House File 2660 - Introduced HOUSE FILE 2660 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 727) A BILL FOR An Act relating to eligibility for claiming the research 1 activities tax credit available against the individual 2 and corporate income tax, and including retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5768HV (1) 90 jm/jh

H.F. 2660 Section 1. Section 422.10, subsection 1, paragraph a, 1 subparagraph (1), subparagraph division (b), subparagraph 2 subdivision (i), Code 2024, is amended to read as follows: 3 (i) (A) A person engaged in agricultural production 4 as defined in section 423.1 , except a person conducting 5 agriscience research as defined in subparagraph part (B) shall 6 not be considered to be engaged in agricultural production as 7 defined in section 423.1 . 8 (B) As used in this subparagraph subdivision, “ agriscience 9 research” means research conducted in this state in the areas 10 of animal science, veterinary medicine, nutritional science, 11 or genetic science that is intended to improve the scientific 12 knowledge base, or to increase innovation, performance, or 13 viability within this state, and the results of such research 14 are evaluated for statistical relevance, and when appropriate 15 the research results are published in a journal, magazine, 16 or similar periodical or submitted for publication in such a 17 periodical, and the research is relied upon within the industry 18 that may benefit from the research. 19 Sec. 2. Section 422.33, subsection 5, paragraph e, 20 subparagraph (1), subparagraph division (b), subparagraph 21 subdivision (i), Code 2024, is amended to read as follows: 22 (i) (A) A person engaged in agricultural production 23 as defined in section 423.1 , except a person conducting 24 agriscience research as defined in subparagraph part (B) shall 25 not be considered to be engaged in agricultural production as 26 defined in section 423.1 . 27 (B) As used in this subparagraph subdivision, “agriscience 28 research” means research conducted in this state in the areas 29 of animal science, veterinary medicine, nutritional science, 30 or genetic science that is intended to improve the scientific 31 knowledge base, or to increase innovation, performance, or 32 viability within this state, and the results of such research 33 are evaluated for statistical relevance, and when appropriate 34 the research results are published in a journal, magazine, 35 -1- LSB 5768HV (1) 90 jm/jh 1/ 2

H.F. 2660 or similar periodical or submitted for publication in such a 1 periodical, and the research is relied upon within the industry 2 that may benefit from the research. 3 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 4 retroactively to January 1, 2017, for tax years beginning on 5 or after that date. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to eligibility for claiming the research 10 activities tax credit available against the individual and 11 corporate income tax. 12 Under current law, a person engaged in agricultural 13 production as defined in Code section 423.1(5), is not eligible 14 for claiming the research activities tax credit. However, 15 the bill specifies a person conducting agriscience research 16 is eligible to claim the research activities tax credit and 17 is not considered agricultural production for purposes of the 18 tax credit. The calculation of the tax credit is based upon 19 increasing research activities in the state and is refundable. 20 The bill defines “agriscience research”. 21 The bill applies retroactively to January 1, 2017, for tax 22 years beginning on or after that date. 23 -2- LSB 5768HV (1) 90 jm/jh 2/ 2