Text: HF00640 Text: HF00642 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
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. Any proceeds received by the transferor
2 12 from the transfer of the credit shall be immediately
2 13 reinvested in the cooperative association or limited liability
2 14 company of which the transferor is a member. The cooperative
2 15 association or limited liability company shall use these
2 16 proceeds for construction or operation of the renewable fuel
2 17 production facility or development facility. The transferor
2 18 is not eligible to receive a tax credit for the reinvestment
2 19 of the proceeds received from the transfer of a tax credit.
2 20 The transferee may use the amount of the tax credit
2 21 transferred against the taxes imposed under this division and
2 22 divisions III and V and chapter 432 for any tax year the
2 23 original transferor could have claimed the credit. Any
2 24 consideration received for the transfer of the tax credit
2 25 shall not be included as income under this division and
2 26 divisions III and V or as premiums under chapter 432. Any
2 27 consideration paid for the transfer of the tax credit shall
2 28 not be deducted from income under this division and divisions
2 29 III and V or from premiums under chapter 432.
2 30 4. For purposes of this section:
2 31 a. "Cooperative association" means a cooperative
2 32 association organized under chapter 501 or converted to
2 33 regulation under chapter 501 pursuant to section 501.601.
2 34 b. "Development facility" means a facility that produces a
2 35 product derived from an agricultural commodity or uses a
3 1 process to produce a product derived from an agricultural
3 2 product.
3 3 c. "Renewable fuel production facility" means a facility
3 4 producing an energy source which is derived from a renewable,
3 5 domestically grown, organic compound capable of powering
3 6 machinery, including an engine or power plant, and any by-
3 7 product derived from such energy source.
3 8 Sec. 2. Section 422.33, Code 2001, is amended by adding
3 9 the following new subsection:
3 10 NEW SUBSECTION. 11. a. The taxes imposed under this
3 11 division shall be reduced by a value-added agriculture
3 12 incentive tax credit. To be eligible for the credit, the
3 13 taxpayer must be a member of and make a capital investment in
3 14 a cooperative association or limited liability company
3 15 organized for the purpose of operating a renewable fuel
3 16 production facility or a development facility. The amount of
3 17 the credit equals fifty percent, not to exceed twenty-five
3 18 thousand dollars, of the amount of the capital investment made
3 19 in the tax year by the taxpayer, as a member, in such
3 20 cooperative association or limited liability company.
3 21 However, for credits earned from investments made in the 2001,
3 22 2002, 2003, and 2004 calendar years, taxpayers may not claim
3 23 the credit sooner than the tax year beginning in the 2005
3 24 calendar year.
3 25 Any credit in excess of the tax liability may be carried
3 26 forward for up to five tax years.
3 27 b. (1) The taxpayer shall submit to the department of
3 28 economic development, division of business development, value-
3 29 added agriculture subdivision, an application for the tax
3 30 credit authorized by this subsection on a form provided by the
3 31 subdivision.
3 32 After verifying the eligibility for the tax credit, the
3 33 subdivision shall notify the department of revenue and finance
3 34 that the investment is eligible for the credit and the
3 35 department of revenue and finance shall issue a tax credit
4 1 certificate to be attached to the person's tax return. The
4 2 tax credit certificate shall contain the taxpayer's name,
4 3 address, tax identification number, the amount of credit,
4 4 other information required by the department of revenue and
4 5 finance, and a place for the name and tax identification
4 6 number of any transferee and the amount of the tax credit
4 7 being transferred.
4 8 (2) A person receiving a tax credit under this subsection
4 9 may transfer all or a portion of the unused tax credit to any
4 10 other person. However, the tax credit shall only be
4 11 transferred once. Any proceeds received by the transferor
4 12 from the transfer of the credit shall be immediately
4 13 reinvested in the cooperative association or limited liability
4 14 company of which the transferor is a member. The cooperative
4 15 association or limited liability company shall use these
4 16 proceeds for construction or operation of the renewable fuel
4 17 production facility or development facility. The transferor
4 18 is not eligible to receive a tax credit for the reinvestment
4 19 of the proceeds received from the transfer of a tax credit.
