House Study Bill 586 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON BAUDLER) A BILL FOR An Act providing for an individual income tax credit for 1 the purchase of a gun safe under certain conditions 2 and including effective date and retroactive and other 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5980YC (2) 86 mm/sc
H.F. _____ Section 1. NEW SECTION . 422.10A Gun safe tax credit. 1 1. The taxes imposed under this division, less the credits 2 allowed under section 422.12, shall be reduced by a gun safe 3 tax credit equal to fifty percent of the purchase price of a 4 qualified gun safe, not to exceed one thousand dollars. For 5 purposes of this section, “qualified gun safe” means a safe 6 specifically manufactured to store firearms and constructed of 7 steel or a material of equal or greater strength, which safe is 8 purchased new from a firearm dealer licensed under federal law, 9 or a retailer as defined in section 423.1, and which safe is 10 purchased for the personal, noncommercial use of the taxpayer. 11 2. Any credit in excess of the taxpayer’s tax liability 12 for the tax year is not refundable but may be credited to the 13 tax liability for the following five years or until depleted, 14 whichever occurs first. 15 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 Sec. 3. APPLICABILITY. This Act applies to a qualified gun 18 safe purchased on or after the effective date of this Act. 19 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 20 retroactively to January 1, 2016, for tax years beginning on 21 or after that date. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill creates an individual income tax credit for the 26 purchase of a qualified gun safe. “Qualified gun safe” is 27 defined as a safe specifically manufactured to store firearms 28 and constructed of steel or a material of equal or greater 29 strength, which safe is purchased new from a firearm dealer 30 licensed under federal law, or a retailer as defined in 31 Code section 423.1, and which is purchased for the personal, 32 noncommercial use of the taxpayer. 33 The credit is equal to 50 percent of the purchase price, 34 not to exceed $1,000. Any credit in excess of the taxpayer’s 35 -1- LSB 5980YC (2) 86 mm/sc 1/ 2
H.F. _____ liability is not refundable but may be carried forward for five 1 years or until depleted, whichever occurs first. 2 The bill takes effect upon enactment and applies to 3 qualified gun safes purchased on or after that date, and 4 applies retroactively to January 1, 2016, for tax years 5 beginning on or after that date. 6 -2- LSB 5980YC (2) 86 mm/sc 2/ 2