Text: HSB00285                          Text: HSB00287
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House Study Bill 286

Bill Text

PAG LIN
  1  1    Section 1.  Section 15.333, subsection 1, unnumbered
  1  2 paragraph 1, Code 2003, is amended to read as follows:
  1  3    An eligible business may claim a corporate tax credit up to
  1  4 a maximum of ten percent of the new investment which is
  1  5 directly related to new jobs created by the location or
  1  6 expansion of an eligible business under the program.  Any
  1  7 credit in excess of the tax liability for the tax year may be
  1  8 credited to the tax liability for the following seven years or
  1  9 until depleted, whichever occurs earlier.  Subject to prior
  1 10 approval by the department of economic development in
  1 11 consultation with the department of revenue and finance, an
  1 12 eligible business whose project primarily involves the
  1 13 production of value-added agricultural products or uses
  1 14 biotechnology-related processes may elect to receive a refund
  1 15 of all or a portion of an unused tax credit.  For purposes of
  1 16 this section, an eligible business includes a cooperative
  1 17 described in section 521 of the Internal Revenue Code which is
  1 18 not required to file an Iowa corporate income tax return, and
  1 19 whose project primarily involves the production of ethanol.
  1 20 The refund may be used against a tax liability imposed under
  1 21 chapter 422, division II, III, or V.  If the business is a
  1 22 partnership, S corporation, limited liability company,
  1 23 cooperative organized under chapter 501 and filing as a
  1 24 partnership for federal tax purposes, or estate or trust
  1 25 electing to have the income taxed directly to the individual,
  1 26 an individual may claim the tax credit allowed.  The amount
  1 27 claimed by the individual shall be based upon the pro rata
  1 28 share of the individual's earnings of the partnership, S
  1 29 corporation, limited liability company, cooperative organized
  1 30 under chapter 501 and filing as a partnership for federal tax
  1 31 purposes, or estate or trust.
  1 32    Sec. 2.  Section 15.333, subsection 2, unnumbered paragraph
  1 33 1, Code 2003, is amended to read as follows:
  1 34    An eligible business whose project primarily involves the
  1 35 production of value-added agricultural products or uses
  2  1 biotechnology-related processes, that elects to receive a
  2  2 refund of all or a portion of an unused tax credit, shall
  2  3 apply to the department of economic development for tax credit
  2  4 certificates.  An eligible business whose project primarily
  2  5 involves the production of value-added agricultural products
  2  6 or uses biotechnology-related processes shall not claim a tax
  2  7 credit refund under this section unless a tax credit
  2  8 certificate issued by the department of economic development
  2  9 is attached to the taxpayer's tax return for the tax year for
  2 10 which the tax credit refund is claimed.  For purposes of this
  2 11 section, an eligible business includes a cooperative described
  2 12 in section 521 of the Internal Revenue Code which is not
  2 13 required to file an Iowa corporate income tax return, and
  2 14 whose project primarily involves the production of ethanol.
  2 15 For purposes of this section, an eligible business also
  2 16 includes a cooperative described in section 521 of the
  2 17 Internal Revenue Code which is required to file an Iowa
  2 18 corporate income tax return and whose project primarily
  2 19 involves the production of ethanol.  Such cooperative may
  2 20 elect to transfer all or a portion of its tax credit to its
  2 21 members.  The amount of tax credit transferred and claimed by
  2 22 a member shall be based upon the pro rata share of the
  2 23 member's earnings of the cooperative.  
  2 24                           EXPLANATION
  2 25    This bill relates to the new jobs and income program
  2 26 administered by the department of economic development.
  2 27    The bill amends the investment tax credit which may be
  2 28 claimed by an eligible business under the program.  Currently,
  2 29 an eligible business whose project primarily involves the
  2 30 production of value-added agricultural products may elect to
  2 31 receive a refund of all or a portion of an unused tax credit.
  2 32 The bill extends this opportunity to an eligible business
  2 33 whose project primarily uses biotechnology-related processes.  
  2 34 LSB 3070HC 80
  2 35 tm/sh/8
     

Text: HSB00285                          Text: HSB00287
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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