Text: HF02539 Text: HF02541 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2540 1 2 1 3 AN ACT 1 4 RELATING TO ECONOMIC DEVELOPMENT PROGRAMS AND RELATED TAX 1 5 CREDITS AND INCLUDING EFFECTIVE AND RETROACTIVE APPLICABILITY 1 6 DATE PROVISIONS. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 15.333, subsection 1, Code Supplement 1 11 1999, is amended to read as follows: 1 12 1. An eligible business may claim a corporate tax credit 1 13 up to a maximum of ten percent of the new investment which is 1 14 directly related to new jobs created by the location or 1 15 expansion of an eligible business under the program. Any 1 16 credit in excess of the tax liability for the tax year may be 1 17 credited to the tax liability for the following seven years or 1 18 until depleted, whichever occurs earlier. Subject to prior 1 19 approval by the department of economic development in 1 20 consultation with the department of revenue and finance, an 1 21 eligible business whose project primarily involves the 1 22 production of value-added agricultural products may elect to 1 23 refund all or a portion of an unused tax credit. The refund 1 24 may be used against a tax liability imposed under chapter 422, 1 25 division II, III, or V. If the business is a partnership, 1 26 subchapter S corporation, limited liability company, or estate 1 27 or trust electing to have the income taxed directly to the 1 28 individual, an individual may claim the tax credit allowed. 1 29 The amount claimed by the individual shall be based upon the 1 30 pro rata share of the individual's earnings of the 1 31 partnership, subchapter S corporation, limited liability 1 32 company, or estate or trust. For purposes of this section, 1 33 "new investment directly related to new jobs created by the 1 34 location or expansion of an eligible business under the 1 35 program" means the cost of machinery and equipment, as defined 2 1 in section 427A.1, subsection 1, paragraphs "e" and "j", 2 2 purchased for use in the operation of the eligible business, 2 3 the purchase price of which has been depreciated in accordance 2 4 with generally accepted accounting principles, and the cost of 2 5 improvements made to real property which is used in the 2 6 operation of the eligible business and which receives a 2 7 partial property tax exemption for the actual value added 2 8 under section 15.332. 2 9 1A. An eligible business whose project primarily involves 2 10 the production of value-added agricultural products, that 2 11 elects to receive a refund of all or a portion of an unused 2 12 tax credit, shall apply to the department of economic 2 13 development for tax credit certificates. An eligible business 2 14 whose project primarily involves the production of value-added 2 15 agricultural products shall not claim a tax credit under this 2 16 section unless a tax credit certificate issued by the 2 17 department of economic development is attached to the 2 18 taxpayer's tax return for the tax year during which the tax 2 19 credit is claimed. A tax credit certificate shall not be 2 20 valid until the tax year following the date of the project 2 21 completion. A tax credit certificate shall contain the 2 22 taxpayer's name, address, tax identification number, the date 2 23 of project completion, the amount of the tax credit, other 2 24 information required by the department of revenue and finance. 2 25 The department of economic development shall not issue tax 2 26 credit certificates which total more than four million dollars 2 27 during a fiscal year. If the department receives applications 2 28 for tax credit certificates in excess of four million dollars, 2 29 the applicants shall receive certificates for a prorated 2 30 amount. The tax credit certificates shall not be transferred. 2 31 Sec. 2. Section 15.333A, subsection 1, unnumbered 2 32 paragraph 2, Code 1999, is amended to read as follows: 2 33 For purposes of this section, "new investment directly 2 34 related to new jobs created by the location or expansion of an 2 35 eligible business under the program" means the cost of 3 1 machinery and equipment, as defined in section 427A.1, 3 2 subsection 1, paragraphs "e" and "j", purchased for use in the 3 3 operation of the eligible business, the purchase price of 3 4 which has been depreciated in accordance with generally 3 5 accepted accounting principles, and the cost of improvements 3 6 made to real property which is used in the operation of the 3 7 eligible businessand which receives a partial property tax3 8exemption for the actual value added under section 15.332. 