Text: S03492 Text: S03494 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 518 as follows:
1 2 #1. By striking everything after the enacting
1 3 clause, and inserting the following:
1 4 "Section 1. Section 15.333, subsection 1, Code
1 5 Supplement 1999, as amended by 2000 Iowa Acts, chapter
1 6 1213, section 1, is amended to read as follows:
1 7 1. An eligible business may claim a corporate tax
1 8 credit up to a maximum of ten percent of the new
1 9 investment which is directly related to new jobs
1 10 created by the location or expansion of an eligible
1 11 business under the program. Any credit in excess of
1 12 the tax liability for the tax year may be credited to
1 13 the tax liability for the following seven years or
1 14 until depleted, whichever occurs earlier. Subject to
1 15 prior approval by the department of economic
1 16 development in consultation with the department of
1 17 revenue and finance, an eligible business whose
1 18 project primarily involves the production of value-
1 19 added agricultural products may elect to refund all or
1 20 a portion of an unused tax credit. For purposes of
1 21 this section, an eligible business includes a
1 22 cooperative described in section 521 of the Internal
1 23 Revenue Code which is not required to file an Iowa
1 24 corporate income tax return, and whose project
1 25 primarily involves the production of ethanol. The
1 26 refund may be used against a tax liability imposed
1 27 under chapter 422, division II, III, or V. If the
1 28 business is a partnership, subchapter S corporation,
1 29 limited liability company, or estate or trust electing
1 30 to have the income taxed directly to the individual,
1 31 an individual may claim the tax credit allowed. The
1 32 amount claimed by the individual shall be based upon
1 33 the pro rata share of the individual's earnings of the
1 34 partnership, subchapter S corporation, limited
1 35 liability company, or estate or trust. For purposes
1 36 of this section, "new investment directly related to
1 37 new jobs created by the location or expansion of an
1 38 eligible business under the program" means the cost of
1 39 machinery and equipment, as defined in section 427A.1,
1 40 subsection 1, paragraphs "e" and "j", purchased for
1 41 use in the operation of the eligible business, the
1 42 purchase price of which has been depreciated in
1 43 accordance with generally accepted accounting
1 44 principles, and the cost of improvements made to real
1 45 property which is used in the operation of the
1 46 eligible business and which receives a partial
1 47 property tax exemption for the actual value added
1 48 under section 15.332.
1 49 1A. An eligible business whose project primarily
1 50 involves the production of value-added agricultural
2 1 products, that elects to receive a refund of all or a
2 2 portion of an unused tax credit, shall apply to the
2 3 department of economic development for tax credit
2 4 certificates. An eligible business whose project
2 5 primarily involves the production of value-added
2 6 agricultural products shall not claim a tax credit
2 7 under this section unless a tax credit certificate
2 8 issued by the department of economic development is
2 9 attached to the taxpayer's tax return for the tax year
2 10 during which the tax credit is claimed. For purposes
2 11 of this section, an eligible business includes a
2 12 cooperative described in section 521 of the Internal
2 13 Revenue Code which is not required to file an Iowa
2 14 corporate income tax return, and whose project
2 15 primarily involves the production of ethanol. A tax
2 16 credit certificate shall not be valid until the tax
2 17 year following the date of the project completion. A
2 18 tax credit certificate shall contain the taxpayer's
2 19 name, address, tax identification number, the date of
2 20 project completion, the amount of the tax credit,
2 21 other information required by the department of
2 22 revenue and finance. The department of economic
2 23 development shall not issue tax credit certificates
2 24 which total more than four million dollars during a
2 25 fiscal year. If the department receives applications
2 26 for tax credit certificates in excess of four million
2 27 dollars, the applicants shall receive certificates for
2 28 a prorated amount. The tax credit certificates shall
2 29 not be transferred. For a cooperative described in
2 30 section 521 of the Internal Revenue Code that is not
2 31 required to file an Iowa corporate income tax return,
2 32 the department of economic development shall require
2 33 that the cooperative submit a list of its members and
2 34 the share of each member's interest in the
2 35 cooperative. The department shall issue a tax credit
2 36 certificate to each member contained on the submitted
2 37 list.
2 38 Sec. 2. NEW SECTION. 422.11C ETHANOL BLENDED
2 39 GASOLINE TAX CREDIT.
2 40 1. As used in this section, unless the context
2 41 otherwise requires:
2 42 a. "Ethanol blended gasoline" means the same as
2 43 defined in section 452A.2.
2 44 b. "Gasoline" means gasoline that meets the
2 45 specifications required by the department of
2 46 agriculture and land stewardship pursuant to section
2 47 214A.2 that is dispensed through a metered pump.
2 48 c. "Metered pump" means a motor vehicle fuel pump
2 49 licensed by the department of agriculture and land
2 50 stewardship pursuant to chapter 214.
3 1 d. "Retail dealer" means a retail dealer as
3 2 defined in section 214A.1 who operates a metered pump
3 3 at a service station.
