House Journal: Page 1676: Thursday, April 20, 2000
31 shown on its final, completed return credited to the
32 tax liability for the following year.
33 Sec. 102. Section 15A.9, subsection 8, Code
34 Supplement 1999, is amended to read as follows:
35 8. CORPORATE TAX RESEARCH CREDIT. a corporate tax
36 credit shall be available to the primary business or a
37 supporting business for increasing research activities
38 in this state within the zone.
39 a. The credit equals thirteen percent of the
40 state's apportioned share of the qualifying
41 expenditures for increasing research activities. the
42 sum of the following:
43 (1) Thirteen percent of the excess of qualified
44 research expenses during the tax year over the base
45 amount for the tax year based upon the state's
46 apportioned share of the qualifying expenditures for
47 increasing research activities.
48 (2) Thirteen percent of the basic research
49 payments determined under section 41(e)(1)(A) of the
50 Internal Revenue Code during the tax year based upon
Page 3
1 the state's apportioned share of the qualifying
2 expenditures for increasing research activities.
3 The state's apportioned share of the qualifying
4 expenditures for increasing research activities is a
5 percent equal to the ratio of qualified research
6 expenditures in this state within the zone to total
7 qualified research expenditures.
8 b. In lieu of the credit amount computed in
9 paragraph "a", subparagraph (1), a business may elect
10 to compute the credit amount for qualified research
11 expenses incurred in this state within the zone in a
12 manner consistent with the alternative incremental
13 credit described in section 41(c)(4) of the Internal
14 Revenue Code. The taxpayer may make this election
15 regardless of the method used for the taxpayer's
16 federal income tax. The election made under this
17 paragraph is for the tax year and the taxpayer may use
18 another or the same method for any subsequent year.
19 c. For purposes of the alternate credit
20 computation method in paragraph "b", the credit
21 percentages applicable to qualified research expenses
22 described in clauses (i), (ii), and (iii) of section
23 41(c)(4)(A) of the Internal Revenue Code are three and
24 thirty hundredths percent, four and forty hundredths
25 percent, and five and fifty hundredths percent,
26 respectively.
27 d. Any credit in excess of the tax liability for
28 the tax year shall be refunded with interest computed
29 under section 422.25. In lieu of claiming a refund,
© 2000 Cornell College and
League of Women Voters of Iowa
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