Text: SF00552 Text: SF00554 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.11 FRANCHISE TAX CREDIT. 1 2 The taxes imposed under this division, less the credits 1 3 allowed under section 422.12, shall be reduced by a franchise 1 4 tax credit. A taxpayer who is a shareholder in a financial 1 5 institution, as defined in section 581 of the Internal Revenue 1 6 Code, which has in effect for the tax year an election under 1 7 subchapter S of the Internal Revenue Code shall compute the 1 8 amount of the tax credit by recomputing the amount of tax 1 9 under this division by reducing the taxable income of the 1 10 taxpayer by the taxpayer's pro rata share of the items of 1 11 income and expense of the financial institution and 1 12 subtracting the credits allowed under section 422.12. This 1 13 recomputed tax shall be subtracted from the amount of tax 1 14 computed under this division after the deduction for credits 1 15 allowed under section 422.12. The resulting amount, which 1 16 shall not exceed the taxpayer's pro rata share of the 1 17 franchise tax paid by the financial institution, is the amount 1 18 of the franchise tax credit allowed. 1 19 Sec. 2. Section 422.61, subsection 3, Code 1997, is 1 20 amended by adding the following new paragraph: 1 21 NEW PARAGRAPH. g. Where a financial institution as 1 22 defined in section 581 of the Internal Revenue Code is not 1 23 subject to income tax and the shareholders of the financial 1 24 institution are taxed on the financial institution's income 1 25 under the provisions of the Internal Revenue Code, such tax 1 26 treatment shall be disregarded and the financial institution 1 27 shall compute its net income for franchise tax purposes in the 1 28 same manner under this subsection as a financial institution 1 29 that is subject to or liable for federal income tax under the 1 30 Internal Revenue Code in effect for the applicable year. 1 31 Sec. 3. This Act applies retroactively to January 1, 1997, 1 32 for tax years beginning on or after January 1, 1997. 1 33 SF 553 1 34 mg/cc/26
Text: SF00552 Text: SF00554 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 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/00500/SF00553/970502.html
jhf