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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