Text: SF02423 Text: SF02425 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2424 1 2 1 3 AN ACT 1 4 UPDATING THE IOWA CODE REFERENCES TO THE INTERNAL REVENUE 1 5 CODE, AMENDING THE EARNED INCOME CREDIT, AMENDING 1 6 REQUIREMENTS FOR NONRESIDENT TAXPAYERS, PROVIDING TAX 1 7 BENEFITS TO MILITARY PERSONNEL IN HAZARDOUS DUTY AREAS, 1 8 AND PROVIDING EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 1 9 1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 11 1 12 Section 1. Section 15.335, unnumbered paragraph 1, Code 1 13 Supplement 1999, is amended to read as follows: 1 14 An eligible business may claim a corporate tax credit for 1 15 increasing research activities in this state during the period 1 16 the eligible business is participating in the program. The 1 17 credit equals six and one-half percent of the state's 1 18 apportioned share of the qualifying expenditures for 1 19 increasing research activities. The state's apportioned share 1 20 of the qualifying expenditures for increasing research 1 21 activities is a percent equal to the ratio of qualified 1 22 research expenditures in this state to total qualified 1 23 research expenditures. The credit allowed in this section is 1 24 in addition to the credit authorized in section 422.33, 1 25 subsection 5. If the eligible 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 "qualifying expenditures for increasing research activities" 1 34 means the qualifying expenditures as defined for the federal 1 35 credit for increasing research activities which would be 2 1 allowable under section 41 of the Internal Revenue Code in 2 2 effect on January 1,19992000. 2 3 Sec. 2. Section 15A.9, subsection 8, unnumbered paragraph 2 4 2, Code Supplement 1999, is amended to read as follows: 2 5 For the purposes of this section, "qualifying expenditures 2 6 for increasing research activities" means the qualifying 2 7 expenditures as defined for the federal credit for increasing 2 8 research activities which would be allowable under section 41 2 9 of the Internal Revenue Code in effect on January 1,19992 10 2000. The credit authorized in this subsection is in lieu of 2 11 the credit authorized in section 422.33, subsection 5. 2 12 Sec. 3. Section 422.3, subsection 4, Code Supplement 1999, 2 13 is amended to read as follows: 2 14 4. "Internal Revenue Code" means the Internal Revenue Code 2 15 of 1954, prior to the date of its redesignation as the 2 16 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 2 17 or means the Internal Revenue Code of 1986 as amended to and 2 18 including January 1,19992000, whichever is applicable. 2 19 Sec. 4. Section 422.10, unnumbered paragraph 1, Code 2 20 Supplement 1999, is amended to read as follows: 2 21 The taxes imposed under this division shall be reduced by a 2 22 state tax credit for increasing research activities in this 2 23 state. For individuals, the credit equals six and one-half 2 24 percent of the state's apportioned share of the qualifying 2 25 expenditures for increasing research activities. The state's 2 26 apportioned share of the qualifying expenditures for 2 27 increasing research activities is a percent equal to the ratio 2 28 of qualified research expenditures in this state to total 2 29 qualified research expenditures. For purposes of this 2 30 section, an individual may claim a research credit for 2 31 qualifying research expenditures incurred by a partnership, 2 32 subchapter S corporation, estate, or trust electing to have 2 33 the income taxed directly to the individual. The amount 2 34 claimed by the individual shall be based upon the pro rata 2 35 share of the individual's earnings of a partnership, 3 1 subchapter S corporation, estate, or trust. For purposes of 3 2 this section, "qualifying expenditures for increasing research 3 3 activities" means the qualifying expenditures as defined for 3 4 the federal credit for increasing research activities which 3 5 would be allowable under section 41 of the Internal Revenue 3 6 Code in effect on January 1,19992000. 3 7 Sec. 5. Section 422.12B, subsection 1, Code 1999, is 3 8 amended to read as follows: 3 9 1. The taxes imposed under this division less the credits 3 10 allowed under section 422.12 shall be reduced by an earned 3 11 income credit equal to six and one-half percent of the federal 3 12basicearned income creditand the health insurance credit3 13 provided in section 32 of the Internal Revenue Code. Any 3 14 credit in excess of the tax liability is nonrefundable. 