Text: S05653 Text: S05655 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
Get Version To Print
PAG LIN
1 1 Amend Senate File 2464 as follows:
1 2 #1. Page 23, by inserting after line 23 the
1 3 following:
1 4 "DIVISION 101
1 5 Sec. . NEW SECTION. 15E.175 DEFINITIONS.
1 6 As used in this section and sections 15E.176 and
1 7 15E.177:
1 8 1. "Affordable housing assistance" means money,
1 9 real or personal property, or professional services
1 10 expended or devoted to the construction or
1 11 rehabilitation of housing for low and moderate income
1 12 families.
1 13 2. "Low or moderate income families" has the same
1 14 meaning as in section 16.1, subsection 24.
1 15 3. "Taxpayer" means a person subject to tax under
1 16 chapter 422, division II, III, or V, or chapter 432.
1 17 4. "Tax year" means for individuals and entities
1 18 subject to the state personal net income tax,
1 19 corporate income tax, or the state franchise tax under
1 20 chapter 422, division II, III, or V, respectively, the
1 21 tax year as defined for those divisions or means for
1 22 insurance companies subject to the gross premiums tax
1 23 under chapter 432, the calendar year for which the
1 24 premiums are taxed.
1 25 Sec. . NEW SECTION. 15E.176 TAX CREDITS.
1 26 1. For tax years beginning on or after January 1,
1 27 1997, there is allowed a credit against that tax
1 28 imposed under the personal net income tax in chapter
1 29 422, division II, the corporate income tax in chapter
1 30 422, division III, the franchise tax in chapter 422,
1 31 division V, or the gross premiums tax in chapter 432,
1 32 for affordable housing assistance provided by the
1 33 taxpayer.
1 34 2. The amount of credit allowed under subsection
1 35 1, subject to subsection 4, is equal to not more than
1 36 fifty-five percent of the affordable housing
1 37 assistance provided by the taxpayer.
1 38 3. The taxpayer is allowed the credit as computed
1 39 each year in subsection 2 for up to ten consecutive
1 40 years beginning with the first year for which the
1 41 credit is taken.
1 42 If the amount of the credit exceeds the taxpayer's
1 43 tax liability for the tax year, the excess may be
1 44 credited to the tax liability for the following five
1 45 tax years or until depleted, whichever is the earlier,
1 46 and is in addition to any other credit allowed under
1 47 this section. For purposes of this section, an
1 48 individual may claim a credit for affordable housing
1 49 assistance incurred by a partnership, subchapter S
1 50 corporation, estate, or trust electing to have the
2 1 income taxed directly to the individual. The amount
2 2 claimed by the individual shall be based upon the pro
2 3 rata share of the individual's earnings of a
2 4 partnership, subchapter S corporation, estate, or
2 5 trust.
2 6 4. Notwithstanding the amount of credit allowed in
2 7 subsection 2, the total amount of credits for all
2 8 taxpayers that shall be allowed under subsection 1 for
2 9 any fiscal year of the qualified venture capital
2 10 company shall not exceed two million dollars and shall
2 11 not exceed a total amount of ten million dollars. In
2 12 determining if the credit allowed has exceeded the
2 13 fiscal year limit, credits carried over from a
2 14 previous tax year are not counted.
2 15 5. The credit provided for in subsection 2, to the
2 16 extent not previously utilized, shall be freely
2 17 transferable to and by subsequent transferees for a
2 18 period of ten years from the date the credit is first
2 19 available to the taxpayer.
2 20 Sec. . NEW SECTION. 15E.177 AFFORDABLE
2 21 HOUSING ASSISTANCE – APPROVAL.
2 22 A taxpayer who wishes to engage in affordable
2 23 housing assistance shall submit a proposal regarding
2 24 the assistance to the department of economic
2 25 development. The proposal shall contain the program
2 26 of affordable housing assistance to be conducted by
2 27 the taxpayer, the location and number of units,
2 28 reasons why the program is needed, the time period for
2 29 which affordable housing assistance shall be provided,
2 30 the estimated amount to be invested in the program,
2 31 plans for implementing the program, and a list of
2 32 other taxpayers who plan to participate in the
2 33 program, if any.