3 4 e. "Sell" means to sell on a retail basis.
3 5 f. "Service station" means each geographic
3 6 location in this state where a retail dealer sells and
3 7 dispenses gasoline on a retail basis.
3 8 g. "Tax credit" means the designated ethanol
3 9 blended gasoline tax credit as provided in this
3 10 section.
3 11 2. The taxes imposed under this division, less the
3 12 credits allowed under sections 422.12 and 422.12B,
3 13 shall be reduced by an ethanol blended gasoline tax
3 14 credit for each tax year that the taxpayer is eligible
3 15 to claim the tax credit under this section. In order
3 16 to be eligible, all of the following must apply:
3 17 a. The taxpayer is a retail dealer.
3 18 b. The taxpayer operates at least one service
3 19 station at which more than sixty percent of the total
3 20 gallons of gasoline sold and dispensed through one or
3 21 more metered pumps by the taxpayer in the tax year is
3 22 ethanol blended gasoline.
3 23 c. The taxpayer complies with requirements of the
3 24 department required to administer this section.
3 25 3. The tax credit shall be calculated separately
3 26 for each service station site operated by the
3 27 taxpayer. The amount of the tax credit for each
3 28 eligible service station is two and one-half cents
3 29 multiplied by the total number of gallons of ethanol
3 30 blended gasoline sold and dispensed through all
3 31 metered pumps located at that service station during
3 32 the tax year in excess of sixty percent of all
3 33 gasoline sold and dispensed through metered pumps at
3 34 that service station during the tax year.
3 35 4. Any credit in excess of the taxpayer's tax
3 36 liability shall be refunded. In lieu of claiming a
3 37 refund, the taxpayer may elect to have the overpayment
3 38 shown on the taxpayer's final, completed return
3 39 credited to the tax liability for the following tax
3 40 year.
3 41 5. An individual may claim the tax credit allowed
3 42 a partnership, limited liability company, S
3 43 corporation, estate, or trust electing to have the
3 44 income taxed directly to the individual. The amount
3 45 claimed by the individual shall be based upon the pro
3 46 rata share of the individual's earnings of a
3 47 partnership, limited liability company, S corporation,
3 48 estate, or trust.
3 49 Sec. 3. Section 422.33, Code 2001, is amended by
3 50 adding the following new subsection:
4 1 NEW SUBSECTION. 11. a. As used in this
4 2 subsection, unless the context otherwise requires:
4 3 (1) "Ethanol blended gasoline", "gasoline",
4 4 "metered pump", "retail dealer", "sell", and "service
4 5 station" mean the same as defined in section 422.11C.
4 6 (2) "Tax credit" means the designated ethanol
4 7 blended gasoline tax credit as provided in this
4 8 subsection.
4 9 b. The taxes imposed under this division shall be
4 10 reduced by an ethanol blended gasoline tax credit for
4 11 each tax year that the taxpayer is eligible to claim
4 12 the tax credit under this subsection. In order to be
4 13 eligible, all of the following must apply:
4 14 (1) The taxpayer is a retail dealer.
4 15 (2) The taxpayer operates at least one service
4 16 station at which more than sixty percent of the total
4 17 gallons of gasoline sold and dispensed through one or
4 18 more metered pumps by the taxpayer is ethanol blended
4 19 gasoline.
4 20 (3) The taxpayer complies with requirements of the
4 21 department required to administer this subsection.
4 22 c. The tax credit shall be calculated separately
4 23 for each service station site operated by the
4 24 taxpayer. The amount of the tax credit for each
4 25 eligible service station is two and one-half cents
4 26 multiplied by the total number of gallons of ethanol
4 27 blended gasoline sold and dispensed through all
4 28 metered pumps located at that service station during
4 29 the tax year in excess of sixty percent of all
4 30 gasoline sold and dispensed through metered pumps at
4 31 that service station during the tax year.
4 32 d. Any credit in excess of the taxpayer's tax
4 33 liability shall be refunded. In lieu of claiming a
4 34 refund, the taxpayer may elect to have the overpayment
4 35 shown on the taxpayer's final, completed return
4 36 credited to the tax liability for the following tax
4 37 year.
4 38 Sec. 4. Section 452A.3, subsection 1, Code 2001,
4 39 is amended by striking the subsection and inserting in
4 40 lieu thereof the following:
4 41 1. Except as otherwise provided in this section
4 42 and in this division, until June 30, 2007, this
4 43 subsection shall apply to the excise tax imposed on
4 44 each gallon of motor fuel used for any purpose for the
4 45 privilege of operating motor vehicles in this state.
4 46 a. The rate of the excise tax shall be based on
4 47 the number of gallons of ethanol blended gasoline that
4 48 is distributed in this state as expressed as a
4 49 percentage of the number of gallons of motor fuel
4 50 distributed in this state, which is referred to as the
5 1 distribution percentage. The department shall
5 2 determine the percentage basis for each determination
5 3 period beginning January 1 and ending December 31.
