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Senate File 575 - IntroducedA Bill ForAn Act 1creating a Hoover presidential library tax credit
2available against the individual and corporate income taxes,
3the franchise tax, the insurance premiums tax, and the
4moneys and credit tax.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15E.364 Hoover presidential library
2tax credit.
31. For tax years beginning on or after January 1, 2021, but
4before January 1, 2024, a tax credit shall be allowed against
5the taxes imposed in chapter 422, subchapters II, III, and V,
6and in chapter 432, and against the moneys and credits tax
7imposed in section 533.329, equal to twenty-five percent of a
8person’s donation to the Hoover presidential foundation for
9the Hoover presidential library and museum renovation project
10fund. An individual may claim a tax credit under this section
11of a partnership, limited liability company, S corporation,
12estate, or trust electing to have income taxed directly to
13the individual. The amount claimed by the individual shall
14be based upon the pro rata share of the individual’s earnings
15from the partnership, limited liability company, S corporation,
16estate, or trust.
172. The amount of the donation for which the tax credit is
18claimed shall not be deductible in determining taxable income
19for state income tax purposes.
203. Any tax credit in excess of the person’s tax liability
21for the tax year may be credited to the tax liability for the
22following five years or until depleted, whichever occurs first.
23A tax credit shall not be carried back to a tax year prior to
24the tax year in which the person claims the tax credit.
254. a. The aggregate amount of tax credits authorized
26pursuant to this section shall not exceed a total of five
27million dollars.
28b. The maximum amount of tax credits granted to a person
29shall not exceed five percent of the aggregate amount of tax
30credits authorized.
31c. Ten percent of the aggregate amount of tax credits
32authorized shall be reserved for those donations in amounts
33of thirty thousand dollars or less. If any portion of the
34reserved tax credits have not been distributed by September 1,
352023, the remaining reserved tax credits shall be available to
-1-1any other eligible person.
25. The tax credit shall not be transferable to any other
3person.
46. The authority shall develop a system for authorization
5of tax credits under this section and shall control the
6distribution of all tax credits to persons providing a
7donation subject to this section. The authority shall
8adopt administrative rules pursuant to chapter 17A for the
9qualification and administration of the donations made pursuant
10to this section.
117. This section is repealed December 31, 2029.
12 Sec. 2. NEW SECTION. 422.11T Hoover presidential library
13tax credit.
14The tax imposed under this subchapter, less the credits
15allowed under section 422.12, shall be reduced by Hoover
16presidential library tax credit authorized pursuant to section
1715E.364.
18 Sec. 3. Section 422.33, Code 2021, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 31. The taxes imposed under this subchapter
21shall be reduced by a Hoover presidential library tax credit
22allowed under section 15E.364.
23 Sec. 4. Section 422.60, Code 2021, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 14. The taxes imposed under this subchapter
26shall be reduced by a Hoover presidential library tax credit
27allowed under section 15E.364.
28 Sec. 5. NEW SECTION. 432.12N Hoover presidential library
29tax credit.
30The taxes imposed under this chapter shall be reduced by a
31Hoover presidential library tax credit allowed under section
3215E.364.
33 Sec. 6. Section 533.329, subsection 2, Code 2021, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. l. The moneys and credits tax imposed under
-2-1this section shall be reduced by a Hoover presidential library
2tax credit allowed under section 15E.364.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill creates a Hoover presidential library tax credit
7available against the individual, corporate, franchise,
8insurance premium, and moneys and credits taxes.
9The amount of the credit shall equal 25 percent of a person’s
10donation to the Hoover presidential foundation for the Hoover
11presidential library and museum renovation project fund, an
12organization exempt from federal taxation.
13The bill specifies that the amount of the donation for which
14the tax credit is claimed shall not be deductible for state
15income tax purposes.
16A credit provided in the bill in excess of tax liability is
17not refundable but the excess for the tax year may be credited
18to a person’s tax liability for the following five years or
19until depleted, whichever occurs first. The tax credit shall
20not be carried back to a tax year prior to the tax year in which
21the person claims the tax credit.
22The aggregate amount of tax credits authorized pursuant to
23the bill shall not exceed $5 million.
24The maximum amount of tax credits granted to a person shall
25not exceed five percent of the aggregate amount of tax credits
26authorized under the bill.
27The bill provides that 10 percent of the aggregate amount of
28tax credits authorized shall be reserved for those donations
29in amounts of $30,000 or less. If any portion of the reserved
30tax credits have not been distributed by September 1, 2023, the
31remaining reserved tax credits shall be available to any other
32eligible person.
33The bill prohibits the transfer of the credit to any other
34person.
35The bill requires the economic development authority
-3-1to develop a system for authorization of tax credits and
2shall control the distribution of all tax credits to persons
3providing a donation subject to this Code section.
4The bill applies to tax years beginning on or after January
51, 2021, but before January 1, 2024.
6The tax credit is repealed December 31, 2029, to account for
7the carryforward of any excess credit that may be credited to
8the person’s tax liability for up to five years.
