House
Study
Bill
738
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SHOMSHOR)
A
BILL
FOR
An
Act
relating
to
taxation,
including
the
administration
and
1
review
of
certain
economic
development
programs
and
certain
2
tax
incentive
programs
and
the
reenactment
of
the
estate
3
tax
and
including
effective
date
and
retroactive
and
other
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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5795YC
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H.F.
_____
DIVISION
I
1
REVIEW
AND
REAUTHORIZATION
OF
PROGRAMS
2
Section
1.
INTENT
AND
PURPOSE.
3
1.
It
is
the
intent
of
the
general
assembly
that
each
tax
4
credit,
withholding
credit,
and
revenue
division
program
should
5
effectuate
the
purposes
for
which
it
was
enacted
and
that
the
6
cost
of
such
programs
should
be
included
more
readily
in
the
7
yearly
budgeting
process.
8
2.
The
purposes
of
this
Act
are
to
provide
for
the
regular
9
review
of
all
tax
credit,
withholding
credit,
and
revenue
10
division
programs
in
order
to
facilitate
the
reauthorization
11
of
successful
programs
and
to
do
so
at
a
cost
that
can
be
12
accommodated
by
the
state’s
annual
budget.
13
DIVISION
II
14
LEGISLATIVE
TAX
EXPENDITURE
COMMITTEE
15
Sec.
2.
Section
2.45,
Code
Supplement
2009,
is
amended
by
16
adding
the
following
new
subsection:
17
NEW
SUBSECTION
.
5.
a.
The
legislative
tax
expenditure
18
committee
which
shall
be
composed
of
ten
members
of
the
general
19
assembly,
consisting
of
five
members
from
each
house,
to
be
20
appointed
by
the
legislative
council.
21
b.
The
legislative
tax
expenditure
committee
shall
have
the
22
powers
and
duties
described
in
section
2.48.
23
Sec.
3.
NEW
SECTION
.
2.48
Legislative
tax
expenditure
24
committee
——
review
of
tax
incentive
programs.
25
1.
Statement
of
principles
of
sound
tax
policy.
The
26
legislative
tax
expenditure
committee
shall
do
all
of
the
27
following:
28
a.
Issue
a
statement
of
principles
of
sound
tax
policy.
29
(1)
In
issuing
the
statement,
the
committee
may
consult
with
30
the
department
of
revenue,
the
legislative
services
agency,
31
and
independent
experts
who
have
demonstrated
expertise
in
32
matters
of
tax
policy,
fiscal
policy,
and
public
finance
such
33
as
that
typically
found
among
tax
attorneys,
certified
public
34
accountants,
and
faculty
members
at
institutions
of
higher
35
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_____
learning
in
the
state.
1
(2)
The
statement
shall
reflect
to
the
extent
practicable
2
the
best
practices
of
state
and
local
taxation
as
recognized
3
by
experts
in
the
fields
of
economics,
fiscal
policy,
law,
4
accounting,
and
public
finance.
5
(3)
The
statement
shall
address
issues
of
equity,
6
simplicity,
competitiveness,
public
purpose,
and
adequacy
as
7
those
issues
pertain
to
taxation
in
Iowa.
8
b.
Evaluate
any
tax
expenditure
available
under
Iowa
law
9
and
assess
its
conformance
with
the
statement
of
principles
of
10
sound
tax
policy
issued
pursuant
to
paragraph
“a”
.
For
purposes
11
of
this
section,
“tax
expenditure”
means
an
exclusion
from
12
the
operation
or
collection
of
a
tax
imposed
in
this
state.
13
Tax
expenditures
include
tax
credits,
exemptions,
deductions,
14
and
rebates.
Tax
expenditures
also
include
sales
tax
refunds
15
issued
pursuant
to
section
423.3
or
section
423.4.
16
c.
Establish
and
maintain
a
system
for
making
available
17
to
the
public
information
about
the
amount
and
effectiveness
18
of
tax
expenditures,
and
the
extent
to
which
tax
expenditures
19
comply
with
the
statement
of
principles
of
sound
tax
policy.
20
2.
Review
of
tax
expenditures
——
budget
estimates.
The
21
legislative
tax
expenditure
committee
shall
do
all
of
the
22
following:
23
a.
Engage
in
the
regular
review
of
the
state’s
tax
24
expenditures.
25
(1)
In
reviewing
tax
expenditures,
the
committee
may
review
26
any
tax
expenditure
at
any
time,
but
shall
at
a
minimum
perform
27
the
reviews
described
in
subsection
3.
28
(2)
For
each
tax
expenditure
reviewed,
the
committee
shall
29
submit
a
report
to
the
legislative
council
containing
the
30
results
of
the
review.
The
report
shall
contain
a
statement
31
of
the
policy
goals
of
the
tax
expenditure
and
a
return
on
32
investment
calculation
for
the
tax
expenditure.
For
purposes
33
of
this
subparagraph,
“return
on
investment
calculation”
34
means
analyzing
the
cost
to
the
state
of
providing
the
tax
35
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H.F.
_____
expenditure,
analyzing
the
benefits
realized
by
the
state
from
1
providing
the
tax
expenditure,
and
reaching
a
conclusion
as
to
2
whether
the
benefits
of
the
tax
expenditure
are
worth
the
cost
3
to
the
state
of
providing
the
tax
expenditure.
4
(3)
The
report
described
in
subparagraph
(2)
may
include
5
recommendations
for
better
aligning
tax
expenditures
with
the
6
principles
of
sound
tax
policy
issued
pursuant
to
subsection
1.
7
b.
(1)
Estimate
for
each
fiscal
year,
in
conjunction
with
8
the
legislative
services
agency
and
the
department
of
revenue,
9
the
cost
of
each
individual
tax
expenditure
and
the
total
cost
10
of
all
tax
expenditures,
and
by
December
15
provide
those
11
estimates
to
the
governor
for
use
in
the
preparation
of
the
12
budget
message
under
section
8.22
and
to
the
general
assembly
13
to
be
used
in
the
budget
process.
14
(2)
The
estimates
provided
pursuant
to
subparagraph
(1)
may
15
include
the
committee’s
recommendations
for
the
imposition
of
a
16
limitation
on
a
specified
tax
expenditure,
a
limitation
on
the
17
total
amount
of
tax
expenditures,
or
any
other
recommendation
18
for
a
specific
tax
expenditure
or
the
program
under
which
the
19
tax
expenditure
is
provided.
20
3.
Schedule
of
review
of
certain
tax
expenditures.
The
21
committee
shall
review
the
following
tax
expenditures
and
22
incentives
according
to
the
following
schedule:
23
a.
In
2011:
24
(1)
The
high
quality
jobs
program
under
chapter
15,
25
subchapter
II,
part
13.
26
(2)
The
tax
credits
for
increasing
research
activities
27
available
under
sections
15.335,
15A.9,
422.10,
and
422.33.
28
(3)
Property
tax
revenue
divisions
for
urban
renewal
areas
29
under
section
403.19.
30
(4)
Funding
of
urban
renewal
projects
with
increased
local
31
sales
and
services
tax
revenues
under
section
423B.10.
32
b.
In
2012:
33
(1)
The
targeted
jobs
withholding
credits
available
under
34
section
403.19A.
35
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_____
(2)
School
tuition
organization
tax
credits
under
sections
1
422.11S
and
422.33.
2
(3)
Tuition
and
textbook
tax
credits
under
section
422.12.
3
c.
In
2013:
the
child
and
dependent
care
and
early
4
childhood
development
tax
credits
under
section
422.12C.
5
d.
In
2014:
6
(1)
Tax
credits
for
investments
in
qualifying
businesses
7
and
community-based
seed
capital
funds
under
chapter
15E,
8
division
V.
9
(2)
Historic
preservation
and
cultural
and
entertainment
10
district
tax
credits
under
chapter
404A.
11
(3)
Wind
energy
production
tax
credits
under
chapter
476B.
12
(4)
Renewable
energy
tax
credits
under
chapter
476C.
13
e.
In
2015:
14
(1)
The
agricultural
assets
transfer
tax
credit
under
15
section
175.37.
16
(2)
The
claim
of
right
tax
credit
under
section
422.5.
17
(3)
The
reduction
in
allocating
income
to
Iowa
by
S
18
corporation
shareholders
under
section
422.8.
