Text: H01830 Text: H01832 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 521, as amended, passed, and
1 2 reprinted by the Senate, as follows:
1 3 #1. By striking everything after the enacting
1 4 clause, and inserting the following:
1 5 "Section 1. NEW SECTION. 15E.221 SHORT TITLE.
1 6 This division shall be known and may be cited as
1 7 the "Financial Capital Formation for Life Science
1 8 Companies Program".
1 9 Sec. . NEW SECTION. 15E.222 DEFINITIONS.
1 10 As used in this division, unless the context
1 11 otherwise requires:
1 12 1. "Equity" means common stock or preferred stock,
1 13 regardless of class or series, of a corporation; a
1 14 partnership interest in a limited partnership; or a
1 15 membership interest in a limited liability company,
1 16 which is not required or subject to an option on the
1 17 part of the taxpayer to be redeemed by the issuer
1 18 within two years from the date of issuance.
1 19 2. "Qualified business" means a business that
1 20 meets all of the following criteria:
1 21 a. Has annual gross revenues of five million
1 22 dollars or less in its most recent fiscal year.
1 23 b. Is domiciled in the state of Iowa.
1 24 c. Is engaged in business primarily in, or does
1 25 substantially all of its production in, the state of
1 26 Iowa.
1 27 d. Is primarily engaged in a business that
1 28 produces, develops, or markets a life science product
1 29 or life science by-product as defined in section
1 30 10C.1.
1 31 3. "Subordinated debt" means debt that either is
1 32 unsecured or has a subordinate claim on the assets of
1 33 the debtor.
1 34 Sec. . NEW SECTION. 15E.223 TAX CREDITS.
1 35 1. For tax years beginning on or after January 1,
1 36 2001, a tax credit shall be allowed against the taxes
1 37 imposed under chapter 422, divisions II, III, and V,
1 38 and under chapter 432, for a certified equity or
1 39 subordinated debt investment in a qualified business.
1 40 An individual may claim the credit of a partnership,
1 41 limited liability company, S corporation, estate, or
1 42 trust electing to have income taxed directly to the
1 43 individual. The amount claimed by the individual
1 44 shall be based upon the pro rata share of the
1 45 individual's earnings from the partnership, limited
1 46 liability company, S corporation, estate, or trust.
1 47 2. a. The tax credit allowed under this section
1 48 shall be for the following amounts:
1 49 (1) After the certified equity or subordinated
1 50 debt investment is held for a period of two years,
2 1 twenty percent of the certified equity or subordinated
2 2 debt investment.
2 3 (2) After the certified equity or subordinated
2 4 debt investment is held for a period of four years, an
2 5 additional ten percent of the certified equity or
2 6 subordinated debt investment.
2 7 (3) After the certified equity or subordinated
2 8 debt investment is held for a period of six years, an
2 9 additional ten percent of the certified equity or
2 10 subordinated debt investment.
2 11 (4) After the certified equity or subordinated
2 12 debt investment is held for a period of eight years,
2 13 an additional ten percent of the certified equity or
2 14 subordinated debt investment.
2 15 b. For purposes of paragraph "a" in computing the
2 16 holding period of an equity investment that was
2 17 obtained by the taxpayer as a result of the conversion
2 18 of the taxpayer's investment in a subordinated debt,
2 19 the time the taxpayer held the investment in the
2 20 subordinated debt shall be added to the time the
2 21 taxpayer held the equity investment.
2 22 c. Any tax credit in excess of the taxpayer's
2 23 liability for the tax year may be credited to the tax
2 24 liability for the following three years or until
2 25 depleted, whichever is earlier. A tax credit shall
2 26 not be carried back to a tax year prior to the tax
2 27 year in which the taxpayer redeems the tax credit.
2 28 d. A taxpayer shall not claim a tax credit in a
2 29 single tax year under this section of more than fifty
2 30 thousand dollars.
2 31 e. A taxpayer making an equity or subordinated
2 32 debt investment in a qualified business shall submit
2 33 an application to the department of economic
2 34 development for certification of eligibility for a tax
2 35 credit.
2 36 3. The aggregate amount of tax credits issued
2 37 under this section for taxes imposed pursuant to
2 38 chapter 422, divisions II, III, and V, and chapter 432
2 39 shall not exceed a total of three million dollars.
2 40 4. The department of revenue and finance, in
2 41 consultation with the department of economic
2 42 development, shall develop a system for registration,
2 43 authorization, and redemption of tax credits issued by
2 44 the state under this section. The department of
2 45 revenue and finance and the department of economic
2 46 development shall adopt any other policies,
2 47 procedures, or rules pursuant to chapter 17A necessary
2 48 for the administration of this section and of tax
2 49 credits issued by the state under this section.
2 50 Sec. . NEW SECTION. 422.11C LIFE SCIENCE TAX
3 1 CREDIT.
3 2 The taxes imposed under this division, less the
3 3 credits allowed under section 422.12 and any other
3 4 nonrefundable credit, shall be reduced by a tax credit
3 5 in the manner as authorized pursuant to section
3 6 15E.223.
3 7 Sec. . Section 422.33, Code 2001, is amended by
3 8 adding the following new subsection:
3 9 NEW SUBSECTION. 11. The taxes imposed under this
3 10 division shall be reduced by a tax credit in the
3 11 manner as authorized pursuant to section 15E.223.
3 12 Sec. . Section 422.60, Code 2001, is amended by
3 13 adding the following new subsection:
3 14 NEW SUBSECTION. 4. The taxes imposed under this
3 15 division shall be reduced by a tax credit in the
3 16 manner as authorized pursuant to section 15E.223.
3 17 Sec. . NEW SECTION. 432.12A LIFE SCIENCE TAX
3 18 CREDIT.
3 19 The taxes imposed under this chapter shall be
3 20 reduced by a tax credit in the manner as authorized
3 21 pursuant to section 15E.223."
3 22 #2. Title page, by striking lines 1 through 7, and
3 23 inserting the following: "An Act creating a tax
3 24 credit for investments in qualified businesses engaged
3 25 in life science-related production."
3 26 #3. By renumbering as necessary.
3 27
3 28
3 29
3 30 WARNSTADT of Woodbury
3 31 SF 521.703 79
3 32 tm/cls
Text: H01830 Text: H01832 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
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