House Journal: Page 2237: Tuesday, June 3, 2003
Page 26
1 utilization program for purposes of encouraging the
2 utilization of university-based research, primarily in
3 the area of high technology, in new or existing
4 businesses. The program shall include the three
5 universities under the control of the state board of
6 regents and all accredited private universities
7 located in the state.
8 2. A new or existing business that utilizes a
9 technology developed by an employee at a university
10 under the control of the state board of regents may
11 apply to the department of economic development for
12 approval to participate in the university-based
13 research utilization program. The department shall
14 approve an applicant if the applicant meets all of the
15 following criteria:
16 a. The applicant utilizes a technology developed
17 by an employee at a university under the control of
18 the state board of regents, provided that the
19 technology has received a patent after the effective
20 date of this Act. If the applicant has been in
21 existence more than one year prior to applying, the
22 applicant shall organize a separate company to utilize
23 the technology. For purposes of this section, the
24 separate company shall be considered the applicant
25 and, if approved, the approved business.
26 b. The applicant develops a five-year business
27 plan approved by the department. The plan shall
28 include information concerning the applicant's Iowa
29 employment goals and projected impact on the Iowa
30 economy. The department shall only approve plans
31 showing sufficient potential impact on Iowa employment
32 and economic development.
33 c. The applicant meets a minimum-size business
34 standard determined by the department.
35 d. The applicant provides annual reports to the
36 department that include employment statistics for the
37 applicant and the total taxable wages paid to Iowa
38 employees and reported to the department of revenue
39 and finance pursuant to section 422.16.
40 3. A business approved under the program and the
41 university employee responsible for the development of
42 the technology utilized by the approved business shall
43 be eligible for a tax credit. The credit shall be
44 allowed against the taxes imposed in chapter 422,
45 divisions II and III. An individual may claim a tax
46 credit under this section of a partnership, limited
47 liability company, S corporation, estate, or trust
48 electing to have income taxed directly to the
49 individual. The amount claimed by the individual
50 shall be based upon the pro rata share of the
© 2003 Cornell College and
League of Women Voters of Iowa
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