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Senate Study Bill 1187 - IntroducedA Bill ForAn Act 1excluding from the computation of net income for state
2individual income tax purposes the net capital gain from
3sales or exchanges of assets, and including retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 21, Code 2019, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
421. Subtract, to the extent included, the following
5percentages of the taxpayer’s net capital gain as defined in
6section 1222 of the Internal Revenue Code:
7a. For tax years beginning in the 2019 calendar year, twenty
8percent.
9b. For tax years beginning in the 2020 calendar year, forty
10percent.
11c. For tax years beginning in the 2021 calendar year, sixty
12percent.
13d. For tax years beginning in the 2022 calendar year, eighty
14percent.
15e. For tax years beginning during or after the 2023 calendar
16year, one hundred percent.
17 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
18importance, takes effect upon enactment.
19 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
20retroactively to January 1, 2019, for tax years beginning on
21or after that date.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill excludes from the computation of net income for
26state tax purposes the net capital gain from sales or exchanges
27of assets, and includes applicability provisions.
28The bill phases in the capital gain tax exclusion from the
29computation of net income for state individual income tax
30purposes, as follows: 20 percent of net capital gains are
31excluded for tax years beginning in 2019, 40 percent of net
32capital gains are excluded for tax years beginning in 2020,
3360 percent of net capital gains are excluded for tax years
34beginning in the 2021 calendar year, and 80 percent of net
35capital gains are excluded for tax years beginning in the 2022
-1-1calendar year. For tax years beginning on or after January
21, 2023, net capital gains are 100 percent excluded from the
3computation of net income for state individual income tax
4purposes.
5The bill takes effect upon enactment and applies
6retroactively to tax years beginning on or after January 1,
72019.
-2-jm/jh
2individual income tax purposes the net capital gain from
3sales or exchanges of assets, and including retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 21, Code 2019, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
421. Subtract, to the extent included, the following
5percentages of the taxpayer’s net capital gain as defined in
6section 1222 of the Internal Revenue Code:
7a. For tax years beginning in the 2019 calendar year, twenty
8percent.
9b. For tax years beginning in the 2020 calendar year, forty
10percent.
11c. For tax years beginning in the 2021 calendar year, sixty
12percent.
13d. For tax years beginning in the 2022 calendar year, eighty
14percent.
15e. For tax years beginning during or after the 2023 calendar
16year, one hundred percent.
17 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
18importance, takes effect upon enactment.
19 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
20retroactively to January 1, 2019, for tax years beginning on
21or after that date.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill excludes from the computation of net income for
26state tax purposes the net capital gain from sales or exchanges
27of assets, and includes applicability provisions.
28The bill phases in the capital gain tax exclusion from the
29computation of net income for state individual income tax
30purposes, as follows: 20 percent of net capital gains are
31excluded for tax years beginning in 2019, 40 percent of net
32capital gains are excluded for tax years beginning in 2020,
3360 percent of net capital gains are excluded for tax years
34beginning in the 2021 calendar year, and 80 percent of net
35capital gains are excluded for tax years beginning in the 2022
-1-1calendar year. For tax years beginning on or after January
21, 2023, net capital gains are 100 percent excluded from the
3computation of net income for state individual income tax
4purposes.
5The bill takes effect upon enactment and applies
6retroactively to tax years beginning on or after January 1,
72019.
-2-jm/jh