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House File 608 - EnrolledAn Actrelating to the technical administration of the tax
laws by the department of revenue, including administration
of the research activities credit, income taxes, and the
flood mitigation program, and including effective date and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 15.335, subsection 7, paragraph b, Code
2017, is amended to read as follows:
b. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended and in effect on January 1, 2015 2016. This
definition shall not be construed to include any amendment to
the Internal Revenue Code enacted after the date specified
in the preceding sentence, including any amendment with
retroactive applicability or effectiveness.
Sec. 2. Section 418.15, subsection 1, paragraph a, Code
2017, is amended to read as follows:
a. A governmental entity shall not receive remittances of
sales tax revenue under this chapter after twenty years from
the date the governmental entity’s project was approved by the
board or after expiration of the additional period of years if
approved under paragraph “b” unless the remittance amount is
calculated under section 418.11 based on sales subject to the
tax under section 432.2 423.2 occurring before the expiration
of the twenty-year period or expiration of the additional
period of years if approved under paragraph “b”.
Sec. 3. Section 422.3, subsection 5, Code 2017, is amended
to read as follows:
5. “Internal Revenue Code” means the Internal Revenue Code
of 1954, prior to the date of its redesignation as the Internal
Revenue Code of 1986 by the Tax Reform Act of 1986, or means
the Internal Revenue Code of 1986 as amended to and including
and in effect on January 1, 2015. This definition shall not be
construed to include any amendment to the Internal Revenue Code
enacted after the date specified in the preceding sentence,
including any amendment with retroactive applicability or
effectiveness.
Sec. 4. Section 422.5, subsection 2, paragraph a, Code 2017,
is amended to read as follows:
-1- a. There is imposed upon every resident and nonresident of
this state, including estates and trusts, the greater of the
tax determined in subsection 1, paragraphs “a” through “j”, or
the state alternative minimum tax equal to seventy-five percent
of the maximum state individual income tax rate for the tax
year, rounded to the nearest one-tenth of one percent, of times
the state alternative minimum taxable income of the taxpayer as
computed under this subsection.
Sec. 5. Section 422.10, subsection 3, paragraph b, Code
2017, is amended to read as follows:
b. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended and in effect on January 1, 2015 2016. This
definition shall not be construed to include any amendment to
the Internal Revenue Code enacted after the date specified
in the preceding sentence, including any amendment with
retroactive applicability or effectiveness.
Sec. 6. Section 422.11L, subsection 6, Code 2017, is amended
to read as follows:
6. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended to and including and in effect on January 1,
2016. This definition shall not be construed to include any
amendment to the Internal Revenue Code enacted after the date
specified in the preceding sentence, including any amendment
with retroactive applicability or effectiveness.
Sec. 7. Section 422.13, subsection 1, paragraph d, Code
2017, is amended to read as follows:
d. The total net income, as determined under section 422.5,
subsection 3 or 3B, of a resident or nonresident of this state
is more than the appropriate dollar amount listed in section
-2-422.5, subsection 3 or 3B, upon which tax is not imposed.
Sec. 8. Section 422.32, subsection 1, paragraph h, Code
2017, is amended to read as follows:
h. “Internal Revenue Code” means the Internal Revenue Code
of 1954, prior to the date of its redesignation as the Internal
Revenue Code of 1986 by the Tax Reform Act of 1986, or means
the Internal Revenue Code of 1986 as amended to and including
and in effect on January 1, 2015. This definition shall not be
construed to include any amendment to the Internal Revenue Code
enacted after the date specified in the preceding sentence,
including any amendment with retroactive applicability or
effectiveness.
Sec. 9. Section 422.33, subsection 2, paragraph a,
subparagraph (1), subparagraph division (c), Code 2017, is
amended to read as follows:
(c) Nonbusiness rents and royalties received from tangible
personal property are allocable to this state to the extent
that the property is utilized in this state; or in their
entirety if the taxpayer’s commercial domicile is in this state
and the taxpayer is not taxable in the state in which the
property is utilized. The extent of utilization of tangible
personal property in a state is determined by multiplying the
rents and royalties by a fraction, the numerator of which is
the number of days of physical location of the property in the
state during the rental or royalty period in the taxable year
and the denominator of which is the number of days of physical
location of the property everywhere during all rental or
royalty periods in the taxable year. If the physical location
of the property during the rental or royalty period is unknown,
or unascertainable by the taxpayer, tangible personal property
is utilized in the state in which the property was located at
the time the rental or royalty payor obtained possession.
Sec. 10. Section 422.33, subsection 5, paragraph e,
subparagraph (2), Code 2017, is amended to read as follows:
(2) For purposes of this subsection, “Internal Revenue
-3-Code” means the Internal Revenue Code of 1954, prior to the
date of its redesignation as the Internal Revenue Code of 1986
by the Tax Reform Act of 1986, or means the Internal Revenue
Code of 1986 as amended and in effect on January 1, 2015
2016. This definition shall not be construed to include any
amendment to the Internal Revenue Code enacted after the date
specified in the preceding sentence, including any amendment
with retroactive applicability or effectiveness.
