1
action
remain
to
be
finally
determined.
In
cases
of
a
final
2
federal
partnership
adjustment
arising
from
a
partnership
3
level
audit,
the
taxpayer
voluntarily
and
timely
complies
with
4
reporting
and
payment
requirements
under
new
Code
section
5
422.25A(4)
and
(5)
created
in
the
bill.
6
The
bill
enacts
new
Code
section
422.7(59)
providing
that
7
any
income
subtracted
from
federal
taxable
income
shall
be
8
added
back
in
computing
net
income
for
state
individual
income
9
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
10
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
11
the
year
in
which
the
final
determination
of
the
adjustment
12
occurs.
13
The
amendment
to
Code
section
422.25
adds
definitions
to
the
14
Code
section
for
“federal
adjustment”,
“federal
adjustments
15
report”,
“final
determination
date”,
and
“final
federal
16
adjustment”.
17
The
bill
enacts
new
Code
section
422.25A
which
creates
a
18
process
for
audited
partnerships
and
their
direct
and
indirect
19
partners
to
report
final
federal
partnership
adjustments
to
20
the
department.
The
bill
provides
that
the
state
partnership
21
representative
for
the
reviewed
year
shall
have
sole
authority
22
to
act
on
behalf
of
the
partnership.
The
bill
creates
23
reporting
and
payment
requirements
for
audited
partnerships
24
and
their
partners
subject
to
final
federal
adjustments.
25
The
bill
permits
an
audited
partnership
or
a
tiered
partner
26
(partner
that
is
a
partnership
or
pass-through
entity)
to
make
27
irrevocable
elections
about
the
payment
of
any
adjustments,
28
and
specifies
the
consequences
of
making
certain
elections.
29
The
bill
permits
an
audited
partnership
or
tiered
partner
to
30
enter
into
an
agreement
with
the
department
to
use
alternative
31
reporting
and
payment
methods.
The
bill
permits
the
department
32
to
assess
additional
Iowa
income
tax,
interest,
and
penalties
33
arising
from
a
federal
partnership
adjustments
in
the
same
34
manner
as
provided
in
other
tax-related
provisions.
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The
bill
enacts
new
Code
section
422.25B
that
requires
1
the
state
partnership
representative
acting
on
behalf
of
the
2
partnership
for
the
reviewed
year
to
be
the
partnership’s
3
federal
partnership
representative
with
respect
to
an
action
4
required
or
permitted
to
be
taken
by
a
state
partnership
5
representative,
unless
the
partnership
designates
in
writing
in
6
the
manner
prescribed
by
the
department
another
person
to
act
7
as
the
state
partnership
representative.
8
The
bill
enacts
new
Code
section
422.25C
relating
to
9
partnership
or
pass-through
entity
audits
and
examinations.
10
The
bill
provides
that
for
tax
years
beginning
on
or
after
11
January
1,
2020,
any
adjustments
to
a
partnership’s
or
12
pass-through
entity’s
taxes
or
an
adjustment
allocated
to
a
13
partner’s
taxes
as
a
result
of
a
department
audit
shall
be
14
determined
at
the
partnership
or
pass-through
entity
level
in
15
the
same
manner
as
provided
by
federal
law.
The
bill
specifies
16
that
the
state
partnership
representative
shall
have
the
sole
17
authority
to
act
on
behalf
of
the
partnership
or
pass-through
18
entity
with
respect
to
any
actions
taken
due
to
the
audit,
19
including
appealing
decisions
to
the
director
of
revenue
or
20
seeking
judicial
review
of
the
director’s
decision.
The
21
provisions
of
new
Code
section
422.25C
may
be
applied
to
tax
22
years
beginning
before
January
1,
2020,
if
the
partnership
or
23
pass-through
entity
and
the
department
agree.
24
The
bill
enacts
new
Code
section
422.35(26)
providing
that
25
any
income
subtracted
from
federal
taxable
income
shall
be
26
added
back
in
computing
net
income
for
state
corporate
income
27
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
28
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
29
the
year
in
which
the
final
determination
of
the
adjustment
30
occurs.
31
The
bill
amends
Code
section
422.39
by
specifying
that
Code
32
sections
relating
to
payments
of
interest,
computation
of
tax,
33
liens,
and
final
reports
of
fiduciaries
apply
to
not
just
34
payments
and
collections
but
to
reporting,
examinations,
and
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assessments
with
respect
to
corporations
including
pass-through
1
entities
organized
as
corporations.
