Text: SF02440 Text: SF02442 Text: SF02400 - SF02499 Text: SF 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. Subject to prior
1 10 approval by the department of economic development in
1 11 consultation with the department of revenue and finance, an
1 12 eligible business whose project primarily involves the
1 13 production of value-added agricultural products may elect to
1 14 transfer all or a portion of an unused tax credit to any other
1 15 person. A tax credit shall only be transferred once and the
1 16 transferee shall not make a subsequent transfer of the tax
1 17 credit. The transferee may use the amount of the tax credit
1 18 transferred against a tax liability imposed under chapter 422,
1 19 division II, III, or V for any tax year the original
1 20 transferor could have claimed the credit. If the business is
1 21 a partnership, subchapter S corporation, limited liability
1 22 company, or estate or trust electing to have the income taxed
1 23 directly to the individual, an individual may claim the tax
1 24 credit allowed. The amount claimed by the individual shall be
1 25 based upon the pro rata share of the individual's earnings of
1 26 the partnership, subchapter S corporation, limited liability
1 27 company, or estate or trust. For purposes of this section,
1 28 "new investment directly related to new jobs created by the
1 29 location or expansion of an eligible business under the
1 30 program" means the cost of machinery and equipment, as defined
1 31 in section 427A.1, subsection 1, paragraphs "e" and "j",
1 32 purchased for use in the operation of the eligible business,
1 33 the purchase price of which has been depreciated in accordance
1 34 with generally accepted accounting principles, and the cost of
1 35 improvements made to real property which is used in the
2 1 operation of the eligible business and which receives a
2 2 partial property tax exemption for the actual value added
2 3 under section 15.332.
2 4 1A. Any consideration received for a transfer of a tax
2 5 credit pursuant to subsection 1 shall not be included as
2 6 income under chapter 422, division II, III, or V. Any
2 7 consideration paid for a transfer of a tax credit pursuant to
2 8 subsection 1 shall not be deducted from income under chapter
2 9 422, division II, III, or V. The amount of the new investment
2 10 directly related to new jobs created by the location or
2 11 expansion of an eligible business under the program which
2 12 equals the tax credit claimed shall not be deducted by the
2 13 transferor from income under chapter 422, division II, III, or
2 14 V.
2 15 1B. An eligible business whose project primarily involves
2 16 the production of value-added agricultural products shall
2 17 apply to the department of economic development for tax credit
2 18 certificates. An eligible business whose project primarily
2 19 involves the production of value-added agricultural products
2 20 shall not claim a tax credit under this section unless a tax
2 21 credit certificate issued by the department of economic
2 22 development is attached to the taxpayer's tax return for the
2 23 tax year during which the tax credit is claimed. A tax credit
2 24 certificate shall not be valid until the tax year following
2 25 the date of the project completion. A tax credit certificate
2 26 shall contain the taxpayer's name, address, tax identification
2 27 number, the date of project completion, the amount of the tax
2 28 credit, other information required by the department of
2 29 revenue and finance, and a place for the name and tax
2 30 identification number of a transferee and the amount of the
2 31 tax credit being transferred. The department of economic
2 32 development shall not issue tax credit certificates which
2 33 total more than four million dollars during a fiscal year. If
2 34 the department receives applications for tax credit
2 35 certificates in excess of four million dollars, the applicants
3 1 shall receive certificates for a prorated amount.
3 2 Sec. 2. EFFECTIVE DATE AND APPLICABILITY. This Act takes
3 3 effect July 1, 2001, and applies to tax years beginning on or
3 4 after that date.
3 5 EXPLANATION
3 6 This bill amends the investment tax credit under the new
3 7 jobs and income program, which allows an eligible business to
3 8 claim a corporate tax credit up to a maximum of 10 percent of
3 9 the new investment which is directly related to new jobs
3 10 created by the location or expansion of an eligible business
3 11 under the program. The investment tax credit is also
3 12 available to eligible businesses in the enterprise zone
3 13 program. The bill provides that an eligible business whose
3 14 project primarily involves the production of value-added
3 15 agricultural projects may elect to transfer all or a portion
3 16 of an unused tax credit to any other person. The bill
3 17 provides that a tax credit shall only be transferred once and
3 18 the transferee shall not make a subsequent transfer of the tax
3 19 credit. The bill provides that any consideration received for
3 20 a transfer of a tax credit shall not be included as income,
3 21 any consideration paid for a transfer of a tax credit shall
3 22 not be deducted from income, and the amount of the new
3 23 investment under the program which equals the tax credit
3 24 claimed shall not be deducted by the transferor from income.
3 25 The bill provides that an eligible business whose project
3 26 primarily involves the production of value-added agricultural
3 27 products shall apply to the department of economic development
3 28 for tax credit certificates which shall be required to claim
3 29 the tax credit. The bill provides that a tax credit
3 30 certificate shall not be valid until the tax year following
3 31 the date of the project completion. The bill provides that
3 32 the department shall not issue tax credit certificates which
3 33 total more than $4 million during a fiscal year and if the
3 34 department receives applications for certificates in excess of
3 35 $4 million, the applicants shall receive certificates for a
4 1 prorated amount.
4 2 The bill takes effect July 1, 2001, and applies to tax
4 3 years beginning on or after that date.
4 4 LSB 5327SZ 78
4 5 tm/cls/14
Text: SF02440 Text: SF02442 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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