19
(4)
The
minimum
tax
credit
under
sections
422.11B,
422.33,
20
and
422.60.
21
(5)
The
assistive
device
corporate
tax
credit
under
section
22
422.33.
23
(6)
The
charitable
conservation
contribution
tax
credit
24
under
sections
422.11W
and
422.33.
25
(7)
The
motor
vehicle
fuel
tax
credit
under
section
422.110.
26
4.
A
tax
expenditure
or
incentive
reviewed
pursuant
to
27
subsection
3
shall
be
reviewed
again
not
more
than
five
years
28
after
the
tax
expenditure
or
incentive
was
most
recently
29
reviewed.
30
DIVISION
III
31
MAXIMUM
AGGREGATE
TAX
CREDIT
LIMIT
FOR
CERTAIN
ECONOMIC
32
DEVELOPMENT
PROGRAMS
33
Sec.
4.
Section
15.119,
subsection
1,
Code
Supplement
2009,
34
is
amended
by
striking
the
subsection
and
inserting
in
lieu
35
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H.F.
_____
thereof
the
following:
1
1.
a.
Notwithstanding
any
provision
to
the
contrary
in
any
2
of
the
programs
listed
in
subsection
2,
the
department,
except
3
as
provided
in
paragraph
“b”
,
shall
not
authorize
for
any
one
4
fiscal
year
an
amount
of
tax
credits
for
the
programs
specified
5
in
subsection
2
that
is
in
excess
of
one
hundred
twenty
million
6
dollars.
7
b.
The
department
may
authorize
an
amount
of
tax
credits
8
during
a
fiscal
year
that
is
in
excess
of
the
amount
specified
9
in
paragraph
“a”
,
but
the
amount
of
such
excess
shall
be
counted
10
against
the
total
amount
of
tax
credits
that
may
be
authorized
11
for
the
next
fiscal
year.
12
DIVISION
IV
13
FILM
PROGRAM
SUSPENSION
14
Sec.
5.
Section
15.393,
Code
Supplement
2009,
is
amended
by
15
adding
the
following
new
subsection:
16
NEW
SUBSECTION
.
5.
The
department
shall
not
register
a
new
17
project
pursuant
to
this
section
until
July
1,
2012.
18
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
19
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
20
enactment.
21
DIVISION
V
22
SUPPLEMENTAL
RESEARCH
ACTIVITIES
CREDIT
23
Sec.
7.
Section
15.335,
Code
Supplement
2009,
is
amended
to
24
read
as
follows:
25
15.335
Research
activities
credit.
26
1.
a.
An
eligible
business
may
claim
a
corporate
tax
credit
27
for
increasing
research
activities
in
this
state
during
the
28
period
the
eligible
business
is
participating
in
the
program.
29
b.
For
purposes
of
this
section,
“research
activities”
30
includes
the
development
and
deployment
of
innovative
renewable
31
energy
generation
components
manufactured
or
assembled
in
this
32
state.
For
purposes
of
this
section,
“innovative
renewable
33
energy
generation
components”
does
not
include
a
component
34
with
more
than
two
hundred
megawatts
of
installed
effective
35
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nameplate
capacity.
1
c.
The
tax
credits
for
innovative
renewable
energy
2
generation
components
shall
not
exceed
two
million
dollars.
3
2.
a.
(1)
The
In
the
case
of
an
eligible
business
whose
4
gross
revenues
do
not
exceed
twenty
million
dollars
per
year,
5
the
credit
equals
the
sum
of
the
following:
6
(a)
(1)
Six
and
one-half
Ten
percent
of
the
excess
of
7
qualified
research
expenses
during
the
tax
year
over
the
base
8
amount
for
the
tax
year
based
upon
the
state’s
apportioned
9
share
of
the
qualifying
expenditures
for
increasing
research
10
activities.
11
(b)
(2)
Six
and
one-half
Ten
percent
of
the
basic
research
12
payments
determined
under
section
41(e)(1)(A)
of
the
Internal
13
Revenue
Code
during
the
tax
year
based
upon
the
state’s
14
apportioned
share
of
the
qualifying
expenditures
for
increasing
15
research
activities.
16
b.
In
the
case
of
an
eligible
business
whose
gross
revenues
17
exceed
twenty
million
dollars
per
year,
the
credit
equals
the
18
sum
of
the
following:
19
(1)
Three
percent
of
the
excess
of
qualified
research
20
expenses
during
the
tax
year
over
the
base
amount
for
the
tax
21
year
based
upon
the
state’s
apportioned
share
of
the
qualifying
22
expenditures
for
increasing
research
activities.
23
(2)
Three
percent
of
the
basic
research
payments
determined
24
under
section
41(e)(1)(A)
of
the
Internal
Revenue
Code
during
25
the
tax
year
based
upon
the
state’s
apportioned
share
of
the
26
qualifying
expenditures
for
increasing
research
activities.
27
(2)
3.
The
For
purposes
of
subsection
2,
the
state’s
28
apportioned
share
of
the
qualifying
expenditures
for
increasing
29
research
activities
is
a
percent
equal
to
the
ratio
of
30
qualified
research
expenditures
in
this
state
to
total
31
qualified
research
expenditures.
32
b.
4.
a.
In
lieu
of
the
credit
amount
computed
in
33
paragraph
“a”
,
subparagraph
(1)
subsection
2
,
an
eligible
34
business
may
elect
to
compute
the
credit
amount
for
qualified
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_____
research
expenses
incurred
in
this
state
in
a
manner
consistent
1
with
the
alternative
incremental
credit
described
in
section
2
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
3
this
election
regardless
of
the
method
used
for
the
taxpayer’s
4
federal
income
tax.
The
election
made
under
this
paragraph
is
5
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
6
method
for
any
subsequent
year.
7
c.
b.
For
purposes
of
the
alternate
credit
computation
8
method
in
paragraph
“b”
“a”
,
the
credit
percentages
applicable
9
to
qualified
research
expenses
described
in
clauses
(i),
(ii),
10
and
(iii)
of
section
41(c)(4)(A)
of
the
Internal
Revenue
Code
11
are
one
and
sixty-five
hundredths
percent,
two
and
twenty
12
hundredths
percent,
and
two
and
seventy-five
hundredths
13
percent,
respectively.
14
2.
5.
The
credit
allowed
in
this
section
is
in
addition
15
to
the
credit
authorized
in
section
422.10
and
section
422.33,
16
subsection
5.
However,
if
the
alternative
credit
computation
17
method
is
used
in
section
422.10
or
section
422.33,
subsection
18
5,
the
credit
allowed
in
this
section
shall
also
be
computed
19
using
that
method.
20
3.
6.
If
the
eligible
business
is
a
partnership,
S
21
corporation,
limited
liability
company,
or
estate
or
trust
22
electing
to
have
the
income
taxed
directly
to
the
individual,
23
an
individual
may
claim
the
tax
credit
allowed.
The
amount
24
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
25
share
of
the
individual’s
earnings
of
the
partnership,
S
26
corporation,
limited
liability
company,
or
estate
or
trust.
27
4.
7.
a.
For
purposes
of
this
section,
“base
amount”
,
28
“basic
research
payment”
,
and
“qualified
research
expense”
mean
29
the
same
as
defined
for
the
federal
credit
for
increasing
30
research
activities
under
section
41
of
the
Internal
Revenue
31
Code,
except
that
for
the
alternative
incremental
credit
such
32
amounts
are
for
research
conducted
within
this
state.
33
b.
For
purposes
of
this
section,
“Internal
Revenue
Code”
34
means
the
Internal
Revenue
Code
in
effect
on
January
1,
2009.
35
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_____
5.
8.
Any
credit
in
excess
of
the
tax
liability
for
the
1
taxable
year
shall
be
refunded
with
interest
computed
under
2
section
422.25.
In
lieu
of
claiming
a
refund,
a
taxpayer
may
3
elect
to
have
the
overpayment
shown
on
its
final,
completed
4
return
credited
to
the
tax
liability
for
the
following
year.
5
6.
9.
The
department
of
revenue
shall
by
February
15
6
of
each
year
issue
an
annual
report
to
the
general
assembly
7
containing
the
total
amount
of
all
claims
made
by
employers
8
under
this
section,
and
the
portion
of
the
claims
issued
as
9
refunds,
for
all
claims
processed
during
the
previous
calendar
10
year.
