Bill Text: IA HF2624 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act creating the railroad reconstruction or replacement tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-03-12 - Subcommittee recommends passage. Vote Total: 2-0. [HF2624 Detail]
Download: Iowa-2023-HF2624-Introduced.html
House
File
2624
-
Introduced
HOUSE
FILE
2624
BY
JONES
A
BILL
FOR
An
Act
creating
the
railroad
reconstruction
or
replacement
tax
1
credit
available
against
the
individual
and
corporate
income
2
taxes,
the
franchise
tax,
the
insurance
premiums
tax,
and
3
the
moneys
and
credits
tax,
and
including
effective
date
and
4
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
NEW
SECTION
.
327I.1
Railroad
reconstruction
or
1
replacement
tax
credit.
2
1.
As
used
in
this
section:
3
a.
“Department”
means
the
department
of
revenue.
4
b.
“Qualified
expenditures”
means
gross
expenditures
in
the
5
taxable
year
for
maintenance,
reconstruction,
or
replacement
6
of
railroad
infrastructure,
including
track,
roadbed,
bridges,
7
industrial
leads
and
sidings,
and
track-related
structures
8
owned
or
leased
by
a
class
II
or
class
III
railroad
in
this
9
state
as
of
January
1,
2021.
“Qualified
expenditures”
also
10
includes
new
construction
of
industrial
leads,
switches,
spurs,
11
and
sidings
and
extensions
of
existing
sidings
in
this
state
by
12
a
class
II
or
class
III
railroad.
13
c.
“Taxpayer”
means
any
railroad
that
is
classified
by
14
the
surface
transportation
board
as
a
class
II
or
class
III
15
railroad.
16
2.
A
railroad
reconstruction
or
replacement
tax
credit
17
shall
be
allowed
against
the
taxes
imposed
in
chapter
422,
18
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
19
the
moneys
and
credits
tax
imposed
in
section
533.329,
for
20
qualified
expenditures.
21
3.
A
taxpayer
who
is
an
individual
may
claim
a
tax
credit
22
under
this
subsection
of
a
partnership,
limited
liability
23
company,
S
corporation,
estate,
or
trust
electing
to
have
24
income
taxed
directly
to
the
individual.
The
amount
claimed
25
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
26
individual’s
earnings
from
the
partnership,
limited
liability
27
company,
S
corporation,
estate,
or
trust.
28
4.
Any
credit
in
excess
of
the
tax
liability
is
not
29
refundable
but
the
excess
for
the
tax
year
may
be
credited
30
to
the
tax
liability
for
the
following
five
years
or
until
31
depleted,
whichever
is
earlier.
32
5.
For
tax
years
beginning
on
or
after
January
1,
2024,
33
but
before
January
1,
2032,
a
tax
credit
may
be
claimed
that
34
shall
equal
fifty
percent
of
qualified
expenditures
made
by
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the
taxpayer,
not
to
exceed
three
thousand
dollars
per
mile,
1
multiplied
by
the
number
of
miles
of
railroad
track
owned
or
2
leased
within
the
state
by
the
taxpayer
for
which
the
taxpayer
3
made
qualified
expenditures
upon
during
the
applicable
tax
4
year.
5
6.
a.
To
claim
a
tax
credit,
a
taxpayer
shall
include
one
6
or
more
tax
credit
certificates
with
the
taxpayer’s
return.
7
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
8
name,
address,
tax
identification
number,
the
amount
of
the
9
credit,
any
other
information
required
by
the
department,
10
and
a
place
for
the
name
and
tax
identification
number
of
a
11
transferee
and
the
amount
of
the
tax
credit
being
transferred.
12
7.
a.
Tax
credit
certificates
issued
under
this
section
may
13
be
transferred
to
any
person.
Within
ninety
days
of
transfer,
14
the
transferee
shall
submit
the
transferred
tax
credit
15
certificate
to
the
department
of
revenue
along
with
a
statement
16
containing
the
transferee’s
name,
tax
identification
number,
17
address,
the
denomination
that
each
replacement
tax
credit
18
certificate
is
to
carry,
and
any
other
information
required
by
19
the
department
of
revenue.
However,
tax
credit
certificate
20
amounts
of
less
than
the
minimum
amount
established
by
rule
by
21
the
department
of
revenue
shall
not
be
transferable.
22
b.
Within
thirty
days
of
receiving
the
transferred
tax
23
credit
certificate
and
the
transferee’s
statement,
the
24
department
of
revenue
shall
issue
one
or
more
replacement
tax
25
credit
certificates
to
the
transferee.
Each
replacement
tax
26
credit
certificate
must
contain
the
information
required
for
27
the
original
tax
credit
certificate
and
must
have
the
same
28
expiration
date
that
appeared
on
the
transferred
tax
credit
29
certificate.
30
c.