2
The
amendment
to
Code
section
422.73
relates
to
credits
3
against
taxes
due
because
of
errors.
The
bill
changes
the
4
period
of
limitation
(statute
of
limitations)
for
a
claim
for
5
a
refund
of
or
a
credit
against
individual
income
tax
by
a
6
taxpayer
to
one
year
from
the
final
determination
date
of
any
7
final
adjustment
with
respect
to
the
particular
tax
year
to
8
claim
an
income
tax
refund
or
credit.
Currently,
a
claim
for
9
a
refund
of
or
a
credit
against
the
individual
income
tax
by
10
a
taxpayer
is
six
months
from
the
final
disposition
of
any
11
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
12
service.
The
bill
makes
other
changes
relating
to
agreements
13
entered
into
by
the
department
and
the
internal
revenue
14
service
for
the
transmission
of
federal
income
tax
reports
on
15
individuals
who
have
been
involved
in
an
income
tax
matter
with
16
the
internal
revenue
service.
17
The
division
applies
to
federal
adjustments
and
federal
18
partnership
adjustments
that
have
a
final
determination
date
19
after
the
effective
date
of
the
division.
20
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE.
The
21
bill
modifies
the
effective
date
of
either
Senate
File
2328
or
22
House
File
2565
(setoff
procedures),
by
providing
that
either
23
Senate
File
2328
or
House
File
2565,
if
enacted,
take
effect
24
on
the
later
of
January
1,
2021,
or
the
effective
date
of
the
25
rules
adopted
by
the
department
of
revenue
implementing
the
26
bill
other
than
the
adopting
of
transitional
rules
by
the
27
department.
This
provision
takes
effect
upon
enactment,
and
28
applies
retroactively
to
the
effective
date
of
either
Act.
29
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
30
SHAREHOLDERS
OR
BENEFICIARIES.
The
bill
provides
that
a
31
resident
partner
of
an
entity
taxed
as
a
partnership,
a
32
resident
shareholder
of
an
S
corporation,
or
a
resident
33
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
34
the
resident
partner’s,
resident
shareholder’s,
or
resident
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beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
1
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
2
state
or
foreign
country
on
income
that
is
also
subject
to
3
Iowa
personal
income
tax,
but
only
if
the
entity
provides
the
4
resident
partner,
resident
shareholder,
or
resident
beneficiary
5
a
statement
that
documents
the
resident
partner’s,
resident
6
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
7
derived
in
the
other
state
or
foreign
country,
the
income
tax
8
liability
of
the
entity
in
that
state
or
foreign
country,
and
9
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
10
country.
11
The
bill
also
provides
that
a
resident
shareholder
of
a
12
regulated
investment
company
shall
be
deemed
to
have
paid
the
13
shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
14
the
regulated
investment
company
to
another
state
or
foreign
15
country
and
treated
as
paid
by
its
shareholders
pursuant
to
16
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
17
regulated
investment
company
provides
the
resident
shareholder
18
a
statement
that
documents
the
resident
shareholder’s
share
of
19
the
income
derived
in
the
other
state
or
foreign
country,
the
20
income
tax
liability
of
the
regulated
investment
company
in
21
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
22
regulated
investment
company
to
that
state
or
foreign
country.
23
This
division
takes
effect
upon
enactment
and
applies
24
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
25
or
after
that
date.
26
BONUS
DEPRECIATION.
The
bill
provides
that
for
purposes
27
of
Iowa
taxes,
the
state
will
couple
with
any
future
changes
28
to
the
increased
expensing
allowance
under
section
179
of
the
29
Internal
Revenue
Code
(bonus
depreciation).
The
change
to
30
bonus
depreciation
applies
retroactively
to
January
1,
2020,
31
for
tax
years
beginning
on
or
after
that
date.
32
MARRIED
TAXPAYERS
——
JOINT
LIABILITY.
The
bill
provides
33
that
relief
from
Iowa
joint
tax
liability
is
available
under
34
all
circumstances
that
are
available
under
federal
law.
The
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bill
also
provides
a
mechanism
for
the
department
of
revenue
to
1
allow
the
spouse
not
requesting
relief
from
joint
tax
liability
2
to
intervene
in
the
department’s
process
for
deciding
whether
3
to
grant
relief.