The
report
shall
contain
the
name
of
each
claimant
for
11
whom
a
tax
credit
in
excess
of
five
hundred
thousand
dollars
12
was
issued
and
the
amount
of
the
credit
received.
13
Sec.
8.
RETROACTIVE
APPLICABILITY.
This
division
of
this
14
Act
applies
retroactively
to
January
1,
2010,
for
tax
years
15
beginning
on
or
after
the
date.
16
DIVISION
VI
17
MAXIMUM
AMOUNT
OF
ACCELERATED
CAREER
EDUCATION
JOB
CREDITS
18
Sec.
9.
Section
260G.4B,
subsection
1,
Code
2009,
is
amended
19
to
read
as
follows:
20
1.
The
total
amount
of
program
job
credits
from
all
21
employers
which
shall
be
allocated
for
all
accelerated
career
22
education
programs
in
the
state
in
any
one
fiscal
year
shall
23
not
exceed
the
sum
of
three
million
dollars
in
the
fiscal
24
year
beginning
July
1,
2000,
three
million
dollars
in
the
25
fiscal
year
beginning
July
1,
2001,
three
million
dollars
26
in
the
fiscal
year
beginning
July
1,
2002,
four
million
27
dollars
in
the
fiscal
year
beginning
July
1,
2003,
and
six
28
million
dollars
in
the
fiscal
year
beginning
July
1,
2004,
29
and
every
fiscal
year
thereafter
five
million
four
hundred
30
thousand
dollars
.
Any
increase
in
program
job
credits
above
31
the
six-million-dollar
limitation
per
fiscal
year
shall
be
32
developed,
based
on
recommendations
in
a
study
conducted
by
33
the
department
of
economic
development,
pursuant
to
this
34
section
,
Code
Supplement
2003,
of
the
needs
and
performance
of
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approved
programs
in
the
fiscal
years
beginning
July
1,
2000,
1
and
July
1,
2001.
A
community
college
shall
file
a
copy
of
2
each
agreement
with
the
department
of
economic
development.
3
The
department
shall
maintain
an
annual
record
of
the
proposed
4
program
job
credits
under
each
agreement
for
each
fiscal
year.
5
Upon
receiving
a
copy
of
an
agreement,
the
department
shall
6
allocate
any
available
amount
of
program
job
credits
to
the
7
community
college
according
to
the
agreement
sufficient
for
8
the
fiscal
year
and
for
the
term
of
the
agreement.
When
the
9
total
available
program
job
credits
are
allocated
for
a
fiscal
10
year,
the
department
shall
notify
all
community
colleges
that
11
the
maximum
amount
has
been
allocated
and
that
further
program
12
job
credits
will
not
be
available
for
the
remainder
of
the
13
fiscal
year.
Once
program
job
credits
have
been
allocated
to
14
a
community
college,
the
full
allocation
shall
be
received
by
15
the
community
college
throughout
the
fiscal
year
and
for
the
16
term
of
the
agreement
even
if
the
statewide
program
job
credit
17
maximum
amount
is
subsequently
allocated
and
used.
18
DIVISION
VII
19
MAXIMUM
AMOUNT
OF
AGRICULTURAL
ASSET
TRANSFER
TAX
CREDITS
20
Sec.
10.
Section
175.37,
subsection
10,
Code
Supplement
21
2009,
is
amended
to
read
as
follows:
22
10.
The
amount
of
tax
credit
certificates
that
may
be
issued
23
pursuant
to
this
section
shall
not
exceed
six
two
million
24
dollars
in
any
fiscal
year.
The
authority
shall
issue
the
tax
25
credit
certificates
on
a
first-come,
first-served
basis.
26
DIVISION
VIII
27
ECONOMIC
DEVELOPMENT
REGION
REVOLVING
LOAN
FUND
TAX
CREDIT
28
Sec.
11.
Section
15E.231,
subsection
2,
Code
Supplement
29
2009,
is
amended
by
striking
the
subsection.
30
Sec.
12.
Section
15E.232,
subsections
1
and
2,
Code
2009,
31
are
amended
by
striking
the
subsections.
32
Sec.
13.
Section
422.33,
subsection
17,
Code
Supplement
33
2009,
is
amended
by
striking
the
subsection.
34
Sec.
14.
Section
422.60,
subsection
9,
Code
Supplement
35
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H.F.
_____
2009,
is
amended
by
striking
the
subsection.
1
Sec.
15.
Section
533.329,
subsection
2,
paragraph
k,
Code
2
Supplement
2009,
is
amended
by
striking
the
paragraph.
3
Sec.
16.
REPEAL.
Sections
422.11K
and
432.12F,
Code
2009,
4
are
repealed.
5
Sec.
17.
RETROACTIVE
APPLICABILITY.
This
division
of
this
6
Act
applies
retroactively
to
January
1,
2010,
for
tax
years
7
beginning
on
or
after
that
date.
8
DIVISION
IX
9
MAXIMUM
AMOUNT
OF
ENDOW
IOWA
TAX
CREDITS
10
Sec.
18.
Section
15E.305,
subsection
2,
unnumbered
11
paragraph
1,
Code
Supplement
2009,
is
amended
to
read
as
12
follows:
13
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
14
this
section
shall
not
exceed
a
total
of
three
two
million
15
seven
hundred
thousand
dollars
plus
such
additional
credit
16
amount
as
provided
by
this
section
annually.
The
maximum
17
amount
of
tax
credits
granted
to
a
taxpayer
shall
not
exceed
18
five
percent
of
the
aggregate
amount
of
tax
credits
authorized.
19
DIVISION
X
20
MAXIMUM
AMOUNT
OF
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS
21
Sec.
19.
Section
422.11S,
subsection
7,
paragraph
a,
22
subparagraph
(2),
Code
2009,
is
amended
to
read
as
follows:
23
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
24
beginning
in
the
2006
calendar
year,
two
million
five
hundred
25
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
26
calendar
year,
five
million
dollars,
and
for
tax
years
27
beginning
on
or
after
January
1,
2008,
seven
2011,
six
million
28
five
seven
hundred
fifty
thousand
dollars.
29
DIVISION
XI
30
VENTURE
CAPITAL
——
IOWA
FUND
OF
FUNDS
31
Sec.
20.
Section
15E.66,
subsections
1
and
7,
Code
2009,
are
32
amended
to
read
as
follows:
33
1.
The
board
may
issue
certificates
and
related
tax
34
credits
to
designated
investors
which,
if
redeemed
for
the
35
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_____
maximum
possible
amount,
shall
not
exceed
a
total
aggregate
1
of
one
hundred
sixty
million
dollars
of
tax
credits.
The
2
certificates
shall
be
issued
contemporaneously
with
a
3
commitment
to
invest
in
the
Iowa
fund
of
funds
by
a
designated
4
investor.
A
certificate
issued
by
the
board
shall
have
a
5
specific
maturity
date
or
dates
designated
by
the
board
and
6
shall
be
redeemable
only
in
accordance
with
the
contingencies
7
reflected
on
the
certificate
or
incorporated
therein
by
8
reference.
A
certificate
and
the
related
tax
credit
shall
be
9
transferable
by
the
designated
investor.
A
tax
credit
shall
10
not
be
claimed
or
redeemed
except
by
a
designated
investor
or
11
transferee
in
accordance
with
the
terms
of
a
certificate
from
12
the
board.
A
tax
credit
shall
not
be
claimed
for
a
tax
year
13
that
begins
earlier
than
the
maturity
date
or
dates
stated
14
on
the
certificate.
An
individual
may
claim
the
credit
of
a
15
partnership,
limited
liability
company,
S
corporation,
estate,
16
or
trust
electing
to
have
the
income
taxed
directly
to
the
17
individual.
The
amount
claimed
by
the
individual
shall
be
18
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
19
the
partnership,
limited
liability
company,
S
corporation,
20
estate,
or
trust.
Any
tax
credit
in
excess
of
the
taxpayer’s
21
tax
liability
for
the
tax
year
may
be
credited
to
the
tax
22
liability
for
the
following
seven
years,
or
until
depleted,
23
whichever
is
earlier.
24
7.