2 34 In the case of rental units, all proposals approved
2 35 by the department shall require a land use restriction
2 36 agreement stating that the units shall be devoted to
2 37 affordable housing for a period deemed reasonable by
2 38 the department. In the case of owner-occupied units,
2 39 all proposals approved by the department shall require
2 40 a land use restriction agreement for a time period
2 41 deemed reasonable by the department requiring any
2 42 subsequent owner, except a lender with a security
2 43 interest in the property, to be a low or moderate
2 44 income family and further requiring the acquisition
2 45 price to any subsequent owner not to exceed, by more
2 46 than five percent annual appreciation, the acquisition
2 47 price to the original low or moderate income owner at
2 48 the time the tax credit is first claimed. The
2 49 restriction shall be approved by the property owner
2 50 and shall be binding on any subsequent owner of the
3 1 property unless otherwise approved by the department.
3 2 The department, in approving the proposal, may
3 3 authorize the use of tax credits by one or more
3 4 taxpayers listed in the proposal and shall establish
3 5 specific requirements regarding the degree of
3 6 completion of affordable housing assistance necessary
3 7 to be eligible for the tax credits under this
3 8 division. The approval shall state the maximum credit
3 9 allowable to each taxpayer listed in the proposal.
3 10 Sec. . NEW SECTION. 422.9A AFFORDABLE HOUSING
3 11 ASSISTANCE CREDIT.
3 12 There is allowed as a credit against the tax
3 13 determined in section 422.5 for a tax year an amount
3 14 equal to the affordable housing assistance credit as
3 15 provided in section 15E.176. Notwithstanding any
3 16 other provision, the credit allowed for in this
3 17 section shall be applied prior to all other credits
3 18 allowed the taxpayer.
3 19 Sec. . Section 422.33, Code Supplement 1995, is
3 20 amended by adding the following new subsection:
3 21 NEW SUBSECTION. 9. There is allowed as a credit
3 22 against the tax determined in subsection 1 for a tax
3 23 year an amount equal to the affordable housing
3 24 assistance credit as provided in section 15E.176.
3 25 Notwithstanding any other provision, the credit
3 26 allowed for in this subsection shall be applied prior
3 27 to all other credits allowed the taxpayer. The
3 28 taxpayer shall not receive for the same investment a
3 29 credit under subsection 8 and this subsection.
3 30 Sec. . Section 422.60, Code Supplement 1995, is
3 31 amended by adding the following new subsection:
3 32 NEW SUBSECTION. 4. There is allowed as a credit
3 33 against the tax determined in this division for a tax
3 34 year an amount equal to the affordable housing
3 35 assistance credit as provided in section 15E.176.
3 36 Notwithstanding any other provision, the credit
3 37 allowed for in this subsection shall be applied prior
3 38 to all other credits allowed the taxpayer. The
3 39 allocation of revenues to a city or county under
3 40 section 422.65 shall be determined as if the credit
3 41 under this subsection had not been taken.
3 42 Sec. . Section 432.1, Code 1995, is amended by
3 43 adding the following new subsection:
3 44 NEW SUBSECTION. 5. There is allowed as a credit
3 45 against the tax determined in subsection 1 or 2 for a
3 46 tax year an amount equal to the affordable housing
3 47 assistance credit as provided in section 15E.176.
3 48 Notwithstanding any other provision, the credit
3 49 allowed for in this subsection shall be applied prior
3 50 to all other credits allowed the taxpayer.
4 1 Sec. . APPLICABILITY. Division 101 applies for
4 2 tax years of individuals subject to the personal net
4 3 income tax and entities subject to the state corporate
4 4 income tax or franchise tax which begin on or after
4 5 January 1, 1997. Division 101 applies for calendar
4 6 years beginning on or after January 1, 1997, for
4 7 entities subject to the gross premiums tax under
4 8 chapter 432."
4 9 #2. By renumbering as necessary.
4 10
4 11
4 12
4 13 O. GENE MADDOX
4 14 SF 2464.201 76
4 15 mk/jj
Text: S05653 Text: S05655 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Thu Apr 4 03:25:54 CST 1996
URL: /DOCS/GA/76GA/Legislation/S/05600/S05654/960403.html
jhf