Senate Amendment 5365
PAG LIN
1 1 Amend House File 2531, as amended, passed, and
1 2 reprinted by the House, as follows:
1 3 #1. Page 46, after line 5 by inserting:
1 4 <DIVISION ___
1 5 IRC COUPLING
1 6 Sec. ___. Section 15.335, subsection 1, paragraphs
1 7 b and c, Code Supplement 2009, are amended to read as
1 8 follows:
1 9 b. In lieu of the credit amount computed in
1 10 paragraph "a", subparagraph (1), an eligible
1 11 business may elect to compute the credit amount
1 12 for qualified research expenses incurred in this
1 13 state in a manner consistent with the alternative
1 14 incremental simplified credit described in section
1 15 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
1 16 taxpayer may make this election regardless of the
1 17 method used for the taxpayer's federal income tax. The
1 18 election made under this paragraph is for the tax year
1 19 and the taxpayer may use another or the same method for
1 20 any subsequent year.
1 21 c. For purposes of the alternate credit
1 22 computation method in paragraph "b", the credit
1 23 percentages applicable to qualified research
1 24 expenses described in clauses (i), (ii), and (iii)
1 25 of section 41(c)(4)(A) 41(c)(5)(A) and clause (ii)
1 26 of section 41(c)(5)(B) of the Internal Revenue Code
1 27 are one and sixty=five hundredths percent, two and
1 28 twenty hundredths percent, and two and seventy=five
1 29 hundredths four and fifty=five hundredths percent and
1 30 one and ninety=five hundredths percent, respectively.
1 31 Sec. ___. Section 15.335, subsection 4, Code
1 32 Supplement 2009, is amended to read as follows:
1 33 4. a. For purposes of this section, "base amount",
1 34 "basic research payment", and "qualified research
1 35 expense" mean the same as defined for the federal
1 36 credit for increasing research activities under section
1 37 41 of the Internal Revenue Code, except that for the
1 38 alternative incremental simplified credit such amounts
1 39 are for research conducted within this state.
1 40 b. For purposes of this section, "Internal Revenue
1 41 Code" means the Internal Revenue Code in effect on
1 42 January 1, 2009 2010.
1 43 Sec. ___. Section 15A.9, subsection 8, paragraphs
1 44 b, c, and e, Code Supplement 2009, are amended to read
1 45 as follows:
1 46 b. In lieu of the credit amount computed in
1 47 paragraph "a", subparagraph (1), subparagraph division
1 48 (a), a business may elect to compute the credit amount
1 49 for qualified research expenses incurred in this
1 50 state within the zone in a manner consistent with the
2 1 alternative incremental simplified credit described in
2 2 section 41(c)(4) 41(c)(5) of the Internal Revenue Code.
2 3 The taxpayer may make this election regardless of the
2 4 method used for the taxpayer's federal income tax. The
2 5 election made under this paragraph is for the tax year
2 6 and the taxpayer may use another or the same method for
2 7 any subsequent year.
2 8 c. For purposes of the alternate credit
2 9 computation method in paragraph "b", the credit
2 10 percentages applicable to qualified research expenses
2 11 described in clauses (i), (ii), and (iii) of section
2 12 41(c)(4)(A) 41(c)(5)(A) and clause (ii) of section
2 13 41(c)(5)(B) of the Internal Revenue Code are three and
2 14 thirty hundredths percent, four and forty hundredths
2 15 percent, and five and fifty hundredths four and
2 16 fifty=five hundredths percent and one and ninety=five
2 17 hundredths percent, respectively.
2 18 e. (1) For the purposes of this subsection,
2 19 "base amount", "basic research payment", and "qualified
2 20 research expense" mean the same as defined for the
2 21 federal credit for increasing research activities under
2 22 section 41 of the Internal Revenue Code, except that
2 23 for the alternative incremental simplified credit such
2 24 amounts are for research conducted within this state
2 25 within the zone.
2 26 (2) For purposes of this subsection, "Internal
2 27 Revenue Code" means the Internal Revenue Code in effect
2 28 on January 1, 2009 2010.
2 29 Sec. ___. Section 422.3, subsection 5, Code 2009,
2 30 is amended to read as follows:
2 31 5. "Internal Revenue Code" means the Internal
2 32 Revenue Code of 1954, prior to the date of its
2 33 redesignation as the Internal Revenue Code of 1986
2 34 by the Tax Reform Act of 1986, or means the Internal
2 35 Revenue Code of 1986 as amended to and including
2 36 January 1, 2008 2010.
2 37 Sec. ___. Section 422.7, subsection 53, Code
2 38 Supplement 2009, is amended by striking the subsection.
2 39 Sec. ___. Section 422.9, subsection 2, paragraph i,
2 40 Code Supplement 2009, is amended to read as follows:
2 41 i. The deduction for state sales and use taxes
2 42 is allowable only if the taxpayer elected to deduct
2 43 the state sales and use taxes in lieu of state income
2 44 taxes under section 164 of the Internal Revenue Code.
2 45 A deduction for state sales and use taxes is not
2 46 allowed if the taxpayer has taken the deduction for
2 47 state income taxes or claimed the standard deduction
2 48 under section 63 of the Internal Revenue Code. This
2 49 paragraph applies to taxable years beginning after
2 50 December 31, 2003, and before January 1, 2006 2008, and
3 1 to taxable years beginning after December 31, 2008, and
3 2 before January 1, 2010.
