House Journal: Page 1679: Thursday, April 20, 2000
28 hundredths percent, respectively.
29 2. For purposes of this section, an individual may
30 claim a research credit for qualifying research
31 expenditures incurred by a partnership, subchapter S
32 corporation, limited liability company, estate, or
33 trust electing to have the income taxed directly to
34 the individual. The amount claimed by the individual
35 shall be based upon the pro rata share of the
36 individual's earnings of a partnership, subchapter S
37 corporation, limited liability company, estate, or
38 trust.
39 3. For purposes of this section, "qualifying
40 expenditures for increasing research activities" means
41 the qualifying expenditures "base amount", "basic
42 research payment", and "qualified research expense"
43 mean the same as defined for the federal credit for
44 increasing research activities which would be
45 allowable under section 41 of the Internal Revenue
46 Code in effect on January 1, 1999, except that for the
47 alternative incremental credit such amounts are for
48 research conducted within this state. For purposes of
49 this section, "Internal Revenue Code" means the
50 Internal Revenue Code in effect on January 1, 2000.
Page 6
1 4. Any credit in excess of the tax liability
2 imposed by section 422.5 less the credits allowed
3 under sections 422.11A, 422.12, and 422.12B for the
4 taxable year shall be refunded with interest computed
5 under section 422.25. In lieu of claiming a refund, a
6 taxpayer may elect to have the overpayment shown on
7 the taxpayer's final, completed return credited to the
8 tax liability for the following taxable year."
9 3. Page 5, by inserting after line 7 the
10 following:
11 "Sec. 105. Section 422.33, subsection 5, Code
12 Supplement 1999, is amended to read as follows:
13 5. a. The taxes imposed under this division shall
14 be reduced by a state tax credit for increasing
15 research activities in this state equal to six and
16 one-half percent of the state's apportioned share of
17 the qualifying expenditures for increasing research
18 activities. the sum of the following:
19 (1) Six and one-half percent of the excess of
20 qualified research expenses during the tax year over
21 the base amount for the tax year based upon the
22 state's apportioned share of the qualifying
23 expenditures for increasing research activities.
24 (2) Six and one-half percent of the basic research
25 payments determined under section 41(e)(1)(A) of the
26 Internal Revenue Code during the tax year based upon
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