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