House
File
2638
-
Introduced
HOUSE
FILE
2638
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
671)
A
BILL
FOR
An
Act
relating
to
certain
tax
credits
awarded
by
the
economic
1
development
authority
for
equity
investments
in
qualifying
2
businesses
or
innovation
funds
and
including
effective
date
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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5371HV
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H.F.
2638
Section
1.
Section
15.119,
subsection
2,
paragraphs
d
and
e,
1
Code
2020,
are
amended
to
read
as
follows:
2
d.
The
tax
credits
for
investments
in
qualifying
businesses
3
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
4
pursuant
to
this
subsection
,
the
authority
shall
allocate
at
5
least
two
million
and
not
more
than
four
million
dollars
for
6
purposes
of
this
paragraph,
unless
the
authority
determines
7
that
the
tax
credits
awarded
will
be
less
than
that
amount.
8
e.
The
tax
credits
for
investments
in
an
innovation
fund
9
pursuant
to
section
15E.52
.
In
allocating
tax
credits
pursuant
10
to
this
subsection
,
the
authority
shall
allocate
at
least
six
11
million
and
not
more
than
eight
million
dollars
for
purposes
of
12
this
paragraph,
unless
the
authority
determines
that
the
tax
13
credits
awarded
will
be
less
than
that
amount.
14
Sec.
2.
Section
15.119,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
2A.
On
or
before
June
30
of
each
year,
17
the
authority
shall
determine
the
amount
of
tax
credits
that
18
shall
be
issued
pursuant
to
sections
15E.43
and
15E.52
for
19
the
following
fiscal
year.
In
allocating
the
amount
of
tax
20
credits
authorized
pursuant
to
subsection
1
among
the
programs
21
specified
in
subsection
2,
the
aggregate
amount
allocated
by
22
the
authority
for
purposes
of
subsection
2,
paragraphs
“d”
and
23
“e”
,
shall
not
exceed
ten
million
dollars.
24
Sec.
3.
Section
15E.43,
subsection
2,
paragraphs
b
and
c,
25
Code
2020,
are
amended
to
read
as
follows:
26
b.
The
maximum
amount
of
a
tax
credit
that
may
be
issued
27
per
calendar
fiscal
year
to
a
natural
person
and
the
person’s
28
spouse
or
dependent
shall
not
exceed
one
hundred
thousand
29
dollars
combined.
For
purposes
of
this
paragraph,
a
tax
30
credit
issued
to
a
partnership,
limited
liability
company,
S
31
corporation,
estate,
or
trust
electing
to
have
income
taxed
32
directly
to
the
individual
shall
be
deemed
to
be
issued
to
33
the
individual
owners
based
upon
the
pro
rata
share
of
the
34
individual’s
earnings
from
the
entity.
For
purposes
of
this
35
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2638
paragraph,
“dependent”
has
the
same
meaning
as
provided
by
the
1
Internal
Revenue
Code.
2
c.
The
maximum
amount
of
tax
credits
that
may
be
issued
3
per
calendar
fiscal
year
for
equity
investments
in
any
one
4
qualifying
business
shall
not
exceed
five
hundred
thousand
5
dollars.
6
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
7
importance,
takes
effect
upon
enactment.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
relates
to
certain
tax
credits
awarded
by
the
12
economic
development
authority
for
equity
investments
in
a
13
qualifying
business
or
innovation
fund.
14
The
bill
directs
the
economic
development
authority
to
15
determine
on
or
before
June
30
of
each
year
the
amount
of
tax
16
credits
that
will
be
issued
for
the
following
fiscal
year
17
for
equity
investments
in
qualifying
businesses
pursuant
to
18
Code
section
15E.43
and
in
innovation
funds
pursuant
to
Code
19
section
15E.52.
The
bill
caps
the
aggregate
amount
of
these
20
tax
credits
at
$10
million.
21
The
bill
changes
the
maximum
amount
of
tax
credits
that
may
22
be
issued
in
a
year
to
a
natural
person
and
the
person’s
spouse
23
or
dependant,
or
for
equity
investments
in
any
one
qualifying
24
business,
from
a
calendar
year
basis
to
a
fiscal
year
basis.
25
The
bill
takes
effect
upon
enactment.
26
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