In
determining
the
one
hundred
million
dollar
maximum
25
aggregate
limit
in
subsection
1
and
the
twenty
million
26
dollar
fiscal
year
limitation
in
subsection
5,
the
board
shall
27
use
the
cumulative
amount
of
scheduled
aggregate
returns
on
28
certificates
issued
by
the
board
to
designated
investors.
29
However,
certificates
and
related
tax
credits
which
have
30
expired
shall
not
be
included
and
certificates
and
related
tax
31
credits
which
have
been
redeemed
shall
be
included
only
to
the
32
extent
of
tax
credits
actually
allowed.
33
Sec.
21.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
34
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
35
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_____
enactment.
1
DIVISION
XII
2
VENTURE
CAPITAL
——
INVESTMENT
TAX
CREDIT
3
Sec.
22.
Section
422.33,
subsection
13,
Code
Supplement
4
2009,
is
amended
by
striking
the
subsection.
5
Sec.
23.
Section
422.60,
subsection
6,
Code
Supplement
6
2009,
is
amended
by
striking
the
subsection.
7
Sec.
24.
Section
533.329,
subsection
2,
paragraph
i,
Code
8
Supplement
2009,
is
amended
by
striking
the
paragraph.
9
Sec.
25.
REPEAL.
Sections
15E.51,
422.11G,
and
432.12B,
10
Code
2009,
are
repealed.
11
Sec.
26.
RETROACTIVE
APPLICABILITY.
This
division
of
this
12
Act
applies
retroactively
to
January
1,
2010,
for
tax
years
13
beginning
on
or
after
that
date.
14
DIVISION
XIII
15
REFUNDABLE
INVESTMENT
TAX
CREDITS
FOR
VALUE-ADDED
AGRICULTURAL
16
PRODUCTS
17
Sec.
27.
Section
15.333,
subsection
3,
Code
Supplement
18
2009,
is
amended
by
striking
the
subsection.
19
Sec.
28.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
January
1,
2010,
for
tax
years
21
beginning
on
or
after
that
date.
22
DIVISION
XIV
23
MAXIMUM
AMOUNT
OF
HISTORIC
TAX
CREDITS
24
Sec.
29.
Section
404A.4,
subsection
2,
Code
Supplement
25
2009,
is
amended
by
adding
the
following
new
paragraph:
26
NEW
PARAGRAPH
.
d.
For
the
fiscal
year
beginning
July
1,
27
2012,
and
for
each
fiscal
year
thereafter,
the
department
shall
28
reserve
not
more
than
forty-five
million
dollars
worth
of
tax
29
credits
for
any
one
taxable
year.
30
Sec.
30.
Section
404A.4,
subsection
4,
paragraph
a,
Code
31
Supplement
2009,
is
amended
to
read
as
follows:
32
a.
The
total
amount
of
tax
credits
that
may
be
approved
33
for
a
fiscal
year
prior
to
the
fiscal
year
beginning
July
34
1,
2012,
under
this
chapter
shall
not
exceed
fifty
million
35
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_____
dollars.
The
total
amount
of
tax
credits
that
may
be
approved
1
for
a
fiscal
year
beginning
on
or
after
July
1,
2012,
shall
not
2
exceed
forty-five
million
dollars.
3
DIVISION
XV
4
ESTATE
TAX
REENACTED
5
Sec.
31.
NEW
SECTION
.
451.1
Definitions.
6
As
used
in
this
chapter,
unless
the
context
otherwise
7
requires:
8
1.
“Adjusted
taxable
estate”
means
the
taxable
estate
9
computed
for
federal
estate
tax
purposes
reduced
by
sixty
10
thousand
dollars.
11
2.
“Federal
estate
tax”
means
the
tax
imposed
by
the
12
provisions
of
the
Federal
Estate
Tax
Act.
13
3.
“Federal
Estate
Tax
Act”
and
all
such
similar
terms,
14
means
Title
III
of
chapter
27
of
the
Acts
of
the
Sixty-ninth
15
Congress
of
the
United
States,
first
session,
appearing
in
16
44
Statutes
at
Large,
chapter
27,
as
of
January
1,
2000,
as
17
amended.
18
4.
“Gross
estate”
means
the
gross
estate
as
determined
under
19
section
451.3.
20
5.
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
21
as
of
the
implementation
date
of
this
chapter,
as
specified
in
22
section
451.13.
23
6.
“Iowa
estate
tax”
means
the
tax
imposed
by
this
chapter.
24
7.
“Month”
means
a
calendar
month.
25
8.
“Net
estate”
means
the
net
estate
as
determined
under
the
26
provisions
of
section
451.3.
27
9.
“Personal
representative”
means
the
executor
of
the
will
28
or
administrator
of
the
estate
of
the
decedent,
or
if
there
29
is
no
such
executor
or
administrator
appointed,
qualified
and
30
acting,
then
any
person
in
actual
or
constructive
possession
of
31
any
property
included
in
the
gross
estate
of
the
decedent.
32
Sec.
32.
NEW
SECTION
.
451.2
Additional
tax.
33
1.
An
amount
equal
to
the
federal
estate
tax
credit
for
34
state
inheritance
and
estate
taxes
as
allowed
in
the
Internal
35
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H.F.
_____
Revenue
Code
is
imposed
upon
every
transfer
of
the
net
estate
1
of
every
decedent
being
a
resident
of,
or
owning
property
in,
2
this
state.
3
2.
If
the
decedent
is
a
resident
of
Iowa
and
all
property
4
is
located
in
Iowa,
or
is
subject
to
the
jurisdiction
of
the
5
courts
of
Iowa,
an
amount
equal
to
the
tax
imposed
under
6
subsection
1
shall
be
paid
to
the
state
of
Iowa.
If
the
7
decedent
is
a
nonresident
or
if
property
is
located
outside
the
8
state
of
Iowa
and
not
subject
to
jurisdiction
of
Iowa
courts,
9
the
tax
shall
be
prorated
on
the
basis
that
the
Iowa
property
10
bears
to
the
total
gross
estate
for
federal
tax
purposes.
11
3.
The
total
tax
or
the
Iowa
share
of
the
total
tax
shall
be
12
credited
with
the
amount
of
any
inheritance
tax
due
the
state
13
of
Iowa
as
provided
in
chapter
450.
14
Sec.
33.
NEW
SECTION
.
451.3
Gross
and
net
estate.
15
The
gross
estate
shall
be
the
same
as
finally
determined
for
16
federal
estate
tax
and
the
net
estate
shall
be
the
gross
estate
17
less
deductions
as
permitted
by
federal
law,
in
arriving
at
the
18
net
taxable
federal
estate,
all
determined
as
provided
in
the
19
Internal
Revenue
Code.
20
Sec.
34.
NEW
SECTION
.
451.4
Tax
on
net
estate.
21
The
tax
imposed
by
this
chapter
shall
be
upon
the
transfer
22
of
the
total
net
estate
of
every
decedent
dying
after
the
23
implementation
date
of
this
chapter
as
provided
in
section
24
451.13.
25
Sec.
35.
NEW
SECTION
.
451.5
Duty
of
personal
26
representative.
27
The
personal
representative
of
a
decedent
whose
estate
may
28
be
subject
to
the
tax
imposed
by
this
chapter,
shall
file
29
in
the
office
of
the
director
of
revenue,
on
or
before
the
30
last
day
of
the
ninth
month
after
the
death
of
the
decedent,
31
duplicate
copies
of
the
estate
tax
return
provided
for
in
the
32
Federal
Estate
Tax
Act,
and
in
like
manner,
duplicate
copies
33
of
all
supplemental
or
amended
returns.
The
values
of
all
34
items
included
in
the
gross
estate,
as
shown
by
those
returns,
35
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or
supplemental
or
amended
returns,
shall
be
considered
as
1
the
values
of
those
items
for
the
purposes
of
this
chapter.
2
In
case
of
revaluation
or
correction
of
valuation
of
any
of
3
those
items,
either
by
supplemental
or
amended
returns,
or
4
by
the
federal
commissioner
of
internal
revenue,
or
by
an
5
appellate
tribunal
by
which
the
value
is
finally
determined,
6
the
corrected
values
shall
be
considered
as
the
values
of
those
7
items
for
the
purposes
of
this
chapter.
8
Sec.
36.
NEW
SECTION
.
451.6
Payment
of
tax.
