9 As a result, Iowa automatically conforms to the IRC provisions contained within the CARES Act for the 2020 tax year, but not for the 2019 tax year. 1, 2020, Iowa shifted from a static IRC-conformity state to a rolling IRC-conformity state. 8įor tax years beginning on or after Jan. 163(j), or when the taxpayer was not required to file a tax return. 163(j)(2) in cases where the expense was paid or accrued when the state decoupled from IRC Sec. 163(j) occurs, the taxpayer cannot deduct interest expense paid or accrued in a prior tax year that is allowed as a deduction in the current tax year because of the carryforward of disallowed business interest provisions of IRC Sec. conformity results) in a tax year in which the state decides to conform to the bonus depreciation provisions in IRC Sec. It should be noted that the legislation contains a provision under which the decoupling from IRC Sec. 163(j) to Iowa taxpayers for the 2018 tax year, such interest expense limitation rules are still applicable for the 2019 tax year. 6 Note that while existing Iowa law did not apply IRC Sec. 163(j) do not apply when computing Iowa taxable income. 951A for the 2018 tax year under existing law, this legislation effectively excludes GILTI from inclusion in the Iowa tax base.īeginning with the 2020 tax year, the interest expense limitation rules contained in IRC Sec. 5 Since Iowa did not conform to the GILTI provisions under IRC Sec. 4 This legislation also rescinds the Iowa administrative rules addressing the treatment of GILTI amounts. 163(j).īeginning with the 2019 tax year, Iowa taxpayers are required to subtract GILTI amounts included in federal taxable income when computing Iowa taxable income. 951A and (ii) the interest expense limitation rules contained in IRC Sec. The recently enacted Iowa legislation modifies Iowa’s conformity to two key provisions of TCJA: (i) global intangible low-taxed income (GILTI) under IRC Sec. 3 As a result, Iowa generally conforms to the federal tax reform provisions contained in TCJA for tax years beginning on or after Jan.
#IOWA INCOME TAX TABLES 2020 CODE#
In 2018, Iowa enacted legislation advancing its conformity to the Internal Revenue Code (IRC) to March 24, 2018, for tax years beginning in 2019. 2 Finally, the legislation clarifies and codifies the existing regulatory provisions regarding the sales tax exemption for computer peripherals. In addition, it applies the federal tax treatment of the Paycheck Protection Program (PPP) enacted as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020. 1 Further, the legislation adopts partnership audit rules based on the model uniform statute created by the Multistate Tax Commission (MTC). 2641, an omnibus tax bill addressing Iowa’s previous conformity to some provisions of the Tax Cuts and Jobs Act of 2017 (TCJA).
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