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Text: HF00304                           Text: HF00306
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House File 305

Partial Bill History

Bill Text

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, 1994 1997.
  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, 1996
  1 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 including March 20, 1996 January 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 the jobs work 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, 1995 1997.
  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, 1995 1997.
  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 the jobs work 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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