A
tax
credit
shall
not
be
claimed
by
a
transferee
31
under
this
section
until
a
replacement
tax
credit
certificate
32
identifying
the
transferee
as
the
proper
holder
has
been
33
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
34
transferred
against
the
taxes
imposed
in
chapter
422,
35
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subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
the
1
moneys
and
credits
tax
imposed
in
section
533.329
for
any
tax
2
year
the
original
transferor
could
have
claimed
the
tax
credit.
3
Any
consideration
received
for
the
transfer
of
the
tax
credit
4
shall
not
be
included
as
income
under
chapter
422,
subchapters
5
II,
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
6
tax
credit
shall
not
be
deducted
from
income
under
chapter
422,
7
subchapters
II,
III,
and
V.
8
8.
This
section
is
repealed
January
1,
2037.
9
Sec.
2.
NEW
SECTION
.
422.10C
Railroad
reconstruction
or
10
replacement
tax
credit.
11
1.
The
taxes
imposed
under
this
subchapter,
less
the
credits
12
allowed
under
section
422.12,
shall
be
reduced
by
a
railroad
13
reconstruction
or
replacement
tax
credit
allowed
pursuant
to
14
section
327I.1.
15
2.
This
section
is
repealed
January
1,
2037.
16
Sec.
3.
Section
422.33,
Code
2024,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
11.
a.
The
taxes
imposed
under
this
19
subchapter
shall
be
reduced
by
a
railroad
reconstruction
or
20
replacement
tax
credit
allowed
pursuant
to
section
327I.1.
21
b.
This
subsection
is
repealed
January
1,
2037.
22
Sec.
4.
Section
422.60,
Code
2024,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
16.
a.
The
taxes
imposed
under
this
25
subchapter
shall
be
reduced
by
a
railroad
reconstruction
or
26
replacement
tax
credit
allowed
pursuant
to
section
327I.1.
27
b.
This
subsection
is
repealed
January
1,
2037.
28
Sec.
5.
NEW
SECTION
.
432.12P
Railroad
reconstruction
or
29
replacement
tax
credit.
30
1.
The
taxes
imposed
under
this
chapter
shall
be
reduced
31
by
a
railroad
reconstruction
or
replacement
tax
credit
allowed
32
pursuant
to
section
327I.1.
33
2.
This
section
is
repealed
January
1,
2037.
34
Sec.
6.
Section
533.329,
subsection
2,
Code
2024,
is
amended
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by
adding
the
following
new
paragraph:
1
NEW
PARAGRAPH
.
n.
(1)
The
moneys
and
credits
tax
2
imposed
under
this
section
shall
be
reduced
by
a
railroad
3
reconstruction
or
replacement
tax
credit
allowed
pursuant
to
4
section
327I.1.
5
(2)
This
paragraph
is
repealed
January
1,
2037.
6
Sec.
7.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
7
importance,
takes
effect
upon
enactment.
8
Sec.
8.
RETROACTIVE
APPLICABILITY.
This
Act
applies
9
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
10
or
after
that
date.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
creates
the
railroad
reconstruction
or
replacement
15
tax
credit
available
against
the
individual
and
corporate
16
income
taxes,
the
franchise
tax,
the
insurance
premiums
tax,
17
and
the
moneys
and
credits
tax.
18
Under
the
bill,
for
tax
years
beginning
on
or
after
January
19
1,
2024,
but
before
January
1,
2032,
a
tax
credit
may
be
20
claimed
equaling
50
percent
of
qualified
expenditures
made
by
21
a
railroad
classified
as
class
I
or
class
II,
not
to
exceed
22
$3,000
per
mile,
multiplied
by
the
number
of
miles
of
railroad
23
track
owned
or
leased
within
the
state
by
the
taxpayer
for
24
which
the
taxpayer
made
qualified
expenditures
upon
during
the
25
applicable
tax
year.
26
The
bill
defines
“qualified
expenditures”
to
mean
the
27
maintenance,
reconstruction,
or
replacement
of
railroad
28
infrastructure,
including
track,
roadbed,
bridges,
and
29
industrial
leads
and
sidings,
owned
or
leased
by
a
class
II
30
or
class
III
railroad
in
this
state
as
of
January
1,
2021.
31
“Qualified
expenditures”
also
includes
new
construction
of
32
industrial
leads,
switches,
spurs,
and
sidings
and
extensions
33
of
existing
sidings.
34
Any
credit
in
excess
of
the
tax
liability
is
not
refundable
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under
the
bill,
but
the
excess
may
be
credited
to
the
tax
1
liability
for
up
to
the
next
five
tax
years.
2
The
bill
repeals
the
tax
credit
from
the
Code
on
January
1,
3
2037,
to
account
for
a
taxpayer
crediting
excess
tax
liability
4
for
up
to
five
additional
tax
years
or
until
depleted,
5
whichever
is
earlier.
6
The
bill
takes
effect
upon
enactment
and
applies
7
retroactively
to
tax
years
beginning
on
or
after
January
1,
8
2024.
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