Text: HF00538 Text: HF00540 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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1 1 Section 1. NEW SECTION. 422.11F VALUE-ADDED AGRICULTURE
1 2 INCENTIVE 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 value-added agriculture incentive 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 or
1 8 limited liability company organized for the purpose of
1 9 operating a renewable fuel production facility or a
1 10 development facility. The amount of the credit equals fifty
1 11 percent, not to exceed twenty-five thousand dollars, of the
1 12 amount of the capital investment made in the tax year by the
1 13 taxpayer, as a member, in such cooperative association or
1 14 limited liability company. However, for credits earned from
1 15 investments made in the 2001, 2002, 2003, and 2004 calendar
1 16 years, taxpayers may not claim the credit sooner than the tax
1 17 year beginning in the 2005 calendar year.
1 18 Any credit in excess of the tax liability may be carried
1 19 forward for up to five tax years.
1 20 2. An individual may claim a value-added agriculture
1 21 incentive tax credit allowed a partnership, limited liability
1 22 company, S corporation, estate, or trust electing to have the
1 23 income taxed directly to the individual. The amount claimed
1 24 by the individual shall be based upon the pro rata share of
1 25 the individual's earnings of a partnership, limited liability
1 26 company, S corporation, estate, or trust.
1 27 3. a. The taxpayer shall submit to the department of
1 28 economic development, division of business development, value-
1 29 added agriculture subdivision, an application for the tax
1 30 credit authorized by this section on a form provided by the
1 31 subdivision.
1 32 After verifying the eligibility for the tax credit, the
1 33 subdivision shall notify the department of revenue and finance
1 34 that the investment is eligible for the credit and the
1 35 department of revenue and finance shall issue a tax credit
2 1 certificate to be attached to the person's tax return. The
2 2 tax credit certificate shall contain the taxpayer's name,
2 3 address, tax identification number, the amount of credit,
2 4 other information required by the department of revenue and
2 5 finance, and a place for the name and tax identification
2 6 number of any transferee and the amount of the tax credit
2 7 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 this
2 13 division and divisions III and V and chapter 432 for any tax
2 14 year the original transferor could have claimed the credit.
2 15 Any consideration received for the transfer of the tax credit
2 16 shall not be included as income under this division and
2 17 divisions III and V or as premiums under chapter 432. Any
2 18 consideration paid for the transfer of the tax credit shall
2 19 not be deducted from income under this division and divisions
2 20 III and V or from premiums under chapter 432.
2 21 4. For purposes of this section:
2 22 a. "Cooperative association" means a cooperative
2 23 association organized under chapter 501 or converted to
2 24 regulation under chapter 501 pursuant to section 501.601.
2 25 b. "Development facility" means a facility that produces a
2 26 product derived from an agricultural commodity or uses a
2 27 process to produce a product derived from an agricultural
2 28 product.
2 29 c. "Renewable fuel production facility" means a facility
2 30 producing an energy source which is derived from a renewable,
2 31 domestically grown, organic compound capable of powering
2 32 machinery, including an engine or power plant, and any by-
2 33 product derived from such energy source.
2 34 Sec. 2. Section 422.33, Code 2001, is amended by adding
2 35 the following new subsection:
3 1 NEW SUBSECTION. 11. a. The taxes imposed under this
3 2 division shall be reduced by a value-added agriculture
3 3 incentive tax credit. To be eligible for the credit, the
3 4 taxpayer must be a member of and make a capital investment in
3 5 a cooperative association or limited liability company
3 6 organized for the purpose of operating a renewable fuel
3 7 production facility or a development facility. The amount of
3 8 the credit equals fifty percent, not to exceed twenty-five
3 9 thousand dollars, of the amount of the capital investment made
3 10 in the tax year by the taxpayer, as a member, in such
3 11 cooperative association or limited liability company.
3 12 However, for credits earned from investments made in the 2001,
3 13 2002, 2003, and 2004 calendar years, taxpayers may not claim
3 14 the credit sooner than the tax year beginning in the 2005
3 15 calendar year.
3 16 Any credit in excess of the tax liability may be carried
3 17 forward for up to five tax years.
3 18 b. (1) The taxpayer shall submit to the department of
3 19 economic development, division of business development, value-
3 20 added agriculture subdivision, an application for the tax
3 21 credit authorized by this subsection on a form provided by the
3 22 subdivision.
