Print
Senate File 41 - IntroducedA Bill ForAn Act 1exempting from the individual income tax the wages of
2individuals who provide services to disabled individuals and
3including effective date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 18. Subtract the amount of wages received
4by an individual from an organization organized under chapter
5504 and qualifying under section 501(c)(3) of the Internal
6Revenue Code as an organization exempt from federal income tax
7under section 501(a) of the Internal Revenue Code for services
8provided to individuals domiciled in this state who have a
9physical or mental impairment that substantially limits one or
10more major life activities.
11 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
122020.
13 Sec. 3. APPLICABILITY. This Act applies to tax years
14beginning on or after January 1, 2020.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill exempts from the individual income tax wages
19received by an individual from a nonprofit, tax-exempt
20organization organized under Code chapter 504 (revised Iowa
21nonprofit corporation Act) for services provided to individuals
22domiciled in this state who have a physical or mental
23impairment that substantially limits one or more major life
24activities.
25The bill takes effect January 1, 2020, and applies to tax
26years beginning on or after that date.
-1-jm/jh
2individuals who provide services to disabled individuals and
3including effective date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 18. Subtract the amount of wages received
4by an individual from an organization organized under chapter
5504 and qualifying under section 501(c)(3) of the Internal
6Revenue Code as an organization exempt from federal income tax
7under section 501(a) of the Internal Revenue Code for services
8provided to individuals domiciled in this state who have a
9physical or mental impairment that substantially limits one or
10more major life activities.
11 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
122020.
13 Sec. 3. APPLICABILITY. This Act applies to tax years
14beginning on or after January 1, 2020.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill exempts from the individual income tax wages
19received by an individual from a nonprofit, tax-exempt
20organization organized under Code chapter 504 (revised Iowa
21nonprofit corporation Act) for services provided to individuals
22domiciled in this state who have a physical or mental
23impairment that substantially limits one or more major life
24activities.
25The bill takes effect January 1, 2020, and applies to tax
26years beginning on or after that date.
-1-jm/jh