House File 478 H-1067 Amend House File 478 as follows: 1 1. Page 3, after line 1 by inserting: 2 < DIVISION ___ 3 TAXPAYERS TRUST FUND 4 Sec. ___. Section 8.54, subsection 5, Code 2013, is 5 amended by striking the subsection. 6 Sec. ___. Section 8.55, subsection 2, Code 2013, is 7 amended to read as follows: 8 2. The maximum balance of the fund is the amount 9 equal to two and one-half percent of the adjusted 10 revenue estimate for the fiscal year. If the amount of 11 moneys in the Iowa economic emergency fund is equal to 12 the maximum balance, moneys in excess of this amount 13 shall be distributed as follows: 14 a. The first sixty million dollars of the 15 difference between the actual net revenue for the 16 general fund of the state for the fiscal year and the 17 adjusted revenue estimate for the fiscal year shall be 18 transferred to the taxpayers trust fund. 19 b. The remainder of the excess, if any, shall be 20 transferred to the general fund of the state. 21 Sec. ___. Section 8.57E, subsection 2, Code 2013, 22 is amended to read as follows: 23 2. Moneys in the taxpayers trust fund shall only be 24 used pursuant to appropriations or transfers made by 25 the general assembly for tax relief. 26 Sec. ___. Section 8.58, Code 2013, is amended to 27 read as follows: 28 8.58 Exemption from automatic application. 29 1. To the extent that moneys appropriated under 30 section 8.57 do not result in moneys being credited 31 to the general fund under section 8.55, subsection 2 , 32 moneys Moneys appropriated under in section 8.57 and 33 moneys contained in the cash reserve fund, rebuild 34 Iowa infrastructure fund, environment first fund, Iowa 35 economic emergency fund, and taxpayers trust fund shall 36 not be considered in the application of any formula, 37 index, or other statutory triggering mechanism which 38 would affect appropriations, payments, or taxation 39 rates, contrary provisions of the Code notwithstanding. 40 2. To the extent that moneys appropriated under 41 section 8.57 do not result in moneys being credited 42 to the general fund under section 8.55, subsection 2 , 43 moneys Moneys appropriated under in section 8.57 and 44 moneys contained in the cash reserve fund, rebuild 45 Iowa infrastructure fund, environment first fund, Iowa 46 economic emergency fund, and taxpayers trust fund shall 47 not be considered by an arbitrator or in negotiations 48 under chapter 20 . 49 DIVISION ___ 50 -1- HF478.723 (3) 85 mm/sc 1/ 4 #1.

IOWA TAXPAYERS TRUST FUND TAX CREDIT 1 Sec. ___. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS 2 TRUST FUND TAX CREDIT TRANSFER. During the fiscal 3 year beginning July 1, 2013, there is transferred from 4 the taxpayers trust fund created in section 8.57E to 5 the Iowa taxpayers trust fund tax credit fund created 6 in section 422.11E, an amount equal to the sum of 7 the balance of the taxpayers trust fund as determined 8 after the close of the fiscal year beginning July 1, 9 2012, and ending June 30, 2013, including the amount 10 transferred for that fiscal year to the taxpayers trust 11 fund from the Iowa economic emergency fund created 12 in section 8.55 in the fiscal year beginning July 1, 13 2013, and ending June 30, 2014, to be used for the Iowa 14 taxpayers trust fund tax credit in accordance with 15 section 422.11E, subsection 5. 16 Sec. ___. NEW SECTION . 422.11E Iowa taxpayers 17 trust fund tax credit. 18 1. For purposes of this section, unless the context 19 otherwise requires: 20 a. “Eligible individual” means, with respect to 21 a tax year, an individual who makes and files an 22 individual income tax return pursuant to section 23 422.13. “Eligible individual” does not include 24 an estate or trust, or an individual for whom an 25 individual income tax return was not timely filed, 26 including extensions. 27 b. “Unclaimed tax credit” means, with respect to 28 a tax year, the aggregate amount by which the Iowa 29 taxpayers trust fund tax credits that were eligible to 30 be claimed by eligible individuals, if any, exceeds the 31 Iowa taxpayers trust fund tax credits actually claimed 32 by eligible individuals, if any. 33 2. The taxes imposed under this division, less the 34 credits allowed under this division except the credits 35 for withheld tax and estimated tax paid in section 36 422.16, shall be reduced by an Iowa taxpayers trust 37 fund tax credit to an eligible individual for the tax 38 year beginning January 1 immediately preceding July 1 39 of any fiscal year during which a transfer, if any, is 40 made from the taxpayers trust fund in section 8.57E to 41 the Iowa taxpayers trust fund tax credit fund created 42 in this section. 43 3. The credit shall be equal to the quotient of 44 the amount transferred to the Iowa taxpayers trust 45 fund tax credit fund in the applicable fiscal year, 46 divided by the number of eligible individuals for the 47 tax year immediately preceding the tax year for which 48 the credit in this section is allowed, as determined 49 by the director of revenue in accordance with this 50 -2- HF478.723 (3) 85 mm/sc 2/ 4

