House File 478 H-1078 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 24 be used pursuant to appropriations or transfers made 25 by the general assembly for tax relief. During each 26 fiscal year beginning on or after July 1, 2014, in 27 which the balance of the taxpayers trust fund equals or 28 exceeds thirty million dollars, there is transferred 29 from the taxpayers trust fund to the Iowa taxpayers 30 trust fund tax credit fund created in section 422.11E, 31 the entire balance of the taxpayers trust fund to be 32 used for the Iowa taxpayers trust fund tax credit in 33 accordance with section 422.11E, subsection 5. 34 Sec. ___. Section 8.58, Code 2013, is amended to 35 read as follows: 36 8.58 Exemption from automatic application. 37 1. To the extent that moneys appropriated under 38 section 8.57 do not result in moneys being credited 39 to the general fund under section 8.55, subsection 2 , 40 moneys Moneys appropriated under in section 8.57 and 41 moneys contained in the cash reserve fund, rebuild 42 Iowa infrastructure fund, environment first fund, Iowa 43 economic emergency fund, and taxpayers trust fund shall 44 not be considered in the application of any formula, 45 index, or other statutory triggering mechanism which 46 would affect appropriations, payments, or taxation 47 rates, contrary provisions of the Code notwithstanding. 48 2. To the extent that moneys appropriated under 49 section 8.57 do not result in moneys being credited 50 -1- HF478.779 (1) 85 mm/sc 1/ 4 #1.

to the general fund under section 8.55, subsection 2 , 1 moneys Moneys appropriated under in section 8.57 and 2 moneys contained in the cash reserve fund, rebuild 3 Iowa infrastructure fund, environment first fund, Iowa 4 economic emergency fund, and taxpayers trust fund shall 5 not be considered by an arbitrator or in negotiations 6 under chapter 20 . 7 DIVISION ___ 8 IOWA TAXPAYERS TRUST FUND TAX CREDIT 9 Sec. ___. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS 10 TRUST FUND TAX CREDIT TRANSFER. During the fiscal 11 year beginning July 1, 2013, there is transferred from 12 the taxpayers trust fund created in section 8.57E to 13 the Iowa taxpayers trust fund tax credit fund created 14 in section 422.11E, an amount equal to the sum of 15 the balance of the taxpayers trust fund as determined 16 after the close of the fiscal year beginning July 1, 17 2012, and ending June 30, 2013, including the amount 18 transferred for that fiscal year to the taxpayers trust 19 fund from the Iowa economic emergency fund created 20 in section 8.55 in the fiscal year beginning July 1, 21 2013, and ending June 30, 2014, to be used for the Iowa 22 taxpayers trust fund tax credit in accordance with 23 section 422.11E, subsection 5. 24 Sec. ___. NEW SECTION . 422.11E Iowa taxpayers 25 trust fund tax credit. 26 1. For purposes of this section, unless the context 27 otherwise requires: 28 a. “Eligible individual” means, with respect to 29 a tax year, an individual who makes and files an 30 individual income tax return pursuant to section 31 422.13. “Eligible individual” does not include 32 an estate or trust, or an individual for whom an 33 individual income tax return was not timely filed, 34 including extensions. 35 b. “Unclaimed tax credit” means, with respect to 36 a tax year, the aggregate amount by which the Iowa 37 taxpayers trust fund tax credits that were eligible to 38 be claimed by eligible individuals, if any, exceeds the 39 Iowa taxpayers trust fund tax credits actually claimed 40 by eligible individuals, if any. 41 2. The taxes imposed under this division, less the 42 credits allowed under this division except the credits 43 for withheld tax and estimated tax paid in section 44 422.16, shall be reduced by an Iowa taxpayers trust 45 fund tax credit to an eligible individual for the tax 46 year beginning January 1 immediately preceding July 1 47 of any fiscal year during which a transfer, if any, is 48 made from the taxpayers trust fund in section 8.57E to 49 the Iowa taxpayers trust fund tax credit fund created 50 -2- HF478.779 (1) 85 mm/sc 2/ 4

in this section. 1 3. The credit shall be equal to the quotient of 2 the amount transferred to the Iowa taxpayers trust 3 fund tax credit fund in the applicable fiscal year, 4 divided by the number of eligible individuals for the 5 tax year immediately preceding the tax year for which 6 the credit in this section is allowed, as determined 7 by the director of revenue in accordance with this 8 section, rounded down to the nearest whole dollar. The 9 department of revenue shall draft the income tax form 10 for any tax year in which a credit will be allowed 11 under this section to provide the information and space 12 necessary for eligible individuals to claim the credit. 13 4. Any credit in excess of the taxpayer’s liability 14 for the tax year is not refundable and shall not be 15 credited to the tax liability for any following year 16 or carried back to a tax year prior to the tax year in 17 which the taxpayer claims the credit. 18 5. a. There is established within the state 19 treasury under the control of the department an Iowa 20 taxpayers trust fund tax credit fund consisting of any 21 moneys transferred by the general assembly by law from 22 the taxpayers trust fund created in section 8.57E for 23 purposes of the credit provided in this section. For 24 the fiscal year beginning July 1, 2013, and for each 25 fiscal year thereafter, the department shall transfer 26 from the Iowa taxpayers trust fund tax credit fund 27 to the general fund of the state, the lesser of the 28 balance of the Iowa taxpayers trust fund tax credit 29 fund or an amount of money equal to the Iowa taxpayers 30 trust fund tax credits claimed in that fiscal year, if 31 any. Any moneys in the Iowa taxpayers trust fund tax 32 credit fund which represent unclaimed tax credits shall 33 immediately revert to the taxpayers trust fund created 34 in section 8.57E. Interest or earnings on moneys in 35 the Iowa taxpayers trust fund tax credit fund shall be 36 credited to the taxpayers trust fund created in section 37 8.57E. 38 b. The moneys transferred to the general fund of 39 the state in accordance with this subsection shall not 40 be considered new revenues for purposes of the state 41 general fund expenditure limitation under section 8.54 42 but instead as replacement of a like amount included in 43 the expenditure limitation for the fiscal year in which 44 the transfer is made. > 45 2. Page 3, line 24, before < or > by inserting 46 < except for the Iowa taxpayers trust fund tax credit 47 allowed under section 422.11E, > 48 3. Page 5, line 15, before < or > by inserting 49 < except for the Iowa taxpayers trust fund tax credit 50 -3- HF478.779 (1) 85 mm/sc 3/ 4 #2.

allowed under section 422.11E, > 1 4. Page 5, line 21, by striking < This > and 2 inserting: 3 < 1. Except as provided in subsection 2, this > 4 5. Page 5, after line 23 by inserting: 5 < 2. The following provisions of this Act apply 6 retroactively to July 1, 2012, to moneys attributed to 7 fiscal years beginning on or after July 1, 2012: 8 a. The section of this Act amending section 8.54. 9 b. The section of this Act amending section 8.55. 10 c. The section of this Act amending section 8.57E. 11 d. The section of this Act amending section 8.58. > 12 6. Title page, line 1, by striking < the individual 13 income tax by > and inserting < revenue and taxation by 14 modifying the transfer of moneys from the Iowa economic 15 emergency fund to the taxpayers trust fund, creating 16 an Iowa taxpayers trust fund tax credit and fund and 17 providing for the transfer of moneys for purposes of 18 the credit, > 19 7. By renumbering as necessary. 20 ______________________________ COWNIE of Polk -4- HF478.779 (1) 85 mm/sc 4/ 4 #4. #5. #6. #7.