HF 1034 (LSB 1765HV (1) 91)

HOUSE FILE 1034

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 132)

A BILL FOR

An Act providing for an individual income tax credit for the purchase of firearm safety devices and including retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.10C  Firearm safety device tax credit.
   1.  The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a firearm safety device tax credit equal to the sales price of a firearm safety device purchased during the tax year by the taxpayer, not to exceed five hundred dollars.
   2.  For purposes of this section:
   a.  “Firearm safety device” means a device designed to prevent a firearm from being operated without first deactivating the device or a qualified gun safe.
   b.  “Qualified gun safe” means a safe specifically manufactured to store firearms and constructed of steel or a material of equal or greater strength, which safe is purchased new by the taxpayer from a firearms dealer licensed under federal law, or a retailer as defined in section 423.1, and which safe is purchased for the personal, noncommercial use of the taxpayer.
   c.  “Sales price” means the same as defined in section 423.1.
   3.  Any credit in excess of the taxpayer’s tax liability for the tax year is not refundable but may be credited to the tax liability for the following year.
    Sec. 2.  APPLICABILITY.  This Act applies to firearm safety devices purchased on or after the effective date of this Act.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2025, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates an individual income tax credit for the purchase of firearm safety devices. “Firearm safety device” is defined to mean a device designed to prevent a firearm from being operated without first deactivating the device or a qualified gun safe. “Qualified gun safe” is defined to mean a safe specifically manufactured to store firearms and constructed of steel or a material of equal or greater strength, which safe is purchased new by a taxpayer from a firearms dealer licensed under federal law, or a retailer as defined in Code section 423.1, and which is purchased for the personal, noncommercial use of the taxpayer.
   The credit is equal to the sales price of the firearm safety device, not to exceed $500. Any credit in excess of the taxpayer’s liability is not refundable but may be credited to the tax liability for the following year.
   The bill applies to firearm safety devices purchased on or after the effective date of the bill, and applies retroactively to January 1, 2025, for tax years beginning on or after that date.