Bill Text: IA SF211 | 2015-2016 | 86th General Assembly | Introduced

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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 9-0)

Status: (Introduced - Dead) 2015-02-12 - Subcommittee, Bolkcom, Feenstra, and Quirmbach. S.J. 294. [SF211 Detail]

Download: Iowa-2015-SF211-Introduced.html

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Senate File 211 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN, SHIPLEY,
                                     FEENSTRA, CHELGREN,
                                     BEHN, WHITVER,
                                     ROZENBOOM, SINCLAIR,
                                     and SCHULTZ

                                      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 2015, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  57.  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, 2015, 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
  1 25 net income for the individual income tax of net capital
  1 26 gains from the sale of an equity investment in a qualified
  1 27 Iowa business.  "Equity investment" is defined as an equity
  1 28 interest in a business that was received in exchange for a
  1 29 capital contribution or payment in the form of cash, real
  1 30 property, or tangible personal property.  "Qualified Iowa
  1 31 business" is defined as any business operated for profit whose
  1 32 commercial domicile is in Iowa.  In order to be eligible for
  1 33 this exemption a taxpayer must be a resident of Iowa.
  1 34    The bill applies retroactively to January 1, 2015, for tax
  1 35 years beginning on or after that date.
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