Text: SF00425 Text: SF00427 Text: SF00400 - SF00499 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. The 2 17 department shall not issue tax credit certificates to eligible 2 18 businesses until the department has received all applications 2 19 for the issuance of the tax credit certificates for a 2 20 succeeding fiscal year on a date established by departmental 2 21 rule. The department shall not approve an application from a 2 22 cooperative whose project does not primarily involve the 2 23 production of ethanol if all of the following apply: 2 24 a. The department receives an application from a 2 25 cooperative whose project involves the production of ethanol 2 26 which receives a tax credit certificate. 2 27 b. The department issues tax credit certificates totaling 2 28 more than four million dollars to all eligible businesses, 2 29 other than cooperatives whose projects do not primarily 2 30 involve the production of ethanol, for that fiscal year. 2 31 Such cooperative may elect to transfer all or a portion of 2 32 its tax credit to its members. The amount of tax credit 2 33 transferred and claimed by a member shall be based upon the 2 34 pro rata share of the member's earnings of the cooperative. 2 35 A tax credit certificate shall not be valid until the tax 3 1 year following the date of the project completion. A tax 3 2 credit certificate shall contain the taxpayer's name, address, 3 3 tax identification number, the date of project completion, the 3 4 amount of the tax credit, and other information required by 3 5 the department of revenue and finance. The department of 3 6 economic development shall not issue tax credit certificates 3 7 which total more than four million dollars during a fiscal 3 8 year. If the department receives applications for tax credit 3 9 certificates in excess of four million dollars, the applicants 3 10 shall receive certificates for a prorated amount. The tax 3 11 credit certificates shall not be transferred except as 3 12 provided in this subsection for a cooperative described in 3 13 section 521 of the Internal Revenue Code which is required to 3 14 file an Iowa corporate income tax returnand whose project3 15primarily involves the production of ethanol. For a 3 16 cooperative described in section 521 of the Internal Revenue 3 17 Code, the department of economic development shall require 3 18 that the cooperative submit a list of its members and the 3 19 share of each member's interest in the cooperative. The 3 20 department shall issue a tax credit certificate to each member 3 21 contained on the submitted list. 3 22 Sec. 3. APPLICABILITY DATE. This Act applies to tax years 3 23 beginning on or after July 1, 2003. 3 24 EXPLANATION 3 25 This bill eliminates a requirement that a cooperative must 3 26 be engaged in ethanol production to be eligible to claim a 3 27 special tax credit or refund available to an eligible business 3 28 involved in the production of value-added agricultural 3 29 products. A tax credit is available after the department of 3 30 economic development issues a certificate after approving an 3 31 application as an eligible business. 3 32 The bill provides that a preference is given to 3 33 applications submitted by cooperatives whose projects involve 3 34 the production of ethanol over applications by cooperatives 3 35 whose projects do not involve the production of ethanol. 4 1 The bill amends provisions in Code section 15.333, which 4 2 provides that an eligible business may claim a tax credit of 4 3 up to 10 percent of a new investment that involves the 4 4 creation of new jobs. The Code section provides that an 4 5 eligible business involved in the production of value-added 4 6 agricultural products may elect to receive a refund of all or 4 7 a portion of the unused tax credit. The business must receive 4 8 a certificate issued by the department of economic development 4 9 in order to receive the tax credit or refund. The provision 4 10 allowing a cooperative to claim a tax credit or refund was 4 11 enacted during the 2001 Session in House File 716 (2001 Acts, 4 12 chapter 123). 4 13 LSB 1614SZ 80 4 14 da/pj/5
Text: SF00425 Text: SF00427 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2003 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: Fri May 2 02:30:00 CDT 2003
URL: /DOCS/GA/80GA/Legislation/SF/00400/SF00426/030320.html
jhf