9
The
tax
imposed
by
this
chapter
shall
be
paid
by
the
personal
10
representative
to
the
department
of
revenue
on
or
before
the
11
last
day
of
the
ninth
month
after
the
death
of
the
decedent.
12
Sec.
37.
NEW
SECTION
.
451.7
Disposal
of
tax.
13
The
proceeds
of
this
tax
shall
be
paid
into
the
general
fund
14
of
the
state.
15
Sec.
38.
NEW
SECTION
.
451.8
Claim
for
credit
or
refund.
16
If
the
personal
representative
of
a
resident
decedent
17
shall
have
paid
to
the
treasurer
of
the
United
States
or
18
to
a
collector
of
internal
revenue
an
estate
tax
under
the
19
provisions
of
the
Federal
Estate
Tax
Act
in
respect
of
property
20
included
in
the
gross
estate,
determined
as
herein
provided,
21
and
shall
have
claimed
as
credits
or
deductions
against
the
22
federal
estate
tax
a
sum
less
than
the
maximum
credits
or
23
deductions
allowed
by
the
provisions
of
the
Federal
Estate
Tax
24
Act
for
any
estate,
inheritance,
legacy
or
succession
taxes
25
actually
paid
to
any
state
or
territory
of
the
United
States,
26
or
to
the
District
of
Columbia,
it
shall
be
the
personal
27
representative’s
duty,
with
due
diligence,
to
file
in
the
28
bureau
of
internal
revenue
a
claim
for
credit
or
refund
for
29
such
amount,
if
any,
as
such
estate
shall
be
properly
entitled
30
to
receive
under
the
provisions
of
the
Federal
Estate
Tax
Act
31
and
of
this
chapter.
32
Sec.
39.
NEW
SECTION
.
451.9
Appeal.
33
If
any
claim
for
refund
or
credit,
or
any
part
thereof,
34
shall
be
denied
or
disallowed
by
the
commissioner
of
internal
35
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revenue,
the
personal
representative,
the
director
of
revenue,
1
or
any
person
having
an
interest
in
said
estate
which
may
be
2
adversely
affected
by
such
denial
or
disallowance,
may
apply
3
to
the
judge
of
the
court
having
jurisdiction
of
such
estate,
4
for
an
order
directing
such
personal
representative
to
take,
5
perfect,
and
prosecute
an
appeal
from
the
decision
of
the
6
commissioner
of
internal
revenue
to
such
court
or
tribunal
as
7
may
have
jurisdiction
of
such
matter,
and,
upon
the
granting
8
of
such
order,
the
director
of
revenue
may
assist
in
the
9
prosecution
of
such
appeal.
The
judge
of
the
court
granting
10
such
order
may
make
a
reasonable
allowance
for
attorney
fees
11
for
the
prosecution
of
such
appeal,
and
direct
the
manner
in
12
which
the
same,
together
with
any
other
costs
or
expenses
which
13
may
be
allowed
by
said
court
in
connection
therewith,
shall
be
14
paid.
15
Sec.
40.
NEW
SECTION
.
451.10
Effect
of
allowance.
16
If
any
claim
for
credit
or
refund,
or
any
part
thereof,
shall
17
be
finally
determined
in
favor
of
such
personal
representative,
18
any
amount
refunded
or
credited
thereon
shall
inure
to
the
19
benefit
of
such
estate.
20
Sec.
41.
NEW
SECTION
.
451.11
Effect
of
disallowance.
21
If
any
claim
for
credit
or
refund
or
any
part
thereof,
22
shall
be
finally
determined
adversely
to
such
personal
23
representative,
for
any
reason
other
than
lack
of
diligence
or
24
other
failure
of
duty
on
the
personal
representative’s
part,
25
the
amount
so
denied
or
disallowed,
or
so
much
thereof
as
26
shall
have
been
paid
to
the
department
of
revenue
under
the
27
provisions
of
this
chapter,
shall,
upon
a
claim
duly
filed
28
with,
and
proper
showing
made
to,
the
director
of
revenue,
29
be
refunded
by
the
department
of
revenue
to
such
personal
30
representative,
and
shall
inure
to
the
benefit
of
such
estate.
31
Sec.
42.
NEW
SECTION
.
451.12
Applicable
statutes
32
penalties.
33
All
the
provisions
of
chapter
450
with
respect
to
the
lien
34
provisions
of
section
450.7,
and
the
determination,
imposition,
35
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payment,
and
collection
of
the
tax
imposed
under
that
chapter,
1
including
penalty
and
interest
upon
delinquent
taxes
and
the
2
confidentiality
of
the
tax
return,
are
applicable
to
this
3
chapter,
except
as
they
are
in
conflict
with
this
chapter.
The
4
exceptions
to
the
lien
provisions
found
in
section
450.7
do
5
not
apply
to
this
chapter.
The
penalty
provisions
set
out
in
6
section
450.53
shall
apply
to
a
person
in
possession
of
assets
7
to
be
reported
for
purposes
of
taxation
who
willfully
makes
a
8
false
or
fraudulent
return
or
willfully
fails
to
pay
the
tax,
9
supply
the
information,
make,
sign,
or
file
the
required
return
10
within
the
time
required
by
law
or
a
person
who
willfully
11
attempts
in
any
manner
to
evade
taxes
imposed
by
this
chapter
12
or
avoid
payment
of
the
tax.
The
director
of
revenue
shall
13
adopt
rules
necessary
for
the
enforcement
of
this
chapter.
14
Sec.
43.
NEW
SECTION
.
451.13
Contingent
implementation
15
——
applicability.
16
1.
This
chapter
shall
be
implemented
as
of
the
date
on
17
which
an
amendment
to
the
Internal
Revenue
Code
providing
for
18
a
credit
against
federal
estate
taxes
owed
for
the
amount
of
19
state
inheritance
and
estate
taxes
paid,
pursuant
to
chapter
20
450
and
this
chapter,
is
applicable.
21
2.
This
chapter
applies
to
the
estates
of
persons
dying
on
22
or
after
the
implementation
date
specified
in
subsection
1.
23
CONFORMING
AMENDMENTS
24
Sec.
44.
Section
12.71,
subsection
8,
Code
2009,
is
amended
25
to
read
as
follows:
26
8.
Bonds
issued
under
the
provisions
of
this
section
are
27
declared
to
be
issued
for
a
general
public
and
governmental
28
purpose
and
all
bonds
issued
under
this
section
shall
be
exempt
29
from
taxation
by
the
state
of
Iowa
and
the
interest
on
the
30
bonds
shall
be
exempt
from
the
state
income
tax
and
the
state
31
inheritance
and
estate
tax.
32
Sec.
45.
Section
12.80,
subsection
3,
Code
2009,
is
amended
33
to
read
as
follows:
34
3.
Bonds
issued
under
this
section
are
declared
to
be
35
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issued
for
an
essential
public
and
governmental
purpose
and
all
1
bonds
issued
under
this
section
shall
be
exempt
from
taxation
2
by
the
state
of
Iowa
and
the
interest
on
the
bonds
shall
be
3
exempt
from
the
state
income
tax
and
the
state
inheritance
and
4
estate
tax.
5
Sec.
46.
Section
12.81,
subsection
8,
Code
2009,
is
amended
6
to
read
as
follows:
7
8.
Bonds
issued
under
the
provisions
of
this
section
are
8
declared
to
be
issued
for
a
general
public
and
governmental
9
purpose
and
all
bonds
issued
under
this
section
shall
be
exempt
10
from
taxation
by
the
state
of
Iowa
and
the
interest
on
the
11
bonds
shall
be
exempt
from
the
state
income
tax
and
the
state
12
inheritance
and
estate
tax.
13
Sec.
47.
Section
12.87,
subsection
8,
Code
Supplement
2009,
14
is
amended
to
read
as
follows:
15
8.
Any
bonds
issued
and
sold
under
the
provisions
of
this
16
section
are
declared
to
be
issued
and
sold
for
an
essential
17
public
and
governmental
purpose,
and
all
bonds
issued
and
sold
18
under
this
section
except
as
otherwise
provided
in
any
trust
19
indentures,
resolutions,
or
other
instruments
authorizing
their
20
issuance
shall
be
exempt
from
taxation
by
the
state
of
Iowa
and
21
the
interest
on
the
bonds
shall
be
exempt
from
the
state
income
22
tax
and
the
state
inheritance
and
estate
tax.
