Text: H09018 Text: H09020 Text: H09000 - H09099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 2560 as follows: 1 2 #1. Page 1, by inserting before line 1 the 1 3 following: 1 4 "Section 1. Section 15.335, Code Supplement 1999, 1 5 is amended to read as follows: 1 6 15.335 RESEARCH ACTIVITIES CREDIT. 1 7 1. An eligible business may claim a corporate tax 1 8 credit for increasing research activities in this 1 9 state during the period the eligible business is 1 10 participating in the program. 1 11 a. The credit equalssix and one-half percent of1 12the state's apportioned share of the qualifying1 13expenditures for increasing research activities.the 1 14 sum of the following: 1 15 (1) Six and one-half percent of the excess of 1 16 qualified research expenses during the tax year over 1 17 the base amount for the tax year based upon the 1 18 state's apportioned share of the qualifying 1 19 expenditures for increasing research activities. 1 20 (2) Six and one-half percent of the basic research 1 21 payments determined under section 41(e)(1)(A) of the 1 22 Internal Revenue Code during the tax year based upon 1 23 the state's apportioned share of the qualifying 1 24 expenditures for increasing research activities. 1 25 The state's apportioned share of the qualifying 1 26 expenditures for increasing research activities is a 1 27 percent equal to the ratio of qualified research 1 28 expenditures in this state to total qualified research 1 29 expenditures. 1 30 b. In lieu of the credit amount computed in 1 31 paragraph "a", subparagraph (1), an eligible business 1 32 may elect to compute the credit amount for qualified 1 33 research expenses incurred in this state in a manner 1 34 consistent with the alternative incremental credit 1 35 described in section 41(c)(4) of the Internal Revenue 1 36 Code. The taxpayer may make this election regardless 1 37 of the method used for the taxpayer's federal income 1 38 tax. The election made under this paragraph is for 1 39 the tax year and the taxpayer may use another or the 1 40 same method for any subsequent year. 1 41 c. For purposes of the alternate credit 1 42 computation method in paragraph "b", the credit 1 43 percentages applicable to qualified research expenses 1 44 described in clauses (i), (ii), and (iii) of section 1 45 41(c)(4)(A) of the Internal Revenue Code are one and 1 46 sixty-five hundredths percent, two and twenty 1 47 hundredths percent, and two and seventy-five 1 48 hundredths percent, respectively. 1 49 2. The credit allowed in this section is in 1 50 addition to the credit authorized in section 422.33, 2 1 subsection 5, and section 422.10. However, if the 2 2 alternative credit computation method is used in 2 3 section 422.33, subsection 5, or section 422.10, the 2 4 credit allowed in this section shall also be computed 2 5 using that method. 2 6 3. If the eligible business is a partnership, 2 7subchapterS corporation, limited liability company, 2 8 or estate or trust electing to have the income taxed 2 9 directly to the individual, an individual may claim 2 10 the tax credit allowed. The amount claimed by the 2 11 individual shall be based upon the pro rata share of 2 12 the individual's earnings of the partnership, 2 13subchapterS corporation, limited liability company, 2 14 or estate or trust. 2 15 4. For purposes of this section,"qualifying2 16expenditures for increasing research activities" means2 17the qualifying expenditures"base amount", "basic 2 18 research payment", and "qualified research expense" 2 19 mean the same as defined for the federal credit for 2 20 increasing research activitieswhich would be2 21allowableunder section 41 of the Internal Revenue 2 22 Codein effect on January 1, 1999, except that for the 2 23 alternative incremental credit such amounts are for 2 24 research conducted within this state. For purposes of 2 25 this section, "Internal Revenue Code" means the 2 26 Internal Revenue Code in effect on January 1, 2000. 