House File 2497 - Introduced
HOUSE FILE
BY STRUYK, HUSER, WISE,
UPMEYER, and HEATON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development by creating a bioscience
2 funding board and bioscience fund, providing tax incentives
3 under the high quality job creation Act, and providing an
4 exempt activity for foreign corporations, and including
5 effective and retroactive applicability date provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 5331YH 81
8 tm/cf/24
PAG LIN
1 1 Section 1. NEW SECTION. 15E.361 BIOSCIENCE FUNDING BOARD
1 2 == BIOSCIENCE FUND.
1 3 1. A bioscience funding board is established for purposes
1 4 of funding bioscience=related projects. The board shall award
1 5 financial assistance from moneys available in the bioscience
1 6 fund created in subsection 4. Financial assistance shall not
1 7 be used for employee salaries or for endowed chair positions.
1 8 2. The board shall consist of the following members:
1 9 a. Three members of the state board of regents appointed
1 10 by the governor and confirmed by the senate pursuant to
1 11 section 2.32.
1 12 b. Three members of a single bioscience development
1 13 organization identified by the department pursuant to section
1 14 15G.111, subsection 2, appointed by the governor and confirmed
1 15 by the senate pursuant to section 2.32.
1 16 c. One member appointed by the Iowa economic development
1 17 board and confirmed by the senate pursuant to section 2.32.
1 18 3. The terms of the appointed members shall be staggered
1 19 as determined by the governor. A vacancy shall be filled by
1 20 the appointing authority. Members shall serve three=year
1 21 terms and may be reappointed.
1 22 4. A bioscience fund is created in the state treasury
1 23 under the control of the board and consisting of any moneys
1 24 appropriated by the general assembly and any other moneys
1 25 available to and obtained or accepted by the board for
1 26 placement in the fund. Payments of interest, repayments of
1 27 moneys loaned pursuant to this section, and recaptures of
1 28 loans shall be deposited in the fund. The fund shall be used
1 29 to provide grants, loans, forgivable loans, loan guarantees,
1 30 and other forms of assistance pursuant to subsection 1.
1 31 Moneys in the fund are not subject to section 8.33.
1 32 Notwithstanding section 12C.7, interest or earnings on moneys
1 33 in the fund shall be credited to the fund.
1 34 Sec. 2. Section 15.335A, Code Supplement 2005, is amended
1 35 by adding the following new subsection:
2 1 NEW SUBSECTION. 7. a. In calculating the annual wage,
2 2 including benefits, pursuant to subsection 1, the department
2 3 shall not require a certain wage level, without benefits, to
2 4 be met.
2 5 b. In calculating the value of benefits pursuant to
2 6 subsection 1, if an employer offers medical insurance under
2 7 both single and family coverage plans, the employer shall be
2 8 given credit for providing medical insurance under family
2 9 coverage plans to fifty percent of the number of new high=
2 10 quality jobs employees.
2 11 Sec. 3. Section 422.34A, Code 2005, is amended by adding
2 12 the following new subsection:
2 13 NEW SUBSECTION. 8. Storing tangible personal property in
2 14 a warehouse located in Iowa which is not owned by the
2 15 corporation provided that none of the goods are delivered or
2 16 shipped so as to be included in the gross sales of the
2 17 corporation within this state as provided in section 422.33,
2 18 subsection 2, paragraph "b", subparagraph (6).
2 19 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE.
2 20 1. Section 2 of this Act, being deemed of immediate
2 21 importance, takes effect upon enactment and applies
2 22 retroactively to June 9, 2005.
2 23 2. Section 3 of this Act, being deemed of immediate
2 24 importance, takes effect upon enactment and applies
2 25 retroactively to January 1, 2006, for tax years beginning on
2 26 or after that date.
2 27 EXPLANATION
2 28 This bill relates to economic development by creating a
2 29 bioscience funding board and bioscience fund, providing tax
2 30 incentives under the high quality job creation Act, and
2 31 providing an income tax exempt activity for foreign
2 32 corporations.
2 33 The bill establishes a bioscience funding board for
2 34 purposes of funding bioscience=related projects. The bill
2 35 provides that the board shall award financial assistance from
3 1 moneys in the bioscience fund. The bill prohibits the use of
3 2 financial assistance for employee salaries or for endowed
3 3 chair positions. The bill creates a bioscience fund in the
3 4 state treasury under the control of the board and consisting
3 5 of any moneys appropriated by the general assembly and any
3 6 other moneys available to and obtained or accepted by the
3 7 board for placement in the fund.
3 8 In determining eligibility for tax incentives under the
3 9 high quality job creation Act, a calculation of the annual
3 10 wage, including benefits, of new high=quality jobs created
3 11 must be performed. The bill provides that, in making the
3 12 calculation, the department shall not require a certain wage
3 13 level, without benefits, to be met. The bill provides that,
3 14 in making a calculation of the value of benefits, if an
3 15 employer offers medical insurance under both single and family
3 16 coverage plans, the employer shall be given credit for
3 17 providing medical insurance under family coverage plans to 50
3 18 percent of the number of new high=quality jobs employees.
3 19 This provision of the bill takes effect upon enactment and
3 20 applies retroactively to June 9, 2005.
3 21 The bill provides that a foreign corporation shall not be
3 22 considered doing business in this state or deriving income
3 23 from sources within this state for the purposes of corporate
3 24 income tax liability by the storing of tangible personal
3 25 property in a warehouse located in Iowa which is not owned by
3 26 the corporation provided that none of the goods are delivered
3 27 or shipped so as to be included in the gross sales of the
3 28 corporation within this state due to being delivered or
3 29 shipped to a purchaser within this state. This provision
3 30 takes effect upon enactment and applies retroactively to
3 31 January 1, 2006.
3 32 LSB 5331YH 81
3 33 tm:rj/cf/24.4