23
Sec.
48.
Section
12.90A,
subsection
9,
Code
Supplement
24
2009,
is
amended
to
read
as
follows:
25
9.
Annual
appropriation
bonds
issued
under
this
section
are
26
declared
to
be
issued
for
an
essential
public
and
governmental
27
purpose
and
all
annual
appropriation
bonds
issued
under
this
28
section
shall
be
exempt
from
taxation
by
the
state
of
Iowa
29
and
the
interest
on
the
annual
appropriation
bonds
shall
be
30
exempt
from
the
state
income
tax
and
the
state
inheritance
and
31
estate
tax.
32
Sec.
49.
Section
12.91,
subsection
9,
Code
2009,
is
amended
33
to
read
as
follows:
34
9.
Bonds
issued
under
the
provisions
of
this
section
are
35
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declared
to
be
issued
for
a
general
public
and
governmental
1
purpose
and
all
bonds
issued
under
this
section
shall
be
exempt
2
from
taxation
by
the
state
of
Iowa
and
the
interest
on
the
3
bonds
shall
be
exempt
from
the
state
income
tax
and
the
state
4
inheritance
and
estate
tax.
5
Sec.
50.
Section
16.177,
subsection
8,
Code
2009,
is
amended
6
to
read
as
follows:
7
8.
Bonds
issued
under
this
section
are
declared
to
be
8
issued
for
an
essential
public
and
governmental
purpose
and
all
9
bonds
issued
under
this
section
shall
be
exempt
from
taxation
10
by
the
state
of
Iowa
and
the
interest
on
the
bonds
shall
be
11
exempt
from
the
state
income
tax
and
the
state
inheritance
and
12
estate
tax.
13
Sec.
51.
Section
321.47,
subsection
2,
Code
2009,
is
amended
14
to
read
as
follows:
15
2.
The
persons
entitled
under
the
laws
of
descent
and
16
distribution
of
an
intestate’s
property
to
the
possession
17
and
ownership
of
a
vehicle
owned
in
whole
or
in
part
by
a
18
decedent,
upon
filing
an
affidavit
stating
the
name
and
date
of
19
death
of
the
decedent,
the
right
to
possession
and
ownership
20
of
the
persons
filing
the
affidavit,
and
that
there
has
been
21
no
administration
of
the
decedent’s
estate,
which
instrument
22
shall
also
contain
an
agreement
to
indemnify
creditors
of
23
the
decedent
who
would
be
entitled
to
levy
execution
upon
24
the
motor
vehicle
to
the
extent
of
the
value
of
the
motor
25
vehicle,
are
entitled
upon
fulfilling
the
other
requirements
of
26
this
chapter,
to
the
issuance
of
a
registration
card
for
the
27
interest
of
the
decedent
in
the
vehicle
and
a
certificate
of
28
title
to
it.
If
a
decedent
dies
testate,
and
either
the
will
is
29
not
probated
or
is
admitted
to
probate
without
administration,
30
the
persons
entitled
to
the
possession
and
ownership
of
a
31
vehicle
owned
in
whole
or
in
part
by
the
decedent
may
file
32
an
affidavit
and,
upon
fulfilling
the
other
requirements
of
33
this
chapter,
are
entitled
to
the
issuance
of
a
registration
34
card
for
the
interest
of
the
decedent
in
the
vehicle
and
a
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certificate
of
title
to
the
vehicle.
The
affidavit
shall
1
contain
the
same
information
and
indemnity
agreement
as
is
2
required
in
cases
of
intestacy
pursuant
to
this
section.
A
3
requirement
of
chapter
450
or
451
shall
not
be
considered
4
satisfied
by
the
filing
of
the
affidavit
provided
for
in
this
5
section.
If,
from
the
records
in
the
office
of
the
county
6
treasurer,
there
appear
to
be
any
liens
on
the
vehicle,
the
7
certificate
of
title
shall
contain
a
statement
of
the
liens
8
unless
the
application
is
accompanied
by
proper
evidence
of
9
their
satisfaction
or
extinction.
Evidence
of
extinction
10
may
consist
of,
but
is
not
limited
to,
an
affidavit
of
the
11
applicant
stating
that
a
security
interest
was
foreclosed
as
12
provided
in
chapter
554,
article
9,
part
6.
13
Sec.
52.
Section
421.60,
subsection
2,
paragraph
c,
14
unnumbered
paragraph
1,
Code
2009,
is
amended
to
read
as
15
follows:
16
If
the
notice
of
assessment
or
denial
of
a
claim
for
refund
17
relates
to
a
tax
return
filed
pursuant
to
section
422.14
or
18
chapter
450
or
,
450A,
or
451,
by
the
taxpayer
which
designates
19
an
individual
as
an
authorized
representative
of
the
taxpayer
20
with
respect
to
that
return,
or
if
a
power
of
attorney
has
been
21
filed
with
the
department
by
the
taxpayer
which
designates
an
22
individual
as
an
authorized
representative
of
the
taxpayer
with
23
respect
to
any
tax
that
is
included
in
the
notice
of
assessment
24
or
denial
of
a
claim
for
refund,
a
copy
of
the
notice
together
25
with
any
additional
information
required
to
be
sent
to
the
26
taxpayer
shall
be
sent
to
the
authorized
representative
as
27
well.
28
Sec.
53.
Section
450.7,
subsection
2,
unnumbered
paragraph
29
1,
Code
Supplement
2009,
is
amended
to
read
as
follows:
30
Notice
of
the
lien
is
not
required
to
be
recorded.
The
31
rights
of
the
state
under
the
lien
have
priority
over
all
32
subsequent
mortgages,
purchases,
or
judgment
creditors;
and
a
33
conveyance
after
the
decedent’s
death
of
the
property
subject
34
to
a
lien
does
not
discharge
the
property
except
as
otherwise
35
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provided
in
this
chapter.
However,
if
additional
tax
is
1
determined
to
be
owing
under
this
chapter
or
chapter
451
after
2
the
lien
has
been
released
under
paragraph
“a”
or
“b”
,
the
lien
3
does
not
have
priority
over
subsequent
mortgages,
purchases,
4
or
judgment
creditors
unless
notice
of
the
lien
is
recorded
in
5
the
office
of
the
recorder
of
the
county
where
the
estate
is
6
probated,
or
where
the
property
is
located
if
the
estate
has
7
not
been
administered.
The
department
of
revenue
may
release
8
the
lien
by
filing
in
the
office
of
the
clerk
of
the
court
in
9
the
county
where
the
property
is
located,
the
decedent
owner
10
died,
or
the
estate
is
pending
or
was
administered,
one
of
the
11
following:
12
Sec.
54.
Section
450.68,
subsection
1,
paragraph
b,
Code
13
Supplement
2009,
is
amended
to
read
as
follows:
14
b.
Federal
tax
returns,
copies
of
returns,
return
15
information
as
defined
in
section
6103(b)
of
the
Internal
16
Revenue
Code,
and
state
inheritance
tax
returns,
which
are
17
required
to
be
filed
with
the
department
for
the
enforcement
18
of
the
inheritance
and
estate
tax
laws
of
this
state,
shall
be
19
deemed
and
held
as
confidential
by
the
department.
However,
20
such
returns
or
return
information
may
be
disclosed
by
the
21
director
to
officers
or
employees
of
other
state
agencies,
22
subject
to
the
same
confidentiality
restrictions
imposed
on
the
23
officers
and
employees
of
the
department.
24
Sec.
55.
Section
455G.6,
subsection
14,
Code
Supplement
25
2009,
is
amended
to
read
as
follows:
26
14.
Bonds
issued
under
the
provisions
of
this
section
are
27
declared
to
be
issued
for
an
essential
public
and
governmental
28
purpose
and
all
bonds
issued
under
this
chapter
shall
be
exempt
29
from
taxation
by
the
state
of
Iowa
and
the
interest
on
the
30
bonds
shall
be
exempt
from
the
state
income
tax
and
the
state
31
inheritance
and
estate
tax.
32
Sec.
56.
Section
463C.12,
subsection
8,
Code
2009,
is
33
amended
to
read
as
follows:
34
8.
