Senate File 223 - Introduced SENATE FILE BY DANIELSON Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an income tax credit for certain contributions 2 to postsecondary education institutions and including a 3 retroactive applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1824SS 83 6 tw/mg:sc/5 PAG LIN 1 1 Section 1. NEW SECTION. 422.11X POSTSECONDARY EDUCATION 1 2 INSTITUTION DEFERRED MAINTENANCE TAX CREDIT. 1 3 1. a. The taxes imposed under this division, less the 1 4 credits allowed under section 422.12, shall be reduced by a 1 5 postsecondary education institution deferred maintenance tax 1 6 credit. 1 7 b. The credit shall be in an amount equal to fifty percent 1 8 of a taxpayer's contribution to deferred maintenance projects 1 9 at a two=year or four=year college or university located in 1 10 the state. 1 11 c. For purposes of this section, "deferred maintenance 1 12 project" means the maintenance, repair, reconstruction, 1 13 remodeling, or rehabilitation of a building, structure, or 1 14 facility located on the campus of a two=year or four=year 1 15 college or university located in the state, the progress or 1 16 completion of which has been deferred or delayed. "Deferred 1 17 maintenance project" includes any improvements to a building, 1 18 structure, or facility that are necessary to comply with the 1 19 requirements of the federal Americans With Disabilities Act or 1 20 other federal or state law. 1 21 d. An individual may claim a tax credit under this 1 22 subsection of a partnership, limited liability company, S 1 23 corporation, estate, or trust electing to have income taxed 1 24 directly to the individual. The amount claimed by the 1 25 individual shall be based upon the pro rata share of the 1 26 individual's earnings from the partnership, limited liability 1 27 company, S corporation, estate, or trust. 1 28 e. Any tax credit in excess of the taxpayer's tax 1 29 liability for the tax year is refundable, but the taxpayer may 1 30 elect to have the excess credited to the tax liability for the 1 31 following four tax years or until depleted, whichever is 1 32 earlier. 1 33 2. a. To claim a tax credit under this section, the 1 34 taxpayer shall apply to the department for a tax credit 1 35 certificate. After verifying the eligibility of a taxpayer 2 1 for a tax credit pursuant to this section, the department 2 2 shall issue a tax credit certificate to be attached to the 2 3 taxpayer's tax return. The tax credit certificate shall be 2 4 issued based upon the date of the application and shall 2 5 contain the taxpayer's name, address, tax identification 2 6 number, the amount of the credit, and any other information 2 7 required by the department. 2 8 b. To claim a tax credit under this section, a taxpayer 2 9 must attach one or more tax credit certificates to the 2 10 taxpayer's tax return. The tax credit certificate or 2 11 certificates attached to the taxpayer's tax return shall be 2 12 issued in the taxpayer's name, and the expiration date on the 2 13 certificate shall be a date that falls on or after the last 2 14 day of the taxable year for which the taxpayer is claiming the 2 15 tax credit. 2 16 c. The tax credit certificate, unless otherwise void, 2 17 shall be accepted by the department as payment toward the tax 2 18 liability of the taxpayer, subject to any conditions or 2 19 restrictions placed by the department upon the face of the tax 2 20 credit certificate and subject to the limitations of this 2 21 section. 2 22 d. Tax credit certificates issued under this section are 2 23 not transferable to any person or entity. 2 24 3. The maximum amount of tax credits issued in a fiscal 2 25 year pursuant to this section shall not exceed ten million 2 26 dollars. 2 27 4. This section is repealed January 1, 2014. 2 28 Sec. 2. Section 422.33, Code 2009, is amended by adding 2 29 the following new subsection: 2 30 NEW SUBSECTION. 27. The taxes imposed under this division 2 31 shall be reduced by a postsecondary education institution 2 32 deferred maintenance tax credit in the same manner, for the 2 33 same amount, and under the same conditions as provided in 2 34 section 422.11X. 2 35 Sec. 3. Section 422.60, Code 2009, is amended by adding 3 1 the following new subsection: 3 2 NEW SUBSECTION. 15. The taxes imposed under this division 3 3 shall be reduced by a postsecondary education institution 3 4 deferred maintenance tax credit in the same manner, for the 3 5 same amount, and under the same conditions as provided in 3 6 section 422.11X. 3 7 Sec. 4. NEW SECTION. 432.12M POSTSECONDARY EDUCATION 3 8 INSTITUTION DEFERRED MAINTENANCE TAX CREDIT. 3 9 The taxes imposed under this chapter shall be reduced by a 3 10 postsecondary education institution deferred maintenance tax 3 11 credit in the same manner, for the same amount, and under the 3 12 same conditions as provided in section 422.11X. 3 13 Sec. 5. Section 533.329, subsection 2, Code 2009, is 3 14 amended by adding the following new paragraph: 3 15 NEW PARAGRAPH. n. The moneys and credits tax imposed 3 16 under this section shall be reduced by a postsecondary 3 17 education institution deferred maintenance tax credit in the 3 18 same manner, for the same amount, and under the same 3 19 conditions as provided in section 422.11X. 3 20 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 3 21 retroactively to January 1, 2009, for tax years beginning on 3 22 or after January 1, 2009, and ending before January 1, 2014. 3 23 EXPLANATION 3 24 This bill provides a credit against the individual or 3 25 corporate income tax, the franchise tax, and the moneys and 3 26 credits tax for 50 percent of a taxpayer's contribution to 3 27 deferred maintenance projects at a two=year or four=year 3 28 college or university located in the state. Generally, such 3 29 contributions are tax deductible under current federal and 3 30 state law, and claiming the credit does not preclude the donor 3 31 from taking a deduction for the contribution. 3 32 The credit is available for tax years beginning on or after 3 33 January 1, 2009, and ending before January 1, 2014. 3 34 The tax credit is refundable or, at the taxpayer's 3 35 election, may be credited until depletion to the taxpayer's 4 1 tax liability for up to four subsequent tax years. The tax 4 2 credits are not transferable. The maximum amount of tax 4 3 credits is limited to $10 million in any one fiscal year. The 4 4 department of revenue approves the tax credits and issues the 4 5 tax credit certificates to taxpayers. 4 6 The bill takes effect upon enactment and applies 4 7 retroactively to January 1, 2009, for tax years beginning on 4 8 or after that date and ending before January 1, 2014. 4 9 LSB 1824SS 83 4 10 tw/mg:sc/5