House Journal: Page 1680: Thursday, April 20, 2000
27 the state's apportioned share of the qualifying
28 expenditures for increasing research activities.
29 The state's apportioned share of the qualifying
30 expenditures for increasing research activities is a
31 percent equal to the ratio of qualified research
32 expenditures in this state to the total qualified
33 research expenditures.
34 b. In lieu of the credit amount computed in
35 paragraph "a", subparagraph (1), a corporation may
36 elect to compute the credit amount for qualified
37 research expenses incurred in this state in a manner
38 consistent with the alternative incremental credit
39 described in section 41(c)(4) of the Internal Revenue
40 Code. The taxpayer may make this election regardless
41 of the method used for the taxpayer's federal income
42 tax. The election made under this paragraph is for
43 the tax year and the taxpayer may use another or the
44 same method for any subsequent year.
45 c. For purposes of the alternate credit
46 computation method in paragraph "b", the credit
47 percentages applicable to qualified research expenses
48 described in clauses (i), (ii), and (iii) of section
49 41(c)(4)(A) of the Internal Revenue Code are one and
50 sixty-five hundredths percent, two and twenty
Page 7
1 hundredths percent, and two and seventy-five
2 hundredths percent, respectively.
3 d. For purposes of this subsection, "qualifying
4 expenditures for increasing research activities" means
5 the qualifying expenditures "base amount", "basic
6 research payment", and "qualified research expense"
7 mean the same as defined for the federal credit for
8 increasing research activities which would be
9 allowable under section 41 of the Internal Revenue
10 Code in effect on January 1, 1999, except that for the
11 alternative incremental credit such amounts are for
12 research conducted within this state. For purposes of
13 this subsection, "Internal Revenue Code" means the
14 Internal Revenue Code in effect on January 1, 2000.
15 e. Any credit in excess of the tax liability for
16 the taxable year shall be refunded with interest
17 computed under section 422.25. In lieu of claiming a
18 refund, a taxpayer may elect to have the overpayment
19 shown on its final, completed return credited to the
20 tax liability for the following taxable year."
21 4. Page 5, by inserting after line 22 the
22 following:
23 "Sec. ___. APPLICABILITY DATE. Sections 1, 102,
24 104, and 105, of this Act apply retroactively to
25 January 1, 2000, for tax years beginning on or after
© 2000 Cornell College and
League of Women Voters of Iowa
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