Text: HF02591 Text: HF02593 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 HOUSE FILE 2592
1 2
1 3 AN ACT
1 4 RELATING TO DEFERMENT OF TAXABLE INCOME FOR START-UP
1 5 BUSINESSES AND PROVIDING AN EFFECTIVE AND RETROACTIVE
1 6 APPLICABILITY DATE.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. NEW SECTION. 422.24A START-UP BUSINESS TAX
1 11 DEFERMENT.
1 12 1. For purposes of this section, "start-up business" does
1 13 not include any of the following:
1 14 a. An existing business locating in this state from
1 15 another state or from another location in this state.
1 16 b. A newly created business which is the result of the
1 17 merger of two or more businesses.
1 18 c. A newly created subsidiary or new business of a
1 19 corporation.
1 20 d. A previously existing business which has been dissolved
1 21 and reincorporated.
1 22 e. An existing business operating under a different name
1 23 and located in a different location.
1 24 f. A newly created partnership owned by two or more of the
1 25 same partners as an existing business and engaging in similar
1 26 business activity as the existing business.
1 27 g. A business entity that reorganizes or experiences a
1 28 change in either the legal or trade name of the business.
1 29 h. A joint venture.
1 30 2. In order to qualify for a deferment of taxable income
1 31 and the tax to be imposed on it pursuant to this section, a
1 32 taxpayer must meet all of the following criteria:
1 33 a. The taxpayer is a business that is a wholly new start-
1 34 up business beginning operations during the first tax year for
1 35 which the deferment of taxable income is claimed.
2 1 b. The business has its commercial domicile, as defined in
2 2 section 422.32, in the state.
2 3 c. The operations of the business are at least twenty-five
2 4 percent funded by venture capital moneys. For purposes of
2 5 this section, "venture capital moneys" means an equity
2 6 investment from an individual or a private seed and venture
2 7 capital fund whose only business is investing in seed and
2 8 venture capital opportunities. "Venture capital moneys" does
2 9 not mean a loan or other nonequity financing from a person,
2 10 financial institution, or other entity.
2 11 d. The taxpayer does not have any delinquent taxes or
2 12 other debt outstanding and owed to the state.
2 13 3. A taxpayer meeting the criteria provided in subsection
2 14 2 may submit a request to the department for the deferment of
2 15 taxable income for the first three tax years that the taxpayer
2 16 business is in operation. If a deferment is approved by the
2 17 department pursuant to subsection 4, the taxpayer shall pay
2 18 taxes on the deferred taxable income in five equal annual
2 19 installments during the five tax years following the three
2 20 years of taxable income deferment. Section 422.26 shall apply
2 21 if the taxpayer refuses or neglects to pay the taxes owed on
2 22 the deferred taxable income in the manner provided in this
2 23 section. A taxpayer receiving a deferment shall file a return
2 24 for each tax year in which a deferment is approved. If the
2 25 taxpayer has a net loss during a tax year during the three-
2 26 year period in which taxable income is deferred, the loss may
2 27 be applied to any deferred taxable income during that period.
2 28 4. Upon a determination that the criteria provided in
2 29 subsection 2 have been met, the department shall approve a
2 30 request for deferment of taxable income.
2 31 5. For purposes of assessing penalty and interest, the tax
2 32 on any deferred taxable income is not due and payable until
2 33 the tax years in which the annual installments as provided in
2 34 subsection 3 are due and payable.
2 35 6. The department shall adopt rules pursuant to chapter
3 1 17A necessary for the administration of this section.
3 2 Sec. 2. EFFECTIVE AND APPLICABILITY DATES. This Act,
3 3 being deemed of immediate importance, takes effect upon
3 4 enactment and is retroactively applicable to January 1, 2002.
3 5
3 6
3 7
3 8 BRENT SIEGRIST
3 9 Speaker of the House
3 10
3 11
3 12
3 13 MARY E. KRAMER
3 14 President of the Senate
3 15
3 16 I hereby certify that this bill originated in the House and
3 17 is known as House File 2592, Seventy-ninth General Assembly.
3 18
3 19
3 20
3 21 MARGARET THOMSON
3 22 Chief Clerk of the House
3 23 Approved , 2002
3 24
3 25
3 26
3 27 THOMAS J. VILSACK
3 28 Governor
Text: HF02591 Text: HF02593 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
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