5 4 The rate for the excise tax shall apply for the period
5 5 beginning July 1 and ending June 30 following the end
5 6 of the determination period.
5 7 b. The rate for the excise tax shall be as
5 8 follows:
5 9 (1) If the distribution percentage is not greater
5 10 than fifty percent, the rate shall be nineteen cents
5 11 for ethanol blended gasoline and twenty cents for
5 12 motor fuel other than ethanol blended gasoline.
5 13 (2) If the distribution percentage is greater than
5 14 fifty percent but not greater than fifty-five percent,
5 15 the rate shall be nineteen cents for ethanol blended
5 16 gasoline and twenty and one-tenth cents for motor fuel
5 17 other than ethanol blended gasoline.
5 18 (3) If the distribution percentage is greater than
5 19 fifty-five percent but not greater than sixty percent,
5 20 the rate shall be nineteen cents for ethanol blended
5 21 gasoline and twenty and three-tenths cents for motor
5 22 fuel other than ethanol blended gasoline.
5 23 (4) If the distribution percentage is greater than
5 24 sixty percent but not greater than sixty-five percent,
5 25 the rate shall be nineteen cents for ethanol blended
5 26 gasoline and twenty and five-tenths cents for motor
5 27 fuel other than ethanol blended gasoline.
5 28 (5) If the distribution percentage is greater than
5 29 sixty-five percent but not greater than seventy
5 30 percent, the rate shall be nineteen cents for ethanol
5 31 blended gasoline and twenty and seven-tenths cents for
5 32 motor fuel other than ethanol blended gasoline.
5 33 (6) If the distribution percentage is greater than
5 34 seventy percent but not greater than seventy-five
5 35 percent, the rate shall be nineteen cents for ethanol
5 36 blended gasoline and twenty-one cents for motor fuel
5 37 other than ethanol blended gasoline.
5 38 (7) If the distribution percentage is greater than
5 39 seventy-five percent but not greater than eighty
5 40 percent, the rate shall be nineteen and three-tenths
5 41 cents for ethanol blended gasoline and twenty and
5 42 eight-tenths cents for motor fuel other than ethanol
5 43 blended gasoline.
5 44 (8) If the distribution percentage is greater than
5 45 eighty percent but not greater than eighty-five
5 46 percent, the rate shall be nineteen and five-tenths
5 47 cents for ethanol blended gasoline and twenty and
5 48 seven-tenths cents for motor fuel other than ethanol
5 49 blended gasoline.
5 50 (9) If the distribution percentage is greater than
6 1 eighty-five percent but not greater than ninety
6 2 percent, the rate shall be nineteen and seven-tenths
6 3 cents for ethanol blended gasoline and twenty and
6 4 four-tenths cents for motor fuel other than ethanol
6 5 blended gasoline.
6 6 (10) If the distribution percentage is greater
6 7 than ninety percent but not greater than ninety-five
6 8 percent, the rate shall be nineteen and nine-tenths
6 9 cents for ethanol blended gasoline and twenty and one-
6 10 tenth cents for motor fuel other than ethanol blended
6 11 gasoline.
6 12 (11) If the distribution percentage is greater
6 13 than ninety-five percent, the rate shall be twenty
6 14 cents for ethanol blended gasoline and twenty cents
6 15 for motor fuel other than ethanol blended gasoline.
6 16 1A. Except as otherwise provided in this section
6 17 and in this division, after June 30, 2007, an excise
6 18 tax of twenty cents is imposed on each gallon of motor
6 19 fuel used for any purpose for the privilege of
6 20 operating motor vehicles in this state.
6 21 Sec. 5. Section 452A.3, subsection 2, paragraph b,
6 22 Code 2001, is amended by striking the paragraph.
6 23 Sec. 6. APPLICABILITY.
6 24 1. Notwithstanding section 452A.3, as amended in
6 25 this Act, the excise tax imposed upon motor vehicle
6 26 fuel, including ethanol blended gasoline, as provided
6 27 in that section shall be the same as provided in that
6 28 section on June 30, 2001, until July 1, 2002. The
6 29 excise tax for the period beginning July 1, 2002, and
6 30 ending June 30, 2003, and for each subsequent period,
6 31 shall be based on a determination made by the
6 32 department of revenue and finance as provided in
6 33 section 452A.3, subsection 1.
6 34 2. The ethanol blended gasoline tax credits
6 35 provided in sections 422.11C and 422.33 apply to tax
6 36 years beginning on or after January 1, 2002. The
6 37 department of revenue and finance shall perform
6 38 functions, prior to the beginning of that tax year,
6 39 necessary in order to implement the tax credits."
6 40 #2. Title page, by striking lines 1 through 3, and
6 41 inserting the following: "An Act providing for taxes
6 42 relating to ethanol blended gasoline, making penalties
6 43 applicable, and providing for the Act's
6 44 applicability."
6 45
6 46
6 47
6 48 SANDRA GREINER
6 49 SF 518.703 79
6 50 da/cls
Text: S03492 Text: S03494 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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