House
Study
Bill
727
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
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
5768YC
(2)
90
jm/jh
H.F.
_____
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
5768YC
(2)
90
jm/jh
1/
2
H.F.
_____
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
5768YC
(2)
90
jm/jh
2/
2