Text: HSB00025 Text: HSB00027 Text: HSB00000 - HSB00099 Text: HSB 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 1997, 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 1,19961 8 1997. 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 1997, 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 includingMarch 20, 1996January 1, 1997, whichever is 1 17 applicable. 1 18 Sec. 3. Section 422.7, subsection 8, Code 1997, is amended 1 19 to read as follows: 1 20 8. Subtract the amount of thejobswork opportunity tax 1 21 credit allowable for the tax year under section 51 of the 1 22 Internal Revenue Code to the extent that the credit increased 1 23 federal adjusted gross income. 1 24 Sec. 4. Section 422.10, unnumbered paragraph 1, Code 1997, 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 1,19951997. 2 12 Sec. 5. Section 422.33, subsection 5, unnumbered paragraph 2 13 1, Code 1997, 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 1,19951997. 2 28 Sec. 6. Section 422.35, subsection 5, Code 1997, is 2 29 amended to read as follows: 2 30 5. Subtract the amount of thejobswork opportunity tax 2 31 credit allowable for the tax year under section 51 of the 2 32 Internal Revenue Code to the extent that the credit increased 2 33 federal taxable income. 2 34 Sec. 7. This Act applies retroactively to January 1, 1996, 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 EXPLANATION 3 4 This bill updates the references to the Internal Revenue 3 5 Code to make the federal income tax revisions enacted by 3 6 Congress in 1996 applicable for Iowa income tax purposes. The 3 7 bill reflects the change in nomenclature of the federal jobs 3 8 tax credit to work opportunity tax credit. The bill updates 3 9 the Iowa Code references to the state research activities 3 10 credit for individuals, corporations, and corporations in 3 11 quality jobs enterprise zones to include the 1996 changes to 3 12 the federal research activities credits. 3 13 The bill takes effect immediately upon enactment and 3 14 applies retroactively to tax years beginning on or after 3 15 January 1, 1996. 3 16 LSB 1113DP 77 3 17 sc/sc/14
Text: HSB00025 Text: HSB00027 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 1997 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Wed Jan 29 03:40:43 CST 1997
URL: /DOCS/GA/77GA/Legislation/HSB/00000/HSB00026/970128.html
jhf