Text: HF02430 Text: HF02432 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2431 1 2 1 3 AN ACT 1 4 RELATING TO EDUCATIONAL INSTITUTIONS UNDER THE UNIVERSITY-BASED 1 5 RESEARCH UTILIZATION PROGRAM. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 262B.11, subsections 1, 2, 3, and 4, 1 10 Code Supplement 2003, are amended to read as follows: 1 11 1. The department of economic development shall establish 1 12 and administer a university-based research utilization program 1 13 for purposes of encouraging the utilization of university- 1 14 based research, primarily in the area of high technology, in 1 15 new or existing businesses. The program shall include the 1 16 three universities under the control of the state board of 1 17 regents, community colleges established under chapter 260C, 1 18 and all accredited private universities located in the state. 1 19 For purposes of this section, "educational institution" means 1 20 a university under the control of the state board of regents, 1 21 a community college established under chapter 260C, or an 1 22 accredited private university located in the state. 1 23 2. A new or existing business that utilizes a technology 1 24 developed by an employee ata university under the control of1 25the state board of regentsan educational institution may 1 26 apply to the department of economic development for approval 1 27 to participate in the university-based research utilization 1 28 program. The department shall approve an applicant if the 1 29 applicant meets all of the following criteria: 1 30 a. The applicant utilizes a technology developed by an 1 31 employee ata university under the control of the state board1 32of regentsan educational institution, provided that the 1 33 technology has received a patent after July 1, 2003. If the 1 34 applicant has been in existence more than one year prior to 1 35 applying, the applicant shall organize a separate company to 2 1 utilize the technology. For purposes of this section, the 2 2 separate company shall be considered the applicant and, if 2 3 approved, the approved business. 2 4 b. The applicant develops a five-year business plan 2 5 approved by the department. The plan shall include 2 6 information concerning the applicant's Iowa employment goals 2 7 and projected impact on the Iowa economy. The department 2 8 shall only approve plans showing sufficient potential impact 2 9 on Iowa employment and economic development. 2 10 c. The applicant meets a minimum-size business standard 2 11 determined by the department. 2 12 d. The applicant provides annual reports to the department 2 13 that include employment statistics for the applicant and the 2 14 total taxable wages paid to Iowa employees and reported to the 2 15 department of revenue pursuant to section 422.16. 2 16 3. A business approved under the program and the 2 17universityemployee of an educational institution responsible 2 18 for the development of the technology utilized by the approved 2 19 business shall be eligible for a tax credit. The credit shall 2 20 be allowed against the taxes imposed in chapter 422, divisions 2 21 II and III. An individual may claim a tax credit under this 2 22 section of a partnership, limited liability company, S 2 23 corporation, estate, or trust electing to have income taxed 2 24 directly to the individual. The amount claimed by the 2 25 individual shall be based upon the pro rata share of the 2 26 individual's earnings from the partnership, limited liability 2 27 company, S corporation, estate, or trust. A tax credit shall 2 28 not be claimed under this subsection unless a tax credit 2 29 certificate issued by the department of economic development 2 30 is attached to the taxpayer's tax return for the tax year for 2 31 which the tax credit is claimed. The amount of a tax credit 2 32 allowed under this subsection shall equal the amount listed on 2 33 a tax credit certificate issued by the department of economic 2 34 development pursuant to subsection 4. A tax credit 2 35 certificate shall not be transferable. Any tax credit in 3 1 excess of the taxpayer's liability for the tax year may be 3 2 credited to the taxpayer's tax liability for the following 3 3 five years or until depleted, whichever occurs first. A tax 3 4 credit shall not be carried back to a tax year prior to the 3 5 tax year in which the taxpayer redeems the tax credit. 