Text: HF02620 Text: HF02622 Text: HF02600 - HF02699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2621 1 2 1 3 AN ACT 1 4 RELATING TO TAX CREDITS UNDER THE NEW JOBS AND INCOME 1 5 PROGRAM AND THE ENTERPRISE ZONE PROGRAM FOR FARMERS' 1 6 COOPERATIVES AND INCLUDING A RETROACTIVE APPLICABILITY DATE. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 15.333, subsection 1, Code Supplement 1 11 2001, is amended to read as follows: 1 12 1. An eligible business may claim a corporate tax credit 1 13 up to a maximum of ten percent of the new investment which is 1 14 directly related to new jobs created by the location or 1 15 expansion of an eligible business under the program. Any 1 16 credit in excess of the tax liability for the tax year may be 1 17 credited to the tax liability for the following seven years or 1 18 until depleted, whichever occurs earlier. Subject to prior 1 19 approval by the department of economic development in 1 20 consultation with the department of revenue and finance, an 1 21 eligible business whose project primarily involves the 1 22 production of value-added agricultural products may elect to 1 23 refund all or a portion of an unused tax credit. For purposes 1 24 of this section, an eligible business includes a cooperative 1 25 described in section 521 of the Internal Revenue Code which is 1 26 not required to file an Iowa corporate income tax return, and 1 27 whose project primarily involves the production of ethanol. 1 28 The refund may be used against a tax liability imposed under 1 29 chapter 422, division II, III, or V. If the business is a 1 30 partnership,subchapterS corporation, limited liability 1 31 company, cooperative organized under chapter 501 and filing as 1 32 a partnership for federal tax purposes, or estate or trust 1 33 electing to have the income taxed directly to the individual, 1 34 an individual may claim the tax credit allowed. The amount 1 35 claimed by the individual shall be based upon the pro rata 2 1 share of the individual's earnings of the partnership, 2 2subchapterS corporation, limited liability company, 2 3 cooperative organized under chapter 501 and filing as a 2 4 partnership for federal tax purposes, or estate or trust. 2 5 For purposes of this section, an eligible business includes 2 6 a cooperative described in section 521 of the Internal Revenue 2 7 Code which is required to file an Iowa corporate income tax 2 8 return and whose project primarily involves the production of 2 9 ethanol may elect to transfer all or a portion of the tax 2 10 credit to its members. The amount of tax credit transferred 2 11 and claimed by a member shall be based upon the pro rata share 2 12 of the member's earnings of the cooperative. 2 13 PARAGRAPH DIVIDED. For purposes of this section, "new 2 14 investment directly related to new jobs created by the 2 15 location or expansion of an eligible business under the 2 16 program" means the cost of machinery and equipment, as defined 2 17 in section 427A.1, subsection 1, paragraphs "e" and "j", 2 18 purchased for use in the operation of the eligible business, 2 19 the purchase price of which has been depreciated in accordance 2 20 with generally accepted accounting principles, and the cost of 2 21 improvements made to real property which is used in the 2 22 operation of the eligible business. 2 23 Sec. 2. Section 15E.193C, subsection 7, paragraph a, Code 2 24 Supplement 2001, is amended to read as follows: 2 25 a. An eligible development business may claim a tax credit 2 26 up to a maximum of ten percent of the new investment that is 2 27 directly related to the construction, expansion, or 2 28 rehabilitation of building space to be used for manufacturing, 2 29 processing, cold storage, distribution, or office facilities. 2 30 For purposes of this section, "new investment" includes the 2 31 purchase price of land and the cost of improvements made to 2 32 real property. The tax credit may be claimed by an eligible 2 33 development business for the tax year in which the 2 34 construction, expansion, or rehabilitation is completed. The 2 35 tax credit may be used to reduce the tax liability imposed 3 1 under chapter 422, division II, III, or V, or chapter 432. 3 2 Any credit in excess of the tax liability for the tax year may 3 3 be credited to the tax liability for the following seven years 3 4 or until depleted, whichever occurs earlier. If the business 3 5 is a partnership, S corporation, limited liability company, 3 6 cooperative organized under chapter 501 and filing as a 3 7 partnership for federal tax purposes, or estate or trust 3 8 electing to have the income taxed directly to the individual, 3 9 an individual may claim the tax credit allowed. The amount 3 10 claimed by the individual shall be based upon the pro rata 3 11 share of the individual's earnings of the partnership, S 3 12 corporation, limited liability company, cooperative organized 3 13 under chapter 501 and filing as a partnership for federal tax 3 14 purposes, or estate or trust. 3 15 Sec. 3. APPLICABILITY DATE. This Act applies 3 16 retroactively to January 1, 2002, for tax years beginning on 3 17 or after that date. 3 18 3 19 3 20 3 21 BRENT SIEGRIST 3 22 Speaker of the House 3 23 3 24 3 25 3 26 MARY E. KRAMER 3 27 President of the Senate 3 28 3 29 I hereby certify that this bill originated in the House and 3 30 is known as House File 2621, Seventy-ninth General Assembly. 3 31 3 32 3 33 3 34 MARGARET THOMSON 3 35 Chief Clerk of the House 4 1 Approved , 2002 4 2 4 3 4 4 4 5 THOMAS J. VILSACK 4 6 Governor
Text: HF02620 Text: HF02622 Text: HF02600 - HF02699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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