Text: SF00442 Text: SF00444 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 443 1 2 1 3 AN ACT 1 4 RELATING TO CRITERIA FOR COMMUNITY-BASED SEED CAPITAL 1 5 FUNDS AND PROVIDING RETROACTIVE APPLICABILITY DATES. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 15E.42, subsection 3, Code Supplement 1 10 2003, is amended to read as follows: 1 11 3. "Investor" meansan individuala person making a cash 1 12 investment in a qualifying business oran individual taxed on1 13income from a revocable trust's cash investment in a1 14qualifying business or a person making a cash investmentin a 1 15 community-based seed capital fund. "Investor" does not 1 16 include a personwhich is a current or previousthat holds at 1 17 least a seventy percent ownership interest as an owner, 1 18 member, or shareholder in a qualifying business. 1 19 Sec. 2. Section 15E.43, subsection 1, paragraphs a and b, 1 20 Code Supplement 2003, are amended to read as follows: 1 21a. For tax years beginning on or after January 1, 2002, a1 22tax credit shall be allowed against the taxes imposed in1 23chapter 422, division II, for a portion of an individual1 24taxpayer's equity investment, as provided in subsection 2, in1 25a qualifying business. An individual shall not claim a tax1 26credit under this paragraph of a partnership, limited1 27liability company, S corporation, estate, or trust electing to1 28have income taxed directly to the individual. However, an1 29individual receiving income from a revocable trust's1 30investment in a qualified business may claim a tax credit1 31under this paragraph against the taxes imposed in chapter 422,1 32division II, for a portion of the revocable trust's equity1 33investment, as provided in subsection 2, in a qualified1 34business.1 35 b. For tax years beginning on or after January 1, 2002, a 2 1 tax credit shall be allowed against the taxes imposed in 2 2 chapter 422, divisions II, III, and V, and in chapter 432, and 2 3 against the moneys and credits tax imposed in section 533.24, 2 4 for a portion of a taxpayer's equity investment, as provided 2 5 in subsection 2, in a qualifying business or a community-based 2 6 seed capital fund. An individual may claim a tax credit under 2 7 this paragraph of a partnership, limited liability company, S 2 8 corporation, estate, or trust electing to have income taxed 2 9 directly to the individual. The amount claimed by the 2 10 individual shall be based upon the pro rata share of the 2 11 individual's earnings from the partnership, limited liability 2 12 company, S corporation, estate, or trust. 2 13 Sec. 3. Section 15E.44, subsection 4, Code Supplement 2 14 2003, is amended to read as follows: 2 15 4. After verifying the eligibility of a qualifying 2 16 business, the board shall issue a tax credit certificate to be 2 17 attached to the equity investor's tax return. The tax credit 2 18 certificate shall contain the taxpayer's name, address, tax 2 19 identification number, the amount of credit, the name of the 2 20 qualifying business, and other information required by the 2 21 department of revenue. The tax credit certificate, unless 2 22 rescinded by the board, shall be accepted by the department of 2 23 revenue as payment for taxes imposed pursuant to chapter 422, 2 24divisiondivisions II, III, and V, and in chapter 432, and for 2 25 the moneys and credits tax imposed in section 533.24, subject 2 26 to any conditions or restrictions placed by the board upon the 2 27 face of the tax credit certificate and subject to the 2 28 limitations of section 15E.43. 2 29 Sec. 4. Section 15E.51, subsection 4, Code Supplement 2 30 2003, is amended to read as follows: 2 31 4. A taxpayer shall not claim a tax credit under this 2 32 section if the taxpayer is a venture capital investment fund 2 33 allocation manager for the Iowa fund of funds created in 2 34 section 15E.65 or an investor that receives a tax credit for 2 35 the same investment in a qualifying business as described in 3 1 section 15E.44 or in a community-based seed capital fund as 3 2 described in section 15E.45. 3 3 Sec. 5. Section 15E.45, subsection 2, paragraphs b and c, 3 4 Code Supplement 2003, are amended to read as follows: 3 5 b. The fund has, on or after January 1, 2002, a total of 3 6 both capital commitments from investors and investments in 3 7 qualifying businesses of at leastfiveone hundred twenty-five 3 8 thousand dollars, but not more than three million dollars. 3 9 However, if a fund is a rural business investment company 3 10 under the rural business investment program of the federal 3 11 Farm Security and Rural Investment Act of 2002, Pub. L. No. 3 12 107-171, the fund may qualify notwithstanding having capital 3 13 in excess of the limits set forth in this paragraph as long as 3 14 the fund otherwise meets the requirements of this subsection. 3 15 c. The fund has no fewer thantenfive investors who are 3 16 not affiliates, with no single investor and affiliates of that 3 17 investor together owning a total of more than twenty-five 3 18 percent of the ownership interests outstanding in the fund. 3 19 Sec. 6. Section 15E.45, subsection 6, Code Supplement 3 20 2003, is amended to read as follows: 3 21 6. In the event that a community-based seed capital fund 3 22 fails to meet or maintain any requirement set forth in this 3 23 section, or in the event that the community-based seed capital 3 24 fund has not invested at least thirty-three percent of its 3 25 invested capital inno fewer than twoone or more separate 3 26 qualifying businesses, measured at the end of the thirty-sixth 3 27 month after commencing the fund's investing activities, the 3 28 board shall rescind any tax credit certificates issued to 3 29 limited partners or members and shall notify the department of 3 30 revenue that it has done so, and the tax credit certificates 3 31 shall be null and void. However, a community-based seed 3 32 capital fund may apply to the board for a one-year waiver of 3 33 the requirements of this subsection. 3 34 Sec. 7. APPLICABILITY DATES. 3 35 1. Sections 1 through 4 of this Act apply retroactively to 4 1 January 1, 2004, for tax years beginning on or after that 4 2 date. 4 3 2. Sections 5 and 6 of this Act apply retroactively to 4 4 January 1, 2002, for tax years beginning on or after that 4 5 date. 4 6 4 7 4 8 4 9 JEFFREY M. LAMBERTI 4 10 President of the Senate 4 11 4 12 4 13 4 14 CHRISTOPHER C. RANTS 4 15 Speaker of the House 4 16 4 17 I hereby certify that this bill originated in the Senate and 4 18 is known as Senate File 443, Eightieth General Assembly. 4 19 4 20 4 21 4 22 MICHAEL E. MARSHALL 4 23 Secretary of the Senate 4 24 Approved , 2004 4 25 4 26 4 27 4 28 THOMAS J. VILSACK 4 29 Governor
Text: SF00442 Text: SF00444 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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