Text: HF00667 Text: HF00669 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 262B.7 FUNDING. 1 2 There is annually appropriated from the general fund of the 1 3 state to the state board of regents forty-five thousand 1 4 dollars for purposes of providing a single point of contact to 1 5 assist in the implementation of this chapter. 1 6 Sec. 2. NEW SECTION. 262B.11 UNIVERSITY-BASED RESEARCH 1 7 UTILIZATION PROGRAM. 1 8 1. The department of economic development shall establish 1 9 and administer a university-based research utilization program 1 10 for purposes of encouraging the utilization of university- 1 11 based research, primarily in the area of high technology, in 1 12 new or existing businesses. The program shall include the 1 13 three universities under the control of the state board of 1 14 regents and all accredited private universities located in the 1 15 state. 1 16 2. A new or existing business that utilizes a technology 1 17 developed by an employee at a university under the control of 1 18 the state board of regents may apply to the department of 1 19 economic development for approval to participate in the 1 20 university-based research utilization program. The department 1 21 shall approve an applicant if the applicant meets all of the 1 22 following criteria: 1 23 a. The applicant utilizes a technology developed by an 1 24 employee at a university under the control of the state board 1 25 of regents, provided that the technology has received a patent 1 26 after the effective date of this Act. If the applicant has 1 27 been in existence more than one year prior to applying, the 1 28 applicant shall organize a separate company to utilize the 1 29 technology. For purposes of this section, the separate 1 30 company shall be considered the applicant and, if approved, 1 31 the approved business. 1 32 b. The applicant develops a five-year business plan 1 33 approved by the department. The plan shall include 1 34 information concerning the applicant's Iowa employment goals 1 35 and projected impact on the Iowa economy. The department 2 1 shall only approve plans showing sufficient potential impact 2 2 on Iowa employment and economic development. 2 3 c. The applicant meets a minimum-size business standard 2 4 determined by the department. 2 5 d. The applicant provides annual reports to the department 2 6 that include employment statistics for the applicant and the 2 7 total taxable wages paid to Iowa employees and reported to the 2 8 department of revenue and finance pursuant to section 422.16. 2 9 3. A business approved under the program and the 2 10 university employee responsible for the development of the 2 11 technology utilized by the approved business shall be eligible 2 12 for a tax credit. The credit shall be allowed against the 2 13 taxes imposed in chapter 422, divisions II and III. An 2 14 individual may claim a tax credit under this section of a 2 15 partnership, limited liability company, S corporation, estate, 2 16 or trust electing to have income taxed directly to the 2 17 individual. The amount claimed by the individual shall be 2 18 based upon the pro rata share of the individual's earnings 2 19 from the partnership, limited liability company, S 2 20 corporation, estate, or trust. A tax credit shall not be 2 21 claimed under this subsection unless a tax credit certificate 2 22 issued by the department of economic development is attached 2 23 to the taxpayer's tax return for the tax year for which the 2 24 tax credit is claimed. The amount of a tax credit allowed 2 25 under this subsection shall equal the amount listed on a tax 2 26 credit certificate issued by the department of economic 2 27 development pursuant to subsection 4. A tax credit 2 28 certificate shall not be transferable. Any tax credit in 2 29 excess of the taxpayer's liability for the tax year may be 2 30 credited to the taxpayer's tax liability for the following 2 31 five years or until depleted, whichever occurs first. A tax 2 32 credit shall not be carried back to a tax year prior to the 2 33 tax year in which the taxpayer redeems the tax credit. 2 34 4. For the five tax years following the tax year in which 2 35 a business is approved under the program, the department of 3 1 revenue and finance shall provide the department of economic 3 2 development with information required by the department of 3 3 economic development from each tax return filed by the 3 4 approved business. Upon receiving the tax return-related 3 5 information, the department of economic development shall do 3 6 all of the following: 3 7 a. Review the information provided by the department of 3 8 revenue and finance pursuant to this subsection and the annual 3 9 report submitted by the applicant pursuant to subsection 2, 3 10 paragraph "d". If the department determines that the business 3 11 activities of the applicant are not providing the benefits to 3 12 Iowa employment and economic development projected in the 3 13 applicant's approved five-year business plan, the department 3 14 shall not issue tax credit certificates for that year to the 3 15 applicant or university employee and shall determine any 3 16 related university share to be equal to zero for that year. 3 17 b. Effective for the fiscal year beginning July 1, 2004, 3 18 and for subsequent fiscal years, issue a tax credit 3 19 certificate to the approved business and the university 3 20 employee responsible for the development of the technology 3 21 utilized by the approved business in an amount determined 3 22 pursuant to subsection 5. A tax credit certificate shall 3 23 contain the taxpayer's name, address, tax identification 3 24 number, the amount of the tax credit, and other information 3 25 required by the department of revenue and finance. 