Text: HSB00706                          Text: HSB00708
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 707

Bill Text

PAG LIN
  1  1    Section 1.  Section 262B.11, subsection 2, paragraph a,
  1  2 Code Supplement 2003, is amended to read as follows:
  1  3    a.  The applicant utilizes a technology developed by an
  1  4 employee at a university under the control of the state board
  1  5 of regents, provided that the technology has received a patent
  1  6 after July 1, 2003 2002.  If the applicant has been in
  1  7 existence more than one year prior to applying, the applicant
  1  8 shall organize a separate company to utilize the technology.
  1  9 For purposes of this section, the separate company shall be
  1 10 considered the applicant and, if approved, the approved
  1 11 business.
  1 12    Sec. 2.  Section 262B.11, subsection 5, paragraph b, Code
  1 13 Supplement 2003, is amended to read as follows:
  1 14    b.  For the university employee responsible for the
  1 15 development of the technology utilized by the approved
  1 16 business, the value of the tax credit certificate shall equal
  1 17 ten percent of the tax liability taxable payroll for the tax
  1 18 year of the approved business.  If more than one employee is
  1 19 responsible for the development of the technology, the value
  1 20 equal to ten percent of the tax liability taxable payroll for
  1 21 the tax year of the approved business shall be divided equally
  1 22 and individual tax credit certificates shall be issued to each
  1 23 employee responsible for the development of the technology.
  1 24 Each year, the total value of a certificate or certificates
  1 25 issued for a utilized technology shall not exceed seventy-five
  1 26 twenty-five thousand dollars.  For each technology utilized,
  1 27 the total aggregate value of certificates issued over a five-
  1 28 year period to the university employee responsible for the
  1 29 development of the technology shall not exceed two one hundred
  1 30 twenty-five thousand dollars.
  1 31    Sec. 3.  Section 262B.11, Code Supplement 2003, is amended
  1 32 by adding the following new subsection:
  1 33    NEW SUBSECTION.  5A.  The total amount of tax credit
  1 34 certificates issued to university employees under the
  1 35 university-based research utilization program shall not exceed
  2  1 two million dollars.  
  2  2                           EXPLANATION
  2  3    This bill relates to tax credits under the university-based
  2  4 research utilization program.
  2  5    Currently, as one of the application criteria, an applicant
  2  6 for participation in the program must utilize a technology
  2  7 developed by an employee at a university under the control of
  2  8 the state board of regents, provided that the technology has
  2  9 received a patent after July 1, 2003.  The bill changes the
  2 10 date to July 1, 2002.
  2 11    The bill changes the calculation of the value of a tax
  2 12 credit for university employees from 10 percent of the tax
  2 13 liability of the approved business to 10 percent of the
  2 14 taxable payroll for the tax year of the approved business.
  2 15 The bill reduces the limitation on the amount of tax credit
  2 16 certificates that may be issued each year for a utilized
  2 17 technology from $75,000 to $25,000.  The bill reduces the
  2 18 five-year period limitation of the total aggregate value of
  2 19 tax certificates issued per technology utilized from $200,000
  2 20 to $125,000 for each university employee.  The bill provides
  2 21 that the total amount of tax credit certificates issued to
  2 22 university employees under the university-based research
  2 23 utilization program shall not exceed $2 million.  
  2 24 LSB 5456XL 80
  2 25 tm/pj/5
     

Text: HSB00706                          Text: HSB00708
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2004 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 4 03:30:54 CST 2004
URL: /DOCS/GA/80GA/Legislation/HSB/00700/HSB00707/040303.html
jhf