4 20 The transferee may use the amount of the tax credit
4 21 transferred against the taxes imposed under this division and
4 22 divisions II and V and chapter 432 for any tax year the
4 23 original transferor could have claimed the credit. Any
4 24 consideration received for the transfer of the tax credit
4 25 shall not be included as income under this division and
4 26 divisions II and V or as premiums under chapter 432. Any
4 27 consideration paid for the transfer of the tax credit shall
4 28 not be deducted from income under this division and divisions
4 29 II and V or from premiums under chapter 432.
4 30 c. For purposes of this subsection:
4 31 (1) "Cooperative association" means a cooperative
4 32 association organized under chapter 501 or converted to
4 33 regulation under chapter 501 pursuant to section 501.601.
4 34 (2) "Development facility" means a facility that produces
4 35 a product derived from an agricultural commodity or uses a
5 1 process to produce a product derived from an agricultural
5 2 product.
5 3 (3) "Renewable fuel production facility" means a facility
5 4 producing an energy source which is derived from a renewable,
5 5 domestically grown, organic compound capable of powering
5 6 machinery, including an engine or power plant, and any by-
5 7 product derived from such energy source.
5 8 Sec. 3. Section 422.60, Code 2001, is amended by adding
5 9 the following new subsection:
5 10 NEW SUBSECTION. 4. a. The taxes imposed under this
5 11 division shall be reduced by a value-added agriculture
5 12 incentive tax credit. To be eligible for the credit, the
5 13 taxpayer must be a member of and make a capital investment in
5 14 a cooperative association or limited liability company
5 15 organized for the purpose of operating a renewable fuel
5 16 production facility or a development facility. The amount of
5 17 the credit equals fifty percent, not to exceed twenty-five
5 18 thousand dollars, of the amount of the capital investment made
5 19 in the tax year by the taxpayer, as a member, in such
5 20 cooperative association or limited liability company.
5 21 However, for credits earned from investments made in the 2001,
5 22 2002, 2003, and 2004 calendar years, taxpayers may not claim
5 23 the credit sooner than the tax year beginning in the 2005
5 24 calendar year.
5 25 Any credit in excess of the tax liability may be carried
5 26 forward for up to five tax years.
5 27 b. (1) The taxpayer shall submit to the department of
5 28 economic development, division of business development, value-
5 29 added agriculture subdivision, an application for the tax
5 30 credit authorized by this subsection on a form provided by the
5 31 subdivision.
5 32 After verifying the eligibility for the tax credit, the
5 33 subdivision shall notify the department of revenue and finance
5 34 that the investment is eligible for the credit and the
5 35 department of revenue and finance shall issue a tax credit
6 1 certificate to be attached to the person's tax return. The
6 2 tax credit certificate shall contain the taxpayer's name,
6 3 address, tax identification number, the amount of credit,
6 4 other information required by the department of revenue and
6 5 finance, and a place for the name and tax identification
6 6 number of any transferee and the amount of the tax credit
6 7 being transferred.
6 8 (2) A person receiving a tax credit under this subsection
6 9 may transfer all or a portion of the unused tax credit to any
6 10 other person. However, the tax credit shall only be
6 11 transferred once. Any proceeds received by the transferor
6 12 from the transfer of the credit shall be immediately
6 13 reinvested in the cooperative association or limited liability
6 14 company of which the transferor is a member. The cooperative
6 15 association or limited liability company shall use these
6 16 proceeds for construction or operation of the renewable fuel
6 17 production facility or development facility. The transferor
6 18 is not eligible to receive a tax credit for the reinvestment
6 19 of the proceeds received from the transfer of a tax credit.
6 20 The transferee may use the amount of the tax credit
6 21 transferred against the taxes imposed under this division and
6 22 divisions II and III and chapter 432 for any tax year the
6 23 original transferor could have claimed the credit. Any
6 24 consideration received for the transfer of the tax credit
6 25 shall not be included as income under this division and
6 26 divisions II and III or as premiums under chapter 432. Any
6 27 consideration paid for the transfer of the tax credit shall
6 28 not be deducted from income under this division and divisions
6 29 II and III or from premiums under chapter 432.
6 30 c. For purposes of this subsection, "cooperative
6 31 association", "development facility", and "renewable fuel
6 32 production facility" mean the same as defined in section
6 33 422.33, subsection 11, paragraph "c".
6 34 Sec. 4. NEW SECTION. 432.12A VALUE-ADDED AGRICULTURE
6 35 INCENTIVE TAX CREDIT.
