Senate Amendment 5247
PAG LIN
1 1 Amend Senate File 2374 as follows:
1 2 #1. Page 10, before line 32 by inserting:
1 3 <DIVISION ___
1 4 IRC COUPLING
1 5 Sec. ___. Section 15.335, subsection 1, paragraphs
1 6 b and c, Code Supplement 2009, are amended to read as
1 7 follows:
1 8 b. In lieu of the credit amount computed in
1 9 paragraph "a", subparagraph (1), an eligible
1 10 business may elect to compute the credit amount
1 11 for qualified research expenses incurred in this
1 12 state in a manner consistent with the alternative
1 13 incremental simplified credit described in section
1 14 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
1 15 taxpayer may make this election regardless of the
1 16 method used for the taxpayer's federal income tax. The
1 17 election made under this paragraph is for the tax year
1 18 and the taxpayer may use another or the same method for
1 19 any subsequent year.
1 20 c. For purposes of the alternate credit
1 21 computation method in paragraph "b", the credit
1 22 percentages applicable to qualified research
1 23 expenses described in clauses (i), (ii), and (iii)
1 24 of section 41(c)(4)(A) 41(c)(5)(A) and clause (ii)
1 25 of section 41(c)(5)(B) of the Internal Revenue Code
1 26 are one and sixty=five hundredths percent, two and
1 27 twenty hundredths percent, and two and seventy=five
1 28 hundredths four and fifty=five hundredths percent and
1 29 one and ninety=five hundredths percent, respectively.
1 30 Sec. ___. Section 15.335, subsection 4, Code
1 31 Supplement 2009, is amended to read as follows:
1 32 4. a. For purposes of this section, "base amount",
1 33 "basic research payment", and "qualified research
1 34 expense" mean the same as defined for the federal
1 35 credit for increasing research activities under section
1 36 41 of the Internal Revenue Code, except that for the
1 37 alternative incremental simplified credit such amounts
1 38 are for research conducted within this state.
1 39 b. For purposes of this section, "Internal Revenue
1 40 Code" means the Internal Revenue Code in effect on
1 41 January 1, 2009 2010.
1 42 Sec. ___. Section 15A.9, subsection 8, paragraphs
1 43 b, c, and e, Code Supplement 2009, are amended to read
1 44 as follows:
1 45 b. In lieu of the credit amount computed in
1 46 paragraph "a", subparagraph (1), subparagraph division
1 47 (a), a business may elect to compute the credit amount
1 48 for qualified research expenses incurred in this
1 49 state within the zone in a manner consistent with the
1 50 alternative incremental simplified credit described in
2 1 section 41(c)(4) 41(c)(5) of the Internal Revenue Code.
2 2 The taxpayer may make this election regardless of the
2 3 method used for the taxpayer's federal income tax. The
2 4 election made under this paragraph is for the tax year
2 5 and the taxpayer may use another or the same method for
2 6 any subsequent year.
2 7 c. For purposes of the alternate credit
2 8 computation method in paragraph "b", the credit
2 9 percentages applicable to qualified research expenses
2 10 described in clauses (i), (ii), and (iii) of section
2 11 41(c)(4)(A) 41(c)(5)(A) and clause (ii) of section
2 12 41(c)(5)(B) of the Internal Revenue Code are three and
2 13 thirty hundredths percent, four and forty hundredths
2 14 percent, and five and fifty hundredths four and
2 15 fifty=five hundredths percent and one and ninety=five
2 16 hundredths percent, respectively.
2 17 e. (1) For the purposes of this subsection,
2 18 "base amount", "basic research payment", and "qualified
2 19 research expense" mean the same as defined for the
2 20 federal credit for increasing research activities under
2 21 section 41 of the Internal Revenue Code, except that
2 22 for the alternative incremental simplified credit such
2 23 amounts are for research conducted within this state
2 24 within the zone.
2 25 (2) For purposes of this subsection, "Internal
2 26 Revenue Code" means the Internal Revenue Code in effect
2 27 on January 1, 2009 2010.
2 28 Sec. ___. Section 422.3, subsection 5, Code 2009,
2 29 is amended to read as follows:
2 30 5. "Internal Revenue Code" means the Internal
2 31 Revenue Code of 1954, prior to the date of its
2 32 redesignation as the Internal Revenue Code of 1986
2 33 by the Tax Reform Act of 1986, or means the Internal
2 34 Revenue Code of 1986 as amended to and including
2 35 January 1, 2008 2010.
2 36 Sec. ___. Section 422.7, subsection 53, Code
2 37 Supplement 2009, is amended by striking the subsection.
2 38 Sec. ___. Section 422.9, subsection 2, paragraph i,
2 39 Code Supplement 2009, is amended to read as follows:
2 40 i. The deduction for state sales and use taxes
2 41 is allowable only if the taxpayer elected to deduct
2 42 the state sales and use taxes in lieu of state income
2 43 taxes under section 164 of the Internal Revenue Code.
2 44 A deduction for state sales and use taxes is not
2 45 allowed if the taxpayer has taken the deduction for
2 46 state income taxes or claimed the standard deduction
2 47 under section 63 of the Internal Revenue Code. This
2 48 paragraph applies to taxable years beginning after
2 49 December 31, 2003, and before January 1, 2006 2008, and
2 50 to taxable years beginning after December 31, 2008, and
3 1 before January 1, 2010.
