HSB 123 (LSB 1647YC (4) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act relating to the Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15E.364, subsections 1 and 7, Code 2023, are amended to read as follows:
   1.  For tax years beginning on or after January 1, 2021, but before January 1, 2024 2025, a tax credit shall be allowed against the taxes imposed in chapter 422, subchapters II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, equal to twenty-five percent of a person’s donation to the Hoover presidential foundation for the Hoover presidential library and museum renovation project fund. An individual may claim a tax credit under this section of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust.
   7.  This section is repealed December 31, 2029 2030.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
   Currently, the tax credit applies to tax years beginning on or after January 1, 2021, but before January 1, 2024. The bill extends the tax years a taxpayer is able to take the tax credit by one tax year. Under the bill, a taxpayer is able to take the tax credit through tax years beginning before January 1, 2025.
   The bill extends the repeal date of the tax credit by one year to align with the current carryforward provisions allowing any unused portion of the tax credit to be carried forward up to five years.
   The Hoover presidential library tax credit equals 25 percent of a taxpayer’s donation to the Hoover presidential foundation for the Hoover presidential library and museum renovation project fund.