This rulemaking rescinds and adopts a new Chapter 216. The Department revised the chapter to remove portions of the rules that the Department determined are obsolete, unnecessary, or duplicative of statutory language. The purpose of the chapter is to provide guidance on the Department’s interpretation of the underlying statute to help the public understand exemptions relating to events and amusements.
This rulemaking, pursuant to Part IV of Executive Order 10, implements, in part, 2022 Iowa Acts, House File 2317, and provides guidance as to how and when an employee-owner may make an election to exclude capital gain from the sale of qualifying capital stock in a qualifying corporation. The legislation allowed employee-owners of a qualified corporation to exclude the capital gain from the sale of qualifying capital stock.
This rulemaking implements deductions for farm tenancy agreement income and farm capital gains enacted by 2022 Iowa Acts, House File 2317, divisions II and III. These deductions are effective for tax years beginning on or after January 1, 2023. This rulemaking rescinds the rule for capital gains according to the law prior to the legislation.
This rulemaking is intended to provide updates and clarifications for the Department’s automatic extension of time for filing fiduciary income tax returns. The current rule includes detailed, outdated information relevant to tax years 1986 through 1991. The automatic filing extension applicable to current tax years is incorporated by reference to the automatic extension for individual income tax. This rulemaking removes the outdated information and provides the relevant extension language that was previously incorporated by reference.
This rulemaking implements the pass-through entity composite return requirements enacted in 2021 Iowa Acts, Senate File 608, division II.
This rulemaking implements 2022 Iowa Acts, House File 2317, sections 6 and 7, which repeal the Iowa geothermal heat pump tax credit for installations occurring after December 31, 2023. This rulemaking also updates the Iowa geothermal heat pump tax credit rates from 5.2 percent to 6 percent of qualifying expenditures for installations in 2022, and from 4.4 percent to 6 percent of qualifying expenditures for installations in 2023, in response to the federal Inflation Reduction Act of 2022.
This rulemaking modifies the process for claiming the Farm to Food Donation Tax Credit. For tax years beginning on or after January 1, 2022, taxpayers who wish to claim the Farm to Food Donation Tax Credit will no longer be required to submit donation receipts issued by registered feeding organizations directly to the Department prior to making a tax credit claim. Further, the Department will no longer issue to taxpayers tax credit certificates that indicate the verified tax credit amount taxpayers may claim.
House File 368, enacted during 2021 Legislative Session, transferred the administration of the rent reimbursement program under Iowa Code chapter 425, subchapter II, from the Iowa Department of Revenue (IDR) to the Iowa Department of Human Services (DHS). This transition is scheduled to occur on January 1, 2023. This rulemaking addresses three transition issues that IDR and DHS have identified. First, it clarifies that appeals of denials or reductions of rent reimbursement claims shall be filed with and administered by the agency that made the denial or reduction.
This rulemaking implements 2021 Iowa Acts, House File 588, which creates a tax credit for donations made to the Hoover Presidential Foundation for the Hoover Presidential Library and Museum Renovation Project Fund. The credit is available against a number of different tax types for donations made on or after July 1, 2021, and during tax years beginning on or after January 1, 2021, but before January 1, 2024. These rules describe requirements for claiming the tax credit, including tax credit certificate issuances, carryforward, and other claim restrictions and requirements.
This rulemaking updates the Department’s rules that dictate the order in which Iowa income and franchise tax credits must be deducted by Iowa taxpayers. The amendments strike from the deduction list recently repealed tax credits, add newly enacted tax credits, and update certain tax credits.