Tax-exempt
bonds
issued
by
the
authority
in
connection
35
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with
the
program,
which
are
exempt
from
taxation
for
federal
1
tax
purposes,
are
also
exempt
from
taxation
by
the
state
of
2
Iowa
and
the
interest
on
these
bonds
is
exempt
from
state
3
income
taxes
and
state
inheritance
and
estate
taxes.
4
Sec.
57.
Section
524.1406,
subsection
3,
paragraph
a,
Code
5
2009,
is
amended
to
read
as
follows:
6
a.
Notwithstanding
any
contrary
provision
in
chapter
7
490,
division
XIII,
in
determining
the
fair
value
of
the
8
shareholder’s
shares
of
a
bank
organized
under
this
chapter
9
or
a
bank
holding
company
as
defined
in
section
524.1801
in
a
10
transaction
or
event
in
which
the
shareholder
is
entitled
to
11
appraisal
rights,
due
consideration
shall
be
given
to
valuation
12
factors
recognized
for
federal
and
estate
tax
purposes,
13
including
discounts
for
minority
interests
and
discounts
14
for
lack
of
marketability.
However,
any
payment
made
to
15
shareholders
under
section
490.1324
shall
be
in
an
amount
not
16
less
than
the
stockholders’
equity
in
the
bank
disclosed
in
its
17
last
statement
of
condition
filed
under
section
524.220
or
the
18
total
equity
capital
of
the
bank
holding
company
disclosed
in
19
the
most
recent
report
filed
by
the
bank
holding
company
with
20
the
board
of
governors
of
the
federal
reserve
system,
divided
21
by
the
number
of
shares
outstanding.
22
Sec.
58.
Section
633.436,
subsection
1,
unnumbered
23
paragraph
1,
Code
2009,
is
amended
to
read
as
follows:
24
Except
as
provided
in
sections
633.211
and
633.212,
shares
25
of
the
distributees
shall
abate,
for
the
payment
of
debts
and
26
charges,
federal
and
state
estate
taxes,
legacies,
the
shares
27
of
children
born
or
adopted
after
the
making
of
a
will,
or
the
28
share
of
the
surviving
spouse
who
elects
to
take
against
the
29
will,
without
any
preference
or
priority
as
between
real
and
30
personal
property,
in
the
following
order:
31
Sec.
59.
Section
633.449,
Code
2009,
is
amended
to
read
as
32
follows:
33
633.449
Payment
of
federal
estate
taxes.
34
All
federal
estate
taxes,
distinguished
from
state
35
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inheritance
and
estate
taxes,
owing
by
the
estate
of
a
decedent
1
shall
be
paid
from
the
property
of
the
estate,
unless
the
will
2
of
the
decedent,
or
other
trust
instrument,
provides
expressly
3
to
the
contrary.
4
Sec.
60.
Section
633A.4703,
unnumbered
paragraph
1,
Code
5
2009,
is
amended
to
read
as
follows:
6
Except
as
otherwise
provided
by
the
governing
instrument,
7
where
necessary
to
abate
shares
of
the
beneficiaries
of
a
trust
8
for
the
payment
of
debts
and
charges,
federal
and
state
estate
9
taxes,
bequests,
the
share
of
the
surviving
spouse
who
takes
10
an
elective
share,
and
the
shares
of
children
born
or
adopted
11
after
the
execution
of
the
trust,
abatement
shall
occur
in
the
12
following
order:
13
DIVISION
XVI
14
ENTERPRISE
ZONES
INTERIM
STUDY
COMMITTEE
15
Sec.
61.
ENTERPRISE
ZONES
INTERIM
STUDY
COMMITTEE.
16
1.
The
legislative
council
is
requested
to
establish
an
17
interim
study
committee
to
evaluate
the
effectiveness
of
Iowa’s
18
enterprise
zone
program
and
make
recommendations
on
the
future
19
of
the
program.
In
conducting
the
study,
the
committee
shall
20
review
the
original
policy
goals
of
the
program,
the
amount
of
21
state
assistance
provided
under
the
program,
and
the
benefits
22
realized
by
the
state
through
the
administration
of
the
23
program,
and
shall
reach
a
conclusion
as
to
whether
the
amount
24
of
assistance
provided
has
been
in
proportion
to
the
benefits
25
realized.
26
2.
The
committee
shall
be
composed
of
ten
members
of
the
27
general
assembly.
Five
members
shall
be
members
of
the
senate,
28
three
of
whom
shall
be
appointed
by
the
majority
leader
of
the
29
senate,
and
two
of
whom
shall
be
appointed
by
the
minority
30
leader
of
the
senate.
Five
members
shall
be
members
of
the
31
house
of
representatives,
three
of
whom
shall
be
appointed
32
by
the
speaker
of
the
house
of
representatives,
and
two
of
33
whom
shall
be
appointed
by
the
minority
leader
of
the
house
of
34
representatives.
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3.
The
study
committee
shall
issue
a
report
to
the
general
1
assembly
containing
its
findings
and
recommendations
by
January
2
15,
2011.
3
DIVISION
XVII
4
INDUSTRIAL
NEW
JOBS
TRAINING
INTERIM
STUDY
COMMITTEE
5
Sec.
62.
INDUSTRIAL
NEW
JOBS
TRAINING
INTERIM
STUDY
6
COMMITTEE.
7
1.
The
legislative
council
is
requested
to
establish
an
8
interim
study
committee
to
evaluate
the
effectiveness
of
Iowa’s
9
industrial
new
jobs
training
program
and
make
recommendations
10
on
the
future
of
the
program.
In
conducting
the
study,
11
the
committee
shall
review
the
original
policy
goals
of
the
12
program,
the
amount
of
state
assistance
provided
under
the
13
program,
and
the
benefits
realized
by
the
state
through
the
14
administration
of
the
program,
and
shall
reach
a
conclusion
15
as
to
whether
the
amount
of
assistance
provided
has
been
in
16
proportion
to
the
benefits
realized.
The
review
shall
also
17
include
an
examination
of
the
efficiency
of
the
bonding
and
18
withholding
credit
financing
mechanisms
used
in
the
programs
19
as
well
as
the
administrative
and
training
costs
entailed
in
20
the
operation
of
the
program.
21
2.
The
committee
shall
be
composed
of
ten
members
of
the
22
general
assembly.
Five
members
shall
be
members
of
the
senate,
23
three
of
whom
shall
be
appointed
by
the
majority
leader
of
the
24
senate,
and
two
of
whom
shall
be
appointed
by
the
minority
25
leader
of
the
senate.
Five
members
shall
be
members
of
the
26
house
of
representatives,
three
of
whom
shall
be
appointed
27
by
the
speaker
of
the
house
of
representatives,
and
two
of
28
whom
shall
be
appointed
by
the
minority
leader
of
the
house
of
29
representatives.
30
3.
The
study
committee
shall
issue
a
report
to
the
general
31
assembly
containing
its
findings
and
recommendations
by
January
32
15,
2011.
33
EXPLANATION
34
This
bill
relates
to
the
administration
and
review
of
35
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certain
tax
credit,
withholding
credit,
division
of
revenue,
1
and
other
financial
assistance
programs.
2
Division
I
of
the
bill
expresses
the
intent
and
purposes
of
3
the
bill.
4
Division
II
of
the
bill
creates
a
legislative
tax
5
expenditure
committee
within
the
legislative
council.
The
6
committee
is
composed
of
10
members
of
the
general
assembly,
7
five
members
from
each
house,
appointed
by
the
legislative
8
council.
9
The
committee
has
a
number
of
duties.
The
committee
is
10
required
to
issue
a
statement
of
principles
of
sound
tax
11
policy.
In
issuing
the
statement,
the
committee
may
consult
12
with
the
department
of
revenue,
the
legislative
services
13
agency,
and
independent
experts
who
have
demonstrated
expertise
14
in
matters
of
tax
policy,
fiscal
policy,
and
public
finance.
15
The
statement
must
reflect
to
the
extent
practicable
the
best
16
practices
of
state
and
local
taxation
as
recognized
by
experts
17
in
the
fields
of
economics,
fiscal
policy,
law,
accounting,
and
18
public
finance.
The
statement
must
address
issues
of
equity,
19
simplicity,
competitiveness,
public
purpose,
and
adequacy
as
20
those
issues
pertain
to
taxation
in
Iowa.
