Text: H01824 Text: H01826 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 714 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause and inserting the following: 1 4 "Section 1. NEW SECTION. 15E.221 SHORT TITLE. 1 5 This division shall be known and may be cited as 1 6 the "Financial Capital Formation for Life Science 1 7 Companies Program". 1 8 Sec. 2. NEW SECTION. 15E.222 DEFINITIONS. 1 9 As used in this division, unless the context 1 10 otherwise requires: 1 11 1. "Equity" means common stock or preferred stock, 1 12 regardless of class or series, of a corporation; a 1 13 partnership interest in a limited partnership; or a 1 14 membership interest in a limited liability company, 1 15 which is not required or subject to an option on the 1 16 part of the taxpayer to be redeemed by the issuer 1 17 within two years from the date of issuance. 1 18 2. "Qualified business" means a business that 1 19 meets all of the following criteria: 1 20 a. Has annual gross revenues of five million 1 21 dollars or less in its most recent fiscal year. 1 22 b. Is domiciled in the state of Iowa. 1 23 c. Is engaged in business primarily in, or does 1 24 substantially all of its production in, the state of 1 25 Iowa. 1 26 d. Is primarily engaged in a business that 1 27 produces, develops, or markets a life science product 1 28 or life science by-product as defined in section 1 29 10C.1. 1 30 3. "Subordinated debt" means debt that either is 1 31 unsecured or has a subordinate claim on the assets of 1 32 the debtor. 1 33 Sec. 3. NEW SECTION. 15E.223 TAX CREDITS. 1 34 1. For tax years beginning on or after January 1, 1 35 2001, a tax credit shall be allowed against the taxes 1 36 imposed under chapter 422, divisions II, III, and V, 1 37 and under chapter 432, for a certified equity or 1 38 subordinated debt investment in a qualified business. 1 39 An individual may claim the credit of a partnership, 1 40 limited liability company, S corporation, estate, or 1 41 trust electing to have income taxed directly to the 1 42 individual. The amount claimed by the individual 1 43 shall be based upon the pro rata share of the 1 44 individual's earnings from the partnership, limited 1 45 liability company, S corporation, estate, or trust. 1 46 2. a. The tax credit allowed under this section 1 47 shall be for the following amounts: 1 48 (1) After the certified equity or subordinated 1 49 debt investment is held for a period of two years, 1 50 twenty percent of the certified equity or subordinated 2 1 debt investment. 2 2 (2) After the certified equity or subordinated 2 3 debt investment is held for a period of four years, an 2 4 additional ten percent of the certified equity or 2 5 subordinated debt investment. 2 6 (3) After the certified equity or subordinated 2 7 debt investment is held for a period of six years, an 2 8 additional ten percent of the certified equity or 2 9 subordinated debt investment. 2 10 (4) After the certified equity or subordinated 2 11 debt investment is held for a period of eight years, 2 12 an additional ten percent of the certified equity or 2 13 subordinated debt investment. 2 14 b. For purposes of paragraph "a" in computing the 2 15 holding period of an equity investment that was 2 16 obtained by the taxpayer as a result of the conversion 2 17 of the taxpayer's investment in a subordinated debt, 2 18 the time the taxpayer held the investment in the 2 19 subordinated debt shall be added to the time the 2 20 taxpayer held the equity investment. 2 21 c. Any tax credit in excess of the taxpayer's 2 22 liability for the tax year may be credited to the tax 2 23 liability for the following three years or until 2 24 depleted, whichever is earlier. A tax credit shall 2 25 not be carried back to a tax year prior to the tax 2 26 year in which the taxpayer redeems the tax credit. 2 27 d. A taxpayer shall not claim a tax credit in a 2 28 single tax year under this section of more than fifty 2 29 thousand dollars. 2 30 e. A taxpayer making an equity or subordinated 2 31 debt investment in a qualified business shall submit 2 32 an application to the department of economic 2 33 development for certification of eligibility for a tax 2 34 credit. 2 35 3. The aggregate amount of tax credits issued 2 36 under this section for taxes imposed pursuant to 2 37 chapter 422, divisions II, III, and V, and chapter 432 2 38 shall not exceed a total of four million dollars. 2 39 4. The department of revenue and finance, in 2 40 consultation with the department of economic 2 41 development, shall develop a system for registration, 2 42 authorization, and redemption of tax credits issued by 2 43 the state under this section. The department of 2 44 revenue and finance and the department of economic 2 45 development shall adopt any other policies, 2 46 procedures, or rules pursuant to chapter 17A necessary 2 47 for the administration of this section and of tax 2 48 credits issued by the state under this section. 2 49 Sec. 4. NEW SECTION. 422.11C LIFE SCIENCE TAX 2 50 CREDIT. 3 1 The taxes imposed under this division, less the 3 2 credits allowed under section 422.12 and any other 3 3 nonrefundable credit, shall be reduced by a tax credit 3 4 in the manner as authorized pursuant to section 3 5 15E.223. 3 6 Sec. 5. Section 422.33, Code 2001, is amended by 3 7 adding the following new subsection: 3 8 NEW SUBSECTION. 11. The taxes imposed under this 3 9 division shall be reduced by a tax credit in the 3 10 manner as authorized pursuant to section 15E.223. 3 11 Sec. 6. Section 422.60, Code 2001, is amended by 3 12 adding the following new subsection: 3 13 NEW SUBSECTION. 4. The taxes imposed under this 3 14 division shall be reduced by a tax credit in the 3 15 manner as authorized pursuant to section 15E.223. 3 16 Sec. 7. NEW SECTION. 432.12A LIFE SCIENCE TAX 3 17 CREDIT. 3 18 The taxes imposed under this chapter shall be 3 19 reduced by a tax credit in the manner as authorized 3 20 pursuant to section 15E.223." 3 21 #2. Title page, by striking lines 1 through 8 and 3 22 inserting the following: 3 23 "An Act creating a tax credit for investments in 3 24 qualified businesses engaged in life science-related 3 25 production." 3 26 #3. By renumbering as necessary. 3 27 3 28 3 29 3 30 WARNSTADT of Woodbury 3 31 HF 714.504 79 3 32 tm/pj
Text: H01824 Text: H01826 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
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