H.F. 2511 Section 1. NEW SECTION . 422.10A Repayment of tax credits. 1 1. A taxpayer meeting the conditions described in 2 subsection 2 shall repay the amount of any tax credits received 3 in the prior tax year under any of the following: 4 a. Section 15.335. 5 b. Section 15A.9, subsection 8. 6 c. Section 422.10. 7 d. Section 422.33, subsection 5. 8 2. A taxpayer is subject to subsection 1 if all of the 9 following conditions exist: 10 a. The taxpayer is a business operating in the state 11 currently and during the prior tax year. 12 b. The taxpayer has relocated more than half of the 13 full-time equivalent positions based in this state during the 14 prior tax year to a foreign country. For purposes of this 15 subsection, “full-time equivalent position” means the same as 16 defined in section 15G.101. 17 3. A taxpayer meeting the conditions of subsection 2 is 18 ineligible to receive the tax credits described in subsection 1 19 for a period of three tax years beginning with the tax year in 20 which the taxpayer was first subject to repayment. 21 Sec. 2. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 22 APPLICABILITY. This Act, being deemed of immediate importance, 23 takes effect upon enactment and applies retroactively to 24 January 1, 2010, for tax years beginning on or after that date. 25 EXPLANATION 26 This bill requires a business that has received a research 27 activities tax credit to repay the amount of that credit if the 28 business relocates more than half of its full-time equivalent 29 positions to a foreign country. The bill also prohibits such a 30 business from receiving a research activities tax credit for 31 three tax years. 32 The bill takes effect upon enactment and applies 33 retroactively to January 1, 2010, for tax years beginning on 34 or after that date. 35 -1- LSB 6029YH (3) 83 tw/sc 1/ 1