2 27 5. Any credit in excess of the tax liability for 2 28 the taxable year shall be refunded with interest 2 29 computed under section 422.25. In lieu of claiming a 2 30 refund, a taxpayer may elect to have the overpayment 2 31 shown on its final, completed return credited to the 2 32 tax liability for the following year. 2 33 Sec. 102. Section 15A.9, subsection 8, Code 2 34 Supplement 1999, is amended to read as follows: 2 35 8. CORPORATE TAX RESEARCH CREDIT. A corporate tax 2 36 credit shall be available to the primary business or a 2 37 supporting business for increasing research activities 2 38 in this state within the zone. 2 39 a. The credit equalsthirteen percent of the2 40state's apportioned share of the qualifying2 41expenditures for increasing research activities.the 2 42 sum of the following: 2 43 (1) Thirteen percent of the excess of qualified 2 44 research expenses during the tax year over the base 2 45 amount for the tax year based upon the state's 2 46 apportioned share of the qualifying expenditures for 2 47 increasing research activities. 2 48 (2) Thirteen percent of the basic research 2 49 payments determined under section 41(e)(1)(A) of the 2 50 Internal Revenue Code during the tax year based upon 3 1 the state's apportioned share of the qualifying 3 2 expenditures for increasing research activities. 3 3 The state's apportioned share of the qualifying 3 4 expenditures for increasing research activities is a 3 5 percent equal to the ratio of qualified research 3 6 expenditures in this state within the zone to total 3 7 qualified research expenditures. 3 8 b. In lieu of the credit amount computed in 3 9 paragraph "a", subparagraph (1), a business may elect 3 10 to compute the credit amount for qualified research 3 11 expenses incurred in this state within the zone in a 3 12 manner consistent with the alternative incremental 3 13 credit described in section 41(c)(4) of the Internal 3 14 Revenue Code. The taxpayer may make this election 3 15 regardless of the method used for the taxpayer's 3 16 federal income tax. The election made under this 3 17 paragraph is for the tax year and the taxpayer may use 3 18 another or the same method for any subsequent year. 3 19 c. For purposes of the alternate credit 3 20 computation method in paragraph "b", the credit 3 21 percentages applicable to qualified research expenses 3 22 described in clauses (i), (ii), and (iii) of section 3 23 41(c)(4)(A) of the Internal Revenue Code are three and 3 24 thirty hundredths percent, four and forty hundredths 3 25 percent, and five and fifty hundredths percent, 3 26 respectively. 3 27 d. Any credit in excess of the tax liability for 3 28 the tax year shall be refunded with interest computed 3 29 under section 422.25. In lieu of claiming a refund, 3 30 the primary business or a supporting business may 3 31 elect to have the overpayment shown on its final 3 32 return credited to its tax liability for the following 3 33 tax year. 3 34 e. For the purposes of thissection, "qualifying3 35expenditures for increasing research activities" means3 36the qualifying expendituressubsection, "base amount", 3 37 "basic research payment", and "qualified research 3 38 expense" mean the same as defined for the federal 3 39 credit for increasing research activitieswhich would3 40be allowableunder section 41 of the Internal Revenue 3 41 Codein effect on January 1, 1999, except that for the 3 42 alternative incremental credit such amounts are for 3 43 research conducted within this state within the zone. 3 44 For purposes of this subsection, "Internal Revenue 3 45 Code" means the Internal Revenue Code in effect on 3 46 January 1, 2000. 3 47 f. The credit authorized in this subsection is in 3 48 lieu of the credit authorized in section 422.33, 3 49 subsection 5 and section 422.10." 