House File 2736 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO HF 2497)
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:
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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 to pay the salary of a salaried employee, but may be
1 8 used to pay the salary of a contract employee provided the
1 9 employment contract is for not more than five years.
1 10 Financial assistance may only be used to partially fund an
1 11 endowed chair position if significant private contributions
1 12 are used to fund the position.
1 13 2. The board shall consist of the following members:
1 14 a. Three members of the state board of regents appointed
1 15 by the governor and confirmed by the senate pursuant to
1 16 section 2.32.
1 17 b. Three members of a single bioscience development
1 18 organization identified by the department pursuant to section
1 19 15G.111, subsection 2, appointed by the governor and confirmed
1 20 by the senate pursuant to section 2.32.
1 21 c. Three members appointed by the Iowa economic
1 22 development board and confirmed by the senate pursuant to
1 23 section 2.32.
1 24 d. One member selected by the members of the board who
1 25 shall serve as the president of the board.
1 26 3. The terms of the appointed members shall be staggered
1 27 as determined by the governor. A vacancy shall be filled by
1 28 the appointing authority. Members shall serve three=year
1 29 terms and may be reappointed.
1 30 4. A bioscience fund is created in the state treasury
1 31 under the control of the board and consisting of any moneys
1 32 appropriated by the general assembly and any other moneys
1 33 available to and obtained or accepted by the board for
1 34 placement in the fund. Payments of interest, repayments of
1 35 moneys loaned pursuant to this section, and recaptures of
2 1 loans shall be deposited in the fund. The fund shall be used
2 2 to provide grants, loans, forgivable loans, loan guarantees,
2 3 and other forms of assistance pursuant to subsection 1.
2 4 Moneys in the fund are not subject to section 8.33.
2 5 Notwithstanding section 12C.7, interest or earnings on moneys
2 6 in the fund shall be credited to the fund. The board shall
2 7 ensure that the fund is an ongoing, self=sustaining fund.
2 8 Sec. 2. Section 15.335A, Code Supplement 2005, is amended
2 9 by adding the following new subsection:
2 10 NEW SUBSECTION. 7. a. In calculating the annual wage,
2 11 including benefits, pursuant to subsection 1, the department
2 12 shall not require a certain wage level, without benefits, to
2 13 be met.
2 14 b. In calculating the value of benefits pursuant to
2 15 subsection 1, if an employer offers medical insurance under
2 16 both single and family coverage plans, the employer shall be
2 17 given credit for providing medical insurance under family
2 18 coverage plans to fifty percent of the number of new high=
2 19 quality jobs employees.
2 20 Sec. 3. Section 15G.112, subsection 1, Code Supplement
2 21 2005, is amended to read as follows:
2 22 1. In order to receive financial assistance from the
2 23 department from moneys appropriated from the grow Iowa values
2 24 fund, the average annual wage, including benefits, of new jobs
2 25 created must be equal to or greater than one hundred thirty
2 26 percent of the average county wage. The department shall not
2 27 require any other wage level to be met. For purposes of this
2 28 section, "average county wage" and "benefits" mean the same as
2 29 defined in section 15I.1.
2 30 Sec. 4. Section 15I.1, subsection 2, paragraph a, Code
2 31 Supplement 2005, is amended to read as follows:
2 32 a. Medical and dental insurance plans. If an employer
2 33 offers medical insurance under both single and family coverage
2 34 plans, the employer shall be given credit for providing
2 35 medical insurance under family coverage plans to the greater
3 1 of fifty percent of the new employees or the actual percentage
3 2 of new employees.
3 3 Sec. 5. Section 422.34A, Code 2005, is amended by adding
3 4 the following new subsection:
3 5 NEW SUBSECTION. 8. Storing tangible personal property in
3 6 a warehouse located in Iowa which is not owned by the
3 7 corporation provided that none of the goods are delivered or
3 8 shipped so as to be included in the gross sales of the
3 9 corporation within this state as provided in section 422.33,
3 10 subsection 2, paragraph "b", subparagraph (6).
3 11 Sec. 6. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE.
3 12 1. Section 2 of this Act, being deemed of immediate
3 13 importance, takes effect upon enactment and applies
3 14 retroactively to June 9, 2005.
3 15 2. Section 5 of this Act, being deemed of immediate
3 16 importance, takes effect upon enactment and applies
3 17 retroactively to January 1, 2006, for tax years beginning on
3 18 or after that date.
3 19 EXPLANATION
3 20 This bill relates to economic development by creating a
3 21 bioscience funding board and bioscience fund, providing tax
3 22 incentives under the high quality job creation Act, and
3 23 providing an income tax exempt activity for foreign
3 24 corporations.
3 25 The bill establishes a bioscience funding board for
3 26 purposes of funding bioscience=related projects. The bill
3 27 provides that the board shall award financial assistance from
3 28 moneys in the bioscience fund. The bill prohibits the use of
3 29 financial assistance for paying the salary of a salaried
3 30 employee, but allows the use of paying the salary of certain
3 31 contract employees. The bill allows financial assistance to
3 32 be used to partially fund an endowed chair position only if
3 33 significant private contributions are used to fund the
3 34 position. The bill creates a bioscience fund in the state
3 35 treasury under the control of the board and consisting of any
4 1 moneys appropriated by the general assembly and any other
4 2 moneys available to and obtained or accepted by the board for
4 3 placement in the fund.
4 4 In determining eligibility for tax incentives under the
4 5 high quality job creation Act, a calculation of the annual
4 6 wage, including benefits, of new high=quality jobs created
4 7 must be performed. The bill provides that, in making the
4 8 calculation, the department shall not require a certain wage
4 9 level, without benefits, to be met. The bill provides that,
4 10 in making a calculation of the value of benefits, if an
4 11 employer offers medical insurance under both single and family
4 12 coverage plans, the employer shall be given credit for
4 13 providing medical insurance under family coverage plans to 50
4 14 percent of the number of new high=quality jobs employees.
4 15 This provision of the bill takes effect upon enactment and
4 16 applies retroactively to June 9, 2005.
4 17 Currently, in order to receive financial assistance from
4 18 the department of economic development from moneys
4 19 appropriated from the grow Iowa values fund, the average
4 20 annual wage, including benefits, of new jobs created must be
4 21 equal to or greater than 130 percent of the average county
4 22 wage. The bill prohibits the department from requiring any
4 23 other wage level to be met.
4 24 Currently, under the wage=benefits tax credit program, the
4 25 term "benefits" is defined to include certain benefits, one of
4 26 which is medical and dental insurance plans. The bill
4 27 provides that if an employer offers medical insurance under
4 28 both single and family coverage plans, the employer shall be
4 29 given credit for providing medical insurance under family
4 30 coverage plans to the greater of 50 percent of the new
4 31 employees or the actual percentage of new employees.
4 32 The bill provides that a foreign corporation shall not be
4 33 considered doing business in this state or deriving income
4 34 from sources within this state for the purposes of corporate
4 35 income tax liability by the storing of tangible personal
5 1 property in a warehouse located in Iowa which is not owned by
5 2 the corporation provided that none of the goods are delivered
5 3 or shipped so as to be included in the gross sales of the
5 4 corporation within this state due to being delivered or
5 5 shipped to a purchaser within this state. This provision
5 6 takes effect upon enactment and applies retroactively to
5 7 January 1, 2006.
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