House Journal: Page 1678: Thursday, April 20, 2000
29 subsection of up to ten twelve thousand dollars. The
30 ten twelve thousand dollar exclusion shall be
31 allocated to the husband or wife in the proportion
32 that each spouse's respective pension and retirement
33 pay received bears to total combined pension and
34 retirement pay received.
35 Sec. 104. Section 422.10, Code Supplement 1999, is
36 amended to read as follows:
37 422.10 RESEARCH ACTIVITIES CREDIT.
38 1. The taxes imposed under this division shall be
39 reduced by a state tax credit for increasing research
40 activities in this state.
41 a. For individuals, the credit equals six and one-
42 half percent of the state's apportioned share of the
43 qualifying expenditures for increasing research
44 activities. the sum of the following:
45 (1) Six and one-half percent of the excess of
46 qualified research expenses during the tax year over
47 the base amount for the tax year based upon the
48 state's apportioned share of the qualifying
49 expenditures for increasing research activities.
50 (2) Six and one-half percent of the basic research
Page 5
1 payments determined under section 41(e)(1)(A) of the
2 Internal Revenue Code during the tax year based upon
3 the state's apportioned share of the qualifying
4 expenditures for increasing research activities.
5 The state's apportioned share of the qualifying
6 expenditures for increasing research activities is a
7 percent equal to the ratio of qualified research
8 expenditures in this state to total qualified research
9 expenditures.
10 b. In lieu of the credit amount computed in
11 paragraph "a", subparagraph (1), a taxpayer may elect
12 to compute the credit amount for qualified research
13 expenses incurred in this state in a manner consistent
14 with the alternative incremental credit described in
15 section 41(c)(4) of the Internal Revenue Code. The
16 taxpayer may make this election regardless of the
17 method used for the taxpayer's federal income tax.
18 The election made under this paragraph is for the tax
19 year and the taxpayer may use another or the same
20 method for any subsequent year.
21 c. For purposes of the alternate credit
22 computation method in paragraph "b", the credit
23 percentages applicable to qualified research expenses
24 described in clauses (i), (ii), and (iii) of section
25 41(c)(4)(A) of the Internal Revenue Code are one and
26 sixty-five hundredths percent, two and twenty
27 hundredths percent, and two and seventy-five
© 2000 Cornell College and
League of Women Voters of Iowa
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