House
File
45
-
Introduced
HOUSE
FILE
45
BY
LOHSE
A
BILL
FOR
An
Act
excluding
from
the
computation
of
net
income
for
state
1
individual
income
tax
purposes
a
portion
of
the
net
capital
2
gain
from
sales
or
exchanges
of
assets,
and
including
3
effective
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1353YH
(2)
89
jm/jh
H.F.
45
Section
1.
Section
422.7,
Code
2021,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
21A.
a.
Subtract,
to
the
extent
included,
3
fifty
percent
of
the
net
capital
gain
from
the
sale
or
exchange
4
of
an
asset
if
the
asset
was
held
for
more
than
two
years.
5
b.
As
used
in
this
subsection:
6
(1)
“Held”
shall
be
determined
with
reference
to
the
holding
7
period
provisions
of
section
1223
of
the
Internal
Revenue
Code
8
and
the
federal
regulations
adopted
pursuant
thereto.
9
(2)
“Net
capital
gain”
means
the
same
as
defined
in
section
10
1222
of
the
Internal
Revenue
Code.
11
c.
An
asset
that
is
the
subject
of
the
net
capital
gain
12
deduction
under
this
subsection
is
not
eligible
for
a
net
13
capital
gain
deduction
under
subsection
21.
14
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
15
importance,
takes
effect
upon
enactment.
16
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
17
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
18
or
after
that
date.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
excludes
50
percent
of
the
net
capital
gain
from
23
the
computation
of
net
income
for
state
individual
income
tax
24
purposes
if
the
asset
was
held
for
more
than
two
years.
25
The
term
“net
capital
gain”
is
defined
to
mean
the
same
as
26
defined
in
section
1222
of
the
Internal
Revenue
Code,
and
the
27
term
“held”
shall
be
determined
with
reference
to
the
holding
28
period
provisions
of
section
1223
of
the
Internal
Revenue
Code.
29
The
bill
takes
effect
upon
enactment
and
applies
30
retroactively
to
tax
years
beginning
on
or
after
January
1,
31
2021.
32
-1-
LSB
1353YH
(2)
89
jm/jh
1/
1