Sec. 11. 2016 Iowa Acts, chapter 1007, section 3, subsection
1, is amended to read as follows:
1. Notwithstanding section 1 of this Act, or any other
provision of law to the contrary, the additional first-year
depreciation allowance authorized in section 168(k) of the
Internal Revenue Code, as enacted by Pub.L. No.114-113, §143,
does not apply in computing net income for state tax purposes
for tax years ending on or after January 1, 2015, but before
January 1, 2016. If the taxpayer has taken the additional
first-year depreciation allowance for purposes of computing
federal adjusted gross income or federal taxable income, as
the case may be, then the taxpayer, when computing net income
for purposes of the individual income tax under section 422.7
or the corporation income tax or franchise tax under section
422.35, shall make the adjustments described in section 422.7,
subsection 39A, paragraphs “a” through “c”, Code 2016, or
described in section 422.35, subsection 19A, paragraphs “a”
through “c”, Code 2016, as applicable.
Sec. 12. EFFECTIVE UPON ENACTMENT. The following
provision or provisions of this Act, being deemed of immediate
importance, take effect upon enactment:
1. The section of this Act amending 2016 Iowa Acts, chapter
1007, section 3, subsection 1.
2. The provisions amending the date reference from “January
1, 2015” to “January 1, 2016” in the sections of this Act
amending section 15.335, subsection 7, paragraph “b”, section
422.10, subsection 3, paragraph “b”, and section 422.33,
-4-subsection 5, paragraph “e”, subparagraph (2), relating to the
definition of “Internal Revenue Code” for purposes of the Iowa
research activities credits.
Sec. 13. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2015:
1. The section of this Act amending 2016 Iowa Acts, chapter
1007, section 3, subsection 1.
Sec. 14. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2016, for tax years beginning on or after that date:
1. The provisions amending the date reference from “January
1, 2015” to “January 1, 2016” in the sections of this Act
amending section 15.335, subsection 7, paragraph “b”, section
422.10, subsection 3, paragraph “b”, and section 422.33,
subsection 5, paragraph “e”, subparagraph (2), relating to the
definition of “Internal Revenue Code” for purposes of the Iowa
research activities credits.
______________________________
LINDA UPMEYER
Speaker of the House
______________________________
JACK WHITVER
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 608, Eighty-seventh General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2017
______________________________
TERRY E. BRANSTAD
Governor
mm/rj/md
laws by the department of revenue, including administration
of the research activities credit, income taxes, and the
flood mitigation program, and including effective date and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 15.335, subsection 7, paragraph b, Code
2017, is amended to read as follows:
b. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended and in effect on January 1, 2015 2016. This
definition shall not be construed to include any amendment to
the Internal Revenue Code enacted after the date specified
in the preceding sentence, including any amendment with
retroactive applicability or effectiveness.
Sec. 2. Section 418.15, subsection 1, paragraph a, Code
2017, is amended to read as follows:
a. A governmental entity shall not receive remittances of
sales tax revenue under this chapter after twenty years from
the date the governmental entity’s project was approved by the
board or after expiration of the additional period of years if
approved under paragraph “b” unless the remittance amount is
calculated under section 418.11 based on sales subject to the
tax under section 432.2 423.2 occurring before the expiration
of the twenty-year period or expiration of the additional
period of years if approved under paragraph “b”.
Sec. 3. Section 422.3, subsection 5, Code 2017, is amended
to read as follows:
5. “Internal Revenue Code” means the Internal Revenue Code
of 1954, prior to the date of its redesignation as the Internal
Revenue Code of 1986 by the Tax Reform Act of 1986, or means
the Internal Revenue Code of 1986 as amended to and including
and in effect on January 1, 2015. This definition shall not be
construed to include any amendment to the Internal Revenue Code
enacted after the date specified in the preceding sentence,
including any amendment with retroactive applicability or
effectiveness.
Sec. 4. Section 422.5, subsection 2, paragraph a, Code 2017,
is amended to read as follows:
-1- a. There is imposed upon every resident and nonresident of
this state, including estates and trusts, the greater of the
tax determined in subsection 1, paragraphs “a” through “j”, or
the state alternative minimum tax equal to seventy-five percent
of the maximum state individual income tax rate for the tax
year, rounded to the nearest one-tenth of one percent, of times
the state alternative minimum taxable income of the taxpayer as
computed under this subsection.
Sec. 5. Section 422.10, subsection 3, paragraph b, Code
2017, is amended to read as follows:
b. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended and in effect on January 1, 2015 2016. This
definition shall not be construed to include any amendment to
the Internal Revenue Code enacted after the date specified
in the preceding sentence, including any amendment with
retroactive applicability or effectiveness.
