SENATE FILE _____

BY  (PROPOSED COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA BILL BY CHAIRPERSON SODDERS)

A BILL FOR

An Act relating to the amount allowable as an innovation fund investment tax credit and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15E.52, subsection 3, Code Supplement 2011, is amended to read as follows:
   3.  The amount of a tax credit allowed under this section shall equal twenty percent of
 
the following percentage of the taxpayer’s equity investment in an innovation fund:
   a.  For equity investments made in fiscal years beginning on or after July 1, 2011, and ending on or before June 30, 2014, one hundred percent.
   b.  For equity investments made in fiscal years beginning on or after July 1, 2014, twenty percent.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to July 1, 2011, for innovation fund tax credit certificates issued on or after that date.
EXPLANATION
   This bill changes the amount allowable as an innovation fund investment tax credit under Code section 15E.52. Under current law, the credit is equal to 20 percent of a taxpayer’s equity investment in an innovation fund. The bill changes the credit amount to 100 percent of an equity investment made in fiscal years beginning July 1, 2011, July 1, 2012, and July 1, 2013, and 20 percent for fiscal years beginning on or after July 1, 2014.
   The bill is effective upon enactment and applies retroactively to July 1, 2011, for innovation fund tax credit certificates issued on or after that date.