3 50 #2. Page 4, by inserting after line 19 the 4 1 following: 4 2 "Sec. 103. Section 422.7, subsection 31, Code 4 3 1999, is amended to read as follows: 4 4 31. For a person who is disabled, or is fifty-five 4 5 years of age or older, or is the surviving spouse of 4 6 an individual or a survivor having an insurable 4 7 interest in an individual who would have qualified for 4 8 the exemption under this subsection for the tax year, 4 9 subtract, to the extent included, the total amount of 4 10 a governmental or other pension or retirement pay, 4 11 including, but not limited to, defined benefit or 4 12 defined contribution plans, annuities, individual 4 13 retirement accounts, plans maintained or contributed 4 14 to by an employer, or maintained or contributed to by 4 15 a self-employed person as an employer, and deferred 4 16 compensation plans or any earnings attributable to the 4 17 deferred compensation plans, up to a maximum offive4 18 six thousand dollars for a person, other than a 4 19 husband or wife, who files a separate state income tax 4 20 return and up to a maximum oftentwelve thousand 4 21 dollars for a husband and wife who file a joint state 4 22 income tax return. However, a surviving spouse who is 4 23 not disabled or fifty-five years of age or older can 4 24 only exclude the amount of pension or retirement pay 4 25 received as a result of the death of the other spouse. 4 26 A husband and wife filing separate state income tax 4 27 returns or separately on a combined state return are 4 28 allowed a combined maximum exclusion under this 4 29 subsection of up totentwelve thousand dollars. The 4 30tentwelve thousand dollar exclusion shall be 4 31 allocated to the husband or wife in the proportion 4 32 that each spouse's respective pension and retirement 4 33 pay received bears to total combined pension and 4 34 retirement pay received. 4 35 Sec. 104. Section 422.10, Code Supplement 1999, is 4 36 amended to read as follows: 4 37 422.10 RESEARCH ACTIVITIES CREDIT. 4 38 1. The taxes imposed under this division shall be 4 39 reduced by a state tax credit for increasing research 4 40 activities in this state. 4 41 a. For individuals, the credit equalssix and one-4 42half percent of the state's apportioned share of the4 43qualifying expenditures for increasing research4 44activities.the sum of the following: 4 45 (1) Six and one-half percent of the excess of 4 46 qualified research expenses during the tax year over 4 47 the base amount for the tax year based upon the 4 48 state's apportioned share of the qualifying 4 49 expenditures for increasing research activities. 4 50 (2) Six and one-half percent of the basic research 5 1 payments determined under section 41(e)(1)(A) of the 5 2 Internal Revenue Code during the tax year based upon 5 3 the state's apportioned share of the qualifying 5 4 expenditures for increasing research activities. 5 5 The state's apportioned share of the qualifying 5 6 expenditures for increasing research activities is a 5 7 percent equal to the ratio of qualified research 5 8 expenditures in this state to total qualified research 5 9 expenditures. 5 10 b. In lieu of the credit amount computed in 5 11 paragraph "a", subparagraph (1), a taxpayer may elect 5 12 to compute the credit amount for qualified research 5 13 expenses incurred in this state in a manner consistent 5 14 with the alternative incremental credit described in 5 15 section 41(c)(4) of the Internal Revenue Code. The 5 16 taxpayer may make this election regardless of the 5 17 method used for the taxpayer's federal income tax. 5 18 The election made under this paragraph is for the tax 5 19 year and the taxpayer may use another or the same 5 20 method for any subsequent year. 5 21 c. For purposes of the alternate credit 5 22 computation method in paragraph "b", the credit 5 23 percentages applicable to qualified research expenses 5 24 described in clauses (i), (ii), and (iii) of section 5 25 41(c)(4)(A) of the Internal Revenue Code are one and 5 26 sixty-five hundredths percent, two and twenty 5 27 hundredths percent, and two and seventy-five 5 28 hundredths percent, respectively. 