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PAG LIN
1 1 Section 1. NEW SECTION. 422.11F AGRICULTURAL COOPERATIVE
1 2 ASSOCIATION TAX CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 an agricultural cooperative association tax credit. To be
1 6 eligible for the credit, the taxpayer must be a member of and
1 7 make a capital investment in a cooperative association
1 8 organized for the purpose of operating a development facility
1 9 or a renewable fuel production facility. The amount of the
1 10 credit equals fifty percent, not to exceed fifteen thousand
1 11 dollars, of the amount of the capital investment made in the
1 12 tax year by the taxpayer, as a member, in such cooperative
1 13 association. Any credit in excess of the tax liability may be
1 14 carried backward for up to three tax years or carried forward
1 15 for up to five tax years.
1 16 2. An individual may claim an agricultural cooperative
1 17 association tax credit allowed a partnership, limited
1 18 liability company, S corporation, estate, or trust electing to
1 19 have the income taxed directly to the individual. The amount
1 20 claimed by the individual shall be based upon the pro rata
1 21 share of the individual's earnings of a partnership, limited
1 22 liability company, S corporation, estate, or trust.
1 23 3. The taxpayer shall submit to the department of
1 24 agriculture and land stewardship an application for the tax
1 25 credit authorized by this section on a form provided by the
1 26 department of agriculture and land stewardship. A fee of
1 27 twenty-five dollars must accompany the application. Fee
1 28 proceeds are appropriated to the department of agriculture and
1 29 land stewardship for costs associated with the tax credit.
1 30 The department of agriculture and land stewardship shall
1 31 not approve tax credits under this section, section 422.33,
1 32 subsection 11, and section 422.60, subsection 4, for more than
1 33 one million five hundred thousand dollars for investments made
1 34 in a cooperative project. The department of agriculture and
1 35 land stewardship shall provide by rule for the method of
2 1 determining if the applied for tax credits exceed that amount
2 2 and the procedure for prorating those tax credits.
2 3 After verifying the eligibility for the tax credit, the
2 4 department of agriculture and land stewardship shall issue a
2 5 tax credit certificate to be attached to the person's tax
2 6 return. The tax credit certificate shall contain the
2 7 taxpayer's name, address, tax identification number, the
2 8 amount of credit, and other information required by the
2 9 department of revenue and finance.
2 10 4. For purposes of this section:
2 11 a. "Cooperative association" means a cooperative
2 12 association organized under chapter 501 or converted to
2 13 regulation under chapter 501 pursuant to section 501.601.
2 14 b. "Development facility" means a facility producing a
2 15 good derived from an agricultural commodity or using a process
2 16 to produce a good derived from an agricultural commodity.
2 17 c. "Project" means a development facility or renewable
2 18 fuel production facility operated or to be operated by a
2 19 cooperative association.
2 20 d. "Renewable fuel production facility" means a facility
2 21 producing an energy source which is derived from a renewable,
2 22 domestically grown, organic compound capable of powering
2 23 machinery, including an engine or power plant, and any by-
2 24 product derived from such energy source.
2 25 Sec. 2. Section 422.33, Code 2001, is amended by adding
2 26 the following new subsection:
2 27 NEW SUBSECTION. 11. a. The taxes imposed under this
2 28 division shall be reduced by an agricultural cooperative
2 29 association tax credit. To be eligible for the credit, the
2 30 taxpayer must be a member of and make a capital investment in
2 31 a cooperative association organized for the purpose of
2 32 operating a development facility or a renewable fuel
2 33 production facility. The amount of the credit equals fifty
2 34 percent, not to exceed fifteen thousand dollars, of the amount
2 35 of the capital investment made in the tax year by the
3 1 taxpayer, as a member, in such cooperative association. Any
3 2 credit in excess of the tax liability may be carried backward
3 3 for up to three tax years or carried forward for up to five
3 4 tax years.
3 5 b. The taxpayer shall submit to the department of
3 6 agriculture and land stewardship an application for the tax
3 7 credit authorized by this subsection on a form provided by the
3 8 department of agriculture and land stewardship. A fee of
3 9 twenty-five dollars must accompany the application. The fee
3 10 proceeds are appropriated to the department of land
3 11 stewardship for costs associated with the tax credit.
3 12 The department of agriculture and land stewardship shall
3 13 not approve tax credits under this subsection, section
3 14 422.11F, and section 422.60, subsection 4, for more than one
3 15 million five hundred thousand dollars for investments made in
3 16 a cooperative project. The department of agriculture and land
3 17 stewardship shall provide by rule for the method of
3 18 determining if the applied for tax credits exceed that amount
3 19 and the procedure for prorating those tax credits.
