House File 297 - Introduced
HOUSE FILE
BY JENKINS and JACOBS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to an inheritance tax credit for transferring a
2 portion of an inheritance to an entity for capital investment,
3 programming, including education, performance, and access, in
4 arts and culture.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 450.11 ARTS AND CULTURE TAX
1 2 CREDIT.
1 3 1. The inheritance tax imposed under this chapter shall be
1 4 reduced by an arts and culture tax credit equal to the amount
1 5 of property or interest in property passing to the taxpayer
1 6 that is donated to a qualified entity, not to exceed ten
1 7 percent of the inheritance tax imposed.
1 8 2. To be eligible for the tax credit, the taxpayer shall
1 9 do all of the following:
1 10 a. Enter into an agreement with a qualified entity at
1 11 least one year prior to the decedent's death. The agreement
1 12 shall contain all of the following:
1 13 (1) The identity of the qualified entity or entities that
1 14 are to receive the donation.
1 15 (2) The amount of the donation which may be expressed as a
1 16 monetary amount, a percentage of the property or interest in
1 17 property, or a combination of both.
1 18 (3) The donation shall only be expended for capital
1 19 investment, programming, including education, performance, and
1 20 access, in arts and culture in the state.
1 21 b. File the agreement entered into as required in
1 22 paragraph "a" with the department of revenue.
1 23 c. At the time of the payment of the inheritance tax,
1 24 transfer to the qualified entity the amount specified in the
1 25 agreement entered into with the qualified entity. The
1 26 taxpayer shall submit proof of the transfer to the department
1 27 of revenue.
1 28 3. A qualified entity is any of the following:
1 29 a. The department of cultural affairs.
1 30 b. The Iowa cultural trust created in section 303A.4.
1 31 c. The vision Iowa fund created in section 12.72.
1 32 d. The community attraction and tourism fund created in
1 33 section 15F.204.
1 34 e. A nonprofit organization that is exempt from federal
1 35 income taxes under section 501(c) of the Internal Revenue Code
2 1 whose major activity is capital investment, programming,
2 2 including education, performance, and access, in arts and
2 3 culture.
2 4 4. A qualified entity receiving a donation for which a
2 5 credit was allowed under this section shall use the donation
2 6 for capital investment, programming, including education,
2 7 performance, and access, in arts and culture in the state.
2 8 Such entity may distribute the donation to a local entity that
2 9 meets the criteria as a qualified entity under subsection 3,
2 10 paragraph "e".
2 11 5. The departments of revenue and cultural affairs shall
2 12 each adopt rules for the administration of this section. The
2 13 department of revenue shall keep a record of any agreements
2 14 the department receives pursuant to subsection 2 and shall
2 15 make available a listing of qualified entities described in
2 16 subsection 3, paragraph "e", to the extent those entities have
2 17 identified themselves as such.
2 18 6. For purposes of this section, "taxpayer" means the
2 19 person to whom property or an interest in property passes from
2 20 the decedent and who is liable for the tax imposed in this
2 21 chapter as provided in section 450.5.
2 22 EXPLANATION
2 23 This bill provides for an inheritance tax credit equal to
2 24 the amount donated to a qualified entity from a person to whom
2 25 property or an interest in property passes from a decedent.
2 26 The donation is to be used by the entity for capital
2 27 investment, programming, including education, performance, and
2 28 access, in arts and culture in the state. The credit cannot
2 29 exceed 10 percent of the inheritance tax due.
2 30 To be eligible for the credit, the taxpayer must enter into
2 31 an agreement, with a qualified entity specifying the amount to
2 32 be donated, at least one year prior to the death of the
2 33 decedent. The amount to be donated is to be transferred to
2 34 the qualified entity at the time of paying the inheritance
2 35 tax.
3 1 A qualified entity includes a nonprofit organization exempt
3 2 from federal income tax whose major activity is capital
3 3 investment, programming, including education, performance, and
3 4 access, in arts and culture, the department of cultural
3 5 affairs, the Iowa cultural trust, the vision Iowa fund, or the
3 6 community attraction and tourism fund.
3 7 LSB 1182YH 81
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