Text: HF02585 Text: HF02587 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2586 1 2 1 3 AN ACT 1 4 ALLOWING A TAX CREDIT FOR EQUITY INVESTMENTS IN VENTURE 1 5 CAPITAL FUNDS AND INCLUDING AN EFFECTIVE AND RETROACTIVE 1 6 APPLICABILITY DATE PROVISION. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. NEW SECTION. 15E.51 VENTURE CAPITAL FUND 1 11 INVESTMENT TAX CREDITS. 1 12 1. For purposes of this section, "venture capital fund" 1 13 means a private seed and venture capital partnership or entity 1 14 fund that has been certified by the Iowa capital investment 1 15 board created in 2002 Iowa Acts, House File 2078, pursuant to 1 16 subsection 6. 1 17 2. A tax credit shall be allowed against the taxes imposed 1 18 in chapter 422, divisions II, III, and V, and in chapter 432, 1 19 and against the moneys and credits tax imposed in section 1 20 533.24, for a portion of a taxpayer's equity investment in a 1 21 venture capital fund. An individual may claim a tax credit 1 22 under this section of a partnership, limited liability 1 23 company, S corporation, estate, or trust electing to have 1 24 income taxed directly to the individual. The amount claimed 1 25 by the individual shall be based upon the pro rata share of 1 26 the individual's earnings from the partnership, limited 1 27 liability company, S corporation, estate, or trust. 1 28 3. The amount of a tax credit shall not exceed six percent 1 29 of the taxpayer's equity investment in venture capital funds. 1 30 3A. A taxpayer shall not claim a tax credit under this 1 31 section if the taxpayer is a venture capital investment fund 1 32 allocation manager for the Iowa fund of funds created in 2002 1 33 Iowa Acts, House File 2078, or an investor that receives a tax 1 34 credit for an investment in a community-based seed capital 1 35 fund as defined in 2002 Iowa Acts, House File 2271. 2 1 4. a. The Iowa capital investment board created in 2002 2 2 Iowa Acts, House File 2078, shall issue certificates which may 2 3 be redeemed for tax credits. The Iowa capital investment 2 4 board created in 2002 Iowa Acts, House File 2078, shall issue 2 5 certificates so that not more than a total of five million 2 6 dollars of tax credits may be claimed. The certificates shall 2 7 not be transferable. 2 8 b. The Iowa capital investment board created in 2002 Iowa 2 9 Acts, House File 2078, shall, in cooperation with the 2 10 department of revenue and finance, establish criteria and 2 11 procedures for the allocation and issuance of tax credits by 2 12 means of certificates issued by the Iowa capital investment 2 13 board created in 2002 Iowa Acts, House File 2078. The 2 14 criteria shall include the contingencies that must be met for 2 15 a certificate to be redeemable in order to receive a tax 2 16 credit. The procedures established by the Iowa capital 2 17 investment board created in 2002 Iowa Acts, House File 2078, 2 18 in cooperation with the department of revenue and finance, 2 19 shall relate to the procedures for the issuance of the 2 20 certificates and for the redemption of a certificate and 2 21 related tax credit. 2 22 5. A taxpayer shall not redeem a certificate and related 2 23 tax credit prior to the third tax year following the tax year 2 24 in which the investment is made. Any tax credit in excess of 2 25 the taxpayer's liability for the tax year may be credited to 2 26 the tax liability for the following five years or until 2 27 depleted, whichever is earlier. A tax credit shall not be 2 28 carried back to a tax year prior to the tax year in which the 2 29 taxpayer claims the tax credit. 2 30 6. A venture capital fund shall submit an application for 2 31 certification to the Iowa capital investment board created in 2 32 2002 Iowa Acts, House File 2078. The board shall approve the 2 33 application and certify the venture capital fund if all of the 2 34 following criteria are met: 2 35 a. The venture capital fund is a private seed and venture 3 1 capital partnership or entity fund. 3 2 b. The venture capital fund maintains a physical presence 3 3 within the state of Iowa. 3 4 c. The venture capital fund makes a commitment to consider 3 5 equity investments in businesses located within the state of 3 6 Iowa. 3 7 Sec. 2. NEW SECTION. 422.11G VENTURE CAPITAL FUND 3 8 INVESTMENT TAX CREDIT. 3 9 The tax imposed under this division, less the credits 3 10 allowed under sections 422.12 and 422.12B, shall be reduced by 3 11 a venture capital fund investment tax credit authorized 3 12 pursuant to section 15E.51. 3 13 Sec. 3. Section 422.33, Code Supplement 2001, is amended 3 14 by adding the following new subsection: 3 15 NEW SUBSECTION. 13. The taxes imposed under this division 3 16 shall be reduced by a venture capital fund investment tax 3 17 credit authorized pursuant to section 15E.51. 3 18 Sec. 4. Section 422.60, Code 2001, is amended by adding 3 19 the following new subsection: 3 20 NEW SUBSECTION. 5. The taxes imposed under this division 3 21 shall be reduced by a venture capital fund investment tax 3 22 credit authorized pursuant to section 15E.51. 3 23 Sec. 5. NEW SECTION. 432.12B VENTURE CAPITAL FUND 3 24 INVESTMENT TAX CREDIT. 3 25 The tax imposed under this chapter shall be reduced by a 3 26 venture capital fund investment tax credit authorized pursuant 3 27 to section 15E.51. 3 28 Sec. 6. Section 533.24, Code 2001, is amended by adding 3 29 the following new unnumbered paragraph: 3 30 NEW UNNUMBERED PARAGRAPH. The moneys and credits tax 3 31 imposed under this section shall be reduced by an investment 3 32 tax credit authorized pursuant to section 15E.51. 3 33 Sec. 7. IMPLEMENTATION OF ACT MONEYS AND CREDITS TAX. 3 34 Section 25B.7 shall not apply to the tax credit authorized 3 35 pursuant to section 15E.51 and allowed against the moneys and 4 1 credits tax. 4 2 Sec. 8. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE 4 3 PROVISIONS. This Act, being deemed of immediate importance, 4 4 takes effect upon enactment and applies retroactively to 4 5 January 1, 2002, for tax years beginning on or after that 4 6 date. 4 7 4 8 4 9 4 10 BRENT SIEGRIST 4 11 Speaker of the House 4 12 4 13 4 14 4 15 MARY E. KRAMER 4 16 President of the Senate 4 17 4 18 I hereby certify that this bill originated in the House and 4 19 is known as House File 2586, Seventy-ninth General Assembly. 4 20 4 21 4 22 4 23 MARGARET THOMSON 4 24 Chief Clerk of the House 4 25 Approved , 2002 4 26 4 27 4 28 4 29 THOMAS J. VILSACK 4 30 Governor
Text: HF02585 Text: HF02587 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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