Text: HSB00106 Text: HSB00108 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.329, subsection 1, paragraph d, Code 1 2 2003, is amended to read as follows: 1 3 d. The business shall agree to pay a median wage for new 1 4 full-timehourly nonmanagement productionjobs of at least 1 5 eleven dollars per hour indexed to 1993 dollars based on the 1 6 gross national product implicit price deflator published by 1 7 the bureau of economic analysis of the United States 1 8 department of commerce or one hundred thirty percent of the 1 9 average wage in the county in which the community is located, 1 10 whichever is higher. 1 11 Sec. 2. Section 15.333, subsection 1, unnumbered paragraph 1 12 1, Code 2003, is amended to read as follows: 1 13 An eligible business may claim a corporate tax credit up to 1 14 a maximum of ten percent of the new investment which is 1 15 directly related to new jobs created by the location or 1 16 expansion of an eligible business under the program. Any 1 17 credit in excess of the tax liability for the tax year may be 1 18 credited to the tax liability for the following seven years or 1 19 until depleted, whichever occurs earlier. Subject to prior 1 20 approval by the department of economic development in 1 21 consultation with the department of revenue and finance, an 1 22 eligible business whose project primarily involves the 1 23 production of value-added agricultural products or uses 1 24 biotechnology-related processes may elect to receive a refund 1 25 of all or a portion of an unused tax credit. For purposes of 1 26 this section, an eligible business includes a cooperative 1 27 described in section 521 of the Internal Revenue Code which is 1 28 not required to file an Iowa corporate income tax return, and 1 29 whose project primarily involves the production of ethanol. 1 30 The refund may be used against a tax liability imposed under 1 31 chapter 422, division II, III, or V. If the business is a 1 32 partnership, S corporation, limited liability company, 1 33 cooperative organized under chapter 501 and filing as a 1 34 partnership for federal tax purposes, or estate or trust 1 35 electing to have the income taxed directly to the individual, 2 1 an individual may claim the tax credit allowed. The amount 2 2 claimed by the individual shall be based upon the pro rata 2 3 share of the individual's earnings of the partnership, S 2 4 corporation, limited liability company, cooperative organized 2 5 under chapter 501 and filing as a partnership for federal tax 2 6 purposes, or estate or trust. 2 7 Sec. 3. Section 15.333, subsection 2, Code 2003, is 2 8 amended to read as follows: 2 9 2. An eligible business whose project primarily involves 2 10 the production of value-added agricultural products or uses 2 11 biotechnology-related processes, that elects to receive a 2 12 refund of all or a portion of an unused tax credit, shall 2 13 apply to the department of economic development for tax credit 2 14 certificates. An eligible business whose project primarily 2 15 involves the production of value-added agricultural products 2 16 or uses biotechnology-related processes shall not claim a tax 2 17 credit refund under this section unless a tax credit 2 18 certificate issued by the department of economic development 2 19 is attached to the taxpayer's tax return for the tax year for 2 20 which the tax credit refund is claimed. For purposes of this 2 21 section, an eligible business includes a cooperative described 2 22 in section 521 of the Internal Revenue Code which is not 2 23 required to file an Iowa corporate income tax return, and 2 24 whose project primarily involves the production of ethanol. 2 25 For purposes of this section, an eligible business also 2 26 includes a cooperative described in section 521 of the 2 27 Internal Revenue Code which is required to file an Iowa 2 28 corporate income tax return and whose project primarily 2 29 involves the production of ethanol. Such cooperative may 2 30 elect to transfer all or a portion of its tax credit to its 2 31 members. The amount of tax credit transferred and claimed by 2 32 a member shall be based upon the pro rata share of the 2 33 member's earnings of the cooperative. 