SF 2165 (LSB 6045XS (5) 83)

SENATE FILE 2165

BY  McCOY and DANDEKAR

A BILL FOR

An Act relating to the department of revenue’s annual report on research activities tax credit claims and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.335, subsection 6, Code Supplement 2009, is amended to read as follows:
   6.  The department of revenue shall by February 15 of each year issue an annual report to the general assembly containing the total amount of all claims made by employers under this section, and the portion of the claims issued as refunds, for all claims processed during the previous calendar year. The report shall contain the name of each claimant for whom a tax credit in excess of five hundred thousand dollars was issued and the amount of the credit received.
    Sec. 2.  Section 422.10, subsection 6, Code Supplement 2009, is amended to read as follows:
   6.  The department shall by February 15 of each year issue an annual report to the general assembly containing the total amount of all claims made by employers under this section and the portion of the claims issued as refunds, for all claims processed during the previous calendar year. The report shall contain the name of each claimant for whom a tax credit in excess of five hundred thousand dollars was issued and the amount of the credit received.
    Sec. 3.  Section 422.33, subsection 5, paragraph h, Code Supplement 2009, is amended to read as follows:
   h.  The department shall by February 15 of each year issue an annual report to the general assembly containing the total amount of all claims made by employers under this subsection and the portion of the claims issued as refunds, for all claims processed during the previous calendar year. The report shall contain the name of each claimant for whom a tax credit in excess of five hundred thousand dollars was issued and the amount of the credit received.
    Sec. 4.  EFFECTIVE UPON ENACTMENT AND APPLICABILITY.  This Act, being deemed of immediate importance, takes effect upon enactment and applies retroactively to research activities credit reports due to the general assembly on or after February 15, 2010.
EXPLANATION
   This bill relates to the annual report issued by the department of revenue on research activities tax credit claims.
   Current law provides that the research activities tax credits available under Code sections 15.335 and 422.10, and Code section 422.33, subsection 5, are refundable. In 2009, the general assembly required the department to issue an annual report containing the total amount of all claims made by employers under the research activities tax credit, the portion of those claims issued as refunds to taxpayers, the names of the taxpayers, and the amount of credit received. This bill eliminates the requirement that the report contain the portion of claims issued as refunds and the requirement that it contain the amount of credit received.
   The bill is effective upon enactment and applies retroactively to research activities credit reports due to the general assembly on or after February 15, 2010.