House Study Bill 222 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act increasing the maximum aggregate amount of tax credits 1 that may be issued under the fund of funds program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2412YC (2) 84 tw/sc
H.F. _____ Section 1. Section 15E.66, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. The board may issue certificates and related tax credits 3 to designated investors which, if redeemed for the maximum 4 possible amount, shall not exceed a total aggregate of sixty 5 one hundred twenty-five million dollars of tax credits. 6 The 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 EXPLANATION 29 In 2010, the maximum aggregate amount of tax credits that 30 could be redeemed under the fund of funds program was reduced 31 from $100 million to $60 million. This bill increases the 32 maximum to $125 million. 33 -1- LSB 2412YC (2) 84 tw/sc 1/ 1