House Journal: Page 1675: Thursday, April 20, 2000
32 may elect to compute the credit amount for qualified
33 research expenses incurred in this state in a manner
34 consistent with the alternative incremental credit
35 described in section 41(c)(4) of the Internal Revenue
36 Code. The taxpayer may make this election regardless
37 of the method used for the taxpayer's federal income
38 tax. The election made under this paragraph is for
39 the tax year and the taxpayer may use another or the
40 same method for any subsequent year.
41 c. For purposes of the alternate credit
42 computation method in paragraph "b", the credit
43 percentages applicable to qualified research expenses
44 described in clauses (i), (ii), and (iii) of section
45 41(c)(4)(A) of the Internal Revenue Code are one and
46 sixty-five hundredths percent, two and twenty
47 hundredths percent, and two and seventy-five
48 hundredths percent, respectively.
49 2. The credit allowed in this section is in
50 addition to the credit authorized in section 422.33,
Page 2
1 subsection 5, and section 422.10. However, if the
2 alternative credit computation method is used in
3 section 422.33, subsection 5, or section 422.10, the
4 credit allowed in this section shall also be computed
5 using that method.
6 3. If the eligible business is a partnership,
7 subchapter S corporation, limited liability company,
8 or estate or trust electing to have the income taxed
9 directly to the individual, an individual may claim
10 the tax credit allowed. The amount claimed by the
11 individual shall be based upon the pro rata share of
12 the individual's earnings of the partnership,
13 subchapter S corporation, limited liability company,
14 or estate or trust.
15 4. For purposes of this section, "qualifying
16 expenditures for increasing research activities" means
17 the qualifying expenditures "base amount", "basic
18 research payment", and "qualified research expense"
19 mean the same as defined for the federal credit for
20 increasing research activities which would be
21 allowable under section 41 of the Internal Revenue
22 Code in effect on January 1, 1999, except that for the
23 alternative incremental credit such amounts are for
24 research conducted within this state. For purposes of
25 this section, "Internal Revenue Code" means the
26 Internal Revenue Code in effect on January 1, 2000.
27 5. Any credit in excess of the tax liability for
28 the taxable year shall be refunded with interest
29 computed under section 422.25. In lieu of claiming a
30 refund, a taxpayer may elect to have the overpayment
© 2000 Cornell College and
League of Women Voters of Iowa
Comments about this site or page?
hjourn@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Mon Apr 24 13:35:00 CDT 2000
URL: /DOCS/GA/78GA/Session.2/HJournal/01600/01675.html
jhf