3 6 4. For the five tax years following the tax year in which 3 7 a business is approved under the program, the department of 3 8 revenue shall provide the department of economic development 3 9 with information required by the department of economic 3 10 development from each tax return filed by the approved 3 11 business. Upon receiving the tax return-related information, 3 12 the department of economic development shall do all of the 3 13 following: 3 14 a. Review the information provided by the department of 3 15 revenue pursuant to this subsection and the annual report 3 16 submitted by the applicant pursuant to subsection 2, paragraph 3 17 "d". If the department determines that the business 3 18 activities of the applicant are not providing the benefits to 3 19 Iowa employment and economic development projected in the 3 20 applicant's approved five-year business plan, the department 3 21 shall not issue tax credit certificates for that year to the 3 22 applicant oruniversityemployee of an educational institution 3 23 and shall determine any related university share to be equal 3 24 to zero for that year. 3 25 b. Effective for the fiscal year beginning July 1, 2004, 3 26 and for subsequent fiscal years, issue a tax credit 3 27 certificate to the approved business and theuniversity3 28 employee of an educational institution responsible for the 3 29 development of the technology utilized by the approved 3 30 business in an amount determined pursuant to subsection 5. A 3 31 tax credit certificate shall contain the taxpayer's name, 3 32 address, tax identification number, the amount of the tax 3 33 credit, and other information required by the department of 3 34 revenue. 3 35 c. (1)DetermineIf the educational institution at issue 4 1 is a university under the control of the state board of 4 2 regents, determine the university share which is equal to the 4 3 value of thirty percent of the tax liability of the approved 4 4 business for purposes of making an appropriation pursuant to 4 5 section 262B.12, to the university where the technology 4 6 utilized by the approved business was developed. A university 4 7 share shall not exceed two hundred twenty-five thousand 4 8 dollars per year per technology utilized. For each technology 4 9 utilized, the aggregate university share over a five-year 4 10 period shall not exceed six hundred thousand dollars. 4 11 (2) The department shall maintain records for each 4 12 university during each fiscal year regarding the university 4 13 share each university is entitled to receive through the 4 14 appropriation in section 262B.12. A university shall be 4 15 entitled to receive the total university share for that 4 16 particular university during the previous fiscal year. 4 17 d. For the fiscal year beginning July 1, 2004, not more 4 18 than two million dollars worth of certificates shall be issued 4 19 pursuant to paragraph "b". For the fiscal year beginning July 4 20 1, 2005, and every fiscal year thereafter, not more than ten 4 21 million dollars worth of certificates shall be issued pursuant 4 22 to paragraph "b". 4 23 Sec. 2. Section 262B.11, subsection 5, paragraph b, Code 4 24 Supplement 2003, is amended to read as follows: 4 25 b. For theuniversityemployee of an educational 4 26 institution responsible for the development of the technology 4 27 utilized by the approved business, the value of the tax credit 4 28 certificate shall equal ten percent of the tax liability of 4 29 the approved business. If more than one employee is 4 30 responsible for the development of the technology, the value 4 31 equal to ten percent of the tax liability of the approved 4 32 business shall be divided equally and individual tax credit 4 33 certificates shall be issued to each employee responsible for 4 34 the development of the technology. Each year, the total value 4 35 of a certificate or certificates issued for a utilized 5 1 technology shall not exceed seventy-five thousand dollars. 5 2 For each technology utilized, the total aggregate value of 5 3 certificates issued over a five-year period to theuniversity5 4 employee of an educational institution responsible for the 5 5 development of the technology shall not exceed two hundred 5 6 thousand dollars. 5 7 5 8 5 9 5 10 CHRISTOPHER C. RANTS 5 11 Speaker of the House 5 12 5 13 5 14 5 15 JEFFREY M. LAMBERTI 5 16 President of the Senate 5 17 5 18 I hereby certify that this bill originated in the House and 5 19 is known as House File 2431, Eightieth General Assembly. 5 20 5 21 5 22 5 23 MARGARET THOMSON 5 24 Chief Clerk of the House 5 25 Approved , 2004 5 26 5 27 5 28 5 29 THOMAS J. VILSACK 5 30 Governor
Text: HF02430 Text: HF02432 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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