This
provision
takes
effect
upon
enactment.
4
SALES
TAX
PAID
BY
THIRD-PARTY
DEVELOPERS.
The
bill
allows
5
a
pass-through
entity
awarded
a
refundable
tax
credit
under
6
Code
section
15.331C
(corporate
tax
credit
for
sales
and
use
7
tax
paid)
to
pass
through
the
refundable
tax
credit
to
the
8
owners
of
the
pass-through
entity
to
claim
the
owner’s
share
9
of
the
refundable
tax
credit.
The
provision
takes
effect
upon
10
enactment,
and
applies
retroactively
to
January
1,
2020,
for
11
tax
years
beginning
on
or
after
that
date.
12
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
(529
PLANS).
The
bill
13
specifies
that
funds
in
a
529
plan
may
be
used
to
pay
expenses
14
for
the
participation
in
a
certified
apprenticeship
program.
15
The
bill
also
allows
up
to
$10,000
of
529
plan
funds
to
be
used
16
to
pay
the
student
loans
of
the
beneficiary
of
the
529
plan
or
a
17
sibling
of
the
beneficiary,
respectively.
18
IOWA
EDUCATIONAL
SAVINGS
ACCOUNT
——
EXTENSION.
A
19
participant
who
makes
a
contribution
to
the
Iowa
educational
20
savings
plan
trust
pursuant
to
Code
section
12D.3,
subsection
21
1,
on
or
after
January
1,
2020,
and
on
or
before
July
31,
2020,
22
may
elect
to
be
deemed
to
have
made
the
contribution
on
the
23
last
day
of
calendar
year
2019.
This
provision
takes
effect
24
upon
enactment.
25
IOWA
FIRST-TIME
HOMEBUYER
ACCOUNT
——
EXTENSION.
An
26
individual
who
opened
a
first-time
homebuyer
account
during
27
calendar
year
2019
and
who
wishes
to
participate
in
the
28
Iowa
first-time
homebuyer
savings
account
program
shall
29
designate
the
account
as
a
first-time
homebuyer
account
and
the
30
beneficiary
of
such
an
account
on
or
before
July
31,
2020,
on
31
forms
provided
by
the
department
of
revenue.
This
provision
32
takes
effect
upon
enactment.
33
QUALIFYING
PERSONAL
PROTECTIVE
EQUIPMENT
(PPE)
——
DONATION.
34
The
bill
exempts
from
the
use
tax
qualifying
protective
35
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personal
equipment
and
materials
assembled
and
donated
by
a
1
business
during
the
period
beginning
with
a
state
of
disaster
2
emergency
proclamation
by
the
governor
under
Code
section
29C.6
3
and
ending
180
days
after
the
expiration
of
such
proclamation.
4
The
division
takes
effect
upon
enactment
and
permits
refunds
of
5
taxes,
interest,
or
penalties
that
arise
from
claims
resulting
6
from
the
enactment
of
the
division
for
donations
occurring
7
prior
to
the
effective
date
of
the
division.
The
division
8
specifies
refund
claims
shall
not
be
allowed
unless
claims
9
are
filed
prior
to
October
1,
2020.
The
division
applies
10
retroactively
to
January
1,
2020,
for
qualifying
personal
11
protective
equipment
and
materials
assembled
and
donated
on
or
12
after
that
date.
13
SHORT-TERM
RENTAL
PROPERTIES.
The
bill
prohibits
a
county
14
or
city
from
adopting
or
enforcing
an
ordinance
that
prohibits
15
short-term
rental
properties
within
the
county
or
city.
The
16
bill
requires
a
county
or
city
to
consider
short-term
rental
17
properties
as
a
residential
land
use
for
zoning
purposes.
18
The
bill
authorizes
a
county
or
city
to
enact
or
enforce
an
19
ordinance
that
regulates,
prohibits,
or
otherwise
limits
20
short-term
rental
properties
if
such
enforcement
is
performed
21
in
the
same
manner
as
enforcement
applicable
to
similar
22
properties
and
if
such
enforcement
meets
a
specified
primary
23
purpose.
The
bill
also
prohibits
a
county
or
city
from
24
adopting
or
enforcing
any
regulation,
restriction,
or
other
25
ordinance
related
to
distance
separation
requirements
for
26
single-family
homes
and
duplexes.