3 2 Sec. ___. Section 422.10, subsection 1, paragraphs
3 3 b and c, Code Supplement 2009, are amended to read as
3 4 follows:
3 5 b. In lieu of the credit amount computed in
3 6 paragraph "a", subparagraph (1), subparagraph division
3 7 (a), a taxpayer may elect to compute the credit amount
3 8 for qualified research expenses incurred in this
3 9 state in a manner consistent with the alternative
3 10 incremental simplified credit described in section
3 11 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
3 12 taxpayer may make this election regardless of the
3 13 method used for the taxpayer's federal income tax. The
3 14 election made under this paragraph is for the tax year
3 15 and the taxpayer may use another or the same method for
3 16 any subsequent year.
3 17 c. For purposes of the alternate credit
3 18 computation method in paragraph "b", the credit
3 19 percentages applicable to qualified research expenses
3 20 described in clauses (i), (ii), and (iii) of section
3 21 41(c)(4)(A) section 41(c)(5)(A) and clause (ii) of
3 22 section 41(c)(5)(B) of the Internal Revenue Code
3 23 are one and sixty=five hundredths percent, two and
3 24 twenty hundredths percent, and two and seventy=five
3 25 hundredths four and fifty=five hundredths percent and
3 26 one and ninety=five hundredths percent, respectively.
3 27 Sec. ___. Section 422.10, subsection 3, Code
3 28 Supplement 2009, is amended to read as follows:
3 29 3. a. For purposes of this section, "base amount",
3 30 "basic research payment", and "qualified research
3 31 expense" mean the same as defined for the federal
3 32 credit for increasing research activities under section
3 33 41 of the Internal Revenue Code, except that for the
3 34 alternative incremental simplified credit such amounts
3 35 are for research conducted within this state.
3 36 b. For purposes of this section, "Internal Revenue
3 37 Code" means the Internal Revenue Code in effect on
3 38 January 1, 2009 2010.
3 39 Sec. ___. Section 422.32, subsection 7, Code
3 40 Supplement 2009, is amended to read as follows:
3 41 7. "Internal Revenue Code" means the Internal
3 42 Revenue Code of 1954, prior to the date of its
3 43 redesignation as the Internal Revenue Code of 1986
3 44 by the Tax Reform Act of 1986, or means the Internal
3 45 Revenue Code of 1986 as amended to and including
3 46 January 1, 2008 2010.
3 47 Sec. ___. Section 422.33, subsection 5, paragraphs
3 48 b, c, and d, Code Supplement 2009, are amended to read
3 49 as follows:
3 50 b. In lieu of the credit amount computed in
4 1 paragraph "a", subparagraph (1), a corporation
4 2 may elect to compute the credit amount for
4 3 qualified research expenses incurred in this
4 4 state in a manner consistent with the alternative
4 5 incremental simplified credit described in section
4 6 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
4 7 taxpayer may make this election regardless of the
4 8 method used for the taxpayer's federal income tax. The
4 9 election made under this paragraph is for the tax year
4 10 and the taxpayer may use another or the same method for
4 11 any subsequent year.
4 12 c. For purposes of the alternate credit
4 13 computation method in paragraph "b", the credit
4 14 percentages applicable to qualified research expenses
4 15 described in clauses (i), (ii), and (iii) of section
4 16 41(c)(4)(A) section 41(c)(5)(A) and clause (ii) of
4 17 section 41(c)(5)(B) of the Internal Revenue Code
4 18 are one and sixty=five hundredths percent, two and
4 19 twenty hundredths percent, and two and seventy=five
4 20 hundredths four and fifty=five hundredths percent and
4 21 one and ninety=five hundredths percent, respectively.
4 22 d. (1) For purposes of this subsection, "base
4 23 amount", "basic research payment", and "qualified
4 24 research expense" mean the same as defined for the
4 25 federal credit for increasing research activities under
4 26 section 41 of the Internal Revenue Code, except that
4 27 for the alternative incremental simplified credit such
4 28 amounts are for research conducted within this state.
4 29 (2) For purposes of this subsection, "Internal
4 30 Revenue Code" means the Internal Revenue Code in effect
4 31 on January 1, 2009 2010.
4 32 Sec. ___. Section 422.35, subsection 24, Code
4 33 Supplement 2009, is amended by striking the subsection.
4 34 Sec. ___. EFFECTIVE UPON ENACTMENT AND RETROACTIVE
4 35 APPLICABILITY.
4 36 1. This Act, being deemed of immediate importance,
4 37 takes effect upon enactment.
4 38 2. The sections of this Act amending sections
4 39 15.335, 15A.9, 422.3, 422.9, subsection 2, paragraph
4 40 "i", 422.10, 422.32, and 422.33 apply retroactively to
4 41 January 1, 2009, for tax years beginning on or after
4 42 that date.
4 43 3. The sections of this Act amending sections
4 44 422.7, subsection 53, and 422.35, subsection 24, apply
4 45 retroactively to January 1, 2008, for tax years ending
4 46 on or after that date.>
4 47 #2. By renumbering as necessary.
RANDY FEENSTRA
SF2374.2163 (4) 83
tw/sc
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