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