Text: SF00128 Text: SF00130 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 129 1 2 1 3 AN ACT 1 4 UPDATING THE IOWA CODE REFERENCES TO THE INTERNAL REVENUE CODE 1 5 AND PROVIDING A RETROACTIVE APPLICABILITY DATE AND AN EFFEC- 1 6 TIVE DATE. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 15.335, unnumbered paragraph 1, Code 1 11 1997, is amended to read as follows: 1 12 An eligible business may claim a corporate tax credit for 1 13 increasing research activities in this state during the period 1 14 the eligible business is participating in the program. The 1 15 credit equals six and one-half percent of the state's 1 16 apportioned share of the qualifying expenditures for 1 17 increasing research activities. The state's apportioned share 1 18 of the qualifying expenditures for increasing research 1 19 activities is a percent equal to the ratio of qualified 1 20 research expenditures in this state to total qualified 1 21 research expenditures. The credit allowed in this section is 1 22 in addition to the credit authorized in section 422.33, 1 23 subsection 5. If the eligible business is a partnership, 1 24 subchapter S corporation, limited liability company, or estate 1 25 or trust electing to have the income taxed directly to the 1 26 individual, an individual may claim the tax credit allowed. 1 27 The amount claimed by the individual shall be based upon the 1 28 pro rata share of the individual's earnings of the 1 29 partnership, subchapter S corporation, limited liability 1 30 company, or estate or trust. For purposes of this section, 1 31 "qualifying expenditures for increasing research activities" 1 32 means the qualifying expenditures as defined for the federal 1 33 credit for increasing research activities which would be 1 34 allowable under section 41 of the Internal Revenue Code in 1 35 effect on January 1,19941997. 2 1 Sec. 2. Section 15A.9, subsection 8, unnumbered paragraph 2 2 2, Code 1997, is amended to read as follows: 2 3 For the purposes of this section, "qualifying expenditures 2 4 for increasing research activities" means the qualifying 2 5 expenditures as defined for the federal credit for increasing 2 6 research activities which would be allowable under section 41 2 7 of the Internal Revenue Code in effect on January 1,19962 8 1997. The credit authorized in this subsection is in lieu of 2 9 the credit authorized in section 422.33, subsection 5. 2 10 Sec. 3. Section 422.3, subsection 4, Code 1997, is amended 2 11 to read as follows: 2 12 4. "Internal Revenue Code" means the Internal Revenue Code 2 13 of 1954, prior to the date of its redesignation as the 2 14 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 2 15 or means the Internal Revenue Code of 1986 as amended to and 2 16 includingMarch 20, 1996January 1, 1997, whichever is 2 17 applicable. 2 18 Sec. 4. Section 422.7, subsection 8, Code 1997, is amended 2 19 to read as follows: 2 20 8. Subtract the amount of thejobswork opportunity tax 2 21 credit allowable for the tax year under section 51 of the 2 22 Internal Revenue Code to the extent that the credit increased 2 23 federal adjusted gross income. 2 24 Sec. 5. Section 422.9, subsection 2, Code 1997, is amended 2 25 by adding the following new paragraph: 2 26 NEW PARAGRAPH. f. Add the amount of the mortgage interest 2 27 credit allowable for the tax year under section 25 of the 2 28 Internal Revenue Code to the extent the credit decreased the 2 29 amount of interest deductible under section 163(g) of the 2 30 Internal Revenue Code. 2 31 Sec. 6. Section 422.10, unnumbered paragraph 1, Code 1997, 2 32 is amended to read as follows: 2 33 The taxes imposed under this division shall be reduced by a 2 34 state tax credit for increasing research activities in this 2 35 state. For individuals, the credit equals six and one-half 3 1 percent of the state's apportioned share of the qualifying 3 2 expenditures for increasing research activities. The state's 3 3 apportioned share of the qualifying expenditures for 3 4 increasing research activities is a percent equal to the ratio 3 5 of qualified research expenditures in this state to total 3 6 qualified research expenditures. For purposes of this 3 7 section, an individual may claim a research credit for 3 8 qualifying research expenditures incurred by a partnership, 3 9 subchapter S corporation, estate, or trust electing to have 3 10 the income taxed directly to the individual. The amount 3 11 claimed by the individual shall be based upon the pro rata 3 12 share of the individual's earnings of a partnership, 3 13 subchapter S corporation, estate, or trust. For purposes of 3 14 this section, "qualifying expenditures for increasing research 3 15 activities" means the qualifying expenditures as defined for 3 16 the federal credit for increasing research activities which 3 17 would be allowable under section 41 of the Internal Revenue 3 18 Code in effect on January 1,19951997. 3 19 Sec. 7. Section 422.33, subsection 5, unnumbered paragraph 3 20 1, Code 1997, is amended to read as follows: 3 21 The taxes imposed under this division shall be reduced by a 3 22 state tax credit for increasing research activities in this 3 23 state equal to six and one-half percent of the state's 3 24 apportioned share of the qualifying expenditures for 3 25 increasing research activities. The state's apportioned share 3 26 of the qualifying expenditures for increasing research 3 27 activities is a percent equal to the ratio of qualified 3 28 research expenditures in this state to the total qualified 3 29 research expenditures. For purposes of this subsection, 3 30 "qualifying expenditures for increasing research activities" 3 31 means the qualifying expenditures as defined for the federal 3 32 credit for increasing research activities which would be 3 33 allowable under section 41 of the Internal Revenue Code in 3 34 effect on January 1,19951997. 3 35 Sec. 8. Section 422.35, subsection 5, Code 1997, is 4 1 amended to read as follows: 4 2 5. Subtract the amount of thejobswork opportunity tax 4 3 credit allowable for the tax year under section 51 of the 4 4 Internal Revenue Code to the extent that the credit increased 4 5 federal taxable income. 4 6 Sec. 9. This Act applies retroactively to January 1, 1996, 4 7 for tax years beginning on or after that date. 4 8 Sec. 10. This Act, being deemed of immediate importance, 4 9 takes effect upon enactment. 4 10 4 11 4 12 4 13 MARY E. KRAMER 4 14 President of the Senate 4 15 4 16 4 17 4 18 RON J. CORBETT 4 19 Speaker of the House 4 20 4 21 I hereby certify that this bill originated in the Senate and 4 22 is known as Senate File 129, Seventy-seventh General Assembly. 4 23 4 24 4 25 4 26 MARY PAT GUNDERSON 4 27 Secretary of the Senate 4 28 Approved , 1997 4 29 4 30 4 31 4 32 TERRY E. BRANSTAD 4 33 Governor
Text: SF00128 Text: SF00130 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (77th General Assembly)
© 1997 Cornell College and League of Women Voters of Iowa
Comments about this site or page? webmaster@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Sat Jun 21 03:40:03 CDT 1997
URL: /DOCS/GA/77GA/Legislation/SF/00100/SF00129/970502.html
jhf