3 3 Sec. ___. Section 422.10, subsection 1, paragraphs
3 4 b and c, Code Supplement 2009, are amended to read as
3 5 follows:
3 6 b. In lieu of the credit amount computed in
3 7 paragraph "a", subparagraph (1), subparagraph division
3 8 (a), a taxpayer may elect to compute the credit amount
3 9 for qualified research expenses incurred in this
3 10 state in a manner consistent with the alternative
3 11 incremental simplified credit described in section
3 12 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
3 13 taxpayer may make this election regardless of the
3 14 method used for the taxpayer's federal income tax. The
3 15 election made under this paragraph is for the tax year
3 16 and the taxpayer may use another or the same method for
3 17 any subsequent year.
3 18 c. For purposes of the alternate credit
3 19 computation method in paragraph "b", the credit
3 20 percentages applicable to qualified research expenses
3 21 described in clauses (i), (ii), and (iii) of section
3 22 41(c)(4)(A) section 41(c)(5)(A) and clause (ii) of
3 23 section 41(c)(5)(B) of the Internal Revenue Code
3 24 are one and sixty=five hundredths percent, two and
3 25 twenty hundredths percent, and two and seventy=five
3 26 hundredths four and fifty=five hundredths percent and
3 27 one and ninety=five hundredths percent, respectively.
3 28 Sec. ___. Section 422.10, subsection 3, Code
3 29 Supplement 2009, is amended to read as follows:
3 30 3. a. For purposes of this section, "base amount",
3 31 "basic research payment", and "qualified research
3 32 expense" mean the same as defined for the federal
3 33 credit for increasing research activities under section
3 34 41 of the Internal Revenue Code, except that for the
3 35 alternative incremental simplified credit such amounts
3 36 are for research conducted within this state.
3 37 b. For purposes of this section, "Internal Revenue
3 38 Code" means the Internal Revenue Code in effect on
3 39 January 1, 2009 2010.
3 40 Sec. ___. Section 422.32, subsection 7, Code
3 41 Supplement 2009, is amended to read as follows:
3 42 7. "Internal Revenue Code" means the Internal
3 43 Revenue Code of 1954, prior to the date of its
3 44 redesignation as the Internal Revenue Code of 1986
3 45 by the Tax Reform Act of 1986, or means the Internal
3 46 Revenue Code of 1986 as amended to and including
3 47 January 1, 2008 2010.
3 48 Sec. ___. Section 422.33, subsection 5, paragraphs
3 49 b, c, and d, Code Supplement 2009, are amended to read
3 50 as follows:
4 1 b. In lieu of the credit amount computed in
4 2 paragraph "a", subparagraph (1), a corporation
4 3 may elect to compute the credit amount for
4 4 qualified research expenses incurred in this
4 5 state in a manner consistent with the alternative
4 6 incremental simplified credit described in section
4 7 41(c)(4) 41(c)(5) of the Internal Revenue Code. The
4 8 taxpayer may make this election regardless of the
4 9 method used for the taxpayer's federal income tax. The
4 10 election made under this paragraph is for the tax year
4 11 and the taxpayer may use another or the same method for
4 12 any subsequent year.
4 13 c. For purposes of the alternate credit
4 14 computation method in paragraph "b", the credit
4 15 percentages applicable to qualified research expenses
4 16 described in clauses (i), (ii), and (iii) of section
4 17 41(c)(4)(A) section 41(c)(5)(A) and clause (ii) of
4 18 section 41(c)(5)(B) of the Internal Revenue Code
4 19 are one and sixty=five hundredths percent, two and
4 20 twenty hundredths percent, and two and seventy=five
4 21 hundredths four and fifty=five hundredths percent and
4 22 one and ninety=five hundredths percent, respectively.
4 23 d. (1) For purposes of this subsection, "base
4 24 amount", "basic research payment", and "qualified
4 25 research expense" mean the same as defined for the
4 26 federal credit for increasing research activities under
4 27 section 41 of the Internal Revenue Code, except that
4 28 for the alternative incremental simplified credit such
4 29 amounts are for research conducted within this state.
4 30 (2) For purposes of this subsection, "Internal
4 31 Revenue Code" means the Internal Revenue Code in effect
4 32 on January 1, 2009 2010.
4 33 Sec. ___. Section 422.35, subsection 24, Code
4 34 Supplement 2009, is amended by striking the subsection.
4 35 Sec. ___. EFFECTIVE UPON ENACTMENT AND RETROACTIVE
4 36 APPLICABILITY.
4 37 1. This Act, being deemed of immediate importance,
4 38 takes effect upon enactment.
4 39 2. The sections of this Act amending sections
4 40 15.335, 15A.9, 422.3, 422.9, subsection 2, paragraph
4 41 "i", 422.10, 422.32, and 422.33 apply retroactively to
4 42 January 1, 2009, for tax years beginning on or after
4 43 that date.
4 44 3. The sections of this Act amending sections
4 45 422.7, subsection 53, and 422.35, subsection 24, apply
4 46 retroactively to January 1, 2008, for tax years ending
4 47 on or after that date.>
4 48 #2. By renumbering as necessary.
RANDY FEENSTRA
HF2531.2845 (2) 83
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