A bill for an act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.(See HF 2685.)
Impact
If enacted, HSB716 would amend relevant sections of the Iowa Code, specifically sections related to state income tax for individuals and corporations. The bill stipulates that income earned by CPAs from auditing governmental subdivisions would be excluded from taxable income under the specified code sections, which is a significant alteration in the state's tax structure. This change could incentivize CPAs to compete for government contracts, theoretically increasing the quality and extent of audits actively conducted on public entities.
Summary
House Study Bill 716 introduces a provision to exempt income received by certified public accountants (CPAs) from state income tax when they perform specified audits or examinations of governmental subdivisions. This exemption is aimed at encouraging CPAs to engage more actively with governmental entities, potentially leading to improved financial oversight and accountability. By reducing the tax burden on these income streams, the bill seeks to enhance the attractiveness of auditing governmental subdivisions and promote fiscal responsibility within public agencies.
Contention
While the bill aims to foster better auditing practices in government, it may provoke discussion regarding the implications of tax exemptions. Opponents might argue that providing tax benefits for services such as auditing could lead to a reduced revenue base for the state, impacting funding for essential services. Furthermore, there may be concerns about fairness in the tax system; critics could point out that while CPAs may benefit, other professions in similar service industries do not receive comparable exemptions. Hence, the long-term fiscal effects of this exemption on state revenue could be a notable point of contention.
Replaced by
A bill for an act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.(Formerly HSB 716.)
A bill for an act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.(Formerly HSB 716.)
A bill for an act excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions.(See HF 2638.)
A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an attorney, and including retroactive applicability provisions.(See HF 2679.)
A bill for an act excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions.(Formerly HF 2105.)
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(Formerly HF 94.)
A bill for an act relating to college athletics by requiring a name, image, and likeness financial literacy course for college athletes, exempting certain net income received by college athletes from the individual income tax, and allowing for deductions from individual and corporate income taxes for contributions made to college athletic collectives, and including retroactive applicability provisions.
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(See HF 961.)
A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions. (Formerly HF 2504.)
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.
A bill for an act exempting from the individual income tax the amount of wages received by a taxpayer for providing certain child care services, and including effective date and retroactive applicability provisions.