Sec. 6. Section 422.11L, subsection 6, Code 2017, is amended
to read as follows:
6. For purposes of this section, “Internal Revenue Code”
means the Internal Revenue Code of 1954, prior to the date of
its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of
1986 as amended to and including and in effect on January 1,
2016. This definition shall not be construed to include any
amendment to the Internal Revenue Code enacted after the date
specified in the preceding sentence, including any amendment
with retroactive applicability or effectiveness.
Sec. 7. Section 422.13, subsection 1, paragraph d, Code
2017, is amended to read as follows:
d. The total net income, as determined under section 422.5,
subsection 3 or 3B, of a resident or nonresident of this state
is more than the appropriate dollar amount listed in section
-2-422.5, subsection 3 or 3B, upon which tax is not imposed.
Sec. 8. Section 422.32, subsection 1, paragraph h, Code
2017, is amended to read as follows:
h. “Internal Revenue Code” means the Internal Revenue Code
of 1954, prior to the date of its redesignation as the Internal
Revenue Code of 1986 by the Tax Reform Act of 1986, or means
the Internal Revenue Code of 1986 as amended to and including
and in effect on January 1, 2015. This definition shall not be
construed to include any amendment to the Internal Revenue Code
enacted after the date specified in the preceding sentence,
including any amendment with retroactive applicability or
effectiveness.
Sec. 9. Section 422.33, subsection 2, paragraph a,
subparagraph (1), subparagraph division (c), Code 2017, is
amended to read as follows:
(c) Nonbusiness rents and royalties received from tangible
personal property are allocable to this state to the extent
that the property is utilized in this state; or in their
entirety if the taxpayer’s commercial domicile is in this state
and the taxpayer is not taxable in the state in which the
property is utilized. The extent of utilization of tangible
personal property in a state is determined by multiplying the
rents and royalties by a fraction, the numerator of which is
the number of days of physical location of the property in the
state during the rental or royalty period in the taxable year
and the denominator of which is the number of days of physical
location of the property everywhere during all rental or
royalty periods in the taxable year. If the physical location
of the property during the rental or royalty period is unknown,
or unascertainable by the taxpayer, tangible personal property
is utilized in the state in which the property was located at
the time the rental or royalty payor obtained possession.
Sec. 10. Section 422.33, subsection 5, paragraph e,
subparagraph (2), Code 2017, is amended to read as follows:
(2) For purposes of this subsection, “Internal Revenue
-3-Code” means the Internal Revenue Code of 1954, prior to the
date of its redesignation as the Internal Revenue Code of 1986
by the Tax Reform Act of 1986, or means the Internal Revenue
Code of 1986 as amended and in effect on January 1, 2015
2016. This definition shall not be construed to include any
amendment to the Internal Revenue Code enacted after the date
specified in the preceding sentence, including any amendment
with retroactive applicability or effectiveness.
Sec. 11. 2016 Iowa Acts, chapter 1007, section 3, subsection
1, is amended to read as follows:
1. Notwithstanding section 1 of this Act, or any other
provision of law to the contrary, the additional first-year
depreciation allowance authorized in section 168(k) of the
Internal Revenue Code, as enacted by Pub.L. No.114-113, §143,
does not apply in computing net income for state tax purposes
for tax years ending on or after January 1, 2015, but before
January 1, 2016. If the taxpayer has taken the additional
first-year depreciation allowance for purposes of computing
federal adjusted gross income or federal taxable income, as
the case may be, then the taxpayer, when computing net income
for purposes of the individual income tax under section 422.7
or the corporation income tax or franchise tax under section
422.35, shall make the adjustments described in section 422.7,
subsection 39A, paragraphs “a” through “c”, Code 2016, or
described in section 422.35, subsection 19A, paragraphs “a”
through “c”, Code 2016, as applicable.
Sec. 12. EFFECTIVE UPON ENACTMENT. The following
provision or provisions of this Act, being deemed of immediate
importance, take effect upon enactment:
1. The section of this Act amending 2016 Iowa Acts, chapter
1007, section 3, subsection 1.
2. The provisions amending the date reference from “January
1, 2015” to “January 1, 2016” in the sections of this Act
amending section 15.335, subsection 7, paragraph “b”, section
422.10, subsection 3, paragraph “b”, and section 422.33,
-4-subsection 5, paragraph “e”, subparagraph (2), relating to the
definition of “Internal Revenue Code” for purposes of the Iowa
research activities credits.
Sec. 13. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2015:
1. The section of this Act amending 2016 Iowa Acts, chapter
1007, section 3, subsection 1.
Sec. 14. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2016, for tax years beginning on or after that date:
1. The provisions amending the date reference from “January
1, 2015” to “January 1, 2016” in the sections of this Act
amending section 15.335, subsection 7, paragraph “b”, section
422.10, subsection 3, paragraph “b”, and section 422.33,
subsection 5, paragraph “e”, subparagraph (2), relating to the
definition of “Internal Revenue Code” for purposes of the Iowa
research activities credits.
______________________________
LINDA UPMEYER
Speaker of the House
______________________________
JACK WHITVER
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 608, Eighty-seventh General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2017
______________________________
TERRY E. BRANSTAD
Governor
mm/rj/md