Text: SF02130 Text: SF02132 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 404A.1, subsection 1, Code 2001, is 1 2 amended to read as follows: 1 3 1. A property rehabilitation tax credit, subject to the 1 4 availability of the credit, is granted against theincometax 1 5 imposed under chapter 422, division II,or divisionIII, or V, 1 6 or chapter 432, for the rehabilitation of eligible property 1 7 located in this state as provided in this chapter. Tax 1 8 credits in excess of tax liabilities shall be refunded as 1 9 provided in section 404A.4, subsection 3. 1 10 Sec. 2. Section 404A.2, Code 2001, is amended by adding 1 11 the following new unnumbered paragraph after unnumbered 1 12 paragraph 3: 1 13 NEW UNNUMBERED PARAGRAPH. A person receiving a tax credit 1 14 under this chapter may transfer all or a portion of the unused 1 15 tax credit to any other person. However, the tax credit shall 1 16 only be transferred once. The transferee may use the amount 1 17 of the tax credit transferred against taxes imposed under 1 18 chapter 422, division II, III, or V, or chapter 432, for any 1 19 tax year the transferor could have claimed the credit. Any 1 20 consideration received for the transfer of the tax credit 1 21 shall not be included as income under chapter 422, division II 1 22 or III. Any consideration paid for the transfer of the tax 1 23 credit shall not be deducted from income under chapter 422, 1 24 division II or III. 1 25 Sec. 3. Section 404A.4, subsection 2, Code 2001, is 1 26 amended to read as follows: 1 27 2. After verifying the eligibility for the tax credit, the 1 28 state historic preservation office, in consultation with the 1 29 department of economic development, shall issue a property 1 30 rehabilitation tax credit certificate to be attached to the 1 31 person's tax return. The tax credit certificate shall contain 1 32 the taxpayer's name, address, tax identification number, the 1 33 date of project completion, the amount of credit,andother 1 34 information required by the department of revenue and finance, 1 35 and a place for the name and tax identification number of any 2 1 transferee and the amount of the tax credit being transferred. 2 2 Sec. 4. Section 404A.4, subsection 4, Code 2001, is 2 3 amended to read as follows: 2 4 4. The total amount of tax credits that may be approved 2 5 for a fiscal year under this chapter shall not exceed two 2 6 million four hundred thousand dollars. However, if the 2 7 eligible property is located in an enterprise zone, the amount 2 8 of the credit shall not be counted against the limitation on 2 9 the total amount of tax credits. Tax credit certificates 2 10 shall be issued on the basis of the earliest awarding of 2 11 certifications of completion as provided in subsection 1. The 2 12 departments of economic development and revenue and finance 2 13 shall each adopt rules to jointly administer this subsection 2 14 and shall provide by rule for the method to be used to 2 15 determine for which fiscal year the tax credits are approved. 2 16 Sec. 5. Section 422.60, Code 2001, is amended by adding 2 17 the following new subsection: 2 18 NEW SUBSECTION. 4. a. The taxes imposed under this 2 19 division shall be reduced by a property rehabilitation tax 2 20 credit equal to the amount as computed under chapter 404A for 2 21 rehabilitating eligible property. Any credit in excess of the 2 22 tax liability shall be refunded as provided in section 404A.4, 2 23 subsection 3. 2 24 b. For purposes of this subsection, "eligible property" 2 25 means the same as used in section 404A.1. 2 26 Sec. 6. NEW SECTION. 432.12A PROPERTY REHABILITATION TAX 2 27 CREDIT. 2 28 1. The tax imposed under this chapter shall be reduced by 2 29 a property rehabilitation tax credit equal to the amount as 2 30 computed under chapter 404A for rehabilitating eligible 2 31 property. Any credit in excess of the tax liability shall be 2 32 refunded as provided in section 404A.4, subsection 3. 2 33 2. For purposes of this section, "eligible property" means 2 34 the same as used in section 404A.1. 2 35 Sec. 7. EFFECTIVE AND APPLICABILITY DATE. This Act, being 3 1 deemed of immediate importance, takes effect upon enactment 3 2 and applies retroactively to January 1, 2002, for tax years 3 3 beginning on or after that date. 3 4 EXPLANATION 3 5 This bill provides that the historic property 3 6 rehabilitation tax credit may be applied against the insurance 3 7 premiums tax and the franchise tax. Under present law, the 3 8 tax credit is only available for purposes of the individual 3 9 and corporate income taxes. 3 10 The bill provides that a person receiving a historic 3 11 property rehabilitation tax credit may transfer all or a 3 12 portion of the unused credit to any other person; however, a 3 13 tax credit shall only be transferred once. The bill provides 3 14 that the transferee may use the amount of the tax credit 3 15 transferred against personal income taxes, corporate income 3 16 taxes, insurance premiums tax, or franchise tax for any tax 3 17 year the transferor could have claimed the tax credit. 3 18 Consideration received for transfer of a tax credit shall not 3 19 be included as income for purposes of state income tax and 3 20 amounts paid for transfer of a tax credit may not be deducted 3 21 from income for purposes of state income tax. 3 22 Under current law, the amount of rehabilitation tax credits 3 23 that may be approved for a fiscal year cannot exceed $2.4 3 24 million. The bill provides that the amount of credits 3 25 approved for property located in an enterprise zone does not 3 26 count toward the limitation. 3 27 The bill takes effect upon enactment and applies 3 28 retroactively to January 1, 2002, for tax years beginning on 3 29 or after that date. 3 30 LSB 6168SS 79 3 31 sc/cls/14
Text: SF02130 Text: SF02132 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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