House File 858 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 404) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to enterprise zones that include the site of a 2 biodiesel or biodiesel blended fuel production facility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1898HV 82 5 tm/gg/14 PAG LIN 1 1 Section 1. Section 15E.196, subsection 3, Code 2007, is 1 2 amended to read as follows: 1 3 3. a. Investment tax credit of up to ten percent, as 1 4 provided in section 15.333. 1 5 b. For purposes of the tax credit provided in paragraph 1 6 "a", if the eligible business is a biodiesel or biodiesel 1 7 blended fuel production facility, the department of economic 1 8 development shall issue a biodiesel enterprise zone investment 1 9 tax credit certificate to be attached to the taxpayer's tax 1 10 return. The tax credit certificate shall contain the 1 11 taxpayer's name, address, tax identification number, the date 1 12 of project completion, the amount of credit, other information 1 13 required by the department of revenue, and a place for the 1 14 name and tax identification number of a transferee and the 1 15 amount of the tax credit being transferred. Tax credit 1 16 certificates issued under this paragraph may be transferred to 1 17 any person or entity. Within ninety days of transfer, the 1 18 transferee must submit the transferred tax credit certificate 1 19 to the department of revenue along with a statement containing 1 20 the transferee's name, tax identification number, and address, 1 21 and the denomination that each replacement tax credit 1 22 certificate is to carry and any other information required by 1 23 the department of revenue. Within thirty days of receiving 1 24 the transferred tax credit certificate and the transferee's 1 25 statement, the department of revenue shall issue one or more 1 26 replacement tax credit certificates to the transferee. Each 1 27 replacement certificate must contain the information required 1 28 for the original tax credit certificate and must have the same 1 29 expiration date that appeared on the original tax credit 1 30 certificate. Tax credit certificate amounts of less than the 1 31 minimum amount established by rule of the department of 1 32 economic development shall not be transferable. A tax credit 1 33 shall not be claimed by a transferee under this paragraph 1 34 until a replacement tax credit certificate identifying the 1 35 transferee as the proper holder has been issued. The 2 1 transferee may use the amount of the tax credit transferred 2 2 against the taxes imposed under chapter 422, divisions II, 2 3 III, and V, and under chapter 432, and against the moneys and 2 4 credits tax imposed in section 533.24, for any tax year the 2 5 original transferor could have claimed the tax credit. Any 2 6 consideration received for the transfer of the tax credit 2 7 shall not be included as income under chapter 422, divisions 2 8 II, III, and V, under chapter 432, or against the moneys and 2 9 credits tax imposed in section 533.24. Any consideration paid 2 10 for the transfer of the tax credit shall not be deducted from 2 11 income under chapter 422, divisions II, III, and V, under 2 12 chapter 432, or against the moneys and credits tax imposed in 2 13 section 533.24. 2 14 c. For purposes of this subsection, the terms "biodiesel" 2 15 and "biodiesel blended fuel" mean the same as defined in 2 16 section 214A.1. 2 17 EXPLANATION 2 18 This bill relates to enterprise zones that include the site 2 19 of a biodiesel or biodiesel blended fuel production facility. 2 20 Currently, an eligible business under the enterprise zone 2 21 program may elect to receive an investment tax credit as one 2 22 of the incentives and assistance under the program. The bill 2 23 provides that if the eligible business is a biodiesel or 2 24 biodiesel blended fuel production facility the investment tax 2 25 credit under the program is transferable. The bill provides a 2 26 procedure for the issuance of biodiesel enterprise zone 2 27 investment tax credit certificates required for the transfer 2 28 and claiming of the tax credit. The bill allows a transferee 2 29 to use the amount of the tax credit transferred against 2 30 individual and corporate tax liabilities, franchise tax 2 31 liabilities for financial institutions, insurance premium tax 2 32 liabilities for insurance companies, and the moneys and 2 33 credits tax. The bill provides that the transferee may claim 2 34 the tax credit for any tax year the original transferor could 2 35 have claimed the tax credit. 3 1 LSB 1898HV 82 3 2 tm:sc/gg/14