Bill Text: IA SF153 | 2017-2018 | 87th General Assembly | Introduced

Iowa Senate Bill 153 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act creating an exemption from the computation of the state individual income tax of net capital gains from the sale of an equity investment in a qualified Iowa business and including retroactive applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-08 - Subcommittee reassigned: Feenstra, Carlin, and McCoy. S.J. 42. [SF153 Detail]

Download: Iowa-2017-SF153-Introduced.html


Senate File 153 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN

                                      A BILL FOR

  1 An Act creating an exemption from the computation of the state
  2    individual income tax of net capital gains from the sale
  3    of an equity investment in a qualified Iowa business and
  4    including retroactive applicability provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 422.7, Code 2017, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  51.  a.  Subtract, to the extent included,
  1  4 the net capital gains from the sale of an equity investment in
  1  5 a qualified Iowa business.
  1  6    b.  In order to be eligible for the deduction in paragraph
  1  7 "a", the taxpayer must be a resident of this state.
  1  8    c.  For purposes of this subsection:
  1  9    (1)  "Equity investment" means an equity interest in a
  1 10 business which equity interest was received in exchange for
  1 11 a capital contribution or payment in the form of cash, real
  1 12 property, or tangible personal property.
  1 13    (2)  "Qualified Iowa business" means a business whose
  1 14 commercial domicile, as defined in section 422.32, is
  1 15 in this state, and includes a sole proprietorship, joint
  1 16 venture, partnership, limited liability company, corporation,
  1 17 association, or any other business entity operated for profit.
  1 18    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 19 retroactively to January 1, 2017, for tax years beginning on
  1 20 or after that date.
  1 21                           EXPLANATION
  1 22 The inclusion of this explanation does not constitute agreement with
  1 23 the explanation's substance by the members of the general assembly.
  1 24    This bill creates an exemption from the computation of net
  1 25 income for the individual income tax of net capital gains
  1 26 from the sale of an equity investment in a qualified Iowa
  1 27 business.  "Equity investment" is defined as an equity interest
  1 28 in a business that was received in exchange for a capital
  1 29 contribution or payment in the form of cash, real property,
  1 30 or tangible personal property.  "Qualified Iowa business" is
  1 31 defined as any business operated for profit whose commercial
  1 32 domicile is in Iowa.  In order to be eligible for the exemption
  1 33 a taxpayer must be a resident of Iowa.
  1 34    The bill applies retroactively to January 1, 2017, for tax
  1 35 years beginning on or after that date.
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