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Senate Study Bill 1102 - IntroducedA Bill ForAn Act 1relating to the deduction of Iowa brewing ingredients
2from individual and corporate income taxes if used to make
3beer for sale, and including 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. 60. a. Subtract an additional deduction
4for the expense of purchasing Iowa brewing ingredients if used
5to make beer for sale.
6b. This subsection applies to a taxpayer that holds a valid
7class “A” or special class “A” beer permit to manufacture beer.
8c. A taxpayer may claim the deduction as a partnership, S
9corporation, limited liability company, estate, or trust or
10claim the deduction as an individual. The amount claimed by
11the individual shall be based upon the pro rata share of the
12individual’s earnings of a partnership, S corporation, limited
13liability company, estate, or trust.
14d. For purposes of this subsection, “Iowa brewing
15ingredient” means any ingredient that is grown or produced
16in Iowa that is added to water and yeast to produce beer,
17including but not limited to the following: hops, fruits,
18vegetables, herbs, spices, and honey.
19 Sec. 2. Section 422.35, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 26. a. Subtract an additional deduction
22for the expense of purchasing Iowa brewing ingredients if used
23to make beer for sale.
24b. This subsection applies to a taxpayer that holds a valid
25class “A” or special class “A” beer permit to manufacture beer.
26c. For purposes of this subsection, “Iowa brewing
27ingredient” means any ingredient that is grown or produced
28in Iowa that is added to water and yeast to produce beer,
29including but not limited to the following: hops, fruits,
30vegetables, herbs, spices, and honey.
31 Sec. 3. APPLICABILITY. This Act applies to tax years
32beginning on or after January 1, 2020.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to deducting Iowa brewing ingredients from
2individual and corporate income taxes if used to make beer for
3sale.
4The bill allows an additional deduction expense for
5purchasing Iowa brewing ingredients from individual and
6corporate income taxes.
7The bill applies to holders of a valid class “A” or special
8class “A” beer permit to manufacture beer. Class “A” and
9special class “A” beer permits are defined in Code section
10123.130.
11The bill defines “Iowa brewing ingredient” to mean any
12ingredient that is grown or produced in Iowa that is added to
13water and yeast to produce beer, including but not limited to
14the following: hops, fruits, vegetables, herbs, spices, and
15honey.
16The bill applies to tax years beginning on or after January
171, 2020.
-2-jm/jh
2from individual and corporate income taxes if used to make
3beer for sale, and including 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. 60. a. Subtract an additional deduction
4for the expense of purchasing Iowa brewing ingredients if used
5to make beer for sale.
6b. This subsection applies to a taxpayer that holds a valid
7class “A” or special class “A” beer permit to manufacture beer.
8c. A taxpayer may claim the deduction as a partnership, S
9corporation, limited liability company, estate, or trust or
10claim the deduction as an individual. The amount claimed by
11the individual shall be based upon the pro rata share of the
12individual’s earnings of a partnership, S corporation, limited
13liability company, estate, or trust.
14d. For purposes of this subsection, “Iowa brewing
15ingredient” means any ingredient that is grown or produced
16in Iowa that is added to water and yeast to produce beer,
17including but not limited to the following: hops, fruits,
18vegetables, herbs, spices, and honey.
19 Sec. 2. Section 422.35, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 26. a. Subtract an additional deduction
22for the expense of purchasing Iowa brewing ingredients if used
23to make beer for sale.
24b. This subsection applies to a taxpayer that holds a valid
25class “A” or special class “A” beer permit to manufacture beer.
26c. For purposes of this subsection, “Iowa brewing
27ingredient” means any ingredient that is grown or produced
28in Iowa that is added to water and yeast to produce beer,
29including but not limited to the following: hops, fruits,
30vegetables, herbs, spices, and honey.
31 Sec. 3. APPLICABILITY. This Act applies to tax years
32beginning on or after January 1, 2020.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to deducting Iowa brewing ingredients from
2individual and corporate income taxes if used to make beer for
3sale.
4The bill allows an additional deduction expense for
5purchasing Iowa brewing ingredients from individual and
6corporate income taxes.
7The bill applies to holders of a valid class “A” or special
8class “A” beer permit to manufacture beer. Class “A” and
9special class “A” beer permits are defined in Code section
10123.130.
11The bill defines “Iowa brewing ingredient” to mean any
12ingredient that is grown or produced in Iowa that is added to
13water and yeast to produce beer, including but not limited to
14the following: hops, fruits, vegetables, herbs, spices, and
15honey.
16The bill applies to tax years beginning on or after January
171, 2020.
-2-jm/jh