HF 2660 (LSB 5768HV (1) 90)

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 activities tax credit available against the individual and corporate income tax, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.10, subsection 1, paragraph a, subparagraph (1), subparagraph division (b), subparagraph subdivision (i), Code 2024, is amended to read as follows:
   (i)  (A)  A person engaged in agricultural production as defined in section 423.1, except a person conducting agriscience research as defined in subparagraph part (B) shall not be considered to be engaged in agricultural production as defined in section 423.1.
   (B)  As used in this subparagraph subdivision, “agriscience research” means research conducted in this state in the areas of animal science, veterinary medicine, nutritional science, or genetic science that is intended to improve the scientific knowledge base, or to increase innovation, performance, or viability within this state, and the results of such research are evaluated for statistical relevance, and when appropriate the research results are published in a journal, magazine, or similar periodical or submitted for publication in such a periodical, and the research is relied upon within the industry that may benefit from the research.
    Sec. 2.  Section 422.33, subsection 5, paragraph e, subparagraph (1), subparagraph division (b), subparagraph subdivision (i), Code 2024, is amended to read as follows:
   (i)  (A)  A person engaged in agricultural production as defined in section 423.1, except a person conducting agriscience research as defined in subparagraph part (B) shall not be considered to be engaged in agricultural production as defined in section 423.1.
   (B)  As used in this subparagraph subdivision, “agriscience research” means research conducted in this state in the areas of animal science, veterinary medicine, nutritional science, or genetic science that is intended to improve the scientific knowledge base, or to increase innovation, performance, or viability within this state, and the results of such research are evaluated for statistical relevance, and when appropriate the research results are published in a journal, magazine, or similar periodical or submitted for publication in such a periodical, and the research is relied upon within the industry that may benefit from the research.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2017, 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 relates to eligibility for claiming the research activities tax credit available against the individual and corporate income tax.
   Under current law, a person engaged in agricultural production as defined in Code section 423.1(5), is not eligible for claiming the research activities tax credit. However, the bill specifies a person conducting agriscience research is eligible to claim the research activities tax credit and is not considered agricultural production for purposes of the tax credit. The calculation of the tax credit is based upon increasing research activities in the state and is refundable.
   The bill defines “agriscience research”.
   The bill applies retroactively to January 1, 2017, for tax years beginning on or after that date.