Text: SSB03035 Text: SSB03037 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.335, unnumbered paragraph 1, Code 1 2 Supplement 1999, is amended to read as follows: 1 3 An eligible business may claim a corporate tax credit for 1 4 increasing research activities in this state during the period 1 5 the eligible business is participating in the program. The 1 6 credit equals six and one-half percent of the state's 1 7 apportioned share of the qualifying expenditures for 1 8 increasing research activities. The state's apportioned share 1 9 of the qualifying expenditures for increasing research 1 10 activities is a percent equal to the ratio of qualified 1 11 research expenditures in this state to total qualified 1 12 research expenditures. The credit allowed in this section is 1 13 in addition to the credit authorized in section 422.33, 1 14 subsection 5. If the eligible business is a partnership, 1 15 subchapter S corporation, limited liability company, or estate 1 16 or trust electing to have the income taxed directly to the 1 17 individual, an individual may claim the tax credit allowed. 1 18 The amount claimed by the individual shall be based upon the 1 19 pro rata share of the individual's earnings of the 1 20 partnership, subchapter S corporation, limited liability 1 21 company, or estate or trust. For purposes of this section, 1 22 "qualifying expenditures for increasing research activities" 1 23 means the qualifying expenditures as defined for the federal 1 24 credit for increasing research activities which would be 1 25 allowable under section 41 of the Internal Revenue Code in 1 26 effect on January 1,19992000. 1 27 Sec. 2. Section 15A.9, subsection 8, unnumbered paragraph 1 28 2, Code Supplement 1999, is amended to read as follows: 1 29 For the purposes of this section, "qualifying expenditures 1 30 for increasing research activities" means the qualifying 1 31 expenditures as defined for the federal credit for increasing 1 32 research activities which would be allowable under section 41 1 33 of the Internal Revenue Code in effect on January 1,19991 34 2000. The credit authorized in this subsection is in lieu of 1 35 the credit authorized in section 422.33, subsection 5. 2 1 Sec. 3. Section 422.3, subsection 4, Code Supplement 1999, 2 2 is amended to read as follows: 2 3 4. "Internal Revenue Code" means the Internal Revenue Code 2 4 of 1954, prior to the date of its redesignation as the 2 5 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 2 6 or means the Internal Revenue Code of 1986 as amended to and 2 7 including January 1,19992000, whichever is applicable. 2 8 Sec. 4. Section 422.10, unnumbered paragraph 1, Code 2 9 Supplement 1999, is amended to read as follows: 2 10 The taxes imposed under this division shall be reduced by a 2 11 state tax credit for increasing research activities in this 2 12 state. For individuals, the credit equals six and one-half 2 13 percent of the state's apportioned share of the qualifying 2 14 expenditures for increasing research activities. The state's 2 15 apportioned share of the qualifying expenditures for 2 16 increasing research activities is a percent equal to the ratio 2 17 of qualified research expenditures in this state to total 2 18 qualified research expenditures. For purposes of this 2 19 section, an individual may claim a research credit for 2 20 qualifying research expenditures incurred by a partnership, 2 21 subchapter S corporation, estate, or trust electing to have 2 22 the income taxed directly to the individual. The amount 2 23 claimed by the individual shall be based upon the pro rata 2 24 share of the individual's earnings of a partnership, 2 25 subchapter S corporation, estate, or trust. For purposes of 2 26 this section, "qualifying expenditures for increasing research 2 27 activities" means the qualifying expenditures as defined for 2 28 the federal credit for increasing research activities which 2 29 would be allowable under section 41 of the Internal Revenue 2 30 Code in effect on January 1,19992000. 2 31 Sec. 5. Section 422.12B, subsection 1, Code 1999, is 2 32 amended to read as follows: 2 33 1. The taxes imposed under this division less the credits 2 34 allowed under section 422.12 shall be reduced by an earned 2 35 income credit equal to six and one-half percent of the federal 3 1basicearned income creditand the health insurance credit3 2 provided in section 32 of the Internal Revenue Code. Any 3 3 credit in excess of the tax liability is nonrefundable. 3 4 Sec. 6. Section 422.13, subsection 1, paragraph c, Code 3 5 Supplement 1999, is amended to read as follows: 3 6 c. However, if that part of the net income of a 3 7 nonresident which is allocated to Iowa pursuant to section 3 8 422.8, subsection 2, is less than one thousand dollars the 3 9 nonresident is not required to make and sign a return except 3 10 when the nonresident is subject to the state alternative 3 11 minimum tax imposed pursuant to section 422.5, subsection 1, 3 12 paragraph "k". 