Text: HF02099 Text: HF02101 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.333, subsection 1, Code Supplement 1 2 1999, is amended to read as follows: 1 3 1. An eligible business may claim a corporate tax credit 1 4 up to a maximum of ten percent of the new investment which is 1 5 directly related to new jobs created by the location or 1 6 expansion of an eligible business under the program. Any 1 7 credit in excess of the tax liability for the tax year may be 1 8 credited to the tax liability for the following seven years or 1 9 until depleted, whichever occurs earlier. An eligible 1 10 business whose project will produce or manufacture high value- 1 11 added goods or services in a targeted industry of the state, 1 12 as defined by the department, may, in the tax year of the 1 13 project completion, elect to have any tax credit in excess of 1 14 the tax liability for the taxable year refunded at a 1 15 discounted value, in lieu of any remaining allowable tax 1 16 credit that could be credited to the tax liability of the 1 17 business in future tax years. The discounted value of the tax 1 18 credit refund, as calculated by the department, shall be 1 19 determined based on the discounted value of the tax credit 1 20 five years after the tax year of the project completion at an 1 21 interest rate equivalent to the prime rate plus two percent. 1 22 The refunded tax credit shall not exceed seventy-five percent 1 23 of the allowable tax credit. If the business is a 1 24 partnership, subchapter S corporation, limited liability 1 25 company, or estate or trust electing to have the income taxed 1 26 directly to the individual, an individual may claim the tax 1 27 credit or refund allowed. The amount claimed by the 1 28 individual shall be based upon the pro rata share of the 1 29 individual's earnings of the partnership, subchapter S 1 30 corporation, limited liability company, or estate or trust. 1 31 For purposes of this section, "new investment directly related 1 32 to new jobs created by the location or expansion of an 1 33 eligible business under the program" means the cost of 1 34 machinery and equipment, as defined in section 427A.1, 1 35 subsection 1, paragraphs "e" and "j", purchased for use in the 2 1 operation of the eligible business, the purchase price of 2 2 which has been depreciated in accordance with generally 2 3 accepted accounting principles, and the cost of improvements 2 4 made to real property which is used in the operation of the 2 5 eligible businessand which receives a partial property tax2 6exemption for the actual value added under section 15.332. 2 7 Sec. 2. Section 15E.192, subsection 3, Code 1999, is 2 8 amended to read as follows: 2 9 3. A county or city may apply to the department for an 2 10 area to be certified as an enterprise zone at any time prior 2 11 to July 1,20002003. However, the total amount of land 2 12 designated as enterprise zones under subsections 1 and 2 shall 2 13 not exceed in the aggregate one percent of the total county 2 14 area. 2 15 Sec. 3. Section 15E.194, Code 1999, is amended by adding 2 16 the following new subsections: 2 17 NEW SUBSECTION. 3. Any county may designate an enterprise 2 18 zone in an area located in one or more contiguous census 2 19 tracts or other geographic units approved by the department of 2 20 economic development, in which the area to be designated meets 2 21 at least two of the following criteria that is measurable with 2 22 1990 census statistics or other relevant data: 2 23 a. The area has a per capita income of nine thousand six 2 24 hundred dollars or less based on the 1990 census. 2 25 b. The area has a family poverty rate of twelve percent or 2 26 more based on the 1990 census. 2 27 c. Ten percent or more of the housing units are vacant in 2 28 the area. 2 29 d. The valuations of each class of property in the 2 30 designated area is seventy-five percent or less of the 2 31 countywide average for that classification based upon the most 2 32 recent valuations for property tax purposes. 2 33 e. The area is a blighted area, as defined in section 2 34 403.17. 2 35 NEW SUBSECTION. 