Text: HF00489 Text: HF00491 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 15.333, Code 1999, is amended to read
1 2 as follows:
1 3 15.333 INVESTMENT TAX CREDIT.
1 4 1. An eligible business may claim a corporate tax credit
1 5 up to a maximum of ten percent of the new investment which is
1 6 directly related to new jobs created by the location or
1 7 expansion of an eligible business under the program. Any
1 8 credit in excess of the tax liability for the tax year may be
1 9 credited to the tax liability for the following seven years or
1 10 until depleted, whichever occurs earlier. If the business is
1 11 a partnership, subchapter S corporation, limited liability
1 12 company, or estate or trust electing to have the income taxed
1 13 directly to the individual, an individual may claim the tax
1 14 credit allowed. The amount claimed by the individual shall be
1 15 based upon the pro rata share of the individual's earnings of
1 16 the partnership, subchapter S corporation, limited liability
1 17 company, or estate or trust. For purposes of this section,
1 18 "new investment directly related to new jobs created by the
1 19 location or expansion of an eligible business under the
1 20 program" means the cost of machinery and equipment, as defined
1 21 in section 427A.1, subsection 1, paragraphs "e" and "j",
1 22 purchased for use in the operation of the eligible business,
1 23 the purchase price of which has been depreciated in accordance
1 24 with generally accepted accounting principles, and the cost of
1 25 improvements made to real property which is used in the
1 26 operation of the eligible business and which receives a
1 27 partial property tax exemption for the actual value added
1 28 under section 15.332.
1 29 2. For purposes of this section, the purchase price of
1 30 real property and any buildings and structures located on the
1 31 real property will be considered a new investment in the
1 32 location or expansion of an eligible business. However, if
1 33 within five years of purchase, the eligible business sells,
1 34 disposes of, razes, or otherwise renders unusable all or a
1 35 part of the land, buildings, or other existing structures for
2 1 which tax credit was claimed under this section, the income
2 2 tax liability of the eligible business for the year in which
2 3 all or part of the property is sold, disposed of, razed, or
2 4 otherwise rendered unusable shall be increased by one of the
2 5 following amounts:
2 6 a. One hundred percent of the tax credit claimed under
2 7 this section if the property ceases to be eligible for the tax
2 8 credit within one full year after being placed in service.
2 9 b. Eighty percent of the tax credit claimed under this
2 10 section if the property ceases to be eligible for the tax
2 11 credit within two full years after being placed in service.
2 12 c. Sixty percent of the tax credit claimed under this
2 13 section if the property ceases to be eligible for the tax
2 14 credit within three full years after being placed in service.
2 15 d. Forty percent of the tax credit claimed under this
2 16 section if the property ceases to be eligible for the tax
2 17 credit within four full years after being placed in service.
2 18 e. Twenty percent of the tax credit claimed under this
2 19 section if the property ceases to be eligible for the tax
2 20 credit within five full years after being placed in service.
2 21 EXPLANATION
2 22 This bill amends Code section 15.333 regarding the new
2 23 investment tax credit under the new jobs and income program.
2 24 Under the Code section, a business is allowed to claim a tax
2 25 credit of up to a maximum of 10 percent of the new investment
2 26 which is directly related to new jobs created by the location
2 27 or expansion of an eligible business under the program. The
2 28 bill defines new investment to include the purchase price of
2 29 real property and any buildings and structures located on the
2 30 real property. The bill provides that if within five years of
2 31 purchase the eligible business sells, disposes of, razes, or
2 32 otherwise renders unusable all or a part of the land,
2 33 buildings, or other structures for which an investment tax
2 34 credit was claimed, the income tax liability of the eligible
2 35 business shall be increased by a varying percentage of the
3 1 investment tax credit claimed.
3 2 LSB 1321HV 78
3 3 tm/gg/8
Text: HF00489 Text: HF00491 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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