3 13 Sec. 7. Section 422.21, unnumbered paragraph 2, Code 3 14 Supplement 1999, is amended to read as follows: 3 15 An individual in the armed forces of the United States 3 16 serving in an area designated by the president of the United 3 17 States or the United States Congress as a combat zone or as a 3 18 qualified hazardous duty area, or an individual serving in 3 19 support of those forces, is allowed the same additional time 3 20 period after leaving the combat zone or the qualified 3 21 hazardous duty area, or after a period of continuous 3 22 hospitalization, to file a state income tax return or perform 3 23 other acts related to the department, as would constitute 3 24 timely filing of the return or timely performance of other 3 25 acts described in section 7508(a) of the Internal Revenue 3 26 Code. For the purposes of this paragraph, "other acts related 3 27 to the department" includes filing claims for refund for any 3 28 tax administered by the department, making tax payments other 3 29 than withholding payments, filing appeals on the tax matters, 3 30 filing other tax returns, and performing other acts described 3 31 in the department's rules. The additional time period allowed 3 32 applies to the spouse of the individual described in this 3 33 paragraph to the extent the spouse files jointly or separately 3 34 on the combined return form with the individual or when the 3 35 spouse is a party with the individual to any matter for which 4 1 the additional time period is allowed.For the purposes of4 2this paragraph, the Internal Revenue Code shall be interpreted4 3to include the provisions of Pub. L. No. 102-2.4 4 Sec. 8. Section 422.33, subsection 5, unnumbered paragraph 4 5 1, Code Supplement 1999, is amended to read as follows: 4 6 The taxes imposed under this division shall be reduced by a 4 7 state tax credit for increasing research activities in this 4 8 state equal to six and one-half percent of the state's 4 9 apportioned share of the qualifying expenditures for 4 10 increasing research activities. The state's apportioned share 4 11 of the qualifying expenditures for increasing research 4 12 activities is a percent equal to the ratio of qualified 4 13 research expenditures in this state to the total qualified 4 14 research expenditures. For purposes of this subsection, 4 15 "qualifying expenditures for increasing research activities" 4 16 means the qualifying expenditures as defined for the federal 4 17 credit for increasing research activities which would be 4 18 allowable under section 41 of the Internal Revenue Code in 4 19 effect on January 1,19992000. 4 20 Sec. 9. RETROACTIVE AND APPLICABILITY. Sections 1 through 4 21 5, 7, and 8 of this Act apply retroactively to January 1, 4 22 1999, for tax years beginning on or after that date. 4 23 Sec. 10. RETROACTIVE AND APPLICABILITY. Section 6 of this 4 24 Act applies retroactively to January 1, 2000, for tax years 4 25 beginning on or after that date. 4 26 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 4 27 immediate importance, takes effect upon enactment. 4 28 EXPLANATION 4 29 This bill updates the references to the Internal Revenue 4 30 Code to make the federal income tax revisions enacted by 4 31 congress in 1999 applicable for Iowa income tax purposes. 4 32 Code sections 15.335, 15A.9, 422.10, and 422.33 are amended 4 33 to update the Iowa Code references to the state research 4 34 activities credit for individuals, corporations, corporations 4 35 in economic development areas, and corporations in quality 5 1 jobs enterprise zones to include the 1999 federal changes in 5 2 the research activities credit. 5 3 Code section 422.3 is amended to update the reference in 5 4 the Iowa Code to January 1, 2000, to include the federal 5 5 income tax revisions made by congress in the 1999 calendar 5 6 year, making those revisions applicable for Iowa income tax 5 7 purposes. 5 8 Code section 422.12B is amended to delete extraneous 5 9 language relating to a health insurance credit from the 5 10 statute for the earned income credit. 5 11 Code section 422.13 is amended to require nonresident 5 12 taxpayers to file state income tax returns if the taxpayers 5 13 are subject to the alternative minimum tax. 5 14 Code section 422.21 is amended to provide tax benefits to 5 15 military personnel who serve in hazardous duty areas. 5 16 All but one of the provisions in the bill apply 5 17 retroactively to January 1, 1999, for tax years beginning on 5 18 or after that date. The provision amending Code section 5 19 422.13 relating to nonresident taxpayers applies retroactively 5 20 to January 1, 2000, for tax years beginning on or after that 5 21 date. 5 22 The bill takes effect upon enactment. 5 23 LSB 5255DP 78 5 24 sc/as/5
Text: SSB03035 Text: SSB03037 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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