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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