5 29 2. For purposes of this section, an individual may 5 30 claim a research creditfor qualifying research5 31expendituresincurred by a partnership,subchapterS 5 32 corporation, limited liability company, estate, or 5 33 trust electing to have the income taxed directly to 5 34 the individual. The amount claimed by the individual 5 35 shall be based upon the pro rata share of the 5 36 individual's earnings of a partnership,subchapterS 5 37 corporation, limited liability company, estate, or 5 38 trust. 5 39 3. For purposes of this section,"qualifying5 40expenditures for increasing research activities" means5 41the qualifying expenditures"base amount", "basic 5 42 research payment", and "qualified research expense" 5 43 mean the same as defined for the federal credit for 5 44 increasing research activitieswhich would be5 45allowableunder section 41 of the Internal Revenue 5 46 Codein effect on January 1, 1999, except that for the 5 47 alternative incremental credit such amounts are for 5 48 research conducted within this state. For purposes of 5 49 this section, "Internal Revenue Code" means the 5 50 Internal Revenue Code in effect on January 1, 2000. 6 1 4. Any credit in excess of the tax liability 6 2 imposed by section 422.5 less the credits allowed 6 3 under sections 422.11A, 422.12, and 422.12B for the 6 4 taxable year shall be refunded with interest computed 6 5 under section 422.25. In lieu of claiming a refund, a 6 6 taxpayer may elect to have the overpayment shown on 6 7 the taxpayer's final, completed return credited to the 6 8 tax liability for the following taxable year." 6 9 #3. Page 5, by inserting after line 7 the 6 10 following: 6 11 "Sec. 105. Section 422.33, subsection 5, Code 6 12 Supplement 1999, is amended to read as follows: 6 13 5. a. The taxes imposed under this division shall 6 14 be reduced by a state tax credit for increasing 6 15 research activities in this state equal tosix and6 16one-half percent of the state's apportioned share of6 17the qualifying expenditures for increasing research6 18activities.the sum of the following: 6 19 (1) Six and one-half percent of the excess of 6 20 qualified research expenses during the tax year over 6 21 the base amount for the tax year based upon the 6 22 state's apportioned share of the qualifying 6 23 expenditures for increasing research activities. 6 24 (2) Six and one-half percent of the basic research 6 25 payments determined under section 41(e)(1)(A) of the 6 26 Internal Revenue Code during the tax year based upon 6 27 the state's apportioned share of the qualifying 6 28 expenditures for increasing research activities. 6 29 The state's apportioned share of the qualifying 6 30 expenditures for increasing research activities is a 6 31 percent equal to the ratio of qualified research 6 32 expenditures in this state to the total qualified 6 33 research expenditures. 6 34 b. In lieu of the credit amount computed in 6 35 paragraph "a", subparagraph (1), a corporation may 6 36 elect to compute the credit amount for qualified 6 37 research expenses incurred in this state in a manner 6 38 consistent with the alternative incremental credit 6 39 described in section 41(c)(4) of the Internal Revenue 6 40 Code. The taxpayer may make this election regardless 6 41 of the method used for the taxpayer's federal income 6 42 tax. The election made under this paragraph is for 6 43 the tax year and the taxpayer may use another or the 6 44 same method for any subsequent year. 6 45 c. For purposes of the alternate credit 6 46 computation method in paragraph "b", the credit 6 47 percentages applicable to qualified research expenses 6 48 described in clauses (i), (ii), and (iii) of section 6 49 41(c)(4)(A) of the Internal Revenue Code are one and 6 50 sixty-five hundredths percent, two and twenty 7 1 hundredths percent, and two and seventy-five 7 2 hundredths percent, respectively. 