Text: HSB00528 Text: HSB00530 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11J EQUITY INVESTMENT TAX
1 2 CREDIT – VALUE-ADDED AGRICULTURAL PRODUCTS.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 an equity investment tax credit equal to sixty percent, in the
1 6 manner specified in subsection 2, of the amount of an equity
1 7 investment in a business which primarily involves the
1 8 production of value-added agricultural products and whose
1 9 principal business operations are located in the state. The
1 10 taxpayer shall not take a credit under this section if a
1 11 credit is taken under section 422.11F or any other provision
1 12 of the Code for the same investment.
1 13 2. The amount of the tax credit shall be claimed over five
1 14 tax years as follows:
1 15 a. Twenty percent of the amount of the equity investment
1 16 for the tax year in which the investment is made.
1 17 b. Ten percent of the amount of the equity investment for
1 18 each of the four tax years following the tax year in which the
1 19 investment is made.
1 20 An equity investment shall be deemed to have been made on
1 21 the same date as the date of acquisition of the equity
1 22 interest as determined under the Internal Revenue Code.
1 23 3. Any credit in excess of the taxpayer's liability for
1 24 the tax year may be credited to the tax liability for the
1 25 following five tax years or until depleted, whichever is
1 26 earlier.
1 27 4. An individual may claim an equity investment tax credit
1 28 allowed a partnership, limited liability company, S
1 29 corporation, estate, or trust electing to have the income
1 30 taxed directly to the individual. The amount claimed by the
1 31 individual shall be based upon the pro rata share of the
1 32 individual's earnings of the partnership, limited liability
1 33 company, S corporation, estate, or trust.
1 34 Sec. 2. Section 422.33, Code Supplement 2003, is amended
1 35 by adding the following new subsection:
2 1 NEW SUBSECTION. 16. a. The taxes imposed under this
2 2 division shall be reduced by an equity investment tax credit
2 3 equal to sixty percent, in the manner specified in paragraph
2 4 "b", of the amount of an equity investment in a business which
2 5 primarily involves the production of value-added agricultural
2 6 products and whose principal business operations are located
2 7 in the state. The taxpayer shall not take a credit under this
2 8 subsection if a credit is taken under subsection 12 or any
2 9 other provision of the Code for the same investment.
2 10 b. The amount of the tax credit shall be claimed over five
2 11 tax years as follows:
2 12 (1) Twenty percent of the amount of the equity investment
2 13 for the tax year in which the investment is made.
2 14 (2) Ten percent of the amount of the equity investment for
2 15 each of the four tax years following the tax year in which the
2 16 investment is made.
2 17 An equity investment shall be deemed to have been made on
2 18 the same date as the date of acquisition of the equity
2 19 interest as determined under the Internal Revenue Code.
2 20 c. Any credit in excess of the taxpayer's liability for
2 21 the tax year may be credited to the tax liability for the
2 22 following five tax years or until depleted, whichever is
2 23 earlier.
2 24 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 25 retroactively to January 1, 2004, for tax years beginning on
2 26 or after that date.
2 27 EXPLANATION
2 28 This bill provides for an individual and corporate tax
2 29 credit for equity investments made in a business that
2 30 primarily involves the production of value-added agricultural
2 31 products and whose principal business operations are located
2 32 in the state. The amount of the credit equals 60 percent of
2 33 the investment, which must be taken over five tax years. The
2 34 tax credit equals 20 percent for the tax year in which the
2 35 investment is made and 10 percent for each of the next four
3 1 tax years. The credit is nonrefundable but any excess credit
3 2 may be carried forward for up to five tax years. If the
3 3 taxpayer claims this credit, the taxpayer shall not claim a
3 4 credit under any other provision of the Code for the same
3 5 investment.
3 6 The bill applies retroactively to January 1, 2004, for tax
3 7 years beginning on or after that date.
3 8 LSB 5691YC 80
3 9 mg/gg/14
Text: HSB00528 Text: HSB00530 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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