Senate Amendment 5280 PAG LIN 1 1 Amend Senate File 2399, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. Page 1, by inserting after line 24 the 1 4 following: 1 5 <Sec. . Section 476B.6, subsection 5, Code 1 6 Supplement 2005, is amended by striking the subsection 1 7 and inserting in lieu thereof the following: 1 8 5. A tax credit certificate may be filed pursuant 1 9 to any of the following, to the extent applicable: 1 10 a. If the tax credit application is filed by a 1 11 partnership, limited liability company, S corporation, 1 12 estate, trust, or other reporting entity all of the 1 13 income of which is taxed directly to its equity 1 14 holders or beneficiaries, for the taxes imposed under 1 15 chapter 422, division II or III, the tax credit 1 16 certificate shall be issued directly to equity holders 1 17 or beneficiaries of the applicant in proportion to 1 18 their pro rata share of the income of such entity. 1 19 The applicant shall, in the application made under 1 20 this section, identify its equity holders or 1 21 beneficiaries, and the percentage of such entity's 1 22 income that is allocable to each equity holder or 1 23 beneficiary. 1 24 b. If the tax credit applicant under this section 1 25 is eligible to receive renewable electricity 1 26 production credits authorized under section 45 of the 1 27 Internal Revenue Code, as amended, and the tax credit 1 28 applicant is a partnership, limited liability company, 1 29 S corporation, estate, trust, or other reporting 1 30 entity all of the income of which is taxed directly to 1 31 its equity holders or beneficiaries, for the taxes 1 32 imposed under chapter 422, division II or III, the tax 1 33 credit certificate may be issued to a partner if the 1 34 business is a partnership, a shareholder if the 1 35 business is an S corporation, or a member if the 1 36 business is a limited liability company in the amounts 1 37 designated by the eligible partnership, S corporation, 1 38 or limited liability company. In absence of such 1 39 designation, the credits under this section shall flow 1 40 through to the partners, shareholders, or members in 1 41 accordance with their pro rata share of the income of 1 42 the entity. 1 43 The applicant shall, in the application made under 1 44 this section, identify the holders or beneficiaries 1 45 that are to receive the tax credit certificates and 1 46 the percentage of the tax credit that is allocable to 1 47 each holder or beneficiary. 1 48 c. If an applicant under this section is eligible 1 49 to receive renewable electricity production credits 1 50 authorized under section 45 of the Internal Revenue 2 1 Code, as amended, and the tax credit applicant is a 2 2 partnership, limited liability company, S corporation, 2 3 estate, trust, or other reporting entity all of the 2 4 income of which is taxed directly to its equity 2 5 holders or beneficiaries, for the taxes imposed under 2 6 chapter 422, division II or III, the tax credit 2 7 certificates and all future rights to the tax credit 2 8 in this section may be distributed to an equity holder 2 9 or beneficiary as a liquidating distribution or 2 10 portion thereof, of a holder or beneficiary's interest 2 11 in the applicant entity. 2 12 The applicant shall, in the application made under 2 13 this section, designate the percentage of the tax 2 14 credit allocable to the liquidating equity holder or 2 15 beneficiary that is to receive the current and future 2 16 tax credit certificates under this section. 2 17 d. If the tax credit application is filed by a 2 18 partnership, limited liability company, S corporation, 2 19 estate, trust, or other reporting entity, all of whose 2 20 income is taxed directly to its equity holders or 2 21 beneficiaries for the taxes imposed under chapter 422, 2 22 division V, or under chapter 432, the tax credit 2 23 certificate shall be issued directly to the 2 24 partnership, limited liability company, S corporation, 2 25 estate, trust, or other reporting entity.