27
FUTURE
TAX
CHANGES.
The
bill
amends
2018
Iowa
Acts,
28
chapter
1161,
section
133
(trigger),
by
striking
the
two
29
conditions
necessary
for
the
trigger
to
occur,
and
specifies
30
the
provisions
in
2018
Iowa
Acts,
chapter
1161,
sections
99-132
31
simply
go
into
effect
January
1,
2023.
32
BUSINESS
INTEREST
EXPENSE
DEDUCTION.
The
federal
Tax
Cuts
33
and
Jobs
Act
(TCJA)
created
a
new
limitation
on
the
deduction
34
of
business
interest
expense
for
tax
years
beginning
on
or
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after
January
1,
2018.
Currently,
the
state
couples
with
1
federal
law
limiting
the
deduction
of
business
interest
expense
2
for
tax
years
beginning
on
or
after
January
1,
2019.
3
The
bill
decouples,
for
Iowa
individual
and
corporate
income
4
tax
purposes,
from
the
federal
limitation
on
deduction
of
5
business
interest
expenses
for
tax
years
beginning
on
or
after
6
January
1,
2019.
7
The
decoupling
from
the
federal
limitation
on
deduction
8
of
business
interest
expense
does
not
apply
during
any
tax
9
year
in
which
the
additional
first-year
depreciation
allowance
10
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
11
(bonus
depreciation)
applies
in
computing
net
income
for
state
12
tax
purposes.
13
For
any
tax
year
in
which
a
taxpayer
is
not
permitted
to
14
deduct
any
amount
of
interest
expense
paid
or
accrued
in
a
15
previous
taxable
year
due
to
the
allowance
of
the
additional
16
first-year
depreciation,
the
bill
prohibits
the
deduction
of
17
any
amount
of
interest
expense
paid
or
accrued
in
a
previous
18
taxable
year
in
the
current
taxable
year
by
reason
of
the
19
carryforward
of
disallowed
business
interest
provisions
of
20
section
163(j)(2)
of
the
Internal
Revenue
Code,
if
either
of
21
the
following
apply:
the
interest
expense
was
originally
paid
22
or
accrued
during
a
tax
year
in
which
there
was
a
decoupling
23
from
the
federal
limitation
on
business
expense,
or
the
24
interest
expense
was
originally
paid
or
accrued
during
a
tax
25
year
in
which
the
taxpayer
was
not
required
to
file
an
Iowa
26
return.
27
GLOBAL
INTANGIBLE
LOW-TAXED
INCOME
(GILTI).
Federal
28
law
includes
in
a
taxpayer’s
gross
income
global
intangible
29
low-taxed
income
(GILTI)
as
defined
in
section
951A
of
the
30
Internal
Revenue
Code,
subject
to
a
deduction
equal
to
50
31
percent
of
the
corporation’s
GILTI
under
section
250(a)(1)(B)
32
of
the
Internal
Revenue
Code.
The
bill
enacts
new
Code
section
33
422.35(27)
that
allows
a
corporate
taxpayer
to
deduct
GILTI
34
under
section
951A
of
the
Internal
Revenue
Code.
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RESCISSION
OF
RULES.
The
division
rescinds
rules
relating
1
to
GILTI
under
section
951A
of
the
Internal
Revenue
Code.
2
The
division
takes
effect
upon
enactment,
and
applies
3
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
4
or
after
that
date.
5
REINVESTMENT
ACT.
Code
chapter
15J,
the
“Iowa
Reinvestment
6
Act”,
authorizes
municipalities
(a
city
or
a
county)
to
7
establish
reinvestment
districts
and
receive
remittances
of
8
specified
amounts
of
state
sales
tax
and
state
hotel
and
9
motel
tax
revenues
collected
in
those
districts
for
use
in
10
undertaking
projects
in
the
district.
Eligible
municipalities
11
must
seek
approval
from
the
economic
development
authority
12
board
to
establish
a
reinvestment
district.
Code
chapter
13
15J
currently
prohibits
the
board
from
approving
a
proposed
14
district
plan
on
or
after
July
1,
2018,
and
imposes
a
$100
15
million
aggregate
limit
of
state
sales
tax
revenues
and
state
16
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
board
17
for
remittance
to
all
municipalities.
