Text: SSB01248                          Text: SSB01250
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Senate Study Bill 1249

Bill Text

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.  a.  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, other information required by the department
  2  9 of revenue and finance, and a place for the name and tax
  2 10 identification number of any transferee and the amount of the
  2 11 tax credit being transferred.
  2 12    b.  A person receiving a tax credit under this section may
  2 13 transfer all or a portion of the unused tax credit to any
  2 14 other person.  However, the tax credit shall only be
  2 15 transferred once.  The transferee may use the amount of the
  2 16 tax credit transferred against the taxes imposed under this
  2 17 division and divisions III and V for any tax year the original
  2 18 transferor could have claimed the credit.  Any consideration
  2 19 received for the transfer of the tax credit shall not be
  2 20 included as income under this division and divisions III and
  2 21 V.  Any consideration paid for the transfer of the tax credit
  2 22 shall not be deducted from income under this division and
  2 23 divisions III and V.
  2 24    4.  For purposes of this section:
  2 25    a.  "Cooperative association" means a cooperative
  2 26 association organized under chapter 501 or converted to
  2 27 regulation under chapter 501 pursuant to section 501.601.
  2 28    b.  "Development facility" means a facility producing a
  2 29 good derived from an agricultural commodity or using a process
  2 30 to produce a good derived from an agricultural commodity.
  2 31    c.  "Project" means a development facility or renewable
  2 32 fuel production facility operated or to be operated by a
  2 33 cooperative association.
  2 34    d.  "Renewable fuel production facility" means a facility
  2 35 producing an energy source which is derived from a renewable,
  3  1 domestically grown, organic compound capable of powering
  3  2 machinery, including an engine or power plant, and any by-
  3  3 product derived from such energy source.
  3  4    Sec. 2.  Section 422.33, Code 2001, is amended by adding
  3  5 the following new subsection:
  3  6    NEW SUBSECTION.  11.  a.  The taxes imposed under this
  3  7 division shall be reduced by an agricultural cooperative
  3  8 association tax credit.  To be eligible for the credit, the
  3  9 taxpayer must be a member of and make a capital investment in
  3 10 a cooperative association organized for the purpose of
  3 11 operating a development facility or a renewable fuel
  3 12 production facility.  The amount of the credit equals fifty
  3 13 percent, not to exceed fifteen thousand dollars, of the amount
  3 14 of the capital investment made in the tax year by the
  3 15 taxpayer, as a member, in such cooperative association.  Any
  3 16 credit in excess of the tax liability may be carried backward
  3 17 for up to three tax years or carried forward for up to five
  3 18 tax years.
  3 19    b.  (1)  The taxpayer shall submit to the department of
  3 20 agriculture and land stewardship an application for the tax
  3 21 credit authorized by this subsection on a form provided by the
  3 22 department of agriculture and land stewardship.  A fee of
  3 23 twenty-five dollars must accompany the application.  The fee
  3 24 proceeds are appropriated to the department of land
  3 25 stewardship for costs associated with the tax credit.
  3 26    The department of agriculture and land stewardship shall
  3 27 not approve tax credits under this subsection, section
  3 28 422.11F, and section 422.60, subsection 4, for more than one
  3 29 million five hundred thousand dollars for investments made in
  3 30 a cooperative project.  The department of agriculture and land
  3 31 stewardship shall provide by rule for the method of
  3 32 determining if the applied for tax credits exceed that amount
  3 33 and the procedure for prorating those tax credits.
  3 34    After verifying the eligibility for the tax credit, the
  3 35 department of agriculture and land stewardship shall issue a
  4  1 tax credit certificate to be attached to the person's tax
  4  2 return.  The tax credit certificate shall contain the
  4  3 taxpayer's name, address, tax identification number, the
  4  4 amount of credit, other information required by the department
  4  5 of revenue and finance, and a place for the name and tax
  4  6 identification number of any transferee and the amount of the
  4  7 tax credit being transferred.
  4  8    (2)  A person receiving a tax credit under this subsection
  4  9 may transfer all or a portion of the unused tax credit to any
  4 10 other person.  However, the tax credit shall only be
  4 11 transferred once.  The transferee may use the amount of the
  4 12 tax credit transferred against the taxes imposed under this
  4 13 division and divisions II and V for any tax year the original
  4 14 transferor could have claimed the credit.  Any consideration
  4 15 received for the transfer of the tax credit shall not be
  4 16 included as income under this division and divisions II and V.
  4 17 Any consideration paid for the transfer of the tax credit
  4 18 shall not be deducted from income under this division and
  4 19 divisions II and V.
  4 20    c.  For purposes of this subsection:
  4 21    (1)  "Cooperative association" means a cooperative
  4 22 association organized under chapter 501 or converted to
  4 23 regulation under chapter 501 pursuant to section 501.601.
  4 24    (2)  "Development facility" means a facility producing a
  4 25 good derived from an agricultural commodity or using a process
  4 26 to produce a good derived from an agricultural commodity.
  4 27    (3)  "Project" means a development facility or renewable
  4 28 fuel production facility operated or to be operated by a
  4 29 cooperative association.