7 3 d. For purposes of this subsection,"qualifying7 4expenditures for increasing research activities" means7 5the qualifying expenditures"base amount", "basic 7 6 research payment", and "qualified research expense" 7 7 mean the same as defined for the federal credit for 7 8 increasing research activitieswhich would be7 9allowableunder section 41 of the Internal Revenue 7 10 Codein effect on January 1, 1999, except that for the 7 11 alternative incremental credit such amounts are for 7 12 research conducted within this state. For purposes of 7 13 this subsection, "Internal Revenue Code" means the 7 14 Internal Revenue Code in effect on January 1, 2000. 7 15 e. Any credit in excess of the tax liability for 7 16 the taxable year shall be refunded with interest 7 17 computed under section 422.25. In lieu of claiming a 7 18 refund, a taxpayer may elect to have the overpayment 7 19 shown on its final, completed return credited to the 7 20 tax liability for the following taxable year." 7 21 #4. Page 5, by inserting after line 22 the 7 22 following: 7 23 "Sec. . APPLICABILITY DATE. Sections 1, 102, 7 24 104, and 105, of this Act apply retroactively to 7 25 January 1, 2000, for tax years beginning on or after 7 26 that date. Section 103 of this Act applies to tax 7 27 years beginning on or after January 1, 2001." 7 28 #5. Title page, line 3, by inserting after the 7 29 word "barns" the following: ", an alternative method 7 30 for computing the individual and corporate income tax 7 31 credit for increasing research and development, and an 7 32 increase in the deduction for pension and retirement 7 33 income for income tax purposes, and including 7 34 applicability dates". 7 35 7 36 7 37 7 38 VAN FOSSEN of Scott 7 39 7 40 7 41 7 42 ALONS of Sioux 7 43 7 44 7 45 7 46 BAUDLER of Adair 7 47 7 48 7 49 7 50 DAVIS of Wapello 8 1 8 2 8 3 8 4 DRAKE of Pottawattamie 8 5 8 6 8 7 8 8 NELSON-FORBES of Marshall 8 9 8 10 8 11 8 12 GARMAN of Story 8 13 8 14 8 15 8 16 HOUSER of Pottawattamie 8 17 8 18 8 19 8 20 JAGER of Black Hawk 8 21 8 22 8 23 8 24 LORD of Dallas 8 25 8 26 8 27 8 28 MARTIN of Scott 8 29 8 30 8 31 8 32 MILLAGE of Scott 8 33 8 34 8 35 8 36 RAECKER of Polk 8 37 8 38 8 39 8 40 SHEY of Linn 8 41 8 42 8 43 8 44 SUKUP of Franklin 8 45 8 46 8 47 8 48 SUNDERBRUCH of Scott 8 49 8 50 9 1 9 2 ARNOLD of Lucas 9 3 9 4 9 5 9 6 BARRY of Harrison 9 7 9 8 9 9 9 10 BLODGETT of Cerro Gordo 9 11 9 12 9 13 9 14 BOAL of Polk 9 15 9 16 9 17 9 18 BODDICKER of Cedar 9 19 9 20 9 21 9 22 BOGGESS of Page 9 23 9 24 9 25 9 26 BRADLEY of Clinton 9 27 9 28 9 29 9 30 BRAUNS of Muscatine 9 31 9 32 9 33 9 34 BRUNKHORST of Bremer 9 35 9 36 9 37 9 38 CARROLL of Poweshiek 9 39 9 40 9 41 9 42 CORMACK of Webster 9 43 9 44 9 45 9 46 DIX of Butler 9 47 9 48 9 49 9 50 DOLECHECK of Ringgold 10 1 10 2 10 3 10 4 EDDIE of Buena Vista 10 5 10 6 10 7 10 8 GIPP of Winneshiek 10 9 10 10 10 11 10 12 GRUNDBERG of Polk 10 13 10 14 10 15 10 16 HAHN of Muscatine 10 17 10 18 10 19 10 20 HANSEN of Pottawattamie 10 21 10 22 10 23 10 24 HEATON of Henry 10 25 10 26 10 27 10 28 HOFFMAN of Crawford 10 29 10 30 10 31 10 32 HOLMES of Scott 10 33 10 34 10 35 10 36 HORBACH of Tama 10 37 10 38 10 39 10 40 HUSEMAN of Cherokee 10 41 10 42 10 43 10 44 JACOBS of Polk 10 45 10 46 10 47 10 48 JOHNSON of Osceola 10 49 10 50 11 1 11 2 KETTERING of Sac 11 3 11 4 11 5 11 6 KLEMME of Plymouth 11 7 11 8 11 9 11 10 LARSON of Linn 11 11 11 12 11 13 11 14 METCALF of Polk 11 15 11 16 11 17 11 18 RANTS of Woodbury 11 19 11 20 11 21 11 22 RAYHONS of Hancock 11 23 11 24 11 25 11 26 SIEGRIST of Pottawattamie 11 27 11 28 11 29 11 30 TEIG of Hamilton 11 31 11 32 11 33 11 34 THOMSON of Linn 11 35 11 36 11 37 11 38 TYRRELL of Iowa 11 39 11 40 11 41 11 42 VAN ENGELENHOVEN of Mahaska 11 43 11 44 11 45 11 46 WEIDMAN of Cass 11 47 11 48 11 49 11 50 WELTER of Jones 12 1 HF 2560.202 78 12 2 mg/gg
Text: H09018 Text: H09020 Text: H09000 - H09099 Text: H Index Bills and Amendments: General Index Bill History: General Index
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