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Senate File 201

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 15A.9, subsection 8, unnumbered
  1  2 paragraph 2, Code 1995, is amended to read as follows:
  1  3    For the purposes of this section, "qualifying expenditures
  1  4 for increasing research activities" means the qualifying
  1  5 expenditures as defined for the federal credit for increasing
  1  6 research activities which would be allowable under section 41
  1  7 of the Internal Revenue Code in effect on January 1, 1994
  1  8 1995.  The credit authorized in this subsection is in lieu of
  1  9 the credit authorized in section 422.33, subsection 5.
  1 10    Sec. 2.  Section 422.3, subsection 4, Code 1995, is amended
  1 11 to read as follows:
  1 12    4.  "Internal Revenue Code" means the Internal Revenue Code
  1 13 of 1954, prior to the date of its redesignation as the
  1 14 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  1 15 or means the Internal Revenue Code of 1986 as amended to and
  1 16 including January 1, 1994 April 15, 1995, whichever is
  1 17 applicable.
  1 18    Sec. 3.  Section 422.7, Code 1995, is amended by adding the
  1 19 following new subsection:
  1 20    NEW SUBSECTION.  33.  Subtract the amount of the employer
  1 21 social security credit allowable for the tax year under
  1 22 section 45B of the Internal Revenue Code to the extent that
  1 23 the credit increases federal adjusted gross income.
  1 24    Sec. 4.  Section 422.10, unnumbered paragraph 1, Code 1995,
  1 25 is amended to read as follows:
  1 26    The taxes imposed under this division shall be reduced by a
  1 27 state tax credit for increasing research activities in this
  1 28 state.  For individuals, the credit equals six and one-half
  1 29 percent of the state's apportioned share of the qualifying
  1 30 expenditures for increasing research activities.  The state's
  1 31 apportioned share of the qualifying expenditures for
  1 32 increasing research activities is a percent equal to the ratio
  1 33 of qualified research expenditures in this state to total
  1 34 qualified research expenditures.  For purposes of this
  1 35 section, an individual may claim a research credit for
  2  1 qualifying research expenditures incurred by a partnership,
  2  2 subchapter S corporation, estate, or trust electing to have
  2  3 the income taxed directly to the individual.  The amount
  2  4 claimed by the individual shall be based upon the pro rata
  2  5 share of the individual's earnings of a partnership,
  2  6 subchapter S corporation, estate, or trust.  For purposes of
  2  7 this section, "qualifying expenditures for increasing research
  2  8 activities" means the qualifying expenditures as defined for
  2  9 the federal credit for increasing research activities which
  2 10 would be allowable under section 41 of the Internal Revenue
  2 11 Code in effect on January 1, 1994 1995.
  2 12    Sec. 5.  Section 422.33, subsection 5, unnumbered paragraph
  2 13 1, Code 1995, is amended to read as follows:
  2 14    The taxes imposed under this division shall be reduced by a
  2 15 state tax credit for increasing research activities in this
  2 16 state equal to six and one-half percent of the state's
  2 17 apportioned share of the qualifying expenditures for
  2 18 increasing research activities.  The state's apportioned share
  2 19 of the qualifying expenditures for increasing research
  2 20 activities is a percent equal to the ratio of qualified
  2 21 research expenditures in this state to the total qualified
  2 22 research expenditures.  For purposes of this subsection,
  2 23 "qualifying expenditures for increasing research activities"
  2 24 means the qualifying expenditures as defined for the federal
  2 25 credit for increasing research activities which would be
  2 26 allowable under section 41 of the Internal Revenue Code in
  2 27 effect on January 1, 1994 1995.
  2 28    Sec. 6.  Section 422.35, Code 1995, is amended by adding
  2 29 the following new subsection:
  2 30    NEW SUBSECTION.  17.  Subtract the amount of the employer
  2 31 social security credit allowable for the tax year under
  2 32 section 45B of the Internal Revenue Code to the extent that
  2 33 the credit increases federal adjusted gross income.
  2 34    Sec. 7.  This Act applies retroactively to January 1, 1994,
  2 35 for tax years beginning on or after that date.
  3  1    Sec. 8.  This Act, being deemed of immediate importance,
  3  2 takes effect upon enactment.  
  3  3 SF 201
  3  4 sc/cc/26
     
Text: SF00200                           Text: SF00202
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