House
File
688
-
Introduced
HOUSE
FILE
688
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
234)
A
BILL
FOR
An
Act
relating
to
tax
credits
for
investment
in
certain
1
qualifying
businesses
or
community-based
seed
capital
funds
2
and
including
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2759HV
(2)
84
tw/sc
H.F.
688
Section
1.
Section
15.119,
subsection
2,
Code
2011,
is
1
amended
to
read
as
follows:
2
2.
The
department,
with
the
approval
of
the
board,
shall
3
adopt
by
rule
a
procedure
for
allocating
the
aggregate
tax
4
credit
limit
established
in
this
section
among
the
following
5
programs
administered
by
the
department
:
6
a.
The
high
quality
job
creation
program
administered
7
pursuant
to
sections
15.326
through
15.336
.
8
b.
The
film,
television,
and
video
project
promotion
program
9
administered
pursuant
to
sections
15.391
through
15.393
.
10
c.
The
corporate
tax
research
credit
under
the
quality
jobs
11
enterprise
zone
program
pursuant
to
section
15A.9,
subsection
12
8
.
13
d.
The
enterprise
zones
program
administered
pursuant
to
14
sections
15E.191
through
15E.197
.
15
e.
The
assistive
device
tax
credit
program
administered
16
pursuant
to
section
422.11E
and
section
422.33,
subsection
9
.
17
f.
The
tax
credits
for
investments
in
qualifying
businesses
18
and
community-based
seed
capital
funds
issued
by
the
capital
19
investment
board
pursuant
to
section
15E.43.
In
allocating
20
tax
credits
pursuant
to
this
subsection,
the
department
shall
21
allocate
two
million
dollars
for
purposes
of
this
paragraph.
22
Sec.
2.
Section
15E.43,
subsection
4,
Code
2011,
is
amended
23
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
24
following:
25
4.
The
board
shall
not
issue
tax
credits
under
this
section
26
in
excess
of
the
amount
approved
by
the
department
for
any
one
27
fiscal
year
pursuant
to
section
15.119.
28
Sec.
3.
Section
15E.44,
subsection
2,
paragraphs
d
and
e,
29
Code
2011,
are
amended
to
read
as
follows:
30
d.
The
business
is
not
a
business
engaged
primarily
in
31
retail
sales,
real
estate,
or
the
provision
of
health
care
32
or
other
professional
services
that
require
a
professional
33
license
.
34
e.
The
business
shall
not
have
a
net
worth
that
exceeds
ten
35
-1-
LSB
2759HV
(2)
84
tw/sc
1/
2
H.F.
688
five
million
dollars.
1
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
2
retroactively
to
January
1,
2011,
for
tax
years
beginning
and
3
investments
made
on
or
after
that
date.
4
EXPLANATION
5
This
bill
makes
changes
to
the
administration
of
the
tax
6
credits
available
for
investments
in
qualifying
businesses
and
7
community-based
seed
capital
funds.
8
Current
law
limits
the
maximum
aggregate
amount
of
such
tax
9
credits
that
may
be
issued
to
a
total
of
$10
million.
The
10
bill
eliminates
the
existing
limitation,
places
the
credits
11
under
the
department
of
economic
development’s
annual
aggregate
12
tax
credit
limitation
in
Code
section
15.119,
and
directs
the
13
department
to
allocate
$2
million
of
that
limit
for
purposes
of
14
such
credits.
15
The
bill
also
changes
the
eligibility
of
certain
qualifying
16
businesses.
Currently,
to
be
eligible
for
the
tax
credits,
a
17
business
must
not
be
engaged
primarily
in
“other
professional
18
services”
and
must
not
have
a
net
worth
in
excess
of
$10
19
million.
The
bill
requires
instead
that
a
business
not
20
be
engaged
primarily
in
“other
services
that
require
a
21
professional
license”
and
reduces
the
net
worth
ceiling
to
$5
22
million.
23
The
bill
applies
retroactively
to
January
1,
2011,
for
tax
24
years
beginning
and
investments
made
on
or
after
that
date.
25
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2759HV
(2)
84
tw/sc
2/
2