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Text: HF02304                           Text: HF02306
Text: HF02300 - HF02399                 Text: HF Index
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House File 2305

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 15A.9, subsection 8, unnumbered
  1  2 paragraph 2, Code Supplement 1995, is amended to read as
  1  3 follows:
  1  4    For the purposes of this section, "qualifying expenditures
  1  5 for increasing research activities" means the qualifying
  1  6 expenditures as defined for the federal credit for increasing
  1  7 research activities which would be allowable under section 41
  1  8 of the Internal Revenue Code in effect on January 1, 1995
  1  9 1996.  The credit authorized in this subsection is in lieu of
  1 10 the credit authorized in section 422.33, subsection 5.
  1 11    Sec. 2.  Section 422.3, subsection 4, Code Supplement 1995,
  1 12 is amended to read as follows:
  1 13    4.  "Internal Revenue Code" means the Internal Revenue Code
  1 14 of 1954, prior to the date of its redesignation as the
  1 15 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  1 16 or means the Internal Revenue Code of 1986 as amended to and
  1 17 including April 15, 1995 January 1, 1996, whichever is
  1 18 applicable.
  1 19    Sec. 3.  Section 422.10, unnumbered paragraph 1, Code
  1 20 Supplement 1995, is amended to read as follows:
  1 21    The taxes imposed under this division shall be reduced by a
  1 22 state tax credit for increasing research activities in this
  1 23 state.  For individuals, the credit equals six and one-half
  1 24 percent of the state's apportioned share of the qualifying
  1 25 expenditures for increasing research activities.  The state's
  1 26 apportioned share of the qualifying expenditures for
  1 27 increasing research activities is a percent equal to the ratio
  1 28 of qualified research expenditures in this state to total
  1 29 qualified research expenditures.  For purposes of this
  1 30 section, an individual may claim a research credit for
  1 31 qualifying research expenditures incurred by a partnership,
  1 32 subchapter S corporation, estate, or trust electing to have
  1 33 the income taxed directly to the individual.  The amount
  1 34 claimed by the individual shall be based upon the pro rata
  1 35 share of the individual's earnings of a partnership,
  2  1 subchapter S corporation, estate, or trust.  For purposes of
  2  2 this section, "qualifying expenditures for increasing research
  2  3 activities" means the qualifying expenditures as defined for
  2  4 the federal credit for increasing research activities which
  2  5 would be allowable under section 41 of the Internal Revenue
  2  6 Code in effect on January 1, 1995 1996.
  2  7    Sec. 4.  Section 422.33, subsection 5, unnumbered paragraph
  2  8 1, Code Supplement 1995, is amended to read as follows:
  2  9    The taxes imposed under this division shall be reduced by a
  2 10 state tax credit for increasing research activities in this
  2 11 state equal to six and one-half percent of the state's
  2 12 apportioned share of the qualifying expenditures for
  2 13 increasing research activities.  The state's apportioned share
  2 14 of the qualifying expenditures for increasing research
  2 15 activities is a percent equal to the ratio of qualified
  2 16 research expenditures in this state to the total qualified
  2 17 research expenditures.  For purposes of this subsection,
  2 18 "qualifying expenditures for increasing research activities"
  2 19 means the qualifying expenditures as defined for the federal
  2 20 credit for increasing research activities which would be
  2 21 allowable under section 41 of the Internal Revenue Code in
  2 22 effect on January 1, 1995 1996.
  2 23    Sec. 5.  RETROACTIVE APPLICABILITY.  This Act applies
  2 24 retroactively to January 1, 1995, for tax years beginning on
  2 25 or after that date.
  2 26    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of
  2 27 immediate importance, takes effect upon enactment.  
  2 28                           EXPLANATION
  2 29    This bill updates the references to the Internal Revenue
  2 30 Code to make the federal income tax changes enacted by
  2 31 Congress in the remainder of the 1995 calendar year after
  2 32 April 15, 1995, applicable for Iowa income tax purposes.  The
  2 33 bill updates the Iowa Code references for the state research
  2 34 credits for individuals and corporations to include changes in
  2 35 the federal research activities credits.
  3  1    The bill takes effect immediately upon enactment and
  3  2 applies retroactively to tax years beginning on or after
  3  3 January 1, 1995.  
  3  4 LSB 3221HV 76
  3  5 sc/sc/14
     
Text: HF02304                           Text: HF02306
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index
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