In practice, for tax year 2016, there is no effect on the subtraction from Iowa income for amounts by which federal AGI was increased as a result of the work opportunity credit. Iowa taxpayers may still subtract from their Iowa net income any amounts that were included in federal adjusted gross income as a result of the taxpayer’s receipt of the work opportunity credit. This answer applies to both individual and corporate income taxes.
For tax year 2016, Iowa businesses with foreign subsidiaries that deducted their active financing income for federal purposes must add this income to their Iowa taxable income in the year the active financing income is earned.
For tax year 2016, Iowa will use a ten-year recognition period for the built-in gain tax. Entities that realize a built-in gain after the five-year federal recognition period and within the ten-year Iowa recognition period are subject to the built-in gain tax for Iowa purposes.
For tax year 2016, taxpayers who make qualified leasehold, retail, and restaurant property improvements will have a 39-year life for calculating depreciation instead of a 15-year recovery period. The "placed in service" date will control how taxpayers treat the asset.