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:
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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.
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