18
The
bill
establishes
an
additional
period
of
time
for
the
19
board
to
approve
reinvestment
districts,
beginning
July
1,
20
2020,
and
ending
July
1,
2025,
and
establishes
an
additional
21
$100
million
aggregate
limit
of
state
sales
tax
revenues
and
22
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
23
board
for
remittance
to
all
municipalities
for
those
districts
24
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025.
25
The
bill
also
expands
the
definition
of
“municipality”
26
to
include
a
joint
board
or
other
legal
entity
established
27
or
designated
in
an
agreement
between
two
or
more
contiguous
28
cities
or
counties
pursuant
to
Code
chapter
28E.
The
bill
also
29
makes
corresponding
changes
to
other
provisions
of
Code
chapter
30
15J
to
reflect
such
municipalities’
authority
under
the
Iowa
31
reinvestment
Act.
32
As
part
of
the
criteria
for
establishing
a
district,
current
33
law
requires
the
district
to
consist
of
contiguous
parcels
not
34
to
exceed
25
acres
in
total.
For
districts
approved
under
the
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bill
on
or
after
July
1,
2020,
the
area
comprising
the
district
1
may
consist
of
contiguous
parcels
not
to
exceed
75
acres
in
2
total.
3
Part
of
the
approval
criteria
for
a
district
includes
the
4
requirement
that
the
amount
of
proposed
capital
investment
5
within
the
proposed
district
related
to
retail
businesses
does
6
not
exceed
50
percent
of
the
total
capital
investment
for
all
7
proposed
projects
in
the
proposed
district
plan,
excluding
“new
8
lessors”,
as
defined
in
Code
section
15J.2,
from
the
definition
9
of
“retail
business”.
The
bill
adds
businesses
engaged
in
an
10
activity
subject
to
the
sales
tax
under
Code
section
423.2(3)
11
to
that
exclusion
from
the
definition
of
“retail
business”.
12
Code
section
15J.7
prohibits
revenues
received
by
a
13
municipality
from
being
used
for
a
project
that
includes
14
relocation
of
a
commercial
or
industrial
enterprise
not
15
presently
located
within
the
municipality.
“Relocation”
16
is
defined
in
Code
section
15J.7
to
mean
the
closure
or
17
substantial
reduction
of
an
enterprise’s
existing
operations
18
in
one
area
of
the
state
and
the
initiation
of
substantially
19
the
same
operation
in
the
same
county
or
a
contiguous
county
in
20
the
state.
The
bill
provides,
however,
that
if
the
initiation
21
of
operations
includes
an
expanded
scope
or
nature
of
the
22
enterprise’s
existing
operations,
the
new
operation
shall
not
23
be
considered
to
be
“substantially
the
same
operation”.
24
Code
section
15J.8
provides
that
as
of
the
date
20
years
25
after
the
district’s
commencement
date,
the
department
of
26
revenue
shall
cease
to
deposit
state
sales
tax
revenues
and
27
state
hotel
and
motel
tax
revenues
into
the
district’s
account
28
within
the
fund,
unless
the
municipality
dissolves
the
district
29
prior
to
that
date.
The
bill
provides
that,
upon
request
of
30
the
municipality
prior
to
the
dissolution
of
the
district,
31
and
following
a
determination
by
the
economic
development
32
authority
board
that
the
amounts
of
new
state
sales
tax
revenue
33
and
new
state
hotel
and
motel
tax
revenue
deposited
in
the
34
municipality’s
reinvestment
project
fund
are
substantially
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lower
than
the
amounts
established
by
the
board
when
the
1
district
was
approved,
the
board
may
extend
the
district’s
2
20-year
period
of
time
for
depositing
and
receiving
revenues
by
3
up
to
five
additional
years
if
such
an
extension
is
in
the
best
4
interest
of
the
public.
5
The
bill
relates
to
certain
tax
credits
awarded
by
the
6
economic
development
authority
for
equity
investments
in
a
7
qualifying
business
or
innovation
fund.
The
bill
directs
8
the
economic
development
authority
to
determine
on
or
before
9
June
30
of
each
year
the
amount
of
tax
credits
that
will
be
10
issued
for
the
following
fiscal
year
for
equity
investments
in
11
qualifying
businesses
pursuant
to
Code
section
15E.43
and
in
12
innovation
funds
pursuant
to
Code
section
15E.52.
