Bill > SSB1013

This Study Bill updates Iowa's tax laws by changing the reference date for the Internal Revenue Code (IRC), which is the set of federal tax laws, to January 1, 2017, for various state tax calculations, ensuring state tax provisions align with more recent federal tax rules. It also specifically addresses and "decouples" from certain federal bonus depreciation provisions, meaning Iowa will not follow the federal rules that allow businesses to immediately deduct a large portion of the cost of certain new or improved assets in the year they are placed in service. Instead, businesses will need to adjust their state taxable income to account for this difference. The bill includes provisions for its effective date, meaning when it becomes law, and retroactive applicability, meaning it will apply to tax years beginning on or after January 1, 2016, for the bonus depreciation changes.