21
The
committee
shall
evaluate
any
tax
expenditure
available
22
under
Iowa
law
and
assess
its
conformance
with
the
statement
of
23
principles
of
sound
tax
policy.
“Tax
expenditure”
is
defined
24
to
mean
an
exclusion
from
the
operation
or
collection
of
a
tax
25
imposed
in
this
state.
Tax
expenditures
include
tax
credits,
26
exemptions,
deductions,
and
rebates.
Tax
expenditures
also
27
include
sales
tax
refunds
issued
pursuant
to
Code
section
423.3
28
or
Code
section
423.4.
29
The
committee
shall
establish
and
maintain
a
system
for
30
making
available
to
the
public
information
about
the
amount
and
31
effectiveness
of
tax
expenditures
and
the
extent
to
which
tax
32
expenditures
comply
with
the
statement
of
principles
of
sound
33
tax
policy.
34
The
committee
must
engage
in
the
regular
review
of
the
35
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state’s
tax
expenditures.
In
reviewing
tax
expenditures,
the
1
committee
may
review
any
tax
expenditure
at
any
time,
but
shall
2
at
a
minimum
perform
certain
reviews
according
to
a
schedule
3
prescribed
by
statute.
For
each
tax
expenditure
reviewed,
4
the
committee
must
submit
a
report
to
the
legislative
council
5
containing
the
results
of
the
review.
The
report
must
contain
6
a
statement
of
the
policy
goals
of
the
tax
expenditure
and
7
a
return
on
investment
calculation
for
the
tax
expenditure.
8
“Return
on
investment
calculation”
is
defined
to
mean
analyzing
9
the
cost
to
the
state
of
providing
the
tax
expenditure,
10
analyzing
the
benefits
realized
by
the
state
from
providing
11
the
tax
expenditure,
and
reaching
a
conclusion
as
to
whether
12
the
benefits
of
the
tax
expenditure
are
worth
the
cost
to
the
13
state
of
providing
it.
The
committee’s
report
may
also
include
14
recommendations
for
better
aligning
tax
expenditures
with
15
principles
of
sound
tax
policy.
16
The
committee
must
also
estimate
for
each
fiscal
year,
17
in
conjunction
with
the
legislative
services
agency
and
18
the
department
of
revenue,
the
cost
of
each
individual
tax
19
expenditure
and
the
total
cost
of
all
tax
expenditures,
and
by
20
December
15
provide
those
estimates
to
the
governor
for
use
21
in
the
preparation
of
the
budget
message
under
Code
section
22
8.22
and
to
the
general
assembly
to
be
used
in
the
budget
23
process.
The
estimates
provided
may
include
the
committee’s
24
recommendations
for
the
imposition
of
a
limitation
on
a
25
specified
tax
expenditure,
a
limitation
on
the
total
amount
of
26
tax
expenditures,
or
any
other
recommendation
for
a
specific
27
tax
expenditure
or
the
program
under
which
the
tax
expenditure
28
is
provided.
29
Division
III
of
the
bill
reduces
the
amount
of
tax
credits
30
that
the
department
of
economic
development
is
allowed
to
31
authorize
for
certain
programs
each
year
from
$185
million
to
32
$120
million,
except
as
otherwise
provided
in
the
division.
33
Division
IV
of
the
bill
prevents
the
department
of
economic
34
development
from
registering
any
new
projects
under
the
film,
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television,
and
video
project
promotion
program
until
July
1,
1
2012.
The
division
takes
effect
upon
enactment.
2
Division
V
modifies
the
amount
of
the
additional
research
3
activities
credit
in
Code
section
15.335.
Currently,
the
4
amount
of
the
credit
is
6.5
percent
of
research
expenditures.
5
The
division
provides
that
for
businesses
with
annual
gross
6
revenues
less
than
$20
million,
the
credit
amount
is
10
7
percent.
For
businesses
with
annual
gross
revenues
greater
8
than
$20
million,
the
amount
of
the
credit
is
3
percent.
9
Division
V
applies
retroactively
to
January
1,
2010,
for
tax
10
years
beginning
on
or
after
that
date.
11
Division
VI
of
the
bill
reduces
the
maximum
amount
of
12
statewide
program
job
credits
that
may
be
allocated
to
13
community
colleges
under
the
accelerated
career
education
14
program
in
any
one
fiscal
year
to
$5.4
million.
The
maximum
15
amount
is
currently
$6
million.
16
Division
VII
of
the
bill
reduces
the
maximum
amount
of
17
agricultural
asset
transfer
tax
credits
that
may
be
issued
18
in
any
one
fiscal
year
to
$2
million.
The
maximum
amount
is
19
currently
$6
million.
20
Division
VIII
of
the
bill
eliminates
the
economic
21
development
region
revolving
loan
fund
tax
credit
program.
The
22
division
applies
retroactively
to
January
1,
2010,
for
tax
23
years
beginning
on
or
after
that
date.
24
Division
IX
of
the
bill
reduces
the
maximum
amount
of
tax
25
credits
that
may
be
issued
under
the
Endow
Iowa
program
to
$2.7
26
million.
The
maximum
amount
is
currently
$3
million.
27
Division
X
of
the
bill
reduces
the
maximum
amount
of
school
28
tuition
organization
tax
credits
that
may
be
issued
to
$6.75
29
million.
The
maximum
amount
is
currently
$7.5
million.
30
Division
XI
reduces
the
maximum
aggregate
amount
of
tax
31
credits
that
may
be
issued
under
the
Iowa
fund
of
funds
program
32
to
$60
million.
Currently,
$100
million
may
be
issued
under
33
the
program.
The
division
takes
effect
upon
enactment.
34
Division
XII
eliminates
the
venture
capital
fund
investment
35
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_____
tax
credit
and
makes
conforming
amendments.
The
division
1
applies
retroactively
to
January
1,
2010,
for
tax
years
2
beginning
on
or
after
that
date.
3
Division
XIII
of
the
bill
eliminates
the
refundability
4
of
certain
tax
credits
for
value-added
agricultural
products
5
available
under
the
investment
tax
credit
in
Code
section
6
15.333.
The
division
applies
retroactively
to
January
1,
2010,
7
for
tax
years
beginning
on
or
after
that
date.
8
Division
XIV
of
the
bill
reduces
the
amount
of
historic
9
preservation
and
cultural
and
entertainment
district
tax
10
credits
that
can
be
reserved
under
Code
chapter
404A
from
$50
11
million
per
year
to
$45
million.
The
reductions
only
impact
12
years
in
which
the
department
has
not
yet
approved
projects
13
under
the
program.
14
Division
XV
of
the
bill
relates
to
estate
taxes.
In
15
2001,
Congress
enacted
the
Economic
Growth
and
Tax
Relief
16
Reconciliation
Act
(EGTRRA)
which
reduced
the
federal
estate
17
tax
rates
and
increased
the
exemption
level
for
estates
for
tax
18
years
2002
through
2009.
In
2010,
EGTRRA
repeals
the
federal
19
estate
tax
completely.
EGTRRA
also
phased
out
the
tax
credits
20
for
state
inheritance
and
estate
taxes
in
25
percent
increments
21
between
2002
and
2005.
Until
2008,
Iowa
had
an
estate
tax,
22
the
base
and
the
amount
of
which
were
calculated
based
on
the
23
federal
tax
credits
phased
out
in
EGTRRA.
This
type
of
tax
was
24
referred
to
as
a
“pick-up
tax”.
In
2008,
Iowa’s
estate
tax
was
25
eliminated.
This
bill
reenacts
the
estate
tax,
including
the
26
base
and
amount
calculations
specified
in
the
Internal
Revenue
27
Code.
The
Code
chapter
reenacting
the
estate
tax
shall
not
be
28
implemented
unless
the
federal
tax
credits
are
reenacted
as
29
well.
30
Division
XVI
of
the
bill
requests
the
legislative
council
31
to
establish
an
interim
study
committee
to
evaluate
and
make
32
recommendations
regarding
the
enterprise
zone
program.
33
Division
XVII
of
the
bill
requests
the
legislative
council
34
to
establish
an
interim
study
committee
to
evaluate
and
make
35
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29
H.F.
_____
recommendations
regarding
the
industrial
new
jobs
training
1
program.
2
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29