3 23 After verifying the eligibility for the tax credit, the
3 24 subdivision shall notify the department of revenue and finance
3 25 that the investment is eligible for the credit and the
3 26 department of revenue and finance shall issue a tax credit
3 27 certificate to be attached to the person's tax return. The
3 28 tax credit certificate shall contain the taxpayer's name,
3 29 address, tax identification number, the amount of credit,
3 30 other information required by the department of revenue and
3 31 finance, and a place for the name and tax identification
3 32 number of any transferee and the amount of the tax credit
3 33 being transferred.
3 34 (2) A person receiving a tax credit under this subsection
3 35 may transfer all or a portion of the unused tax credit to any
4 1 other person. However, the tax credit shall only be
4 2 transferred once. The transferee may use the amount of the
4 3 tax credit transferred against the taxes imposed under this
4 4 division and divisions II and V and chapter 432 for any tax
4 5 year the original transferor could have claimed the credit.
4 6 Any consideration received for the transfer of the tax credit
4 7 shall not be included as income under this division and
4 8 divisions II and V or as premiums under chapter 432. Any
4 9 consideration paid for the transfer of the tax credit shall
4 10 not be deducted from income under this division and divisions
4 11 II and V or from premiums under chapter 432.
4 12 c. For purposes of this subsection:
4 13 (1) "Cooperative association" means a cooperative
4 14 association organized under chapter 501 or converted to
4 15 regulation under chapter 501 pursuant to section 501.601.
4 16 (2) "Development facility" means a facility that produces
4 17 a product derived from an agricultural commodity or uses a
4 18 process to produce a product derived from an agricultural
4 19 product.
4 20 (3) "Renewable fuel production facility" means a facility
4 21 producing an energy source which is derived from a renewable,
4 22 domestically grown, organic compound capable of powering
4 23 machinery, including an engine or power plant, and any by-
4 24 product derived from such energy source.
4 25 Sec. 3. Section 422.60, Code 2001, is amended by adding
4 26 the following new subsection:
4 27 NEW SUBSECTION. 4. a. The taxes imposed under this
4 28 division shall be reduced by a value-added agriculture
4 29 incentive tax credit. To be eligible for the credit, the
4 30 taxpayer must be a member of and make a capital investment in
4 31 a cooperative association or limited liability company
4 32 organized for the purpose of operating a renewable fuel
4 33 production facility or a development facility. The amount of
4 34 the credit equals fifty percent, not to exceed twenty-five
4 35 thousand dollars, of the amount of the capital investment made
5 1 in the tax year by the taxpayer, as a member, in such
5 2 cooperative association or limited liability company.
5 3 However, for credits earned from investments made in the 2001,
5 4 2002, 2003, and 2004 calendar years, taxpayers may not claim
5 5 the credit sooner than the tax year beginning in the 2005
5 6 calendar year.
5 7 Any credit in excess of the tax liability may be carried
5 8 forward for up to five tax years.
5 9 b. (1) The taxpayer shall submit to the department of
5 10 economic development, division of business development, value-
5 11 added agriculture subdivision, an application for the tax
5 12 credit authorized by this subsection on a form provided by the
5 13 subdivision.
5 14 After verifying the eligibility for the tax credit, the
5 15 subdivision shall notify the department of revenue and finance
5 16 that the investment is eligible for the credit and the
5 17 department of revenue and finance shall issue a tax credit
5 18 certificate to be attached to the person's tax return. The
5 19 tax credit certificate shall contain the taxpayer's name,
5 20 address, tax identification number, the amount of credit,
5 21 other information required by the department of revenue and
5 22 finance, and a place for the name and tax identification
5 23 number of any transferee and the amount of the tax credit
5 24 being transferred.
5 25 (2) A person receiving a tax credit under this subsection
5 26 may transfer all or a portion of the unused tax credit to any
5 27 other person. However, the tax credit shall only be
5 28 transferred once. The transferee may use the amount of the
5 29 tax credit transferred against the taxes imposed under this
5 30 division and divisions II and III and chapter 432 for any tax
5 31 year the original transferor could have claimed the credit.