7 1 1. The taxes imposed under this chapter shall be reduced
7 2 by a value-added agriculture incentive tax credit. To be
7 3 eligible for the credit, the taxpayer must be a member of and
7 4 make a capital investment in a cooperative association or
7 5 limited liability company organized for the purpose of
7 6 operating a renewable fuel production facility or a
7 7 development facility. The amount of the credit equals fifty
7 8 percent, not to exceed twenty-five thousand dollars, of the
7 9 amount of the capital investment made in the calendar year by
7 10 the taxpayer, as a member, in such cooperative association or
7 11 limited liability company. However, for credits earned from
7 12 investments made in the 2001, 2002, 2003, and 2004 calendar
7 13 years, taxpayers may not claim the credit sooner than the tax
7 14 year beginning in the 2005 calendar year.
7 15 Any credit in excess of the tax liability may be carried
7 16 forward for up to five calendar years.
7 17 2. a. The taxpayer shall submit to the department of
7 18 economic development, division of business development, value-
7 19 added agriculture subdivision, an application for the tax
7 20 credit authorized by this section on a form provided by the
7 21 subdivision.
7 22 After verifying the eligibility for the tax credit, the
7 23 subdivision shall notify the department of revenue and finance
7 24 that the investment is eligible for the credit and the
7 25 department of revenue and finance shall issue a tax credit
7 26 certificate to be attached to the person's tax return. The
7 27 tax credit certificate shall contain the taxpayer's name,
7 28 address, tax identification number, the amount of credit,
7 29 other information required by the department of revenue and
7 30 finance, and a place for the name and tax identification
7 31 number of any transferee and the amount of the tax credit
7 32 being transferred.
7 33 b. A person receiving a tax credit under this section may
7 34 transfer all or a portion of the unused tax credit to any
7 35 other person. However, the tax credit shall only be
8 1 transferred once. Any proceeds received by the transferor
8 2 from the transfer of the credit shall be immediately
8 3 reinvested in the cooperative association or limited liability
8 4 company of which the transferor is a member. The cooperative
8 5 association or limited liability company shall use these
8 6 proceeds for construction or operation of the renewable fuel
8 7 production facility or development facility. The transferor
8 8 is not eligible to receive a tax credit for the reinvestment
8 9 of the proceeds received from the transfer of a tax credit.
8 10 The transferee may use the amount of the tax credit
8 11 transferred against the taxes imposed under this chapter and
8 12 chapter 422, divisions II, III, and V, for any tax year the
8 13 original transferor could have claimed the credit. Any
8 14 consideration received for the transfer of the tax credit
8 15 shall not be included as premiums under this chapter or as
8 16 income under chapter 422, divisions II, III, and V. Any
8 17 consideration paid for the transfer of the tax credit shall
8 18 not be deducted from premiums under this chapter or from
8 19 income under chapter 422, divisions II, III, and V.
8 20 c. For purposes of this subsection, "cooperative
8 21 association", "development facility", and "renewable fuel
8 22 production facility" mean the same as defined in section
8 23 422.33, subsection 11, paragraph "c".
8 24 Sec. 5. APPLICABILITY DATE. This Act applies
8 25 retroactively to January 1, 2001, for tax years beginning on
8 26 or after that date and for investments made after July 1,
8 27 2001.
8 28 EXPLANATION
8 29 This bill provides an individual and corporate income,
8 30 franchise, and gross premiums tax credit for capital
8 31 investments made by members of a cooperative association or
8 32 limited liability company organized to operate a renewable
8 33 fuel production facility or a development facility designed to
8 34 produce products from agricultural goods. The amount of the
8 35 credit equals 50 percent, not to exceed $25,000, of the
9 1 investment made in the tax year. Any excess credit may be
9 2 carried forward five tax years. A taxpayer who receives the
9 3 credit may transfer the credit to another taxpayer to use.
9 4 Proceeds received from the transfer of the credit are to be
9 5 reinvested in the cooperative association or the limited
9 6 liability company. The taxpayer cannot receive an additional
9 7 credit for this reinvestment. The bill provides that credits
9 8 earned in 2001 through 2004 calendar years cannot be used
9 9 until the 2005 tax year.
9 10 The bill applies retroactively to January 1, 2001, for tax
9 11 years beginning on or after that date and for investments made
9 12 after July 1, 2001.
9 13 LSB 1842HV 79
9 14 mg/cls/14
Text: HF00640 Text: HF00642 Text: HF00600 - HF00699 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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