Iowa Governor Terry Branstad has enacted rules that settle Iowa’s tax law for 2010. By item vetoing the parts of SF 512 he found unacceptable, Branstad was able to approve the rest of the bill, including the “code conformity” provisions for Iowa’s tax law. The key points:
- Iowa conforms to the $500,000 federal expense method depreciation limit for 2010 and 2011.
- Iowa adopts federal tax computation rules in effect as of 1/1/2011, including things like the educator expense deduction that have been a problem in other years.
- Iowa does not adopt federal bonus depreciation for 2010 or 2011.
The vetoed provisions would have allowed the Governor to transfer funds among agencies.
Source: Iowa Center for Agricultural Law and Taxation