> 2 26 #2. Page 4, by inserting after line 8 the 2 27 following: 2 28 <Sec. . Section 476C.4, subsection 4, Code 2 29 Supplement 2005, is amended by striking the subsection 2 30 and inserting in lieu thereof the following: 2 31 4. A tax credit certificate may be filed pursuant 2 32 to any of the following, to the extent applicable: 2 33 a. If the tax credit application is filed by a 2 34 partnership, limited liability company, S corporation, 2 35 estate, trust, or other reporting entity all of the 2 36 income of which is taxed directly to its equity 2 37 holders or beneficiaries, for the taxes imposed under 2 38 chapter 422, division II or III, the tax credit 2 39 certificate shall be issued directly to equity holders 2 40 or beneficiaries of the applicant in proportion to 2 41 their pro rata share of the income of such entity. 2 42 The applicant shall, in the application made under 2 43 this section, identify its equity holders or 2 44 beneficiaries, and the percentage of such entity's 2 45 income that is allocable to each equity holder or 2 46 beneficiary. 2 47 b. If the tax credit applicant under this section 2 48 is eligible to receive renewable electricity 2 49 production credits authorized under section 45 of the 2 50 Internal Revenue Code, as amended, and the tax credit 3 1 applicant is a partnership, limited liability company, 3 2 S corporation, estate, trust, or other reporting 3 3 entity all of the income of which is taxed directly to 3 4 its equity holders or beneficiaries, for the taxes 3 5 imposed under chapter 422, division II or III, the tax 3 6 credit certificate may be issued to a partner if the 3 7 business is a partnership, a shareholder if the 3 8 business is an S corporation, or a member if the 3 9 business is a limited liability company in the amounts 3 10 designated by the eligible partnership, S corporation, 3 11 or limited liability company. In absence of such 3 12 designation, the credits under this section shall flow 3 13 through to the partners, shareholders, or members in 3 14 accordance with their pro rata share of the income of 3 15 the entity. 3 16 The applicant shall, in the application made under 3 17 this section, identify the holders or beneficiaries 3 18 that are to receive the tax credit certificates and 3 19 the percentage of the tax credit that is allocable to 3 20 each holder or beneficiary. 3 21 c. If an applicant under this section is eligible 3 22 to receive renewable electricity production credits 3 23 authorized under section 45 of the Internal Revenue 3 24 Code, as amended, and the tax credit applicant is a 3 25 partnership, limited liability company, S corporation, 3 26 estate, trust, or other reporting entity all of the 3 27 income of which is taxed directly to its equity 3 28 holders or beneficiaries, for the taxes imposed under 3 29 chapter 422, division II or III, the tax credit 3 30 certificates and all future rights to the tax credit 3 31 in this section may be distributed to an equity holder 3 32 or beneficiary as a liquidating distribution or 3 33 portion thereof, of a holder or beneficiary's interest 3 34 in the applicant entity. 3 35 The applicant shall, in the application made under 3 36 this section, designate the percentage of the tax 3 37 credit allocable to the liquidating equity holder or 3 38 beneficiary that is to receive the current and future 3 39 tax credit certificates under this section. 3 40 d. If the tax credit application is filed by a 3 41 partnership, limited liability company, S corporation, 3 42 estate, trust, or other reporting entity, all of whose 3 43 income is taxed directly to its equity holders or 3 44 beneficiaries for the taxes imposed under chapter 422, 3 45 division V, or under chapter 423, 432, or 437A, the 3 46 tax credit certificate shall be issued directly to the 3 47 partnership, limited liability company, S corporation, 3 48 estate, trust, or other reporting entity.> 3 49 #3. Page 4, by striking lines 23 through 25 and 3 50 inserting the following: 4 1 <Sec. . EFFECTIVE DATES. 4 2 1. The sections of this Act amending section 4 3 476B.6, subsection 5, and section 476C.4, subsection 4 4 4, being deemed of immediate importance, take effect 4 5 upon enactment. 4 6 2. The section of this Act relating to a proposal 4 7 for a study on the transmission of electricity takes 4 8 effect July 1, 2006. 4 9 3. Except as otherwise provided in this section, 4 10 this Act takes effect January 1, 2007.> 4 11 #4. Title page, line 3, by striking the words <an 4 12 effective date> and inserting the following: 4 13 <effective dates>. 4 14 SF 2399.H 4 15 kk/es/25 -1-