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