Text: HF00732 Text: HF00734 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 1 2 HOUSE FILE 733 1 3 1 4 AN ACT 1 5 RELATING TO ECONOMIC DEVELOPMENT TAX CREDITS BY AMENDING 1 6 THE NEW INVESTMENT TAX CREDIT UNDER THE NEW JOBS AND 1 7 INCOME PROGRAM, AMENDING THE INCENTIVES AND ASSISTANCE 1 8 UNDER THE ENTERPRISE ZONE PROGRAM, AND REQUESTING AN 1 9 ENTERPRISE ZONE INTERIM STUDY COMMITTEE. 1 10 1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 12 1 13 Section 1. Section 15.333, Code 1999, is amended to read 1 14 as follows: 1 15 15.333 INVESTMENT TAX CREDIT. 1 16 1. An eligible business may claim a corporate tax credit 1 17 up to a maximum of ten percent of the new investment which is 1 18 directly related to new jobs created by the location or 1 19 expansion of an eligible business under the program. Any 1 20 credit in excess of the tax liability for the tax year may be 1 21 credited to the tax liability for the following seven years or 1 22 until depleted, whichever occurs earlier. If the business is 1 23 a partnership, subchapter S corporation, limited liability 1 24 company, or estate or trust electing to have the income taxed 1 25 directly to the individual, an individual may claim the tax 1 26 credit allowed. The amount claimed by the individual shall be 1 27 based upon the pro rata share of the individual's earnings of 1 28 the partnership, subchapter S corporation, limited liability 1 29 company, or estate or trust. For purposes of this section, 1 30 "new investment directly related to new jobs created by the 1 31 location or expansion of an eligible business under the 1 32 program" means the cost of machinery and equipment, as defined 1 33 in section 427A.1, subsection 1, paragraphs "e" and "j", 1 34 purchased for use in the operation of the eligible business, 1 35 the purchase price of which has been depreciated in accordance 2 1 with generally accepted accounting principles, and the cost of 2 2 improvements made to real property which is used in the 2 3 operation of the eligible business and which receives a 2 4 partial property tax exemption for the actual value added 2 5 under section 15.332. 2 6 2. For purposes of this section, the purchase price of 2 7 real property and any buildings and structures located on the 2 8 real property will be considered a new investment in the 2 9 location or expansion of an eligible business. However, if 2 10 within five years of purchase, the eligible business sells, 2 11 disposes of, razes, or otherwise renders unusable all or a 2 12 part of the land, buildings, or other existing structures for 2 13 which tax credit was claimed under this section, the income 2 14 tax liability of the eligible business for the year in which 2 15 all or part of the property is sold, disposed of, razed, or 2 16 otherwise rendered unusable shall be increased by one of the 2 17 following amounts: 2 18 a. One hundred percent of the tax credit claimed under 2 19 this section if the property ceases to be eligible for the tax 2 20 credit within one full year after being placed in service. 2 21 b. Eighty percent of the tax credit claimed under this 2 22 section if the property ceases to be eligible for the tax 2 23 credit within two full years after being placed in service. 2 24 c. Sixty percent of the tax credit claimed under this 2 25 section if the property ceases to be eligible for the tax 2 26 credit within three full years after being placed in service. 2 27 d. Forty percent of the tax credit claimed under this 2 28 section if the property ceases to be eligible for the tax 2 29 credit within four full years after being placed in service. 2 30 e. Twenty percent of the tax credit claimed under this 2 31 section if the property ceases to be eligible for the tax 2 32 credit within five full years after being placed in service. 2 33 Sec. 2. Section 15E.196, Code 1999, is amended by adding 2 34 the following new subsection: 2 35 NEW SUBSECTION. 6. Insurance premium tax credit, as 3 1 provided in section 15.333A. 3 2 Sec. 3. The legislative council is requested to establish 3 3 an enterprise zone interim study committee to consider all of 3 4 the following issues regarding the enterprise zone program 3 5 established in division XVIII of chapter 15E: 3 6 1. Eligibility criteria under the enterprise zone program. 3 7 2. The movement of existing businesses into enterprise 3 8 zones. 3 9 3. The establishment of additional enterprise zones. 3 10 4. The current overall performance and effectiveness of 3 11 the enterprise zone program. 3 12 3 13 3 14 3 15 BRENT SIEGRIST 3 16 Speaker of the House 3 17 3 18 3 19 3 20 MARY E. KRAMER 3 21 President of the Senate 3 22 3 23 I hereby certify that this bill originated in the House and 3 24 is known as House File 733, Seventy-eighth General Assembly. 3 25 3 26 3 27 3 28 ELIZABETH ISAACSON 3 29 Chief Clerk of the House 3 30 Approved , 1999 3 31 3 32 3 33 3 34 THOMAS J. VILSACK 3 35 Governor
Text: HF00732 Text: HF00734 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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