House File 804 - Introduced



                                       HOUSE FILE       
                                       BY  S. OLSON


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

                                      A BILL FOR

  1 An Act relating to an income tax credit for the purchase of
  2    furnaces that are designed to burn field corn or field corn
  3    products and including a retroactive applicability date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1959YH 81
  6 mg/pj/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  422.11K  CORN=BURNING FURNACE ==
  1  2 TAX CREDIT.
  1  3    1.  The taxes imposed under this division, less the credits
  1  4 allowed under sections 422.12 and 422.12B, shall be reduced by
  1  5 a corn=burning furnace tax credit equal to the purchase price
  1  6 of a furnace that burns agricultural field corn or corn
  1  7 products and is to be used by the taxpayer for heating
  1  8 purposes.
  1  9    2.  An individual may claim the corn=burning furnace tax
  1 10 credit allowed a partnership, S corporation, or estate or
  1 11 trust electing to have the income taxed directly to the
  1 12 individual.  The amount claimed by the individual shall be
  1 13 based upon the pro rata share of the individual's earnings of
  1 14 the partnership, S corporation, or estate or trust.
  1 15    3.  Any credit in excess of the tax liability for the tax
  1 16 year is nonrefundable but may be credited to the tax liability
  1 17 for the following ten tax years or until depleted, whichever
  1 18 is the earlier.
  1 19    Sec. 2.  Section 422.33, Code 2005, is amended by adding
  1 20 the following new subsection:
  1 21    NEW SUBSECTION.  17.  a.  The taxes imposed under this
  1 22 division shall be reduced by a corn=burning furnace tax credit
  1 23 equal to the purchase price of a furnace that burns
  1 24 agricultural field corn or corn products and is to be used by
  1 25 the taxpayer for heating purposes.
  1 26    b.  Any credit in excess of the tax liability for the tax
  1 27 year is nonrefundable but may be credited to the tax liability
  1 28 for the following ten tax years or until depleted, whichever
  1 29 is the earlier.
  1 30    Sec. 3.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 31 retroactively to January 1, 2005, for tax years beginning on
  1 32 or after that date.
  1 33                           EXPLANATION
  1 34    This bill allows a tax credit under the individual and
  1 35 corporate income taxes for the purchase of furnaces that
  2  1 provide heat by burning agricultural field corn or corn
  2  2 products.  The credit is nonrefundable, but any excess may be
  2  3 carried forward for up to 10 years.
  2  4    The bill applies retroactively to January 1, 2005, to tax
  2  5 years beginning on or after that date.
  2  6 LSB 1959YH 81
  2  7 mg:nh/pj/5