3 26 c. (1) Determine the university share which is equal to 3 27 the value of thirty percent of the tax liability of the 3 28 approved business for purposes of making an appropriation 3 29 pursuant to subsection 7 to the university where the 3 30 technology utilized by the approved business was developed. A 3 31 university share shall not exceed two hundred twenty-five 3 32 thousand dollars per year per technology utilized. For each 3 33 technology utilized, the aggregate university share over a 3 34 five-year period shall not exceed six hundred thousand 3 35 dollars. 4 1 (2) The department shall maintain records for each 4 2 university during each fiscal year regarding the university 4 3 share each university is entitled to receive through the 4 4 appropriation in subsection 7. A university shall be entitled 4 5 to receive the total university share for that particular 4 6 university during the previous fiscal year. 4 7 d. For the fiscal year beginning July 1, 2004, not more 4 8 than two million dollars worth of certificates shall be issued 4 9 pursuant to paragraph "b". For the fiscal year beginning July 4 10 1, 2005, and every fiscal year thereafter, not more than ten 4 11 million dollars worth of certificates shall be issued pursuant 4 12 to paragraph "b". 4 13 5. The tax credit certificates issued by the department 4 14 for each of the five years following the tax year in which the 4 15 business is approved under the program shall be for the 4 16 following amounts: 4 17 a. For the approved business, the value of the tax credit 4 18 certificate shall equal thirty percent of the tax liability of 4 19 the approved business. The value of a certificate issued to 4 20 an approved business shall not exceed two hundred twenty-five 4 21 thousand dollars. The total aggregate value of certificates 4 22 issued over a five-year period to an approved business shall 4 23 not exceed six hundred thousand dollars. 4 24 b. For the university employee responsible for the 4 25 development of the technology utilized by the approved 4 26 business, the value of the tax credit certificate shall equal 4 27 ten percent of the tax liability of the approved business. If 4 28 more than one employee is responsible for the development of 4 29 the technology, the value equal to ten percent of the tax 4 30 liability of the approved business shall be divided equally 4 31 and individual tax credit certificates shall be issued to each 4 32 employee responsible for the development of the technology. 4 33 Each year, the total value of a certificate or certificates 4 34 issued for a utilized technology shall not exceed seventy-five 4 35 thousand dollars. For each technology utilized, the total 5 1 aggregate value of certificates issued over a five-year period 5 2 to the university employee responsible for the development of 5 3 the technology shall not exceed two hundred thousand dollars. 5 4 6. The department of economic development shall notify the 5 5 department of revenue and finance when a tax credit 5 6 certificate is issued pursuant to subsection 4. The 5 7 notification shall include the name and tax identification 5 8 number appearing on any tax credit certificate. 5 9 7. On July 1 of each year, there is appropriated from the 5 10 general fund of the state to each university under the control 5 11 of the state board of regents, an amount equal to the amount 5 12 determined by the department of economic development pursuant 5 13 to subsection 4, paragraph "b", subparagraph (2). 5 14 Sec. 3. NEW SECTION. 422.11H UNIVERSITY-BASED RESEARCH 5 15 UTILIZATION PROGRAM TAX CREDIT. 5 16 The taxes imposed under this division, less the credits 5 17 allowed under sections 422.12 and 422.12B, shall be reduced by 5 18 a university-based research utilization program tax credit 5 19 authorized pursuant to section 262B.11. 5 20 Sec. 4. Section 422.33, Code 2003, is amended by adding 5 21 the following new subsection: 5 22 NEW SUBSECTION. 14. The taxes imposed under this division 5 23 shall be reduced by a university-based research utilization 5 24 program tax credit authorized pursuant to section 262B.11. 5 25 HF 668 5 26 tm/es/25
Text: HF00667 Text: HF00669 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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