House File 2492 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act related to tax credits for community=based seed capital
2 investments by increasing the aggregate amount of tax credits
3 available and making the credits transferable.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6165YH 82
6 tw/nh/24
PAG LIN
1 1 Section 1. Section 15E.43, subsections 4 and 5, Code
1 2 Supplement 2007, are amended to read as follows:
1 3 4. The aggregate amount of tax credits issued pursuant to
1 4 this division shall not exceed a total of ten fifteen million
1 5 dollars. The total amount of tax credits issued during the
1 6 fiscal year beginning July 1, 2002, shall not exceed three
1 7 million dollars. The total amount of tax credits issued
1 8 during the fiscal year beginning July 1, 2003, shall not
1 9 exceed three million dollars. The total amount of tax credits
1 10 issued during the fiscal year beginning July 1, 2004, shall
1 11 not exceed four million dollars. Any amount of the maximum
1 12 aggregate limit of tax credits that have not been issued by
1 13 June 30, 2005, may be issued in any subsequent fiscal year.
1 14 Not more than three million dollars of tax credits may be
1 15 issued in any one subsequent fiscal year.
1 16 5. A tax credit shall not be redeemed during any tax year
1 17 beginning prior to January 1, 2005. A tax credit shall not be
1 18 transferable to any other taxpayer.
1 19 Sec. 2. Section 15E.43, Code Supplement 2007, is amended
1 20 by adding the following new subsection:
1 21 NEW SUBSECTION. 5A. a. After verifying the eligibility
1 22 of a qualifying business pursuant to section 15E.44 for a tax
1 23 credit pursuant to this section, the department of economic
1 24 development shall issue a seed capital investment tax credit
1 25 certificate to be attached to an equity investor's tax return.
1 26 The tax credit certificate shall contain the taxpayer's name,
1 27 address, tax identification number, the amount of credit, the
1 28 name of the qualifying business, any other information
1 29 required by the department of revenue, and a place for the
1 30 name and tax identification number of a transferee and the
1 31 amount of the tax credit being transferred.
1 32 b. The tax credit certificate, unless rescinded by the
1 33 board, shall be accepted by the department of revenue as
1 34 payment for taxes imposed pursuant to chapter 422, divisions
1 35 II, III, and V, and in chapter 432, and for the moneys and
2 1 credits tax imposed in section 533.329, subject to any
2 2 conditions or restrictions placed by the board upon the face
2 3 of the tax credit certificate and subject to the limitations
2 4 of this section.
2 5 c. Tax credit certificates issued under this section may
2 6 be transferred to any person or entity. Within ninety days of
2 7 transfer, the transferee shall submit the transferred tax
2 8 credit certificate to the department of revenue along with a
2 9 statement containing the transferee's name, tax identification
2 10 number, and address, and the denomination that each
2 11 replacement tax credit certificate is to carry and any other
2 12 information required by the department of revenue.
2 13 d. Within thirty days of receiving the transferred tax
2 14 credit certificate and the transferee's statement, the
2 15 department of revenue shall issue one or more replacement tax
2 16 credit certificates to the transferee. Each replacement tax
2 17 credit certificate must contain the information required for
2 18 the original tax credit certificate and must have the same
2 19 expiration date that appeared in the transferred tax credit
2 20 certificate. Tax credit certificate amounts of less than the
2 21 minimum amount established by rule of the department of
2 22 economic development shall not be transferable.
2 23 e. A tax credit shall not be claimed by a transferee under
2 24 this section until a replacement tax credit certificate
2 25 identifying the transferee as the proper holder has been
2 26 issued. The transferee may use the amount of the tax credit
2 27 transferred against the taxes imposed in chapter 422,
2 28 divisions II, III, and V, and in chapter 432, and against the
2 29 moneys and credits tax imposed in section 533.329, for any tax
2 30 year the original transferor could have claimed the tax
2 31 credit. Any consideration received for the transfer of the
2 32 tax credit shall not be included as income under chapter 422,
2 33 divisions II, III, and V, under chapter 432, or against the
2 34 moneys and credits tax imposed in section 533.329. Any
2 35 consideration paid for the transfer of the tax credit shall
3 1 not be deducted from income under chapter 422, divisions II,
3 2 III, and V, under chapter 432, or against the moneys and
3 3 credits tax imposed in section 533.329.
3 4 Sec. 3. Section 15E.44, subsection 4, Code Supplement
3 5 2007, is amended by striking the subsection.
3 6 EXPLANATION
3 7 This bill relates to investment tax credits for
3 8 community=based seed capital funds.
3 9 The bill increases the total aggregate amount of tax
3 10 credits allowed from $10 million to $15 million.
3 11 The bill also makes the investment tax credits transferable
3 12 from one taxpayer to another.
3 13 LSB 6165YH 82
3 14 tw/nh/24