2 34 A tax credit certificate shall not be valid until the tax 2 35 year following the date of the project completion. A tax 3 1 credit certificate shall contain the taxpayer's name, address, 3 2 tax identification number, the date of project completion, the 3 3 amount of the tax credit, and other information required by 3 4 the department of revenue and finance. The department of 3 5 economic development shall not issue tax credit certificates 3 6 which total more than four million dollars during a fiscal 3 7 year. The department may reserve, as described in subsection 3 8 4, tax credit certificates for eligible businesses which shall 3 9 not, in total, exceed two million dollars per fiscal year. If 3 10 the department receives applications for tax credit 3 11 certificates in excess of four million dollars less the amount 3 12 of tax credit certificates reserved by the department for that 3 13 fiscal year, the applicants shall receive certificates for a 3 14 prorated amount. The tax credit certificates shall not be 3 15 transferred except as provided in this subsection for a 3 16 cooperative described in section 521 of the Internal Revenue 3 17 Code which is required to file an Iowa corporate income tax 3 18 return and whose project primarily involves the production of 3 19 ethanol. For a cooperative described in section 521 of the 3 20 Internal Revenue Code, the department of economic development 3 21 shall require that the cooperative submit a list of its 3 22 members and the share of each member's interest in the 3 23 cooperative. The department shall issue a tax credit 3 24 certificate to each member contained on the submitted list. 3 25 Sec. 4. Section 15.133, Code 2003, is amended by adding 3 26 the following new subsection: 3 27 NEW SUBSECTION. 4. The department may reserve tax credit 3 28 certificates for eligible businesses whose projects primarily 3 29 involve the production of value-added agricultural products or 3 30 uses biotechnology-related processes. The department shall 3 31 reserve the tax credit certificate when the application of an 3 32 eligible business is approved. The department shall determine 3 33 the face amount of each reserved tax credit certificate and 3 34 the department shall notify the eligible business upon 3 35 approval of the application regarding the face amount of each 4 1 certificate. The department shall not reserve more than a 4 2 total of two million dollars in tax credit certificates each 4 3 fiscal year. The reserved tax credit certificates shall not 4 4 be issued until the project is completed. The department 4 5 shall determine the allocation method for reserved tax credit 4 6 certificates as an incentive for the businesses to locate or 4 7 expand a project that would not otherwise occur in the state 4 8 without this assistance. 4 9 EXPLANATION 4 10 This bill relates to the new jobs and income program 4 11 administered by the department of economic development. 4 12 The bill amends the median wage requirement for new jobs 4 13 created by an eligible business under the program. Currently, 4 14 a business is required to agree to pay a median wage for new 4 15 full-time hourly nonmanagement production jobs of at least $11 4 16 per hour indexed to 1993 dollars or 130 percent of the average 4 17 wage in the county in which the community is located, 4 18 whichever is higher. The bill removes the hourly 4 19 nonmanagement production limitation. 4 20 The bill amends the investment tax credit which may be 4 21 claimed by an eligible business under the program. Currently, 4 22 an eligible business whose project primarily involves the 4 23 production of value-added agricultural products may elect to 4 24 receive a refund of all or a portion of an unused tax credit. 4 25 The bill extends this opportunity to an eligible business 4 26 whose project primarily uses biotechnology-related processes. 4 27 The bill allows the department to reserve tax certificates 4 28 which are issued to businesses electing to receive a refund. 4 29 The bill allows the department to reserve certificates each 4 30 fiscal year which total not more than $2 million. The bill 4 31 provides that the department shall reserve the certificates 4 32 when the application of an eligible business is approved, but 4 33 the certificates shall not be issued to the business until the 4 34 project is completed. The bill requires the department to 4 35 determine the face amount of each certificate and to notify 5 1 the business regarding the face amount. The bill provides 5 2 that the department shall determine the allocation method for 5 3 reserved tax credit certificates as an incentive for the 5 4 businesses to locate or expand a project that would not 5 5 otherwise occur in the state without this assistance. 5 6 LSB 2130HC 80 5 7 tm/sh/8
Text: HSB00106 Text: HSB00108 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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