House
File
593
-
Introduced
HOUSE
FILE
593
BY
HEIN
A
BILL
FOR
An
Act
providing
a
tax
credit
against
the
individual
income
1
tax
for
equity
investments
in
a
qualified
motor
fuel
pump
2
station,
and
including
effective
date
and
retroactive
and
3
other
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1947YH
(2)
86
mm/sc
H.F.
593
Section
1.
NEW
SECTION
.
422.10A
Qualified
motor
fuel
pump
1
station
investment
tax
credit.
2
1.
For
purposes
of
this
section,
unless
the
context
3
otherwise
requires:
4
a.
“Equity
investment”
means
an
equity
interest
in
a
5
business
which
equity
interest
was
received
in
exchange
for
6
a
capital
contribution
or
payment
in
the
form
of
cash,
real
7
property,
or
tangible
personal
property.
8
b.
“Governing
documents”
means
the
organizing
documents
9
of
a
business
including
but
not
limited
to
a
certificate
of
10
organization,
certificate
of
limited
partnership,
articles
of
11
incorporation,
or
other
similar
document,
and
the
operating
12
documents
of
a
business
including
but
not
limited
to
a
13
partnership
agreement,
operating
agreement,
bylaws,
or
other
14
similar
documents.
15
c.
“Qualified
motor
fuel
pump
station”
means
a
business
that
16
meets
all
of
the
following
requirements:
17
(1)
The
business
is
operated
for
profit
and
primarily
18
engaged
in
the
retail
sale
of
motor
fuel
to
consumers
in
this
19
state.
20
(2)
The
business
has
a
commercial
domicile,
as
defined
in
21
section
422.32,
in
this
state.
22
(3)
The
governing
documents
of
the
business
require
that
23
at
least
one
percent
of
the
annual
profits
of
the
business
be
24
donated
for
the
benefit
of
fire
fighters,
police
officers,
or
25
emergency
medical
service
personnel
serving
in
this
state,
or
26
veterans
living
in
this
state.
27
2.
The
taxes
imposed
under
this
division,
less
the
credits
28
allowed
under
section
422.12,
shall
be
reduced
by
a
qualified
29
motor
fuel
pump
station
tax
credit
in
an
amount
equal
to
five
30
percent
of
a
taxpayer’s
equity
investment
in
a
qualified
motor
31
fuel
pump
station.
32
3.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
33
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
34
tax
liability
for
the
following
five
years
or
until
depleted,
35
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593
whichever
is
earlier.
1
4.
In
order
for
an
equity
investment
to
qualify
for
the
tax
2
credit,
the
business
in
which
the
equity
investment
is
made
3
shall,
within
one
hundred
twenty
days
of
the
first
investment,
4
do
all
of
the
following:
5
a.
Submit
an
application
to
the
department,
in
the
manner
6
and
form
prescribed
by
the
department,
to
be
verified
as
a
7
qualified
motor
fuel
pump
station.
8
b.
Notify
the
department
of
the
names,
addresses,
equity
9
issued,
consideration
paid
for
the
equity
interest,
and
the
10
amount
of
any
tax
credits,
of
all
equity
owners
who
may
qualify
11
for
the
tax
credits.
The
list
of
equity
owners
who
may
qualify
12
for
the
tax
credits
shall
be
amended
as
new
equity
investments
13
are
sold
or
as
any
information
on
the
list
changes.
14
5.
After
verifying
the
eligibility
of
a
qualified
motor
fuel
15
pump
station,
the
department
shall
allow
the
claiming
of
tax
16
credits
as
provided
in
subsection
2.
17
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
18
immediate
importance,
takes
effect
upon
enactment.
19
Sec.
3.
APPLICABILITY.
This
Act
applies
to
equity
20
investments
made
on
or
after
the
effective
date
of
this
Act.
21
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
22
retroactively
to
January
1,
2015,
for
tax
years
beginning
on
23
or
after
that
date.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
provides
an
individual
income
tax
credit
for
28
an
individual
who
makes
an
equity
investment
in
a
qualified
29
motor
fuel
pump
station.
The
tax
credit
is
equal
to
5
percent
30
of
the
individual’s
equity
investment.
“Equity
investment”,
31
“qualified
motor
fuel
pump
station”,
and
other
related
terms
32
are
defined
in
the
bill.
33
In
order
to
qualify
for
the
tax
credit,
a
business
must,
34
within
120
days
of
the
first
investment,
apply
to
the
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593
department
of
revenue
to
be
verified
as
a
qualified
motor
fuel
1
pump
station
and
must
provide
certain
investor
and
investment
2
information.
3
The
tax
credit
is
nonrefundable,
but
any
amount
in
excess
of
4
the
tax
liability
may
be
carried
forward
for
up
to
five
years.
5
The
bill
takes
effect
upon
enactment
and
applies
to
6
equity
investments
made
on
or
after
that
date,
and
applies
7
retroactively
to
tax
years
beginning
on
or
after
January
1,
8
2015.
9
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1947YH
(2)
86
mm/sc
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3