Text: SSB01192 Text: SSB01194 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15E.193B, subsection 8, Code 2003, is 1 2 amended to read as follows: 1 3 8. The amount of the tax credits determined pursuant to 1 4 subsection 6, paragraph "a", for each project shall be 1 5 approved by the department of economic development. The 1 6 department shall utilize the financial information required to 1 7 be provided under subsection 5, paragraph "e", to determine 1 8 the tax credits allowed for each project. In determining the 1 9 amount of tax credits to be allowed for a project, the 1 10 department shall not include the portion of the project cost 1 11 financed through federal, state, and local government tax 1 12 credits, grants, and forgivable loans. Upon approving the 1 13 amount of the tax credit, the department of economic 1 14 development shall issue a tax credit certificate to the 1 15 eligible housing business. An eligible housing business or 1 16 transferee shall not claim the tax credit unless a tax credit 1 17 certificate issued by the department of economic development 1 18 is attached to the taxpayer's return for the tax year for 1 19 which the tax credit is claimed. The tax credit certificate 1 20 shall contain the taxpayer's name, address, tax identification 1 21 number, the amount of the tax credit, and other information 1 22 required by the department of revenue and finance. The tax 1 23 credit certificate shall be transferable if low-income housing 1 24 tax credits authorized under section 42 of the Internal 1 25 Revenue Code are used to assist in the financing of the 1 26 housing development. The department of economic development 1 27 and the department of revenue and finance shall adopt 1 28 procedures relating to the issuance of the certificates, the 1 29 transfer of a certificate and related tax credit by an 1 30 eligible housing business, and for the redemption of a 1 31 certificate and related tax credit by an eligible housing 1 32 business or transferee. 1 33 Sec. 2. Section 404A.2, Code 2003, is amended by adding 1 34 the following new unnumbered paragraph after unnumbered 1 35 paragraph 3: 2 1 NEW UNNUMBERED PARAGRAPH. A person receiving a tax credit 2 2 under this chapter may transfer all or a portion of the unused 2 3 tax credit to any other person. The transferee may use the 2 4 amount of the tax credit transferred against taxes imposed 2 5 under chapter 422, division II, III, or V, or chapter 432 for 2 6 any tax year the transferor could have claimed the credit. 2 7 Any consideration received for the transfer of the tax credit 2 8 shall not be included as income under chapter 422, division 2 9 II, III, or V, or chapter 432. Any consideration paid for the 2 10 transfer of the tax credit shall not be deducted under chapter 2 11 422, division II, III, or V, or chapter 432. 2 12 Sec. 3. Section 404A.4, subsection 2, Code 2003, is 2 13 amended to read as follows: 2 14 2. After verifying the eligibility for the tax credit, the 2 15 state historic preservation office, in consultation with the 2 16 department of economic development, shall issue a property 2 17 rehabilitation tax credit certificate to be attached to the 2 18 person's tax return. The tax credit certificate shall contain 2 19 the taxpayer's name, address, tax identification number, the 2 20 date of project completion, the amount of credit,andother 2 21 information required by the department of revenue and finance, 2 22 and a place for the name and tax identification number of a 2 23 transferee and the amount of the tax credit being transferred. 2 24 EXPLANATION 2 25 This bill relates to the transfer of certain property- 2 26 related tax credits. 2 27 The bill amends the tax credit provisions for eligible 2 28 housing businesses under the enterprise zone program. Under 2 29 the enterprise zone program, an eligible housing business may 2 30 claim a tax credit up to a maximum of 10 percent of the new 2 31 investment which is directly related to the eligible housing 2 32 project. The new investment that may be used to compute the 2 33 tax credit shall not exceed the new investment used for the 2 34 first $140,000 of value for each single-family home or for 2 35 each unit of a multiple dwelling unit building containing 3 1 three or more units. 3 2 The bill provides that, upon approving the amount of the 3 3 tax credit, the department of economic development shall issue 3 4 a tax credit certificate to the eligible housing business. 3 5 The bill provides that an eligible housing business or 3 6 transferee shall not claim the tax credit unless a tax credit 3 7 certificate issued by the department of economic development 3 8 is attached to the taxpayer's return for the tax year for 3 9 which the tax credit is claimed. The bill provides that the 3 10 tax credit certificate shall be transferable if low-income 3 11 housing tax credits authorized under section 42 of the 3 12 Internal Revenue Code are used to assist in the financing of 3 13 the housing development. The bill provides that the 3 14 department of economic development and the department of 3 15 revenue and finance shall adopt procedures relating to the 3 16 issuance of the certificates, the transfer of a certificate 3 17 and related tax credit by an eligible housing business, and 3 18 the redemption of a certificate and related tax credit by an 3 19 eligible housing business or transferee. 3 20 The bill provides that a person receiving a historic 3 21 property rehabilitation tax credit may transfer all or a 3 22 portion of the unused tax credit to any other person. For any 3 23 tax year the transferor could have claimed the tax credit, the 3 24 bill provides that the transferee may use the amount of the 3 25 tax credit against personal or corporate income tax liability, 3 26 franchise tax liability, or insurance premium tax liability. 3 27 The bill provides that consideration received for the transfer 3 28 of a tax credit shall not be included as income for state tax 3 29 purposes and any consideration paid for the transfer of a tax 3 30 credit shall not be deducted from income for state tax 3 31 purposes. 3 32 LSB 2087SC 80 3 33 tm/sh/8
Text: SSB01192 Text: SSB01194 Text: SSB01100 - SSB01199 Text: SSB 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: Tue Apr 8 02:30:41 CDT 2003
URL: /DOCS/GA/80GA/Legislation/SSB/01100/SSB01193/030407.html
jhf