3 20 After verifying the eligibility for the tax credit, the
3 21 department of agriculture and land stewardship shall issue a
3 22 tax credit certificate to be attached to the person's tax
3 23 return. The tax credit certificate shall contain the
3 24 taxpayer's name, address, tax identification number, the
3 25 amount of credit, and other information required by the
3 26 department of revenue and finance.
3 27 c. For purposes of this subsection:
3 28 (1) "Cooperative association" means a cooperative
3 29 association organized under chapter 501 or converted to
3 30 regulation under chapter 501 pursuant to section 501.601.
3 31 (2) "Development facility" means a facility producing a
3 32 good derived from an agricultural commodity or using a process
3 33 to produce a good derived from an agricultural commodity.
3 34 (3) "Project" means a development facility or renewable
3 35 fuel production facility operated or to be operated by a
4 1 cooperative association.
4 2 (4) "Renewable fuel production facility" means a facility
4 3 producing an energy source which is derived from a renewable,
4 4 domestically grown, organic compound capable of powering
4 5 machinery, including an engine or power plant, and any by-
4 6 product derived from such energy source.
4 7 Sec. 3. Section 422.60, Code 2001, is amended by adding
4 8 the following new subsection:
4 9 NEW SUBSECTION. 4. a. The taxes imposed under this
4 10 division shall be reduced by an agricultural cooperative
4 11 association tax credit. To be eligible for the credit, the
4 12 taxpayer must be a member of and make a capital investment in
4 13 a cooperative association organized for the purpose of
4 14 operating a development facility or a renewable fuel
4 15 production facility. The amount of the credit equals fifty
4 16 percent, not to exceed fifteen thousand dollars, of the amount
4 17 of the capital investment made in the tax year by the
4 18 taxpayer, as a member, in such cooperative association. Any
4 19 credit in excess of the tax liability may be carried backward
4 20 for up to three tax years or carried forward for up to five
4 21 tax years.
4 22 b. The taxpayer shall submit to the department of
4 23 agriculture and land stewardship an application for the tax
4 24 credit authorized by this subsection on a form provided by the
4 25 department of agriculture and land stewardship. A fee of
4 26 twenty-five dollars must accompany the application. The fee
4 27 proceeds are appropriated to the department of agriculture and
4 28 land stewardship for costs associated with the tax credit.
4 29 The department of agriculture and land stewardship shall
4 30 not approve tax credits under this subsection, section
4 31 422.11F, and section 422.33, subsection 11, for more than one
4 32 million five hundred thousand dollars for investments made in
4 33 a cooperative project. The department of agriculture and land
4 34 stewardship shall provide by rule for the method of
4 35 determining if the applied for tax credits exceed that amount
5 1 and the procedure for prorating those tax credits.
5 2 After verifying the eligibility for the tax credit, the
5 3 department of agriculture and land stewardship shall issue a
5 4 tax credit certificate to be attached to the person's tax
5 5 return. The tax credit certificate shall contain the
5 6 taxpayer's name, address, tax identification number, the
5 7 amount of credit, and other information required by the
5 8 department of revenue and finance.
5 9 c. For purposes of this subsection:
5 10 (1) "Cooperative association" means a cooperative
5 11 association organized under chapter 501 or converted to
5 12 regulation under chapter 501 pursuant to section 501.601.
5 13 (2) "Development facility" means a facility producing a
5 14 good derived from an agricultural commodity or using a process
5 15 to produce a good derived from an agricultural commodity.
5 16 (3) "Project" means a development facility or renewable
5 17 fuel production facility operated or to be operated by a
5 18 cooperative association.
5 19 (4) "Renewable fuel production facility" means a facility
5 20 producing an energy source which is derived from a renewable,
5 21 domestically grown, organic compound capable of powering
5 22 machinery, including an engine or power plant, and any by-
5 23 product derived from such energy source.
5 24 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
5 25 This Act, being deemed of immediate importance, takes effect
5 26 upon enactment and applies retroactively to January 1, 2001,
5 27 for tax years beginning on or after that date.
5 28 EXPLANATION
5 29 This bill provides an individual and corporate income tax
5 30 and bank franchise tax credit for capital investments made by
5 31 members of a cooperative association organized to operate a
5 32 development facility or a renewable fuel production facility.
5 33 A development facility is a facility that produces a product
5 34 from agricultural commodities. The amount of the credit
5 35 equals 50 percent, not to exceed $15,000, of the investment
6 1 made in the tax year. Any excess credit may be carried back
6 2 three years or carried forward five years. Tax credits in
6 3 excess of $1.5 million for any facility shall not be granted.
6 4 If the credits applied for exceed that amount, the credits are
6 5 to be prorated.
6 6 The bill takes effect upon enactment and applies
6 7 retroactively to January 1, 2001, for tax years beginning on
6 8 or after that date.
6 9 LSB 1250SV 79
6 10 mg/cls/14
Text: SF00488 Text: SF00490 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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