The
bill
13
caps
the
aggregate
amount
of
these
tax
credits
at
$10
million.
14
The
bill
changes
the
maximum
amount
of
tax
credits
that
may
15
be
issued
in
a
year
to
a
natural
person
and
the
person’s
spouse
16
or
dependant,
or
for
equity
investments
in
any
one
qualifying
17
business,
from
a
calendar
year
basis
to
a
fiscal
year
basis.
18
The
division
takes
effect
upon
enactment.
19
CAPITAL
GAINS.
The
bill
provides
a
capital
gains
deduction
20
for
tax
years
beginning
on
or
after
January
1,
2020,
in
the
21
amount
of
15
percent
of
the
taxpayer’s
net
capital
gain
as
22
defined
in
section
1222
of
the
Internal
Revenue
Code.
23
LOCAL
ASSESSORS.
This
division
of
the
bill
relates
to
the
24
appointment
and
duties
of
local
assessors.
25
Code
section
441.6
establishes
the
process
for
filling
the
26
office
of
county
or
city
assessor.
When
a
vacancy
occurs,
the
27
examining
board
requests
the
director
of
revenue
to
forward
28
a
register
containing
the
names
of
all
individuals
eligible
29
for
appointment
as
assessor.
The
examining
board
then
makes
30
a
written
report
of
the
examination
and
submits
the
report
31
together
with
the
names
of
those
individuals
certified
by
the
32
director
of
revenue
to
the
conference
board.
Upon
receipt
33
of
the
report
of
the
examining
board,
the
conference
board
34
appoints
an
assessor
from
the
register
of
eligible
candidates
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and
gives
written
notice
to
the
director
of
revenue
of
the
1
appointment.
2
Under
the
bill,
the
appointee
selected
by
the
conference
3
board
shall
not
assume
the
office
of
city
or
county
assessor
4
until
the
appointment
is
confirmed
by
the
director
of
revenue.
5
If
the
director
of
revenue
rejects
the
appointment,
the
6
examining
board
must
conduct
a
new
examination
and
submit
a
new
7
report
to
the
conference
board.
8
The
bill
also
provides
that
an
assessor
or
deputy
assessor
9
shall
not
personally
assess
a
property
if
the
person
or
a
10
member
of
the
person’s
immediate
family
owns
the
property,
11
has
a
financial
interest
in
the
property,
or
has
a
financial
12
interest
in
the
entity
that
owns
the
property.
13
Code
section
441.41
authorizes
the
conference
board
to
14
employ
special
counsel
to
assist
the
city
legal
department
or
15
the
county
attorney
in
litigation
dealing
with
assessments.
16
The
bill
provides
that
such
authority
is
subject
to
review
17
and
prior
approval
by
the
city
legal
department
or
the
county
18
attorney,
as
applicable.
19
RURAL
IMPROVEMENT
ZONES.
Under
Code
chapter
357H,
the
board
20
of
supervisors
of
a
county
with
less
than
20,000
residents
21
and
with
a
private
lake
development
may
designate
an
area
22
surrounding
the
lake,
if
it
is
an
unincorporated
area
of
the
23
county,
a
rural
improvement
zone
upon
receipt
of
a
qualifying
24
petition
and
upon
the
board’s
determination
that
the
area
is
in
25
need
of
improvements.
The
bill
modifies
that
provision
in
Code
26
section
357H.1
to
provide
that
the
board
of
supervisors
of
such
27
a
county
with
a
private
real
estate
development
adjacent
to
or
28
abutting
in
part
a
lake
may
designate
an
area
surrounding
the
29
lake
a
rural
improvement
zone
upon
the
receipt
of
the
petition
30
and
a
determination
that
the
area
is
in
need
of
improvements.
31
This
division
of
the
bill
takes
effect
upon
enactment
32
and
applies
to
rural
improvement
zones
in
existence
on
or
33
established
on
or
after
the
effective
date
of
the
division
of
34
the
bill.
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SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS.
