Senate
Study
Bill
3065
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
STEWART)
A
BILL
FOR
An
Act
reducing
the
amount
of
tax
credits
that
may
be
issued
1
for
capital
investment
in
the
Iowa
fund
of
funds.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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5144XC
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_____
Section
1.
Section
15E.66,
subsections
1
and
7,
Code
2009,
1
are
amended
to
read
as
follows:
2
1.
The
board
may
issue
certificates
and
related
tax
3
credits
to
designated
investors
which,
if
redeemed
for
the
4
maximum
possible
amount,
shall
not
exceed
a
total
aggregate
5
of
one
hundred
forty
million
dollars
of
tax
credits.
The
6
certificates
shall
be
issued
contemporaneously
with
a
7
commitment
to
invest
in
the
Iowa
fund
of
funds
by
a
designated
8
investor.
A
certificate
issued
by
the
board
shall
have
a
9
specific
maturity
date
or
dates
designated
by
the
board
and
10
shall
be
redeemable
only
in
accordance
with
the
contingencies
11
reflected
on
the
certificate
or
incorporated
therein
by
12
reference.
A
certificate
and
the
related
tax
credit
shall
be
13
transferable
by
the
designated
investor.
A
tax
credit
shall
14
not
be
claimed
or
redeemed
except
by
a
designated
investor
or
15
transferee
in
accordance
with
the
terms
of
a
certificate
from
16
the
board.
A
tax
credit
shall
not
be
claimed
for
a
tax
year
17
that
begins
earlier
than
the
maturity
date
or
dates
stated
18
on
the
certificate.
An
individual
may
claim
the
credit
of
a
19
partnership,
limited
liability
company,
S
corporation,
estate,
20
or
trust
electing
to
have
the
income
taxed
directly
to
the
21
individual.
The
amount
claimed
by
the
individual
shall
be
22
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
23
the
partnership,
limited
liability
company,
S
corporation,
24
estate,
or
trust.
Any
tax
credit
in
excess
of
the
taxpayer’s
25
tax
liability
for
the
tax
year
may
be
credited
to
the
tax
26
liability
for
the
following
seven
years,
or
until
depleted,
27
whichever
is
earlier.
28
7.
In
determining
the
one
hundred
million
dollar
maximum
29
aggregate
limit
in
subsection
1
and
the
twenty
million
30
dollar
fiscal
year
limitation
in
subsection
5,
the
board
shall
31
use
the
cumulative
amount
of
scheduled
aggregate
returns
on
32
certificates
issued
by
the
board
to
designated
investors.
33
However,
certificates
and
related
tax
credits
which
have
34
expired
shall
not
be
included
and
certificates
and
related
tax
35
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_____
credits
which
have
been
redeemed
shall
be
included
only
to
the
1
extent
of
tax
credits
actually
allowed.
2
EXPLANATION
3
This
bill
reduces
the
maximum
aggregate
amount
of
tax
4
credits
that
may
be
issued
under
the
Iowa
fund
of
funds.
5
Currently,
the
total
amount
of
tax
credits
that
may
be
6
issued
under
the
Iowa
fund
of
funds
program
is
limited
to
$100
7
million.
The
bill
reduces
this
amount
to
$40
million.
8
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