Senate
File
269
-
Introduced
SENATE
FILE
269
BY
ZAUN
(COMPANION
TO
HF
240
BY
MAXWELL)
A
BILL
FOR
An
Act
creating
a
tax
credit
against
the
individual
and
1
corporate
income
taxes,
the
franchise
tax,
insurance
2
premiums
tax,
and
the
moneys
and
credits
tax
for
a
3
charitable
contribution
to
certain
institutions
engaged
in
4
regenerative
medicine
research
and
including
retroactive
and
5
other
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
422.10C
Regenerative
medicine
1
research
tax
credit.
2
1.
a.
The
taxes
imposed
under
this
division,
less
the
3
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
4
regenerative
medicine
research
tax
credit.
5
b.
The
credit
shall
be
in
an
amount
equal
to
sixty
percent
6
of
a
taxpayer’s
charitable
contribution
to
an
eligible
research
7
institution
located
in
the
state.
A
charitable
contribution
8
shall
not
be
eligible
for
the
tax
credit
to
the
extent
the
9
contribution
was
taken
as
a
deduction
pursuant
to
section
170
10
of
the
Internal
Revenue
Code
for
state
tax
purposes.
For
11
purposes
of
this
section,
“eligible
research
institution”
12
means
an
organization
qualifying
under
section
501(c)(3)
of
13
the
Internal
Revenue
Code
as
an
organization
exempt
from
14
federal
income
tax
under
section
501(a)
of
the
Internal
15
Revenue
Code
that
is
engaged
in
research
designed
to
improve
16
patient
care
through
the
development
and
dissemination
of
novel
17
clinical
therapies
for
the
functional
repair
and
replacement
18
of
diseased
tissues
and
organs,
including
research
for
the
19
treatment
of
cancer.
“Eligible
research
institution”
excludes
20
a
postsecondary
institution
or
an
entity
or
organization
21
receiving
twenty-five
percent
or
more
of
its
annual
budget
from
22
a
postsecondary
institution.
23
c.
An
individual
may
claim
the
tax
credit
allowed
a
24
partnership,
limited
liability
company,
S
corporation,
estate,
25
or
trust
electing
to
have
the
income
taxed
directly
to
the
26
individual.
The
amount
claimed
by
the
individual
shall
be
27
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
28
the
partnership,
limited
liability
company,
S
corporation,
29
estate,
or
trust.
30
d.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
liability
31
is
not
refundable
but
the
excess
for
the
tax
year
may
be
32
credited
to
the
tax
liability
for
the
following
four
tax
years
33
or
until
depleted,
whichever
is
earlier.
34
2.
a.
A
taxpayer
must
submit
an
application
to
the
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269
department
on
or
after
the
date
the
charitable
contribution
is
1
made.
The
application
must
be
approved
by
the
department
in
2
order
to
claim
the
tax
credit.
3
b.
The
department
shall
accept
and
approve
applications
4
on
a
first-come,
first-served
basis
according
to
the
date
5
the
application
was
received
until
the
maximum
amount
of
tax
6
credits
that
may
be
approved
under
subsection
3
is
reached.
7
If
for
a
fiscal
year
the
aggregate
amount
of
tax
credits
8
applied
for
exceeds
the
amount
specified
in
subsection
3,
9
the
department
shall
establish
a
wait
list
for
tax
credits.
10
Valid
applications
filed
by
the
taxpayer
but
not
approved
by
11
the
department
shall
be
placed
on
a
wait
list
in
the
order
12
the
applications
were
received
and
those
applicants
shall
13
be
given
priority
for
having
their
applications
approved
14
in
succeeding
years.
Placement
on
a
wait
list
pursuant
to
15
this
paragraph
shall
not
constitute
a
promise
binding
the
16
state.
The
availability
of
a
tax
credit
and
approval
of
a
tax
17
credit
application
pursuant
to
this
section
in
a
future
year
18
is
contingent
upon
the
availability
of
tax
credits
in
that
19
particular
year.
20
c.
For
tax
credit
applications
received
and
approved
by
21
the
department
in
the
fiscal
year
during
which
the
charitable
22
contribution
is
made,
the
tax
credit
shall
be
claimed
for
the
23
tax
year
during
which
the
charitable
contribution
is
made.
For
24
tax
credit
applications
approved
in
any
fiscal
year
following
25
the
fiscal
year
during
which
the
charitable
contribution
is
26
made,
the
tax
credit
shall
be
claimed
for
the
tax
year
during
27
which
the
application
is
approved
by
the
department.