5 32 Any consideration received for the transfer of the tax credit
5 33 shall not be included as income under this division and
5 34 divisions II and III or as premiums under chapter 432. Any
5 35 consideration paid for the transfer of the tax credit shall
6 1 not be deducted from income under this division and divisions
6 2 II and III or from premiums under chapter 432.
6 3 c. For purposes of this subsection, "cooperative
6 4 association", "development facility", and "renewable fuel
6 5 production facility" mean the same as defined in section
6 6 422.33, subsection 11, paragraph "c".
6 7 Sec. 4. NEW SECTION. 432.12A VALUE-ADDED AGRICULTURE
6 8 INCENTIVE TAX CREDIT.
6 9 1. The taxes imposed under this chapter shall be reduced
6 10 by a value-added agriculture incentive tax credit. To be
6 11 eligible for the credit, the taxpayer must be a member of and
6 12 make a capital investment in a cooperative association or
6 13 limited liability company organized for the purpose of
6 14 operating a renewable fuel production facility or a
6 15 development facility. The amount of the credit equals fifty
6 16 percent, not to exceed twenty-five thousand dollars, of the
6 17 amount of the capital investment made in the calendar year by
6 18 the taxpayer, as a member, in such cooperative association or
6 19 limited liability company. However, for credits earned from
6 20 investments made in the 2001, 2002, 2003, and 2004 calendar
6 21 years, taxpayers may not claim the credit sooner than the tax
6 22 year beginning in the 2005 calendar year.
6 23 Any credit in excess of the tax liability may be carried
6 24 forward for up to five calendar years.
6 25 2. a. The taxpayer shall submit to the department of
6 26 economic development, division of business development, value-
6 27 added agriculture subdivision, an application for the tax
6 28 credit authorized by this section on a form provided by the
6 29 subdivision.
6 30 After verifying the eligibility for the tax credit, the
6 31 subdivision shall notify the department of revenue and finance
6 32 that the investment is eligible for the credit and the
6 33 department of revenue and finance shall issue a tax credit
6 34 certificate to be attached to the person's tax return. The
6 35 tax credit certificate shall contain the taxpayer's name,
7 1 address, tax identification number, the amount of credit,
7 2 other information required by the department of revenue and
7 3 finance, and a place for the name and tax identification
7 4 number of any transferee and the amount of the tax credit
7 5 being transferred.
7 6 b. A person receiving a tax credit under this section may
7 7 transfer all or a portion of the unused tax credit to any
7 8 other person. However, the tax credit shall only be
7 9 transferred once. The transferee may use the amount of the
7 10 tax credit transferred against the taxes imposed under this
7 11 chapter and chapter 422, divisions II, III, and V, for any tax
7 12 year the original transferor could have claimed the credit.
7 13 Any consideration received for the transfer of the tax credit
7 14 shall not be included as premiums under this chapter or as
7 15 income under chapter 422, divisions II, III, and V. Any
7 16 consideration paid for the transfer of the tax credit shall
7 17 not be deducted from premiums under this chapter or from
7 18 income under chapter 422, divisions II, III, and V.
7 19 c. For purposes of this subsection, "cooperative
7 20 association", "development facility", and "renewable fuel
7 21 production facility" mean the same as defined in section
7 22 422.33, subsection 11, paragraph "c".
7 23 Sec. 5. APPLICABILITY DATE. This Act applies
7 24 retroactively to January 1, 2001, for tax years beginning on
7 25 or after that date and for investments made after July 1,
7 26 2001.
7 27 EXPLANATION
7 28 This bill provides an individual and corporate income,
7 29 franchise, and gross premiums tax credit for capital
7 30 investments made by members of a cooperative association or
7 31 limited liability company organized to operate a renewable
7 32 fuel production facility or a development facility designed to
7 33 produce products from agricultural goods. The amount of the
7 34 credit equals 50 percent, not to exceed $25,000, of the
7 35 investment made in the tax year. Any excess credit may be
8 1 carried forward five tax years. A taxpayer who receives the
8 2 credit may transfer the credit to another taxpayer to use.
8 3 The bill provides that credits earned in 2001 through 2004
8 4 calendar years cannot be used until the 2005 tax year.
8 5 The bill applies retroactively to January 1, 2001, for tax
8 6 years beginning on or after that date and for investments made
8 7 after July 1, 2001.
8 8 LSB 1842YH 79
8 9 mg/cls/14.3
Text: HF00538 Text: HF00540 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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