4. A city of any size or any county may 3 1 designate an enterprise zone at any time prior to July 1, 3 2 2010, when a business closure occurs involving the loss of 3 3 full-time employees, not including retail employees, at one 3 4 place of business totaling at least one thousand employees or 3 5 five percent or more of the county's resident labor force 3 6 based on the most recent annual resident labor force 3 7 statistics from the department of workforce development, 3 8 whichever is lower. The enterprise zone may be established on 3 9 the property of the place of business that has closed and the 3 10 enterprise zone may include an area up to an additional fifty 3 11 acres adjacent to the property. The area meeting the 3 12 requirements for enterprise zone eligibility under this 3 13 subsection shall not be included for the purpose of 3 14 determining the area limitation pursuant to section 15E.192, 3 15 subsection 3. 3 16 Sec. 4. Section 15E.194, subsection 3, Code 1999, is 3 17 amended to read as follows: 3 183.5. The department of economic development shall certify 3 19 eligible enterprise zones that meet the requirements of 3 20 subsection 1, 3, or 4, upon request by the county or 3 21 subsection 2 or 4 upon request by the city, as applicable. 3 22 Sec. 5. Section 15E.195, subsections 1 and 2, Code 1999, 3 23 are amended to read as follows: 3 24 1. A county which designates an enterprise zone pursuant 3 25 to section 15E.194, subsection 1, 3, or 4, and in which an 3 26 eligible enterprise zone is certified shall establish an 3 27 enterprise zone commission to review applications from 3 28 qualified businesses located within or requesting to locate 3 29 within an enterprise zone designated pursuant to section 3 30 15E.194, subsection 1, 3, or 4, to receive incentives or 3 31 assistance as provided in section 15E.196. The enterprise 3 32 zone commission shall also review applications from qualified 3 33 housing businesses requesting to receive incentives or 3 34 assistance as provided in section 15E.193B. The commission 3 35 shall consist of nine members. Five of these members shall 4 1 consist of one representative of the board of supervisors, one 4 2 member with economic development expertise chosen by the 4 3 department of economic development, one representative of the 4 4 county zoning board, one member of the local community college 4 5 board of directors, and one representative of the local 4 6 workforce development center. These five members shall select 4 7 the remaining four members. If the enterprise zone consists 4 8 of an area meeting the requirements for eligibility for an 4 9 urban or rural enterprise community under Title XIII of the 4 10 federal Omnibus Budget Reconciliation Act of 1993, one of the 4 11 remaining four members shall be a representative of that 4 12 community. A county shall have only one enterprise zone 4 13 commission to review applications for incentives and 4 14 assistance for businesses located within or requesting to 4 15 locate within a certified enterprise zone designated pursuant 4 16 to section 15E.194, subsection 1, 3, or 4. 4 17 2. A city with a population of twenty-four thousand or 4 18 more which designates an enterprise zone pursuant to section 4 19 15E.194, subsection 2 or 4, and in which an eligible 4 20 enterprise zone is certified shall establish an enterprise 4 21 zone commission to review applications from qualified 4 22 businesses located within or requesting to locate within an 4 23 enterprise zone to receive incentives or assistance as 4 24 provided in section 15E.196. The commission shall consist of 4 25 nine members. Six of these members shall consist of one 4 26 representative of an international labor organization, one 4 27 member with economic development expertise chosen by the 4 28 department of economic development, one representative of the 4 29 city council, one member of the local community college board 4 30 of directors, one member of the city planning and zoning 4 31 commission, and one representative of the local workforce 4 32 development center. These six members shall select the 4 33 remaining three members. If the enterprise zone consists of 4 34 an area meeting the requirements for eligibility for an urban 4 35 enterprise community under Title XIII of the federal Omnibus 5 1 Budget Reconciliation Act of 1993, one of the remaining three 5 2 members shall be a representative of that community. If a 5 3 city contiguous to the city designating the enterprise zone is 5 4 included in an enterprise zone, a representative of the 5 5 contiguous city, chosen by the city council, shall be a member 5 6 of the commission. A city in which an eligible enterprise 5 7 zone is certified shall have only one enterprise zone 5 8 commission. If a city has established an enterprise zone 5 9 commission prior to the effective date of this Act, the city 5 10 may petition to the department of economic development to 5 11 change the structure of the existing commission. 