HF 2400 (LSB 5843YH (2) 85)

HOUSE FILE 2400

BY  PRICHARD

A BILL FOR

An Act providing an income tax credit for propane storage tanks and related equipment, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.11C  Propane storage tank tax credit.
   1.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a propane storage tank tax credit equal to seventy-five percent of the cost of a propane storage tank and equipment directly related to the storage of propane gas. A tax credit under this section shall be limited to one storage tank per physical location where the propane is stored for the taxpayer’s own use. Any credit in excess of the tax liability for the tax year shall not be refunded, but may be credited to the tax liability for the following ten tax years or until depleted, whichever is earlier.
   2.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of a partnership, limited liability company, S corporation, estate, or trust.
   3.  The director of revenue shall adopt rules pursuant to chapter 17A for the administration of this section.
    Sec. 2.  Section 422.33, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.  The taxes imposed under this division shall be reduced by a propane storage tank tax credit allowed under section 422.11C.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2014, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides a corporate and individual income tax credit for propane storage tanks and related equipment in an amount equal to 75 percent of the cost of the storage tank and equipment directly related to the storage of propane gas. The bill provides that the credit shall be limited to one storage tank per physical location where the propane is stored for the claimant’s own use. The bill states that any credit in excess of the tax liability for the tax year shall not be refunded, but may be credited to the tax liability for the following 10 tax years or until depleted, whichever is earlier. The bill authorizes the director of revenue to adopt rules pursuant to Code chapter 17A for the administration of the bill’s provisions.
   The bill takes effect upon enactment, and is retroactively applicable to January 1, 2014, for tax years beginning on or after that date.