A
tax
28
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
29
year
in
which
the
taxpayer
claims
the
tax
credit.
30
3.
The
maximum
aggregate
amount
of
tax
credits
approved
31
in
a
fiscal
year
pursuant
to
this
section,
section
422.33,
32
subsection
27,
section
422.60,
subsection
14,
section
432.12N,
33
and
section
533.329,
subsection
2,
paragraph
“m”
,
shall
not
34
exceed
ten
million
dollars.
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Sec.
2.
Section
422.33,
Code
2017,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
27.
The
taxes
imposed
under
this
division
3
shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
4
in
the
same
manner,
for
the
same
amount,
and
under
the
same
5
conditions
as
provided
in
section
422.10C.
6
Sec.
3.
Section
422.60,
Code
2017,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
9
shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
10
in
the
same
manner,
for
the
same
amount,
and
under
the
same
11
conditions
as
provided
in
section
422.10C.
12
Sec.
4.
NEW
SECTION
.
432.12N
Regenerative
medicine
research
13
tax
credit.
14
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
15
regenerative
medicine
research
tax
credit
in
the
same
manner,
16
for
the
same
amount,
and
under
the
same
conditions
as
provided
17
in
section
422.10C.
18
Sec.
5.
Section
533.329,
subsection
2,
Code
2017,
is
amended
19
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
m.
The
moneys
and
credits
tax
imposed
21
under
this
section
shall
be
reduced
by
a
regenerative
medicine
22
research
tax
credit
in
the
same
manner,
for
the
same
amount,
23
and
under
the
same
conditions
as
provided
in
section
422.10C.
24
Sec.
6.
APPLICABILITY.
This
Act
applies
to
charitable
25
contributions
to
an
eligible
research
institution
located
in
26
this
state
made
on
or
after
January
1,
2017.
27
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
Act
applies
28
retroactively
to
January
1,
2017,
for
tax
years
beginning
on
29
or
after
that
date.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
provides
a
credit
against
the
individual
or
34
corporate
income
tax,
the
franchise
tax,
the
insurance
premiums
35
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tax,
and
the
moneys
and
credits
tax
for
60
percent
of
a
1
taxpayer’s
contribution
to
a
regenerative
medicine
research
2
institution
located
in
the
state.
Contributions
claimed
as
3
a
charitable
deduction
for
Iowa
tax
purposes
shall
not
be
4
eligible
for
the
tax
credit.
In
order
to
qualify
for
the
5
credit,
the
regenerative
medicine
research
institute
must
be
6
qualified
under
501(c)(3)
of
the
Internal
Revenue
Code
and
must
7
engage
in
research
that
is
designed
to
improve
patient
care
8
through
the
development
and
dissemination
of
novel
clinical
9
therapies
for
the
functional
repair
and
replacement
of
diseased
10
tissues
and
organs,
including
cancer
research.
Postsecondary
11
institutions
and
entities
that
receive
25
percent
or
more
of
12
their
annual
budget
from
a
postsecondary
institution
do
not
13
qualify.
14
In
order
to
claim
a
tax
credit,
the
taxpayer
must
submit
15
an
application
to
the
department
of
revenue
(department)
on
16
or
after
the
date
of
the
charitable
contribution,
and
have
17
that
application
approved
by
the
department.
No
more
than
18
$10
million
in
tax
credits
may
be
approved
per
fiscal
year.
19
If
applications
for
the
tax
credit
exceed
that
amount,
the
20
department
is
required
to
establish
a
wait
list
in
the
order
21
the
applications
were
received
and
those
applicants
will
22
receive
priority
for
receiving
tax
credits
in
succeeding
years.
23
The
tax
credit
is
nonrefundable,
but
any
amount
in
excess
of
24
the
taxpayer’s
tax
liability
may
be
carried
forward
for
up
to
25
four
years.
The
tax
credit
cannot
be
carried
back
to
a
prior
26
tax
year.
For
tax
credit
applications
received
and
approved
by
27
the
department
in
the
fiscal
year
during
which
the
charitable
28
contribution
is
made,
the
tax
credit
shall
be
claimed
for
the
29
tax
year
during
which
the
charitable
contribution
is
made.
For
30
applications
approved
by
the
department
in
any
later
fiscal
31
year,
the
tax
credit
shall
be
claimed
for
the
tax
year
during
32
which
the
application
is
approved.
33
The
bill
applies
retroactively
to
January
1,
2017,
for
34
tax
years
beginning
on
or
after
that
date,
and
applies
to
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charitable
contributions
made
on
or
after
that
date.
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