Text: SF00287 Text: SF00289 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.333, subsection 1, Code 2001, is 1 2 amended to read as follows: 1 3 1. An eligible business may claim a corporate tax credit 1 4 up to a maximum of ten percent of the new investment which is 1 5 directly related to new jobs created by the location or 1 6 expansion of an eligible business under the program. Any 1 7 credit in excess of the tax liability for the tax year may be 1 8 credited to the tax liability for the following seven years or 1 9 until depleted, whichever occurs earlier. If the business is 1 10 a partnership,subchapterS corporation, limited liability 1 11 company, cooperative organized under chapter 501, or estate or 1 12 trust electing to have the income taxed directly to the 1 13 individual, an individual may claim the tax credit allowed. 1 14 The amount claimed by the individual shall be based upon the 1 15 pro rata share of the individual's earnings of the 1 16 partnership,subchapterS corporation, limited liability 1 17 company, cooperative organized under chapter 501, or estate or 1 18 trust. For purposes of this section, "new investment directly 1 19 related to new jobs created by the location or expansion of an 1 20 eligible business under the program" means the cost of 1 21 machinery and equipment, as defined in section 427A.1, 1 22 subsection 1, paragraphs "e" and "j", purchased for use in the 1 23 operation of the eligible business, the purchase price of 1 24 which has been depreciated in accordance with generally 1 25 accepted accounting principles, and the cost of improvements 1 26 made to real property which is used in the operation of the 1 27 eligible business and which receives a partial property tax 1 28 exemption for the actual value added under section 15.332. 1 29 Sec. 2. Section 15E.193B, subsection 6, paragraph a, Code 1 30 2001, is amended to read as follows: 1 31 a. An eligible housing business may claim a tax credit up 1 32 to a maximum of ten percent of the new investment which is 1 33 directly related to the building or rehabilitating of a 1 34 minimum of four single-family homes located in that part of a 1 35 city or county in which there is a designated enterprise zone 2 1 or one multiple dwelling unit building containing three or 2 2 more individual dwelling units located in that part of a city 2 3 or county in which there is a designated enterprise zone. The 2 4 tax credit may be used to reduce the tax liability imposed 2 5 under chapter 422, division II, III, or V. Any credit in 2 6 excess of the tax liability for the tax year may be credited 2 7 to the tax liability for the following seven years or until 2 8 depleted, whichever occurs earlier. If the business is a 2 9 partnership, S corporation, limited liability company, 2 10 cooperative organized under chapter 501, or estate or trust 2 11 electing to have the income taxed directly to the individual, 2 12 an individual may claim the tax credit allowed. The amount 2 13 claimed by the individual shall be based upon the pro rata 2 14 share of the individual's earnings of the partnership, S 2 15 corporation, limited liability company, cooperative organized 2 16 under chapter 501, or estate or trust. 2 17 Sec. 3. EFFECTIVE AND APPLICABILITY DATE. This Act, being 2 18 deemed of immediate importance, takes effect upon enactment. 2 19 Section 2 of this Act applies retroactively to January 1, 2 20 2001, for tax years beginning on or after that date. Section 2 21 1 of this Act takes effect July 1, 2001, and applies to tax 2 22 years beginning on or after that date. 2 23 EXPLANATION 2 24 This bill amends investment tax credit provisions under the 2 25 new jobs and income program and the housing portion of the 2 26 enterprise zone program. 2 27 The bill amends both tax credits by providing that if a 2 28 business claiming the tax credit is a cooperative organized 2 29 under Code chapter 501 electing to have the income taxed 2 30 directly to an individual, the individual may claim the tax 2 31 credit and the amount claimed by the individual shall be based 2 32 upon the pro rata share of the individual's earnings in the 2 33 cooperative. 2 34 The bill takes effect upon enactment. The bill provides 2 35 that the amendment to the investment tax credit under the new 3 1 jobs and income program takes effect July 1, 2001, and applies 3 2 to tax years beginning on or after that date. The bill 3 3 provides that the amendment to the investment tax credit under 3 4 the housing portion of the enterprise zone program applies 3 5 retroactively to January 1, 2001, for tax years beginning on 3 6 or after that date. 3 7 LSB 2350SS 79 3 8 tm/pj/5
Text: SF00287 Text: SF00289 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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