Bill Text: IA HF2685 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.(Formerly HSB 716.)
Spectrum: Committee Bill
Status: (Introduced) 2024-04-08 - Fiscal note. [HF2685 Detail]
Download: Iowa-2023-HF2685-Introduced.html
House
File
2685
-
Introduced
HOUSE
FILE
2685
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
716)
A
BILL
FOR
An
Act
exempting
from
state
income
tax
income
received
by
a
1
certified
public
accountant
performing
certain
audits
or
2
examinations
of
governmental
subdivisions,
and
including
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2685
Section
1.
Section
11.6,
subsection
2,
Code
2024,
is
amended
1
to
read
as
follows:
2
2.
a.
A
governmental
subdivision
contracting
with
certified
3
public
accountants
shall
do
so
in
a
reasonable
manner
on
the
4
basis
of
competence
and
qualification
for
the
services
required
5
and
for
a
fair
and
reasonable
price
utilizing
procedures
which
6
include
a
written
request
for
proposals.
7
b.
Income
received
by
a
certified
public
accountant
8
performing
an
audit
or
examination
of
a
governmental
9
subdivision
pursuant
to
this
section
shall
be
exempt
from
10
taxation
under
section
422.7
or
422.33,
as
applicable.
This
11
paragraph
is
repealed
on
January
1,
2029.
12
Sec.
2.
Section
422.7,
Code
2024,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
44.
Subtract,
to
the
extent
included,
15
income
received
by
a
certified
public
accountant
performing
an
16
audit
or
examination
of
a
governmental
subdivision
pursuant
to
17
section
11.6.
This
subsection
is
repealed
on
January
1,
2029,
18
and
does
not
apply
to
tax
years
beginning
on
or
after
that
19
date.
20
Sec.
3.
Section
422.35,
Code
2024,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
14.
Subtract,
to
the
extent
included,
23
income
received
by
a
certified
public
accountant
performing
an
24
audit
or
examination
of
a
governmental
subdivision
pursuant
to
25
section
11.6.
This
subsection
is
repealed
on
January
1,
2029,
26
and
does
not
apply
to
tax
years
beginning
on
or
after
that
27
date.
28
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
29
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
30
or
after
that
date.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
exempts
from
state
income
tax
under
Code
sections
35
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H.F.
2685
422.7
(individual)
and
422.35
(corporate),
as
applicable,
1
income
received
by
a
certified
public
accountant
performing
an
2
audit
or
examination
of
a
governmental
subdivision
under
Code
3
section
11.6.
4
The
bill
applies
retroactively
to
tax
years
beginning
on
or
5
after
January
1,
2024,
but
before
January
1,
2029.
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