Bill Text: IA HF277 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act creating a tax credit against the individual and corporate income taxes, the franchise tax, insurance premiums tax, and the moneys and credits tax for a charitable contribution to certain institutions engaged in regenerative medicine research and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-02-18 - Subcommittee recommends passage. [HF277 Detail]
Download: Iowa-2019-HF277-Introduced.html
House
File
277
-
Introduced
HOUSE
FILE
277
BY
MAXWELL
A
BILL
FOR
An
Act
creating
a
tax
credit
against
the
individual
and
1
corporate
income
taxes,
the
franchise
tax,
insurance
2
premiums
tax,
and
the
moneys
and
credits
tax
for
a
3
charitable
contribution
to
certain
institutions
engaged
in
4
regenerative
medicine
research
and
including
applicability
5
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
LEGISLATIVE
FINDINGS
AND
PURPOSE.
The
general
1
assembly
finds
that
research
on
regenerative
medicine
has
the
2
potential
to
produce
valuable
advances
in
the
field
of
medicine
3
and
that
an
increase
in
such
research
in
this
state
could
4
result
in
a
substantial
benefit
to
the
state
and
its
citizens.
5
The
purpose
of
the
regenerative
medicine
research
tax
credit
6
enacted
in
this
Act
is
to
induce
taxpayers
to
make
monetary
7
contributions
to
regenerative
medicine
research
institutions
8
above
amounts
that
would
have
been
contributed
absent
state
9
support,
thereby
increasing
the
overall
level
of
funding
10
available
for
regenerative
medicine
research
in
this
state.
11
Sec.
2.
Section
2.48,
subsection
3,
paragraph
h,
Code
2019,
12
is
amended
to
read
as
follows:
13
h.
In
2022,
the
renewable
chemical
production
tax
credit
14
program
available
under
sections
15.315
through
15.322
and
15
the
regenerative
medicine
research
tax
credit
under
section
16
422.10C
.
17
Sec.
3.
NEW
SECTION
.
422.10C
Regenerative
medicine
research
18
tax
credit.
19
1.
Definitions.
For
purposes
of
this
section,
“certified
20
regenerative
medicine
research
institution”
means
an
organization
21
meeting
the
requirements
of
subsection
2
and
certified
by
the
22
department
pursuant
to
that
subsection.
23
2.
Regenerative
medicine
research
institution
certification.
24
a.
An
organization
may
apply
to
the
department
in
the
manner
25
prescribed
by
the
department
to
be
certified
as
a
regenerative
26
medicine
research
institution.
27
b.
In
order
to
be
certified
as
a
regenerative
medicine
28
research
institution,
an
organization
shall
meet
all
of
the
29
following
requirements:
30
(1)
The
organization
is
organized
under
chapter
504
and
31
qualifying
under
section
501(c)(3)
of
the
Internal
Revenue
Code
32
as
an
organization
exempt
from
federal
income
tax
under
section
33
501(a)
of
the
Internal
Revenue
Code.
34
(2)
The
organization
has
a
principal
place
of
business
in
35
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this
state.
1
(3)
The
organization
is
directly
engaged
in
research
in
2
this
state
solely
using
adult
stem
cells,
which
research
is
3
designed
to
improve
patient
care
through
the
development
and
4
dissemination
of
novel
clinical
therapies
for
the
functional
5
repair
and
replacement
of
diseased
tissues
and
organs,
6
including
research
for
the
treatment
of
cancer.
7
(4)
The
organization
spends
at
least
fifty-one
percent
of
8
its
annual
budget
on
laboratory
or
clinical
research
that
is
9
conducted
by
the
organization
and
that
meets
the
requirements
10
of
subparagraph
(3).
11
(5)
The
organization
does
not
operate
as
a
conduit
12
for
research
by
another
organization
by
redistributing
a
13
contribution
it
receives
to
that
other
organization.
14
(6)
The
organization
is
not
a
postsecondary
institution
or
15
an
entity
receiving
twenty-five
percent
or
more
of
its
annual
16
budget
from
a
postsecondary
institution.