-4-jm/jh
2available against the individual and corporate income taxes,
3the franchise tax, the insurance premiums tax, and the
4moneys and credit tax.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15E.364 Hoover presidential library
2tax credit.
31. For tax years beginning on or after January 1, 2021, but
4before January 1, 2024, a tax credit shall be allowed against
5the taxes imposed in chapter 422, subchapters II, III, and V,
6and in chapter 432, and against the moneys and credits tax
7imposed in section 533.329, equal to twenty-five percent of a
8person’s donation to the Hoover presidential foundation for
9the Hoover presidential library and museum renovation project
10fund. An individual may claim a tax credit under this section
11of a partnership, limited liability company, S corporation,
12estate, or trust electing to have income taxed directly to
13the individual. The amount claimed by the individual shall
14be based upon the pro rata share of the individual’s earnings
15from the partnership, limited liability company, S corporation,
16estate, or trust.
172. The amount of the donation for which the tax credit is
18claimed shall not be deductible in determining taxable income
19for state income tax purposes.
203. Any tax credit in excess of the person’s tax liability
21for the tax year may be credited to the tax liability for the
22following five years or until depleted, whichever occurs first.
23A tax credit shall not be carried back to a tax year prior to
24the tax year in which the person claims the tax credit.
254. a. The aggregate amount of tax credits authorized
26pursuant to this section shall not exceed a total of five
27million dollars.
28b. The maximum amount of tax credits granted to a person
29shall not exceed five percent of the aggregate amount of tax
30credits authorized.
31c. Ten percent of the aggregate amount of tax credits
32authorized shall be reserved for those donations in amounts
33of thirty thousand dollars or less. If any portion of the
34reserved tax credits have not been distributed by September 1,
352023, the remaining reserved tax credits shall be available to
-1-1any other eligible person.
25. The tax credit shall not be transferable to any other
3person.
46. The authority shall develop a system for authorization
5of tax credits under this section and shall control the
6distribution of all tax credits to persons providing a
7donation subject to this section. The authority shall
8adopt administrative rules pursuant to chapter 17A for the
9qualification and administration of the donations made pursuant
10to this section.
117. This section is repealed December 31, 2029.
12 Sec. 2. NEW SECTION. 422.11T Hoover presidential library
13tax credit.
14The tax imposed under this subchapter, less the credits
15allowed under section 422.12, shall be reduced by Hoover
16presidential library tax credit authorized pursuant to section
1715E.364.
18 Sec. 3. Section 422.33, Code 2021, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 31. The taxes imposed under this subchapter
21shall be reduced by a Hoover presidential library tax credit
22allowed under section 15E.364.
23 Sec. 4. Section 422.60, Code 2021, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 14. The taxes imposed under this subchapter
26shall be reduced by a Hoover presidential library tax credit
27allowed under section 15E.364.
28 Sec. 5. NEW SECTION. 432.12N Hoover presidential library
29tax credit.
30The taxes imposed under this chapter shall be reduced by a
31Hoover presidential library tax credit allowed under section
3215E.364.
33 Sec. 6. Section 533.329, subsection 2, Code 2021, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. l. The moneys and credits tax imposed under
-2-1this section shall be reduced by a Hoover presidential library
2tax credit allowed under section 15E.364.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill creates a Hoover presidential library tax credit
7available against the individual, corporate, franchise,
8insurance premium, and moneys and credits taxes.
9The amount of the credit shall equal 25 percent of a person’s
10donation to the Hoover presidential foundation for the Hoover
11presidential library and museum renovation project fund, an
12organization exempt from federal taxation.
13The bill specifies that the amount of the donation for which
14the tax credit is claimed shall not be deductible for state
15income tax purposes.
16A credit provided in the bill in excess of tax liability is
17not refundable but the excess for the tax year may be credited
18to a person’s tax liability for the following five years or
19until depleted, whichever occurs first. The tax credit shall
20not be carried back to a tax year prior to the tax year in which
21the person claims the tax credit.
22The aggregate amount of tax credits authorized pursuant to
23the bill shall not exceed $5 million.
24The maximum amount of tax credits granted to a person shall
25not exceed five percent of the aggregate amount of tax credits
26authorized under the bill.
27The bill provides that 10 percent of the aggregate amount of
28tax credits authorized shall be reserved for those donations
29in amounts of $30,000 or less. If any portion of the reserved
30tax credits have not been distributed by September 1, 2023, the
31remaining reserved tax credits shall be available to any other
32eligible person.
33The bill prohibits the transfer of the credit to any other
34person.
35The bill requires the economic development authority
-3-1to develop a system for authorization of tax credits and
2shall control the distribution of all tax credits to persons
3providing a donation subject to this Code section.
4The bill applies to tax years beginning on or after January
51, 2021, but before January 1, 2024.
6The tax credit is repealed December 31, 2029, to account for
7the carryforward of any excess credit that may be credited to
8the person’s tax liability for up to five years.
-4-jm/jh