3 9 For purposes of this section, the purchase price of real 3 10 property and any buildings and structures located on the real 3 11 property is considered a new investment in the location or 3 12 expansion of an eligible business. However, if within five 3 13 years of purchase, the eligible business sells, disposes of, 3 14 razes, or otherwise renders unusable all or a part of the 3 15 land, buildings, or other existing structures for which an 3 16 insurance premium tax credit was claimed under this section, 3 17 the insurance premium tax liability of the eligible business 3 18 for the year in which all or part of the property is sold, 3 19 disposed of, razed, or otherwise rendered unusable shall be 3 20 increased by one of the following amounts: 3 21 a. One hundred percent of the tax credit claimed under 3 22 this section if the property ceases to be eligible for the tax 3 23 credit within one year after being placed in service. 3 24 b. Eighty percent of the tax credit claimed under this 3 25 section if the property ceases to be eligible for the tax 3 26 credit within two years after being placed in service. 3 27 c. Sixty percent of the tax credit claimed under this 3 28 section if the property ceases to be eligible for the tax 3 29 credit within three years after being placed in service. 3 30 d. Forty percent of the tax credit claimed under this 3 31 section if the property ceases to be eligible for the tax 3 32 credit within four years after being placed in service. 3 33 e. Twenty percent of the tax credit claimed under this 3 34 section if the property ceases to be eligible for the tax 3 35 credit within five years after being placed in service. 4 1 Sec. 3. Section 15E.192, Code 1999, is amended by adding 4 2 the following new subsection: 4 3 NEW SUBSECTION. 2A. a. A county may designate an 4 4 enterprise zone within an area located in one or more 4 5 contiguous census tracts or other geographic units of the 4 6 county that meets at least two of the following distress 4 7 criteria: 4 8 (1) The area has a per capita income of nine thousand six 4 9 hundred dollars or less based according to the 1990 census. 4 10 (2) The area has a family poverty rate of twelve percent 4 11 or more according to the 1990 census. 4 12 (3) Ten percent or more of the housing units in the area 4 13 are vacant. 4 14 (4) The valuations of each class of property in the 4 15 designated area of the census tract is seventy-five percent or 4 16 less of the countywide average for that classification based 4 17 upon the most recent valuations for property tax purposes. 4 18 (5) The area is a blighted area, as defined in section 4 19 403.17. 4 20 b. The department shall not approve more than five 4 21 enterprise zones designated under this subsection prior to 4 22 July 1, 2001. 4 23 Sec. 4. Section 15E.192, subsection 3, Code 1999, is 4 24 amended to read as follows: 4 25 3. A county or city may apply to the department for an 4 26 area to be certified as an enterprise zone at any time prior 4 27 to July 1,20002003. However, the total amount of land 4 28 designated as enterprise zones under subsections 1 and 2 shall 4 29 not exceed in the aggregate one percent of the total county 4 30 area. 4 31 Sec. 5. Section 15E.193B, subsection 2, Code 1999, is 4 32 amended to read as follows: 4 33 2. An eligible housing business under this section 4 34 includes a housing developer,orhousing contractor, or 4 35 nonprofit organization that builds or rehabilitates a minimum 5 1 of four single-family homes with a value, after completion of 5 2 the building or rehabilitation, not exceeding one hundred 5 3 twenty thousand dollars for each home located in that part of 5 4 a city or county in which there is a designated enterprise 5 5 zone or one multiple dwelling unit building containing three 5 6 or more individual dwelling units with a total value per unit, 5 7 after completion of the building or rehabilitation, not 5 8 exceeding one hundred twenty thousand dollars located in that 5 9 part of a city or county in which there is a designated 5 10 enterprise zone. 5 11 Sec. 6. Section 15E.193B, subsection 5, Code 1999, is 5 12 amended by adding the following new paragraph: 5 13 NEW PARAGRAPH. e. Information showing the total costs and 5 14 sources of project financing that will be utilized for the new 5 15 investment directly related to housing for which the business 5 16 is seeking approval for a tax credit provided in subsection 6, 5 17 paragraph "a". 