Text: HF00145 Text: HF00147 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F RENEWABLE FUEL
1 2 PRODUCTION FACILITY TAX CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a renewable fuel production facility tax credit. To be
1 6 eligible for the credit, the taxpayer must be a member of and
1 7 make a capital investment in a cooperative association
1 8 organized for the purpose of operating a renewable fuel
1 9 production facility. The amount of the credit equals fifty
1 10 percent, not to exceed five thousand dollars, of the amount of
1 11 the capital investment made in the tax year by the taxpayer,
1 12 as a member, in such cooperative association. Any credit in
1 13 excess of the tax liability may be carried backward for up to
1 14 three tax years or carried forward for up to five tax years.
1 15 2. An individual may claim a renewable fuel production
1 16 facility tax credit allowed a partnership, limited liability
1 17 company, S corporation, estate, or trust electing to have the
1 18 income taxed directly to the individual. The amount claimed
1 19 by the individual shall be based upon the pro rata share of
1 20 the individual's earnings of a partnership, limited liability
1 21 company, S corporation, estate, or trust.
1 22 3. a. The taxpayer shall submit to the department of
1 23 agriculture and land stewardship an application for the tax
1 24 credit authorized by this section on a form provided by the
1 25 department of agriculture and land stewardship.
1 26 The total combined amount of tax credits that may be
1 27 approved for a fiscal year under this section and section
1 28 422.33, subsection 11, shall not exceed ten million dollars.
1 29 Tax credit certificates shall be issued on the basis of the
1 30 earliest dates the applications for tax credits are received.
1 31 The department of agriculture and land stewardship shall
1 32 provide by rule for the method to be used to determine for
1 33 which fiscal year the tax credits are approved.
1 34 After verifying the eligibility for the tax credit, the
1 35 department of agriculture and land stewardship shall issue a
2 1 tax credit certificate to be attached to the person's tax
2 2 return. The tax credit certificate shall contain the
2 3 taxpayer's name, address, tax identification number, the
2 4 amount of credit, other information required by the department
2 5 of revenue and finance, and a place for the name and tax
2 6 identification number of any transferee and the amount of the
2 7 tax credit being transferred.
2 8 b. A person receiving a tax credit under this section may
2 9 transfer all or a portion of the unused tax credit to any
2 10 other person. However, the tax credit shall only be
2 11 transferred once. The transferee may use the amount of the
2 12 tax credit transferred against the taxes imposed under
2 13 divisions II and III for any tax year the original transferor
2 14 could have claimed the credit. Any consideration received for
2 15 the transfer of the tax credit shall not be included as income
2 16 under divisions II and III. Any consideration paid for the
2 17 transfer of the tax credit shall not be deducted from income
2 18 under divisions II and III.
2 19 4. For purposes of this section:
2 20 a. "Cooperative association" means a cooperative
2 21 association organized under chapter 501 or converted to
2 22 regulation under chapter 501 pursuant to section 501.601.
2 23 b. "Renewable fuel production facility" means a facility
2 24 producing an energy source which is derived from a renewable,
2 25 domestically grown, organic compound capable of powering
2 26 machinery, including an engine or power plant, and any by-
2 27 product derived from such energy source.
2 28 Sec. 2. Section 422.33, Code 2001, is amended by adding
2 29 the following new subsection:
2 30 NEW SUBSECTION. 11. a. The taxes imposed under this
2 31 division shall be reduced by a renewable fuel production
2 32 facility tax credit. To be eligible for the credit, the
2 33 taxpayer must be a member of and make a capital investment in
2 34 a cooperative association organized for the purpose of
2 35 operating a renewable fuel production facility. The amount of
3 1 the credit equals fifty percent, not to exceed five thousand
3 2 dollars, of the amount of the capital investment made in the
3 3 tax year by the taxpayer, as a member, in such cooperative
3 4 association. Any credit in excess of the tax liability may be
3 5 carried backward for up to three tax years or carried forward
3 6 for up to five tax years.
3 7 b. (1) The taxpayer shall submit to the department of
3 8 agriculture and land stewardship an application for the tax
3 9 credit authorized by this subsection on a form provided by the
3 10 department of agriculture and land stewardship.
3 11 The total combined amount of tax credits that may be
3 12 approved for a fiscal year under this subsection and section
3 13 422.11F, shall not exceed ten million dollars. Tax credit
3 14 certificates shall be issued on the basis of the earliest
3 15 dates the applications for tax credits are received. The
3 16 department of agriculture and land stewardship shall provide
3 17 by rule for the method to be used to determine for which
3 18 fiscal year the tax credits are approved.
3 19 After verifying the eligibility for the tax credit, the
3 20 department of agriculture and land stewardship shall issue a
3 21 tax credit certificate to be attached to the person's tax
3 22 return. The tax credit certificate shall contain the
3 23 taxpayer's name, address, tax identification number, the
3 24 amount of credit, other information required by the department
3 25 of revenue and finance, and a place for the name and tax
3 26 identification number of any transferee and the amount of the
3 27 tax credit being transferred.
3 28 (2) A person receiving a tax credit under this subsection
3 29 may transfer all or a portion of the unused tax credit to any
3 30 other person. However, the tax credit shall only be
3 31 transferred once. The transferee may use the amount of the
3 32 tax credit transferred against the taxes imposed under
3 33 divisions II and III for any tax year the original transferor
3 34 could have claimed the credit. Any consideration received for
3 35 the transfer of the tax credit shall not be included as income
4 1 under divisions II and III. Any consideration paid for the
4 2 transfer of the tax credit shall not be deducted from income
4 3 under divisions II and III.
4 4 c. For purposes of this subsection:
4 5 (1) "Cooperative association" means a cooperative
4 6 association organized under chapter 501 or converted to
4 7 regulation under chapter 501 pursuant to section 501.601.
4 8 (2) "Renewable fuel production facility" means a facility
4 9 producing an energy source which is derived from a renewable,
4 10 domestically grown, organic compound capable of powering
4 11 machinery, including an engine or power plant, and any by-
4 12 product derived from such energy source.
4 13 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
4 14 This Act, being deemed of immediate importance, takes effect
4 15 upon enactment and applies retroactively to January 1, 2001,
4 16 for tax years beginning on or after that date.
4 17 EXPLANATION
4 18 This bill provides an individual and corporate income tax
4 19 credit for capital investments made by members of a
4 20 cooperative association organized to operate a renewable fuel
4 21 production facility. The amount of the credit equals 50
4 22 percent, not to exceed $5,000, of the investment made in the
4 23 tax year. Any excess credit may be carried back three years
4 24 or carried forward five years. A taxpayer who receives the
4 25 credit may transfer the credit to another taxpayer to use.
4 26 Only $10 million in tax credits may be approved in a fiscal
4 27 year. Credits will be approved based upon the earliest dates
4 28 the applications for tax credits are received.
4 29 The bill takes effect upon enactment and applies
4 30 retroactively to January 1, 2001, for tax years beginning on
4 31 or after that date.
4 32 LSB 1468YH 79
4 33 mg/cls/14.1
Text: HF00145 Text: HF00147 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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