Text: HF02521 Text: HF02523 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.333, subsection 1, Code Supplement 1 2 2001, is amended to read as follows: 1 3 1. An eligible business may claim a corporate tax credit 1 4 up to a maximum of ten percent of the new investment which is 1 5 directly related to new jobs created by the location or 1 6 expansion of an eligible business under the program. Any 1 7 credit in excess of the tax liability for the tax year may be 1 8 credited to the tax liability for the following seven years or 1 9 until depleted, whichever occurs earlier. Subject to prior 1 10 approval by the department of economic development in 1 11 consultation with the department of revenue and finance, an 1 12 eligible business whose project primarily involves the 1 13 production of value-added agricultural products may elect to 1 14 refund all or a portion of an unused tax credit. For purposes 1 15 of this section, an eligible business includes a cooperative 1 16 described in section 521 of the Internal Revenue Code which is 1 17 not required to file an Iowa corporate income tax return, and 1 18 whose project primarily involves the production of ethanol. 1 19 The refund may be used against a tax liability imposed under 1 20 chapter 422, division II, III, or V. If the business is a 1 21 partnership,subchapterS corporation, limited liability 1 22 company, or estate or trust electing to have the income taxed 1 23 directly to the individual, an individual may claim the tax 1 24 credit allowed. The amount claimed by the individual shall be 1 25 based upon the pro rata share of the individual's earnings of 1 26 the partnership,subchapterS corporation, limited liability 1 27 company, or estate or trust. 1 28 For purposes of this section, an eligible business includes 1 29 a cooperative described in section 521 of the Internal Revenue 1 30 Code which is required to file an Iowa corporate income tax 1 31 return and whose project primarily involves the production of 1 32 ethanol may elect to transfer all or a portion of the tax 1 33 credit to its members. The amount of tax credit transferred 1 34 and claimed by a member shall be based upon the pro rata share 1 35 of the member's earnings of the cooperative. 2 1 PARAGRAPH DIVIDED. For purposes of this section, "new 2 2 investment directly related to new jobs created by the 2 3 location or expansion of an eligible business under the 2 4 program" means the cost of machinery and equipment, as defined 2 5 in section 427A.1, subsection 1, paragraphs "e" and "j", 2 6 purchased for use in the operation of the eligible business, 2 7 the purchase price of which has been depreciated in accordance 2 8 with generally accepted accounting principles, and the cost of 2 9 improvements made to real property which is used in the 2 10 operation of the eligible business. 2 11 Sec. 2. APPLICABILITY DATE. This Act applies 2 12 retroactively to January 1, 2002, for tax years beginning on 2 13 or after that date. 2 14 EXPLANATION 2 15 Under present law, a farmers' cooperative that owns an 2 16 ethanol-producing facility which is not required to file an 2 17 Iowa corporate income tax return is entitled to a tax credit 2 18 under the new jobs and income program. This tax credit is 2 19 claimed by the members. However, if the farmers' cooperative 2 20 must file an Iowa corporate income tax return, all of the 2 21 credit must be used by the cooperative. This bill allows 2 22 farmers' cooperatives to file Iowa corporate income tax 2 23 returns to transfer all or a portion of the tax credit to its 2 24 members. 2 25 The bill applies retroactively to January 1, 2002, for tax 2 26 years beginning on or after that date. 2 27 LSB 6113YH 79 2 28 mg/sh/8
Text: HF02521 Text: HF02523 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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