Text: S05548 Text: S05550 Text: S05500 - S05599 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend House File 2540, as amended, passed, and
1 2 reprinted by the House, as follows:
1 3 #1. By striking page 1, line 1, through page 2,
1 4 line 7 and inserting the following:
1 5 "Section 1. Section 15.333, subsection 1, Code
1 6 Supplement 1999, is amended to read as follows:
1 7 1. An eligible business may claim a corporate tax
1 8 credit up to a maximum of ten percent of the new
1 9 investment which is directly related to new jobs
1 10 created by the location or expansion of an eligible
1 11 business under the program. Any credit in excess of
1 12 the tax liability for the tax year may be credited to
1 13 the tax liability for the following seven years or
1 14 until depleted, whichever occurs earlier. Subject to
1 15 prior approval by the department of economic
1 16 development in consultation with the department of
1 17 revenue and finance, an eligible business whose
1 18 project primarily involves the production of value-
1 19 added agricultural products may elect to refund all or
1 20 a portion of an unused tax credit. The refund may be
1 21 used against a tax liability imposed under chapter
1 22 422, division II, III, or V. If the business is a
1 23 partnership, subchapter S corporation, limited
1 24 liability company, or estate or trust electing to have
1 25 the income taxed directly to the individual, an
1 26 individual may claim the tax credit allowed. The
1 27 amount claimed by the individual shall be based upon
1 28 the pro rata share of the individual's earnings of the
1 29 partnership, subchapter S corporation, limited
1 30 liability company, or estate or trust. For purposes
1 31 of this section, "new investment directly related to
1 32 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
1 36 use in the operation of the eligible business, the
1 37 purchase price of which has been depreciated in
1 38 accordance with generally accepted accounting
1 39 principles, and the cost of improvements made to real
1 40 property which is used in the operation of the
1 41 eligible business and which receives a partial
1 42 property tax exemption for the actual value added
1 43 under section 15.332.
1 44 1A. An eligible business whose project primarily
1 45 involves the production of value-added agricultural
1 46 products, that elects to receive a refund of all or a
1 47 portion of an unused tax credit, shall apply to the
1 48 department of economic development for tax credit
1 49 certificates. An eligible business whose project
1 50 primarily involves the production of value-added
2 1 agricultural products shall not claim a tax credit
2 2 under this section unless a tax credit certificate
2 3 issued by the department of economic development is
2 4 attached to the taxpayer's tax return for the tax year
2 5 during which the tax credit is claimed. A tax credit
2 6 certificate shall not be valid until the tax year
2 7 following the date of the project completion. A tax
2 8 credit certificate shall contain the taxpayer's name,
2 9 address, tax identification number, the date of
2 10 project completion, the amount of the tax credit,
2 11 other information required by the department of
2 12 revenue and finance. The department of economic
2 13 development shall not issue tax credit certificates
2 14 which total more than four million dollars during a
2 15 fiscal year. If the department receives applications
2 16 for tax credit certificates in excess of four million
2 17 dollars, the applicants shall receive certificates for
2 18 a prorated amount. The tax credit certificates shall
2 19 not be transferred."
2 20 #2. Page 2, line 27, by striking the words "which
2 21 a" and inserting the following: "which an insurance
2 22 premium".
2 23 #3. Page 2, line 28, by striking the word "income"
2 24 and inserting the following: "insurance premium".
2 25 #4. Page 3, by inserting after line 12 the
2 26 following:
2 27 "Sec. . Section 15E.192, Code 1999, is amended
2 28 by adding the following new subsection:
2 29 NEW SUBSECTION. 2A. a. A county may designate an
2 30 enterprise zone within an area located in one or more
2 31 contiguous census tracts or other geographic units of
2 32 the county that meets at least two of the following
2 33 distress criteria:
2 34 (1) The area has a per capita income of nine
2 35 thousand six hundred dollars or less based according
2 36 to the 1990 census.
2 37 (2) The area has a family poverty rate of twelve
2 38 percent or more according to the 1990 census.
2 39 (3) Ten percent or more of the housing units in
2 40 the area are vacant.
2 41 (4) The valuations of each class of property in
2 42 the designated area of the census tract is seventy-
2 43 five percent or less of the countywide average for
2 44 that classification based upon the most recent
2 45 valuations for property tax purposes.
2 46 (5) The area is a blighted area, as defined in
2 47 section 403.17.
2 48 b. The department shall not approve more than five
2 49 enterprise zones designated under this subsection
2 50 prior to July 1, 2001."
3 1 #5. Page 4, by striking lines 3 through 7 and
3 2 inserting the following:
3 3 "NEW PARAGRAPH. e. Information showing the total
3 4 costs and sources of project financing that will be
3 5 utilized for the new investment directly related to
3 6 housing for which the business is seeking approval for
3 7 a tax credit provided in subsection 6, paragraph "a"."
3 8 #6. Page 4, by inserting after line 29 the
3 9 following:
3 10 "Sec. 3. Section 15E.193B, Code 1999, is amended
3 11 by adding the following new subsection:
3 12 NEW SUBSECTION. 9. The amount of the tax credits
3 13 determined pursuant to section 15E.193B, subsection 6,
3 14 paragraph "a", for each project shall be approved by
3 15 the department of economic development. The
3 16 department shall utilize the financial information
3 17 required to be provided under section 15E.193B,
3 18 subsection 5, paragraph "e", to determine the tax
3 19 credits allowed for each project. In determining the
3 20 amount of tax credits to be allowed for a project, the
3 21 department shall not include the portion of the
3 22 project cost financed through federal, state, and
3 23 local government tax credits, grants, and forgivable
3 24 loans."
3 25 #7. Page 4, line 31, by striking the word
3 26 "subsections" and inserting the following:
3 27 "subsection".
3 28 #8. By striking page 4, line 32, through page 5,
3 29 line 14.
3 30 #9. By striking page 5, line 31, through page 8,
3 31 line 22.
3 32 #10. Page 8, line 25, by striking the word and
3 33 figures "6, and 10" and inserting the following: "and
3 34 6".
3 35 #11. Page 8, line 27, by inserting after the word
3 36 "date." the following: "Section 1 of this Act takes
3 37 effect July 1, 2001, and applies to tax years
3 38 beginning on or after that date."
3 39 #12. By renumbering as necessary.
3 40
3 41
3 42
3 43 LARRY McKIBBEN
3 44 HF 2540.308 78
3 45 tm/cf
Text: S05548 Text: S05550 Text: S05500 - S05599 Text: S Index Bills and Amendments: General Index Bill History: General Index
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