Text: SF00267 Text: SF00269 Text: SF00200 - SF00299 Text: SF 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 may elect to 1 14 receive a refund of all or a portion of an unused tax credit. 1 15 For purposes of this section, an eligible business includes a 1 16 cooperative described in section 521 of the Internal Revenue 1 17 Code which is not required to file an Iowa corporate income 1 18 tax return, and whose project primarily involves the1 19production of ethanol. The refund may be used against a tax 1 20 liability imposed under chapter 422, division II, III, or V. 1 21 If the business is a partnership, S corporation, limited 1 22 liability company, cooperative organized under chapter 501 and 1 23 filing as a partnership for federal tax purposes, or estate or 1 24 trust electing to have the income taxed directly to the 1 25 individual, an individual may claim the tax credit allowed. 1 26 The amount claimed by the individual shall be based upon the 1 27 pro rata share of the individual's earnings of the 1 28 partnership, S corporation, limited liability company, 1 29 cooperative organized under chapter 501 and filing as a 1 30 partnership for federal tax purposes, or estate or trust. 1 31 Sec. 2. Section 15.333, subsection 2, Code 2003, is 1 32 amended to read as follows: 1 33 2. An eligible business whose project primarily involves 1 34 the production of value-added agricultural products, that 1 35 elects to receive a refund of all or a portion of an unused 2 1 tax credit, shall apply to the department of economic 2 2 development for tax credit certificates. An eligible business 2 3 whose project primarily involves the production of value-added 2 4 agricultural products shall not claim a tax credit under this 2 5 section unless a tax credit certificate issued by the 2 6 department of economic development is attached to the 2 7 taxpayer's tax return for the tax year for which the tax 2 8 credit is claimed. For purposes of this section, an eligible 2 9 business includes a cooperative described in section 521 of 2 10 the Internal Revenue Code which is not required to file an 2 11 Iowa corporate income tax return, and whose project primarily2 12involves the production of ethanol. For purposes of this 2 13 section, an eligible business also includes a cooperative 2 14 described in section 521 of the Internal Revenue Code which is 2 15 required to file an Iowa corporate income tax returnand whose2 16project primarily involves the production of ethanol. Such 2 17 cooperative may elect to transfer all or a portion of its tax 2 18 credit to its members. The amount of tax credit transferred 2 19 and claimed by a member shall be based upon the pro rata share 2 20 of the member's earnings of the cooperative. 2 21 A tax credit certificate shall not be valid until the tax 2 22 year following the date of the project completion. A tax 2 23 credit certificate shall contain the taxpayer's name, address, 2 24 tax identification number, the date of project completion, the 2 25 amount of the tax credit, and other information required by 2 26 the department of revenue and finance. The department of 2 27 economic development shall not issue tax credit certificates 2 28 which total more than four million dollars during a fiscal 2 29 year. If the department receives applications for tax credit 2 30 certificates in excess of four million dollars, the applicants 2 31 shall receive certificates for a prorated amount. The tax 2 32 credit certificates shall not be transferred except as 2 33 provided in this subsection for a cooperative described in 2 34 section 521 of the Internal Revenue Code which is required to 2 35 file an Iowa corporate income tax returnand whose project3 1primarily involves the production of ethanol. For a 3 2 cooperative described in section 521 of the Internal Revenue 3 3 Code, the department of economic development shall require 3 4 that the cooperative submit a list of its members and the 3 5 share of each member's interest in the cooperative. The 3 6 department shall issue a tax credit certificate to each member 3 7 contained on the submitted list. 3 8 Sec. 3. APPLICABILITY DATE. This Act applies to tax years 3 9 beginning on or after July 1, 2003. 3 10 EXPLANATION 3 11 This bill eliminates a requirement that a cooperative must 3 12 be engaged in ethanol production to be eligible to claim a 3 13 special tax credit or refund available to an eligible business 3 14 involved in the production of value-added agricultural 3 15 products. 3 16 The bill amends provisions in Code section 15.333, which 3 17 provides that an eligible business may claim a tax credit of 3 18 up to 10 percent of a new investment that involves the 3 19 creation of new jobs. The Code section provides that an 3 20 eligible business involved in the production of value-added 3 21 agricultural products may elect to receive a refund of all or 3 22 a portion of the unused tax credit. The business must receive 3 23 a certificate issued by the department of economic development 3 24 in order to receive the tax credit or refund. The provision 3 25 allowing a cooperative to claim a tax credit or refund was 3 26 enacted during the 2001 Session in House File 716 (2001 Acts, 3 27 chapter 123). 3 28 LSB 1614SV 80 3 29 da/pj/5
Text: SF00267 Text: SF00269 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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