Text: HF00304 Text: HF00306 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.335, unnumbered paragraph 1, Code 1 2 1997, is amended to read as follows: 1 3 An eligible business may claim a corporate tax credit for 1 4 increasing research activities in this state during the period 1 5 the eligible business is participating in the program. The 1 6 credit equals six and one-half percent of the state's 1 7 apportioned share of the qualifying expenditures for 1 8 increasing research activities. The state's apportioned share 1 9 of the qualifying expenditures for increasing research 1 10 activities is a percent equal to the ratio of qualified 1 11 research expenditures in this state to total qualified 1 12 research expenditures. The credit allowed in this section is 1 13 in addition to the credit authorized in section 422.33, 1 14 subsection 5. If the eligible business is a partnership, 1 15 subchapter S corporation, limited liability company, or estate 1 16 or trust electing to have the income taxed directly to the 1 17 individual, an individual may claim the tax credit allowed. 1 18 The amount claimed by the individual shall be based upon the 1 19 pro rata share of the individual's earnings of the 1 20 partnership, subchapter S corporation, limited liability 1 21 company, or estate or trust. For purposes of this section, 1 22 "qualifying expenditures for increasing research activities" 1 23 means the qualifying expenditures as defined for the federal 1 24 credit for increasing research activities which would be 1 25 allowable under section 41 of the Internal Revenue Code in 1 26 effect on January 1,19941997. 1 27 Sec. 2. Section 15A.9, subsection 8, unnumbered paragraph 1 28 2, Code 1997, is amended to read as follows: 1 29 For the purposes of this section, "qualifying expenditures 1 30 for increasing research activities" means the qualifying 1 31 expenditures as defined for the federal credit for increasing 1 32 research activities which would be allowable under section 41 1 33 of the Internal Revenue Code in effect on January 1,19961 34 1997. The credit authorized in this subsection is in lieu of 1 35 the credit authorized in section 422.33, subsection 5. 2 1 Sec. 3. Section 422.3, subsection 4, Code 1997, is amended 2 2 to read as follows: 2 3 4. "Internal Revenue Code" means the Internal Revenue Code 2 4 of 1954, prior to the date of its redesignation as the 2 5 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 2 6 or means the Internal Revenue Code of 1986 as amended to and 2 7 includingMarch 20, 1996January 1, 1997, whichever is 2 8 applicable. 2 9 Sec. 4. Section 422.7, subsection 8, Code 1997, is amended 2 10 to read as follows: 2 11 8. Subtract the amount of thejobswork opportunity tax 2 12 credit allowable for the tax year under section 51 of the 2 13 Internal Revenue Code to the extent that the credit increased 2 14 federal adjusted gross income. 2 15 Sec. 5. Section 422.10, unnumbered paragraph 1, Code 1997, 2 16 is amended to read as follows: 2 17 The taxes imposed under this division shall be reduced by a 2 18 state tax credit for increasing research activities in this 2 19 state. For individuals, the credit equals six and one-half 2 20 percent of the state's apportioned share of the qualifying 2 21 expenditures for increasing research activities. The state's 2 22 apportioned share of the qualifying expenditures for 2 23 increasing research activities is a percent equal to the ratio 2 24 of qualified research expenditures in this state to total 2 25 qualified research expenditures. For purposes of this 2 26 section, an individual may claim a research credit for 2 27 qualifying research expenditures incurred by a partnership, 2 28 subchapter S corporation, estate, or trust electing to have 2 29 the income taxed directly to the individual. The amount 2 30 claimed by the individual shall be based upon the pro rata 2 31 share of the individual's earnings of a partnership, 2 32 subchapter S corporation, estate, or trust. For purposes of 2 33 this section, "qualifying expenditures for increasing research 2 34 activities" means the qualifying expenditures as defined for 2 35 the federal credit for increasing research activities which 3 1 would be allowable under section 41 of the Internal Revenue 3 2 Code in effect on January 1,19951997. 3 3 Sec. 6. Section 422.33, subsection 5, unnumbered paragraph 3 4 1, Code 1997, is amended to read as follows: 3 5 The taxes imposed under this division shall be reduced by a 3 6 state tax credit for increasing research activities in this 3 7 state equal to six and one-half percent of the state's 3 8 apportioned share of the qualifying expenditures for 3 9 increasing research activities. The state's apportioned share 3 10 of the qualifying expenditures for increasing research 3 11 activities is a percent equal to the ratio of qualified 3 12 research expenditures in this state to the total qualified 3 13 research expenditures. For purposes of this subsection, 3 14 "qualifying expenditures for increasing research activities" 3 15 means the qualifying expenditures as defined for the federal 3 16 credit for increasing research activities which would be 3 17 allowable under section 41 of the Internal Revenue Code in 3 18 effect on January 1,19951997. 3 19 Sec. 7. Section 422.35, subsection 5, Code 1997, is 3 20 amended to read as follows: 3 21 5. Subtract the amount of thejobswork opportunity tax 3 22 credit allowable for the tax year under section 51 of the 3 23 Internal Revenue Code to the extent that the credit increased 3 24 federal taxable income. 3 25 Sec. 8. This Act applies retroactively to January 1, 1996, 3 26 for tax years beginning on or after that date. 3 27 Sec. 9. This Act, being deemed of immediate importance, 3 28 takes effect upon enactment. 3 29 EXPLANATION 3 30 This bill updates the references to the Internal Revenue 3 31 Code to make the federal income tax revisions enacted by 3 32 Congress in 1996 applicable for Iowa income tax purposes. The 3 33 bill reflects the change in nomenclature of the federal jobs 3 34 tax credit to work opportunity tax credit. The bill updates 3 35 the Iowa Code references to the state research activities 4 1 credit for individuals, corporations, and corporations in 4 2 quality jobs enterprise zones to include the 1996 changes to 4 3 the federal research activities credits. The research 4 4 activities credit offered under the new jobs and income Act is 4 5 also updated. 4 6 The bill takes effect immediately upon enactment and 4 7 applies retroactively to tax years beginning on or after 4 8 January 1, 1996. 4 9 LSB 1113HV 77 4 10 sc/sc/14
Text: HF00304 Text: HF00306 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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