section, rounded down to the nearest whole dollar. The 1 department of revenue shall draft the income tax form 2 for any tax year in which a credit will be allowed 3 under this section to provide the information and space 4 necessary for eligible individuals to claim the credit. 5 4. Any credit in excess of the taxpayer’s liability 6 for the tax year is not refundable and shall not be 7 credited to the tax liability for any following year 8 or carried back to a tax year prior to the tax year in 9 which the taxpayer claims the credit. 10 5. a. There is established within the state 11 treasury under the control of the department an Iowa 12 taxpayers trust fund tax credit fund consisting of any 13 moneys transferred by the general assembly by law from 14 the taxpayers trust fund created in section 8.57E for 15 purposes of the credit provided in this section. For 16 the fiscal year beginning July 1, 2013, and for each 17 fiscal year thereafter, the department shall transfer 18 from the Iowa taxpayers trust fund tax credit fund 19 to the general fund of the state, the lesser of the 20 balance of the Iowa taxpayers trust fund tax credit 21 fund or an amount of money equal to the Iowa taxpayers 22 trust fund tax credits claimed in that fiscal year, if 23 any. Any moneys in the Iowa taxpayers trust fund tax 24 credit fund which represent unclaimed tax credits shall 25 immediately revert to the taxpayers trust fund created 26 in section 8.57E. Interest or earnings on moneys in 27 the Iowa taxpayers trust fund tax credit fund shall be 28 credited to the taxpayers trust fund created in section 29 8.57E. 30 b. The moneys transferred to the general fund of 31 the state in accordance with this subsection shall not 32 be considered new revenues for purposes of the state 33 general fund expenditure limitation under section 8.54 34 but instead as replacement of a like amount included in 35 the expenditure limitation for the fiscal year in which 36 the transfer is made. > 37 2. Page 3, line 24, before < or > by inserting 38 < except for the Iowa taxpayers trust fund tax credit 39 allowed under section 422.11E, > 40 3. Page 5, line 15, before < or > by inserting 41 < except for the Iowa taxpayers trust fund tax credit 42 allowed under section 422.11E, > 43 4. Page 5, line 21, by striking < This > and 44 inserting: 45 < 1. Except as provided in subsection 2, this > 46 5. Page 5, after line 23 by inserting: 47 < 2. The following provisions of this Act apply 48 retroactively to July 1, 2012, to moneys attributed to 49 fiscal years beginning on or after July 1, 2012: 50 -3- HF478.723 (3) 85 mm/sc 3/ 4 #2. #3. #4. #5.

a. The section of this Act amending section 8.54. 1 b. The section of this Act amending section 8.55. 2 c. The section of this Act amending section 8.57E. 3 d. The section of this Act amending section 8.58. > 4 6. Title page, line 1, by striking < the individual 5 income tax by > and inserting < revenue and taxation by 6 modifying the transfer of moneys from the Iowa economic 7 emergency fund to the taxpayers trust fund, creating 8 an Iowa taxpayers trust fund tax credit and fund and 9 providing for the transfer of moneys for purposes of 10 the credit, > 11 7. By renumbering as necessary. 12 ______________________________ COWNIE of Polk -4- HF478.723 (3) 85 mm/sc 4/ 4 #6. #7.