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Senate File 441

Partial Bill History

Bill Text

PAG LIN
  1  1                                              SENATE FILE 441
  1  2  
  1  3                             AN ACT
  1  4 RELATING TO THE TRANSFER OF CERTAIN PROPERTY-RELATED TAX
  1  5    CREDITS AND INCLUDING EFFECTIVE AND RETROACTIVE APPLICABILITY
  1  6    DATE PROVISIONS.  
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 15E.193B, subsection 8, Code 2003, is
  1 11 amended to read as follows:
  1 12    8.  The amount of the tax credits determined pursuant to
  1 13 subsection 6, paragraph "a", for each project shall be
  1 14 approved by the department of economic development.  The
  1 15 department shall utilize the financial information required to
  1 16 be provided under subsection 5, paragraph "e", to determine
  1 17 the tax credits allowed for each project.  In determining the
  1 18 amount of tax credits to be allowed for a project, the
  1 19 department shall not include the portion of the project cost
  1 20 financed through federal, state, and local government tax
  1 21 credits, grants, and forgivable loans.  Upon approving the
  1 22 amount of the tax credit, the department of economic
  1 23 development shall issue a tax credit certificate to the
  1 24 eligible housing business.  An eligible housing business or
  1 25 transferee shall not claim the tax credit unless a tax credit
  1 26 certificate issued by the department of economic development
  1 27 is attached to the taxpayer's return for the tax year for
  1 28 which the tax credit is claimed.  The tax credit certificate
  1 29 shall contain the taxpayer's name, address, tax identification
  1 30 number, the amount of the tax credit, and other information
  1 31 required by the department of revenue and finance.  The tax
  1 32 credit certificate shall be transferable if low-income housing
  1 33 tax credits authorized under section 42 of the Internal
  1 34 Revenue Code are used to assist in the financing of the
  1 35 housing development.  Tax credit certificates issued under
  2  1 this chapter may be transferred to any person or entity.
  2  2 Within ninety days of transfer, the transferee must submit the
  2  3 transferred tax credit certificate to the department of
  2  4 economic development along with a statement containing the
  2  5 transferee's name, tax identification number, and address, and
  2  6 the denomination that each replacement tax credit certificate
  2  7 is to carry and any other information required by the
  2  8 department of revenue and finance.  Within thirty days of
  2  9 receiving the transferred tax credit certificate and the
  2 10 transferee's statement, the department of economic development
  2 11 shall issue one or more replacement tax credit certificates to
  2 12 the transferee.  Each replacement certificate must contain the
  2 13 information required to receive the original certificate and
  2 14 must have the same expiration date that appeared in the
  2 15 transferred tax credit certificate.  Tax credit certificate
  2 16 amounts of less than the minimum amount established by rule of
  2 17 the department of economic development shall not be
  2 18 transferable.  A tax credit shall not be claimed by a
  2 19 transferee under subsection 6, paragraph "a", until a
  2 20 replacement tax credit certificate identifying the transferee
  2 21 as the proper holder has been issued.
  2 22    The transferee may use the amount of the tax credit
  2 23 transferred against the taxes imposed under chapter 422,
  2 24 divisions II, III, and V, and chapter 432 for any tax year the
  2 25 original transferor could have claimed the tax credit.  Any
  2 26 consideration received for the transfer of the tax credit
  2 27 shall not be included as income under chapter 422, divisions
  2 28 II, III, and V.  Any consideration paid for the transfer of
  2 29 the tax credit shall not be deducted from income under chapter
  2 30 422, divisions II, III, and V.
  2 31    Sec. 2.  Section 404A.4, subsection 2, Code 2003, is
  2 32 amended to read as follows:
  2 33    2.  After verifying the eligibility for the tax credit, the
  2 34 state historic preservation office, in consultation with the
  2 35 department of economic development, shall issue a property
  3  1 rehabilitation tax credit certificate to be attached to the
  3  2 person's tax return.  The tax credit certificate shall contain
  3  3 the taxpayer's name, address, tax identification number, the
  3  4 date of project completion, the amount of credit, and other
  3  5 information required by the department of revenue and finance,
  3  6 and a place for the name and tax identification number of a
  3  7 transferee and the amount of the tax credit being transferred.
  3  8    Sec. 3.  Section 404A.4, Code 2003, is amended by adding
  3  9 the following subsection:
  3 10    NEW SUBSECTION.  5.  Tax credit certificates issued under
  3 11 this chapter may be transferred to any person or entity.
  3 12 Within ninety days of transfer, the transferee must submit the
  3 13 transferred tax credit certificate to the state historic
  3 14 preservation office along with a statement containing the
  3 15 transferee's name, tax identification number, and address, and
  3 16 the denomination that each replacement tax credit certificate
  3 17 is to carry and any other information required by the
  3 18 department of revenue and finance.  Within thirty days of
  3 19 receiving the transferred tax credit certificate and the
  3 20 transferee's statement, the office shall issue one or more
  3 21 replacement tax credit certificates to the transferee.  Each
  3 22 replacement certificate must contain the information required
  3 23 under subsection 2 and must have the same expiration date that
  3 24 appeared in the transferred tax credit certificate.  Tax
  3 25 credit certificate amounts of less than the minimum amount
  3 26 established by rule of the office shall not be transferable.
  3 27 A tax credit shall not be claimed by a transferee under this
  3 28 chapter until a replacement tax credit certificate identifying
  3 29 the transferee as the proper holder has been issued.
  3 30    The transferee may use the amount of the tax credit
  3 31 transferred against the taxes imposed under chapter 422,
  3 32 divisions II, III, and V, and chapter 432 for any tax year the
  3 33 original transferor could have claimed the tax credit.  Any
  3 34 consideration received for the transfer of the tax credit
  3 35 shall not be included as income under chapter 422, divisions
  4  1 II, III, and V.  Any consideration paid for the transfer of
  4  2 the tax credit shall not be deducted from income under chapter
  4  3 422, divisions II, III, and V.
  4  4    Sec. 4.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  4  5 deemed of immediate importance, takes effect upon enactment
  4  6 and applies retroactively to January 1, 2003, for tax years
  4  7 beginning on or after that date.  
  4  8 
  4  9 
  4 10                                                             
  4 11                               MARY E. KRAMER
  4 12                               President of the Senate
  4 13 
  4 14 
  4 15                                                             
  4 16                               CHRISTOPHER C. RANTS
  4 17                               Speaker of the House
  4 18 
  4 19    I hereby certify that this bill originated in the Senate and
  4 20 is known as Senate File 441, Eightieth General Assembly.
  4 21 
  4 22 
  4 23                                                             
  4 24                               MICHAEL E. MARSHALL
  4 25                               Secretary of the Senate
  4 26 Approved                , 2003
  4 27 
  4 28 
  4 29                                
  4 30 THOMAS J. VILSACK
  4 31 Governor
     

Text: SF00440                           Text: SF00442
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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