April 2, 2019
Iowa Association of Business & Industry --- Governor Reynolds signed SF 220 into law last Friday. The bill goes into effect immediately and retroactively increased the Iowa section 179 deduction limitations for tax year 2018 for entities filing as C-Corporations or S-Corporations for income tax purposes, and for financial institutions subject to the Iowa franchise tax. As a result of the legislation, the Iowa Department of Revenue updated its guidance regarding Section 179. Read the updated guidance.
If your business has already filed your 2018 tax return prior to the passage of SF 220, you must file an amended return reflecting the new, higher deduction, unless the following are true according to the department:
S-Corporations required to amend Iowa returns may need to issue amended Iowa K-1s to reflect the change. Shareholders receiving amended K-1s are required to amend their own Iowa returns accordingly.