17
(7)
The
organization
agrees
to
provide
to
the
department
all
18
of
the
following
information:
19
(a)
Information
to
verify
that
the
organization
meets
the
20
requirements
of
subparagraphs
(1)
through
(6),
including
but
21
not
limited
to
information
relating
to
funding
received
by
the
22
organization
and
expenditures
made
on
research
and
other
items
23
by
the
organization.
24
(b)
Information
to
verify
the
receipt,
donor
identity,
25
value,
and
tax
credit
eligibility
of
contributions
received
by
26
the
organization.
27
(c)
Information
regarding
the
amount
of
charitable
28
contributions
received
by
the
organization
prior
to
29
certification
under
this
section,
and
the
amount
of
charitable
30
contributions
received
for
each
fiscal
year
the
organization
is
31
a
certified
regenerative
medicine
research
institution.
32
(d)
Any
other
information
reasonably
required
by
the
33
department
in
order
to
properly
administer
this
section.
34
c.
Unless
certification
is
revoked
pursuant
to
paragraph
35
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“d”
,
a
certification
received
pursuant
to
this
subsection
shall
1
be
valid
for
one
year,
at
which
time
the
organization
may
apply
2
to
the
department
in
the
manner
prescribed
by
the
department
to
3
become
recertified
pursuant
to
this
subsection.
4
d.
An
organization
shall
notify
the
department
in
a
timely
5
manner
of
any
changes
that
affect
the
organization’s
ability
6
to
qualify
as
a
certified
regenerative
medicine
research
7
institution.
The
department
shall
revoke
the
certification
of
8
an
organization
certified
pursuant
to
this
subsection
if
that
9
organization
subsequently
fails
to
meet
the
requirements
of
10
paragraph
“b”
.
The
revocation
of
a
certification
under
this
11
paragraph
shall
not
prohibit
an
organization
from
subsequently
12
applying
to
be
certified
under
this
subsection.
13
3.
Application.
14
a.
To
receive
a
tax
credit
under
this
section,
a
taxpayer
15
must
submit
an
application
to
the
department
in
the
manner
and
16
form
prescribed
by
the
department
on
or
after
the
date
of
the
17
charitable
contribution
to
the
certified
regenerative
medicine
18
research
institution
for
which
the
tax
credit
is
sought.
19
b.
The
department
shall
issue
tax
credits
and
related
20
tax
credit
certificates
on
a
first-come,
first-served
basis
21
in
the
order
the
applications
are
received
until
the
maximum
22
amount
of
tax
credits
authorized
pursuant
to
subsection
4
23
is
reached.
If
for
a
fiscal
year
the
maximum
amount
of
tax
24
credits
applied
for
exceeds
the
amount
specified
in
subsection
25
4,
the
department
shall
establish
a
wait
list
for
tax
credits.
26
Valid
applications
received
but
not
approved
by
the
department
27
shall
be
placed
on
a
wait
list
in
the
order
the
applications
28
were
received
and
those
applicants
shall
be
given
priority
for
29
receiving
tax
credits
in
succeeding
fiscal
years.
Placement
30
on
a
wait
list
pursuant
to
this
paragraph
shall
not
constitute
31
a
promise
binding
the
state.
The
availability
of
a
tax
32
credit
and
approval
of
a
tax
credit
application
pursuant
to
33
this
section
in
a
future
fiscal
year
is
contingent
upon
the
34
availability
of
tax
credits
in
that
particular
year.
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4.
Maximum
tax
credit
amounts.
The
maximum
aggregate
amount
1
of
tax
credits
issued
in
a
fiscal
year
pursuant
to
this
section
2
shall
not
exceed
two
million
dollars.
3
5.
Regenerative
medicine
research
tax
credit.
4
a.
The
taxes
imposed
under
this
division,
less
the
credits
5
allowed
under
section
422.12,
or
the
taxes
imposed
in
division
6
III
or
V
of
this
chapter,
or
the
taxes
imposed
in
chapter
432,
7
or
the
moneys
and
credits
tax
imposed
in
section
533.329,
shall
8
be
reduced
by
a
regenerative
medicine
research
tax
credit
equal
9
to
sixty
percent
of
a
taxpayer’s
charitable
contribution
to
a
10
certified
regenerative
medicine
research
institution.