5 18 Sec. 7. Section 15E.193B, subsection 6, paragraph a, Code 5 19 1999, is amended to read as follows: 5 20 a. An eligible housing business may claiman incomea tax 5 21 credit up to a maximum of ten percent of the new investment 5 22 which is directly related to the building or rehabilitating of 5 23 a minimum of four single-family homes located in that part of 5 24 a city or county in which there is a designated enterprise 5 25 zone or one multiple dwelling unit building containing three 5 26 or more individual dwelling units located in that part of a 5 27 city or county in which there is a designated enterprise zone. 5 28 The tax credit may be used to reduce the tax liability imposed 5 29 under chapter 422, division II, III, or V. Any credit in 5 30 excess of the tax liability for the tax year may be credited 5 31 to the tax liability for the following seven years or until 5 32 depleted, whichever occurs earlier. If the business is a 5 33 partnership,subchapterS corporation, limited liability 5 34 company, or estate or trust electing to have the income taxed 5 35 directly to the individual, an individual may claim the tax 6 1 credit allowed. The amount claimed by the individual shall be 6 2 based upon the pro rata share of the individual's earnings of 6 3 the partnership,subchapterS corporation, limited liability 6 4 company, or estate or trust. 6 5 Sec. 8. Section 15E.193B, Code 1999, is amended by adding 6 6 the following new subsection: 6 7 NEW SUBSECTION. 9. The amount of the tax credits 6 8 determined pursuant to section 15E.193B, subsection 6, 6 9 paragraph "a", for each project shall be approved by the 6 10 department of economic development. The department shall 6 11 utilize the financial information required to be provided 6 12 under section 15E.193B, subsection 5, paragraph "e", to 6 13 determine the tax credits allowed for each project. In 6 14 determining the amount of tax credits to be allowed for a 6 15 project, the department shall not include the portion of the 6 16 project cost financed through federal, state, and local 6 17 government tax credits, grants, and forgivable loans. 6 18 Sec. 9. Section 15E.194, Code 1999, is amended by adding 6 19 the following new subsection: 6 20 NEW SUBSECTION. 4. A city of any size or any county may 6 21 designate an enterprise zone at any time prior to July 1, 6 22 2010, when a business closure occurs involving the loss of 6 23 full-time employees, not including retail employees, at one 6 24 place of business totaling at least one thousand employees or 6 25 four percent or more of the county's resident labor force 6 26 based on the most recent annual resident labor force 6 27 statistics from the department of workforce development, 6 28 whichever is lower. The enterprise zone may be established on 6 29 the property of the place of business that has closed and the 6 30 enterprise zone may include an area up to an additional one 6 31 mile adjacent to the property. The area meeting the 6 32 requirements for enterprise zone eligibility under this 6 33 subsection shall not be included for the purpose of 6 34 determining the area limitation pursuant to section 15E.192, 6 35 subsection 3. 7 1 Sec. 10. EFFECTIVE AND APPLICABILITY DATES. This Act, 7 2 being deemed of immediate importance, takes effect upon 7 3 enactment. Sections 5, 6, and 7 of this Act apply 7 4 retroactively to January 1, 2000, for tax years beginning on 7 5 or after that date. Section 1 of this Act takes effect July 7 6 1, 2001, and applies to tax years beginning on or after that 7 7 date. 7 8 7 9 7 10 7 11 BRENT SIEGRIST 7 12 Speaker of the House 7 13 7 14 7 15 7 16 MARY E. KRAMER 7 17 President of the Senate 7 18 7 19 I hereby certify that this bill originated in the House and 7 20 is known as House File 2540, Seventy-eighth General Assembly. 7 21 7 22 7 23 7 24 ELIZABETH ISAACSON 7 25 Chief Clerk of the House 7 26 Approved , 2000 7 27 7 28 7 29 7 30 THOMAS J. VILSACK 7 31 Governor
Text: HF02539 Text: HF02541 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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