  4 30    (4)  "Renewable fuel production facility" means a facility
  4 31 producing an energy source which is derived from a renewable,
  4 32 domestically grown, organic compound capable of powering
  4 33 machinery, including an engine or power plant, and any by-
  4 34 product derived from such energy source.
  4 35    Sec. 3.  Section 422.60, Code 2001, is amended by adding
  5  1 the following new subsection:
  5  2    NEW SUBSECTION.  4.  a.  The taxes imposed under this
  5  3 division shall be reduced by an agricultural cooperative
  5  4 association tax credit.  To be eligible for the credit, the
  5  5 taxpayer must be a member of and make a capital investment in
  5  6 a cooperative association organized for the purpose of
  5  7 operating a development facility or a renewable fuel
  5  8 production facility.  The amount of the credit equals fifty
  5  9 percent, not to exceed fifteen thousand dollars, of the amount
  5 10 of the capital investment made in the tax year by the
  5 11 taxpayer, as a member, in such cooperative association.  Any
  5 12 credit in excess of the tax liability may be carried backward
  5 13 for up to three tax years or carried forward for up to five
  5 14 tax years.
  5 15    b.  (1)  The taxpayer shall submit to the department of
  5 16 agriculture and land stewardship an application for the tax
  5 17 credit authorized by this subsection on a form provided by the
  5 18 department of agriculture and land stewardship.  A fee of
  5 19 twenty-five dollars must accompany the application.  The fee
  5 20 proceeds are appropriated to the department of land
  5 21 stewardship for costs associated with the tax credit.
  5 22    The department of agriculture and land stewardship shall
  5 23 not approve tax credits under this subsection, section
  5 24 422.11F, and section 422.33, subsection 11, for more than one
  5 25 million five hundred thousand dollars for investments made in
  5 26 a cooperative project.  The department of agriculture and land
  5 27 stewardship shall provide by rule for the method of
  5 28 determining if the applied for tax credits exceed that amount
  5 29 and the procedure for prorating those tax credits.
  5 30    After verifying the eligibility for the tax credit, the
  5 31 department of agriculture and land stewardship shall issue a
  5 32 tax credit certificate to be attached to the person's tax
  5 33 return.  The tax credit certificate shall contain the
  5 34 taxpayer's name, address, tax identification number, the
  5 35 amount of credit, other information required by the department
  6  1 of revenue and finance, and a place for the name and tax
  6  2 identification number of any transferee and the amount of the
  6  3 tax credit being transferred.
  6  4    (2)  A person receiving a tax credit under this subsection
  6  5 may transfer all or a portion of the unused tax credit to any
  6  6 other person.  However, the tax credit shall only be
  6  7 transferred once.  The transferee may use the amount of the
  6  8 tax credit transferred against the taxes imposed under this
  6  9 division and divisions II and III for any tax year the
  6 10 original transferor could have claimed the credit.  Any
  6 11 consideration received for the transfer of the tax credit
  6 12 shall not be included as income under this division and
  6 13 divisions II and III.  Any consideration paid for the transfer
  6 14 of the tax credit shall not be deducted from income under this
  6 15 division and divisions II and III.
  6 16    c.  For purposes of this subsection:
  6 17    (1)  "Cooperative association" means a cooperative
  6 18 association organized under chapter 501 or converted to
  6 19 regulation under chapter 501 pursuant to section 501.601.
  6 20    (2)  "Development facility" means a facility producing a
  6 21 good derived from an agricultural commodity or using a process
  6 22 to produce a good derived from an agricultural commodity.
  6 23    (3)  "Project" means a development facility or renewable
  6 24 fuel production facility operated or to be operated by a
  6 25 cooperative association.
  6 26    (4)  "Renewable fuel production facility" means a facility
  6 27 producing an energy source which is derived from a renewable,
  6 28 domestically grown, organic compound capable of powering
  6 29 machinery, including an engine or power plant, and any by-
  6 30 product derived from such energy source.
  6 31    Sec. 4.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  6 32 This Act, being deemed of immediate importance, takes effect
  6 33 upon enactment and applies retroactively to January 1, 2001,
  6 34 for tax years beginning on or after that date.  
  6 35                           EXPLANATION
  7  1    This bill provides an individual and corporate income tax
  7  2 and bank franchise tax credit for capital investments made by
  7  3 members of a cooperative association organized to operate a
  7  4 development facility or a renewable fuel production facility.
  7  5 A development facility is a facility that produces a product
  7  6 from agricultural commodities.  The amount of the credit
  7  7 equals 50 percent, not to exceed $15,000, of the investment
  7  8 made in the tax year.  Any excess credit may be carried back
  7  9 three years or carried forward five years.  A taxpayer who
  7 10 receives the credit may transfer the credit to another
  7 11 taxpayer to use.  Tax credits in excess of $1.5 million for
  7 12 any facility shall not be granted.  If the credits applied for
  7 13 exceed that amount, the credits are to be prorated.
  7 14    The bill takes effect upon enactment and applies
  7 15 retroactively to January 1, 2001, for tax years beginning on
  7 16 or after that date.  
  7 17 LSB 1250SC 79
  7 18 mg/cls/14
     

Text: SSB01248                          Text: SSB01250
Text: SSB01200 - SSB01299               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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