11
b.
An
individual
may
claim
the
tax
credit
allowed
a
12
partnership,
limited
liability
company,
S
corporation,
estate,
13
or
trust
electing
to
have
the
income
taxed
directly
to
the
14
individual.
The
amount
claimed
by
the
individual
shall
be
15
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
16
the
partnership,
limited
liability
company,
S
corporation,
17
estate,
or
trust.
18
c.
For
tax
credit
certificates
issued
by
the
department
in
19
the
fiscal
year
during
which
the
charitable
contribution
is
20
made,
the
tax
credit
shall
be
claimed
for
the
applicant’s
tax
21
year
during
which
the
charitable
contribution
is
made.
For
tax
22
credit
certificates
issued
in
any
fiscal
year
following
the
23
fiscal
year
during
which
the
charitable
contribution
is
made,
24
the
tax
credit
shall
be
claimed
for
the
applicant’s
tax
year
25
during
which
the
tax
credit
is
issued
by
the
department.
For
26
an
individual
claiming
the
tax
credit
allowed
another
entity
27
pursuant
to
paragraph
“b”
,
the
tax
credit
shall
be
claimed
for
28
the
individual’s
tax
year
beginning
on
or
after
the
first
day
29
of
the
tax
year
for
which
the
other
entity
was
allowed
to
claim
30
the
tax
credit.
31
d.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
liability
32
is
not
refundable
but
the
excess
for
the
tax
year
may
be
33
credited
to
the
tax
liability
for
the
following
four
years
or
34
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
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be
carried
back
to
a
prior
tax
year.
1
e.
(1)
To
claim
a
tax
credit
under
this
section,
a
taxpayer
2
shall
include
one
or
more
tax
credit
certificates
with
the
3
taxpayer’s
tax
return.
4
(2)
The
tax
credit
certificate
shall
contain
the
taxpayer’s
5
name,
address,
tax
identification
number,
the
amount
of
the
6
credit,
and
any
other
information
required
by
the
department.
7
(3)
The
tax
credit
certificate,
unless
rescinded
by
the
8
department,
shall
be
accepted
by
the
department
as
payment
9
for
the
taxes
imposed
under
this
division,
division
III
or
V
10
of
this
chapter,
chapter
432,
and
section
533.329,
subject
11
to
any
conditions
or
restrictions
placed
by
the
department
12
upon
the
face
of
the
tax
credit
certificate
and
subject
to
the
13
limitations
of
this
section.
14
f.
The
amount
of
the
charitable
contribution
for
which
the
15
tax
credit
is
claimed
shall
not
be
deductible
in
determining
16
taxable
income
for
state
tax
purposes.
17
Sec.
4.
Section
422.33,
Code
2019,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
27.
The
taxes
imposed
under
this
division
20
shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
21
in
the
same
manner,
for
the
same
amount,
and
under
the
same
22
conditions
as
provided
in
section
422.10C.
23
Sec.
5.
Section
422.60,
Code
2019,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
26
shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
27
in
the
same
manner,
for
the
same
amount,
and
under
the
same
28
conditions
as
provided
in
section
422.10C.
29
Sec.
6.
NEW
SECTION
.
432.12N
Regenerative
medicine
research
30
tax
credit.
31
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
32
regenerative
medicine
research
tax
credit
in
the
same
manner,
33
for
the
same
amount,
and
under
the
same
conditions
as
provided
34
in
section
422.10C.
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Sec.
7.
Section
533.329,
subsection
2,
Code
2019,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
3
under
this
section
shall
be
reduced
by
a
regenerative
medicine
4
research
tax
credit
in
the
same
manner,
for
the
same
amount,
5
and
under
the
same
conditions
as
provided
in
section
422.10C.
6
Sec.
8.
APPLICABILITY.
