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
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jun 20 03:31:07 CDT 2002
URL: /DOCS/GA/79GA/Legislation/HF/02500/HF02586/020408.html
jhf