House Amendment 8599 PAG LIN 1 1 Amend the amendment, H=8596, to Senate File 2399, 1 2 as amended, passed, and reprinted by the Senate, as 1 3 follows: 1 4 #1. Page 2, by inserting after line 25 the 1 5 following: 1 6 <# . Page 4, by inserting after line 8 the 1 7 following: 1 8 <Sec. . Section 476C.4, subsection 4, Code 1 9 Supplement 2005, is amended by striking the subsection 1 10 and inserting in lieu thereof the following: 1 11 4. A tax credit certificate may be filed pursuant 1 12 to any of the following, to the extent applicable: 1 13 a. If the tax credit application is filed by a 1 14 partnership, limited liability company, S corporation, 1 15 estate, trust, or other reporting entity all of the 1 16 income of which is taxed directly to its equity 1 17 holders or beneficiaries, for the taxes imposed under 1 18 chapter 422, division II or III, the tax credit 1 19 certificate shall be issued directly to equity holders 1 20 or beneficiaries of the applicant in proportion to 1 21 their pro rata share of the income of such entity. 1 22 The applicant shall, in the application made under 1 23 this section, identify its equity holders or 1 24 beneficiaries, and the percentage of such entity's 1 25 income that is allocable to each equity holder or 1 26 beneficiary. 1 27 b. If the tax credit applicant under this section 1 28 is eligible to receive renewable electricity 1 29 production credits authorized under section 45 of the 1 30 Internal Revenue Code, as amended, and the tax credit 1 31 applicant is a partnership, limited liability company, 1 32 S corporation, estate, trust, or other reporting 1 33 entity all of the income of which is taxed directly to 1 34 its equity holders or beneficiaries, for the taxes 1 35 imposed under chapter 422, division II or III, the tax 1 36 credit certificate may be issued to a partner if the 1 37 business is a partnership, a shareholder if the 1 38 business is an S corporation, or a member if the 1 39 business is a limited liability company in the amounts 1 40 designated by the eligible partnership, S corporation, 1 41 or limited liability company. In absence of such 1 42 designation, the credits under this section shall flow 1 43 through to the partners, shareholders, or members in 1 44 accordance with their pro rata share of the income of 1 45 the entity. 1 46 The applicant shall, in the application made under 1 47 this section, identify the holders or beneficiaries 1 48 that are to receive the tax credit certificates and 1 49 the percentage of the tax credit that is allocable to 1 50 each holder or beneficiary. 2 1 c. If an applicant under this section is eligible 2 2 to receive renewable electricity production credits 2 3 authorized under section 45 of the Internal Revenue 2 4 Code, as amended, and the tax credit applicant is a 2 5 partnership, limited liability company, S corporation, 2 6 estate, trust, or other reporting entity all of the 2 7 income of which is taxed directly to its equity 2 8 holders or beneficiaries, for the taxes imposed under 2 9 chapter 422, division II or III, the tax credit 2 10 certificates and all future rights to the tax credit 2 11 in this section may be distributed to an equity holder 2 12 or beneficiary as a liquidating distribution or 2 13 portion thereof, of a holder or beneficiary's interest 2 14 in the applicant entity. 2 15 The applicant shall, in the application made under 2 16 this section, designate the percentage of the tax 2 17 credit allocable to the liquidating equity holder or 2 18 beneficiary that is to receive the current and future 2 19 tax credit certificates under this section. 2 20 d. If the tax credit application is filed by a 2 21 partnership, limited liability company, S corporation, 2 22 estate, trust, or other reporting entity, all of whose 2 23 income is taxed directly to its equity holders or 2 24 beneficiaries for the taxes imposed under chapter 422, 2 25 division V, or under chapter 423, 432, or 437A, the 2 26 tax credit certificate shall be issued directly to the 2 27 partnership, limited liability company, S corporation, 2 28 estate, trust, or other reporting entity.> 2 29 # . Page 4, by striking lines 23 through 25 and 2 30 inserting the following: 2 31 <Sec. . EFFECTIVE DATES. 2 32 1. The sections of this Act amending section 2 33 476B.6, subsection 5, and section 476C.4, subsection 2 34 4, being deemed of immediate importance, take effect 2 35 upon enactment. 2 36 2. The section of this Act relating to a proposal 2 37 for a study on the transmission of electricity takes 2 38 effect July 1, 2006. 2 39 3. Except as otherwise provided in this section, 2 40 this Act takes effect January 1, 2007.> 2 41 # . Title page, line 3, by striking the words 2 42 <an effective date> and inserting the following: 2 43 <effective dates>.> 2 44 #2. By renumbering as necessary. 2 45 2 46 2 47 2 48 J. K. VAN FOSSEN of Scott 2 49 SF 2399.703 81 2 50 kk/gg/5308 -1-