Beginning
January
1
1,
2022,
the
bill
allows
the
total
approved
school
tuition
2
tax
credits,
currently
set
at
$15
million
for
calendar
year
3
2020,
to
increase
each
calendar
year,
if
the
amount
of
awarded
4
tax
credits
from
the
preceding
calendar
year
are
equal
to
or
5
greater
than
90
percent
of
the
total
approved
school
tuition
6
tax
credits
for
the
current
calendar
year,
until
reaching
a
7
maximum
of
amount
of
$20
million
per
calendar
year.
8
Currently,
the
maximum
amount
of
school
tuition
organization
9
tax
credits
that
may
be
approved
for
corporations
in
the
10
aggregate
shall
not
exceed
25
percent
of
the
total
amount
of
11
school
tuition
organization
tax
credits
allowable
in
a
calendar
12
year
in
Code
section
422.11S(8).
The
bill
permits
corporations
13
in
the
aggregate
to
be
awarded
more
than
the
25
percent
of
the
14
allowable
school
tuition
organization
tax
credits
in
a
calendar
15
year
by
striking
the
25
percent
limitation.
16
PAYCHECK
PROTECTION
PROGRAM.
The
bill
excludes
from
the
17
calculation
of
Iowa
income
tax
for
certain
fiscal
filers
the
18
federal
paycheck
protection
program
loan
proceeds
that
were
19
forgiven
and
excluded
from
federal
gross
income.
This
division
20
takes
effect
upon
enactment.
21
INCOME
TAX
EXCLUSION
——
EMERGENCY
STUDENT
GRANT
MONEY.
The
22
bill
excludes
from
Iowa
net
income
federal
Coronavirus
Aid,
23
Relief,
and
Economic
Security
Act
funds
received
by
a
student
24
through
a
higher
education
institution
to
support
the
student’s
25
financial
needs
as
a
result
of
the
COVID-19
pandemic
pursuant
26
for
any
tax
year
ending
after
March
27,
2020.
This
provision
27
takes
effect
upon
enactment,
and
applies
retroactively
to
March
28
27,
2020,
for
tax
years
ending
on
or
after
that
date.
29
IOWA
INCOME
EXCLUSION
——
STIMULUS
CHECKS.
In
determining
30
the
amount
of
deduction
for
federal
income
tax
under
Code
31
section
422.9
for
tax
years
beginning
in
the
2020
calendar
32
year,
the
amount
of
the
deduction
for
the
tax
year
shall
not
33
be
adjusted
by
the
amount
received
during
the
tax
year
of
the
34
income
tax
rebate
provided
pursuant
to
the
federal
Recovery
35
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S.F.
2419
Rebates
and
Coronavirus
Aid,
Relief,
and
Economic
Security
Act,
1
and
the
amount
of
such
income
tax
rebate
shall
not
be
subject
2
to
taxation.
3
HUNTING
DEER
AND
TURKEY
ON
A
FARM
UNIT.
Current
law
allows
4
an
owner
or
tenant
of
a
farm
unit
or
a
member
of
that
person’s
5
family
who
receives
a
wild
turkey
license
for
use
on
that
6
person’s
farm
unit
to
use
the
license
during
any
bow
or
firearm
7
turkey
hunting
season.
An
owner
or
tenant
of
a
farm
unit
or
8
a
member
of
that
person’s
family
who
receives
a
deer
hunting
9
license
for
use
on
that
person’s
farm
unit
may
use
the
license
10
during
any
bow
or
firearm
deer
hunting
season.
Current
law
11
requires
the
payment
of
a
$1
fee
that
shall
be
appropriated
12
to
the
help
us
stop
hunger
(HUSH)
program
for
each
free
deer
13
hunting
license
issued
for
use
on
a
farm
unit.
14
The
bill
allows
an
owner
or
tenant
of
a
farm
unit
or
a
member
15
of
that
person’s
family
to
use
on
the
farm
unit
a
wild
turkey
16
hunting
license
during
any
established
turkey
hunting
season
17
and
a
deer
hunting
license
during
any
established
deer
hunting
18
season
using
the
method
of
take
authorized
by
rule
for
the
19
respective
season
being
hunted.
A
tag
filled
during
one
of
the
20
seasons
will
not
be
valid
in
subsequent
seasons.
An
owner,
21
tenant,
or
family
member
who
receives
a
free
deer
hunting
22
license
for
use
on
a
farm
unit
shall
pay
a
fee
of
$1.25
for
each
23
license
issued
that
shall
be
appropriated
to
the
HUSH
program.
24
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