House File 98 - Introduced



                                       HOUSE FILE       
                                       BY  HOGG and DANDEKAR


    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 providing effective date and
  3    retroactive applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1387YH 81
  6 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 make a
  1  8 capital investment of at least two hundred fifty thousand
  1  9 dollars, but less than one million dollars, the aggregate
  1 10 amount of tax credits authorized pursuant to this section
  1 11 shall not exceed a total of two million dollars each fiscal
  1 12 year.  The department shall develop a system for registration
  1 13 and authorization of tax credits under this subsection and
  1 14 shall control, in cooperation with the department of revenue,
  1 15 the distribution of all such tax credits to eligible
  1 16 businesses.
  1 17    Sec. 3.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
  1 18 This Act, being deemed of immediate importance, takes effect
  1 19 upon enactment and is retroactively applicable to January 1,
  1 20 2005, for tax years beginning on or after that date.
  1 21                           EXPLANATION
  1 22    This bill relates to criteria and incentives under the new
  1 23 capital investment program.
  1 24    The bill lowers the capital investment requirement for
  1 25 eligible businesses under the program from $1 million to
  1 26 $250,000.
  1 27    The bill provides that, for eligible businesses that make a
  1 28 capital investment of at least $250,000, but less than $1
  1 29 million, the aggregate amount of tax credits authorized under
  1 30 the program shall not exceed a total of $2 million each fiscal
  1 31 year.  The bill provides that the department shall develop a
  1 32 system for registration and authorization of tax credits under
  1 33 the program and shall control the distribution of all tax
  1 34 credits to taxpayers.
  1 35    The bill takes effect upon enactment and applies
  2  1 retroactively to January 1, 2005, for tax years beginning on
  2  2 or after that date.
  2  3 LSB 1387YH 81
  2  4 tm/sh/8