3 15 Sec. 6. Section 422.13, subsection 1, paragraph c, Code 3 16 Supplement 1999, is amended to read as follows: 3 17 c. However, if that part of the net income of a 3 18 nonresident which is allocated to Iowa pursuant to section 3 19 422.8, subsection 2, is less than one thousand dollars the 3 20 nonresident is not required to make and sign a return except 3 21 when the nonresident is subject to the state alternative 3 22 minimum tax imposed pursuant to section 422.5, subsection 1, 3 23 paragraph "k". 3 24 Sec. 7. Section 422.21, unnumbered paragraph 2, Code 3 25 Supplement 1999, is amended to read as follows: 3 26 An individual in the armed forces of the United States 3 27 serving in an area designated by the president of the United 3 28 States or the United States Congress as a combat zone or as a 3 29 qualified hazardous duty area, or an individual serving in 3 30 support of those forces, is allowed the same additional time 3 31 period after leaving the combat zone or the qualified 3 32 hazardous duty area, or after a period of continuous 3 33 hospitalization, to file a state income tax return or perform 3 34 other acts related to the department, as would constitute 3 35 timely filing of the return or timely performance of other 4 1 acts described in section 7508(a) of the Internal Revenue 4 2 Code. For the purposes of this paragraph, "other acts related 4 3 to the department" includes filing claims for refund for any 4 4 tax administered by the department, making tax payments other 4 5 than withholding payments, filing appeals on the tax matters, 4 6 filing other tax returns, and performing other acts described 4 7 in the department's rules. The additional time period allowed 4 8 applies to the spouse of the individual described in this 4 9 paragraph to the extent the spouse files jointly or separately 4 10 on the combined return form with the individual or when the 4 11 spouse is a party with the individual to any matter for which 4 12 the additional time period is allowed.For the purposes of4 13this paragraph, the Internal Revenue Code shall be interpreted4 14to include the provisions of Pub. L. No. 102-2.4 15 Sec. 8. Section 422.33, subsection 5, unnumbered paragraph 4 16 1, Code Supplement 1999, is amended to read as follows: 4 17 The taxes imposed under this division shall be reduced by a 4 18 state tax credit for increasing research activities in this 4 19 state equal to six and one-half percent of the state's 4 20 apportioned share of the qualifying expenditures for 4 21 increasing research activities. The state's apportioned share 4 22 of the qualifying expenditures for increasing research 4 23 activities is a percent equal to the ratio of qualified 4 24 research expenditures in this state to the total qualified 4 25 research expenditures. For purposes of this subsection, 4 26 "qualifying expenditures for increasing research activities" 4 27 means the qualifying expenditures as defined for the federal 4 28 credit for increasing research activities which would be 4 29 allowable under section 41 of the Internal Revenue Code in 4 30 effect on January 1,19992000. 4 31 Sec. 9. RETROACTIVE APPLICABILITY. Sections 1 through 5, 4 32 7, and 8 of this Act apply retroactively to January 1, 1999, 4 33 for tax years beginning on or after that date. 4 34 Sec. 10. RETROACTIVE APPLICABILITY. Section 6 of this Act 4 35 applies retroactively to January 1, 2000, for tax years 5 1 beginning on or after that date. 5 2 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 5 3 immediate importance, takes effect upon enactment. 5 4 5 5 5 6 5 7 MARY E. KRAMER 5 8 President of the Senate 5 9 5 10 5 11 5 12 BRENT SIEGRIST 5 13 Speaker of the House 5 14 5 15 I hereby certify that this bill originated in the Senate and 5 16 is known as Senate File , Seventy-eighth General Assembly. 5 17 5 18 5 19 5 20 MICHAEL E. MARSHALL 5 21 Secretary of the Senate 5 22 Approved , 2000 5 23 5 24 5 25 5 26 THOMAS J. VILSACK 5 27 Governor 5 28
Text: SF02423 Text: SF02425 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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