Text: SSB02023 Text: SSB02025 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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 1,19951 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 includingApril 15, 1995January 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 1,19951996. 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 1,19951996. 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 BACKGROUND STATEMENT 3 5 SUBMITTED BY THE AGENCY 3 6 Section 1 amends Iowa Code section 15A.9 to update the 3 7 reference to the Internal Revenue Code as it applies to 3 8 qualified research activities credits for corporations in 3 9 quality jobs enterprise zones. 3 10 Section 2 amends subsection 4 of Iowa Code section 422.3 to 3 11 include the changes made in the Internal Revenue Code in the 3 12 1995 calendar year, after April 15, 1995, so that references 3 13 to the Internal Revenue Code in the Iowa Code are deemed to 3 14 include the federal income tax changes made by Congress in 3 15 calendar year 1995 after April 15, 1995. 3 16 Section 3 amends the research activities credit for 3 17 individuals in Iowa Code section 422.10 to include changes in 3 18 the federal research activities credit. 3 19 Section 4 amends the research activities credit for 3 20 corporations in subsection 5 of Iowa Code section 422.33 to 3 21 include changes in the federal research activities credit. 3 22 Section 5 provides that the bill is retroactively 3 23 applicable to January 1, 1995, for tax years beginning on or 3 24 after that date. 3 25 Section 6 makes the bill effective immediately upon 3 26 enactment. 3 27 LSB 3221DP 76 3 28 sc/sc/14
Text: SSB02023 Text: SSB02025 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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