This
Act
applies
to
charitable
7
contributions
to
a
certified
regenerative
medicine
research
8
institution
made
on
or
after
January
1,
2020.
9
Sec.
9.
TAX
CREDIT
CERTIFICATE
ISSUANCES.
Tax
credit
10
certificates
available
pursuant
to
the
regenerative
medicine
11
research
tax
credit
enacted
in
this
Act
shall
not
be
issued
by
12
the
department
of
revenue
prior
to
July
1,
2020.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
provides
a
tax
credit
against
the
individual
or
17
corporate
income
tax,
the
franchise
tax,
the
insurance
premiums
18
tax,
and
the
moneys
and
credits
tax
for
60
percent
of
a
19
taxpayer’s
charitable
contribution
to
a
certified
regenerative
20
medicine
research
institution.
21
Regenerative
medicine
research
institutions
must
apply
22
for
and
receive
certification
from
the
department
of
revenue
23
(department)
as
described
in
the
bill
in
order
for
charitable
24
contributions
to
that
institution
to
qualify
for
the
tax
25
credit.
To
qualify
for
certification,
a
regenerative
medicine
26
research
institution
must
be
a
tax-exempt
organization
under
27
section
501(c)(3)
of
the
Internal
Revenue
Code,
must
have
28
its
principal
place
of
business
in
Iowa,
must
be
directly
29
engaged
in
research
in
this
state
solely
using
adult
stem
30
cells
designed
to
develop
novel
clinical
therapies
for
the
31
functional
repair
and
replacement
of
diseased
tissues
and
32
organs,
including
cancer
research,
must
spend
at
least
51
33
percent
of
its
annual
budget
on
such
research,
and
must
agree
34
to
provide
the
department
with
certain
information
necessary
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to
verify
eligibility
for
the
tax
credits.
In
addition,
a
1
regenerative
medicine
research
institution
must
not
be
a
2
conduit
for
research
by
another
organization,
and
must
not
be
3
a
postsecondary
institution
or
an
entity
receiving
25
percent
4
or
more
of
its
annual
budget
from
a
postsecondary
institution.
5
Certification
by
the
department
is
valid
for
one
year,
at
which
6
time
regenerative
medicine
research
institutions
may
apply
for
7
recertification.
8
In
order
to
claim
the
tax
credit,
a
taxpayer
must
submit
an
9
application
to
the
department
as
described
in
the
bill
on
or
10
after
the
date
of
the
charitable
contribution
and
receive
a
11
tax
credit
certificate.
No
more
than
$2
million
in
tax
credit
12
certificates
may
be
issued
per
fiscal
year.
If
applications
13
for
the
tax
credit
exceed
that
amount
in
a
fiscal
year,
the
14
department
is
required
to
establish
a
wait
list
in
the
order
15
the
applications
were
received
and
those
applications
will
16
receive
priority
for
receiving
tax
credits
in
succeeding
years.
17
The
bill
provides
procedures
for
when
a
tax
credit
shall
be
18
claimed
by
a
taxpayer.
The
tax
credit
is
nonrefundable,
but
19
any
amount
in
excess
of
the
taxpayer’s
tax
liability
may
be
20
carried
forward
for
up
to
four
years.
The
tax
credit
cannot
21
be
carried
back
to
a
prior
tax
year.
The
bill
prohibits
22
contributions
receiving
a
tax
credit
from
also
being
deducted
23
as
a
charitable
contribution.
24
Finally,
the
bill
includes
legislative
findings
and
a
25
legislative
purpose
for
the
tax
credit,
and
adds
the
tax
26
credit
to
the
list
of
tax
expenditures
to
be
reviewed
by
the
27
legislative
tax
expenditure
committee
beginning
in
2022.
28
The
bill
applies
to
charitable
contributions
to
a
certified
29
regenerative
medicine
research
institution
made
on
or
after
30
January
1,
2020.
However,
the
bill
provides
that
tax
credit
31
certificates
shall
not
be
issued
by
the
department
prior
to
32
July
1,
2020.
33
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