House File 533 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON ECONOMIC GROWTH

                                       (SUCCESSOR TO HF 98)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to criteria and incentives under the new capital
  2    investment program and including an applicability provision.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1387HV 81
  5 tm/sh/8

PAG LIN



  1  1    Section 1.  Section 15.384, subsection 1, paragraph c, Code
  1  2 2005, is amended to read as follows:
  1  3    c.  The business makes a capital investment of at least one
  1  4 million two hundred fifty thousand dollars.
  1  5    Sec. 2.  Section 15.385, Code 2005, is amended by adding
  1  6 the following new subsection:
  1  7    NEW SUBSECTION.  6.  For eligible businesses that have
  1  8 fifty or fewer employees and make a capital investment of at
  1  9 least two hundred fifty thousand dollars, but less than two
  1 10 million dollars, the aggregate amount of tax credits
  1 11 authorized to such eligible businesses pursuant to this
  1 12 section shall not exceed a total of two million dollars each
  1 13 fiscal year.  A business is not eligible to receive a tax
  1 14 credit under this section if the business has more than fifty
  1 15 employees.  The department shall develop a system for
  1 16 registration and authorization of tax credits under this
  1 17 subsection and shall control, in cooperation with the
  1 18 department of revenue, the distribution of all such tax
  1 19 credits to eligible businesses.
  1 20    Sec. 3.  APPLICABILITY.  This Act applies to applications
  1 21 approved by the department of economic development on or after
  1 22 July 1, 2005.
  1 23                           EXPLANATION
  1 24    This bill relates to criteria and incentives under the new
  1 25 capital investment program.
  1 26    The bill lowers the capital investment requirement for
  1 27 eligible businesses under the program from $1 million to
  1 28 $250,000.
  1 29    The bill provides that, for eligible businesses that have
  1 30 50 or fewer employees and make a capital investment of at
  1 31 least $250,000, but less than $2 million, the aggregate amount
  1 32 of tax credits authorized to such eligible businesses under
  1 33 the program shall not exceed a total of $2 million each fiscal
  1 34 year.  The bill provides that a business is not eligible to
  1 35 receive a tax credit if the business has more than 50
  2  1 employees.  The bill provides that the department shall
  2  2 develop a system for registration and authorization of tax
  2  3 credits under the program and shall control the distribution
  2  4 of all tax credits to taxpayers.
  2  5    The bill applies to applications approved by the department
  2  6 on or after July 1, 2005.
  2  7 LSB 1387HV 81
  2  8 tm:nh/sh/8