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
© 1999 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: Wed Jan 12 05:55:23 CST 2000
URL: /DOCS/GA/78GA/Legislation/HF/00700/HF00733/990503.html
jhf