5 12 Sec. 6. Section 422.6, unnumbered paragraph 1, Code 5 13 Supplement 1999, is amended to read as follows: 5 14 The tax imposed by section 422.5 less the credits allowed 5 15 under sections 15.333, 15.335,15E.193A,422.10, 422.11, 5 16 422.11A, and 422.11B, and the personal exemption credit 5 17 allowed under section 422.12 apply to and are a charge against 5 18 estates and trusts with respect to their taxable income, and 5 19 the rates are the same as those applicable to individuals. 5 20 The fiduciary shall make the return of income for the estate 5 21 or trust for which the fiduciary acts, whether the income is 5 22 taxable to the estate or trust or to the beneficiaries. 5 23 However, for tax years ending after August 5, 1997, if the 5 24 trust is a qualified preneed funeral trust as set forth in 5 25 section 685 of the Internal Revenue Code and the trustee has 5 26 elected the special tax treatment under section 685 of the 5 27 Internal Revenue Code, neither the trust nor the beneficiary 5 28 is subject to Iowa income tax on income accruing to the trust. 5 29 Sec. 7. Section 15E.193A, Code 1999, is repealed. 5 30 EXPLANATION 5 31 This bill amends the economic development enterprise zone 5 32 program. 5 33 The bill changes the deadline for a qualifying county or 5 34 city to apply for an area to be certified as an enterprise 5 35 zone from July 1, 2000, to July 1, 2003. 6 1 The bill provides two new distress criteria under which a 6 2 county or city may designate an enterprise zone. The bill 6 3 provides that a county may designate an enterprise zone if at 6 4 least two of the following five criteria are met: the area 6 5 has a per capita income of $9,600 or less, the area has a 6 6 family poverty rate of 12 percent or higher, 10 percent or 6 7 more of the housing units are vacant in the area, the 6 8 valuations of each class of property in the designated area is 6 9 75 percent or less of the countywide average for that 6 10 classification, and the area is a blighted area. 6 11 The bill also allows either a city of any size or a county 6 12 to designate an enterprise zone at any time prior to July 1, 6 13 2010, when a business closure occurs involving the loss of 6 14 full-time employees, not including retail employees, at one 6 15 place of business totaling at least 1,000 employees or 5 6 16 percent or more of the county's labor force. The bill 6 17 provides that the enterprise zone may be established on 6 18 property of the place of business that has closed and may 6 19 include an area up to an additional 50 acres adjacent to the 6 20 property. 6 21 The bill amends the investment tax credit under the new 6 22 jobs and income program which is also an incentive under the 6 23 enterprise zone program. The bill provides that an eligible 6 24 business whose project will produce or manufacture high value- 6 25 added goods or services in a targeted industry may, in the tax 6 26 year of the project completion, elect to have any tax credit 6 27 in excess of the tax liability for the taxable year refunded 6 28 at a discounted rate, in lieu of carrying over the excess 6 29 allowable tax credit to future tax years. The bill provides 6 30 that the discounted value of the refund will be determined 6 31 based on the discounted value of the tax credit five years 6 32 after the project completion at an interest rate equivalent to 6 33 the prime rate plus 2 percent. The refund shall not exceed 75 6 34 percent of the allowable tax credit. The bill amends the 6 35 definition of the term "new investment directly related to new 7 1 jobs created by the location or expansion of an eligible 7 2 business under the program" by removing the requirement that 7 3 the cost of improvements made to real property must receive a 7 4 partial property tax exemption under Code section 15.332. 7 5 The bill eliminates the special alternative eligible 7 6 business criteria which was added to the program during the 7 7 1998 legislative session. The alternative eligible business 7 8 criteria allowed a business which is not located in an 7 9 enterprise zone to receive incentives and assistance under the 7 10 program provided that certain criteria are met. 7 11 LSB 6055HH 78 7 12 tm/cls/14
Text: HF02099 Text: HF02101 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2000 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: Fri Feb 11 03:35:16 CST 2000
URL: /DOCS/GA/78GA/Legislation/HF/02100/HF02100/000131.html
jhf