Bill Text: IA HF665 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing for 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 retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF665 Detail]
Download: Iowa-2011-HF665-Introduced.html
House
File
665
-
Introduced
HOUSE
FILE
665
BY
JACOBY
A
BILL
FOR
An
Act
providing
for
a
tax
credit
against
the
individual
1
and
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
retroactive
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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665
Section
1.
NEW
SECTION
.
422.11Y
Regenerative
medicine
1
research
tax
credit.
2
1.
a.
The
taxes
imposed
under
this
division,
less
the
3
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
4
regenerative
medicine
research
tax
credit.
5
b.
The
credit
shall
be
in
an
amount
equal
to
twenty
6
percent
of
a
taxpayer’s
charitable
contribution
to
an
eligible
7
research
institution
located
in
the
state.
For
purposes
8
of
this
section,
“eligible
research
institution”
means
a
9
nonprofit
organization
exempt
from
federal
income
taxation
10
under
section
501(c)(3)
of
the
Internal
Revenue
Code
that
is
11
engaged
in
research
designed
to
improve
patient
care
through
12
the
development
and
dissemination
of
novel
clinical
therapies
13
for
the
functional
repair
and
replacement
of
diseased
tissues
14
and
organs.
15
c.
An
individual
may
claim
a
tax
credit
under
this
16
subsection
of
a
partnership,
limited
liability
company,
17
S
corporation,
estate,
or
trust
electing
to
have
income
18
taxed
directly
to
the
individual.
The
amount
claimed
by
the
19
individual
shall
be
based
upon
the
pro
rata
share
of
the
20
individual’s
earnings
from
the
partnership,
limited
liability
21
company,
S
corporation,
estate,
or
trust.
22
d.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
liability
23
for
the
tax
year
is
not
refundable,
but
the
taxpayer
may
24
elect
to
have
the
excess
credited
to
the
tax
liability
for
25
the
following
four
tax
years
or
until
depleted,
whichever
is
26
earlier.
27
2.
a.
To
claim
a
tax
credit
under
this
section,
the
28
taxpayer
shall
apply
to
the
department
for
a
tax
credit
29
certificate.
After
verifying
the
eligibility
of
a
taxpayer
for
30
a
tax
credit
pursuant
to
this
section,
the
department
shall
31
issue
a
tax
credit
certificate
to
be
attached
to
the
taxpayer’s
32
tax
return.
The
tax
credit
certificate
shall
be
issued
on
33
a
first-come,
first-served
basis
based
upon
the
date
of
the
34
application
and
shall
contain
the
taxpayer’s
name,
address,
35
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665
tax
identification
number,
the
amount
of
the
credit,
the
1
certificate
expiration
date,
and
any
other
information
required
2
by
the
department.
3
b.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
must
4
attach
one
or
more
tax
credit
certificates
to
the
taxpayer’s
5
tax
return.
The
tax
credit
certificate
or
certificates
6
attached
to
the
taxpayer’s
tax
return
shall
be
issued
in
the
7
taxpayer’s
name,
and
the
expiration
date
on
the
certificate
8
shall
be
a
date
that
falls
on
or
after
the
last
day
of
the
9
taxable
year
for
which
the
taxpayer
is
claiming
the
tax
credit.
10
c.
The
tax
credit
certificate,
unless
otherwise
void,
11
shall
be
accepted
by
the
department
as
payment
toward
the
12
tax
liability
of
the
taxpayer,
subject
to
any
conditions
or
13
restrictions
placed
by
the
department
upon
the
face
of
the
14
tax
credit
certificate
and
subject
to
the
limitations
of
this
15
section.
16
d.
Tax
credit
certificates
issued
under
this
section
are
not
17
transferable
to
any
person
or
entity.
18
3.
A
deduction
pursuant
to
section
170
of
the
Internal
19
Revenue
Code
for
the
amount
of
the
contribution
eligible
for
20
the
tax
credit
is
not
allowed
for
state
tax
purposes.
21
4.
The
maximum
amount
of
tax
credits
issued
in
a
fiscal
22
year
pursuant
to
this
section,
section
422.33,
subsection
29,
23
section
422.60,
subsection
15,
section
432.12M,
and
section
24
533.329,
subsection
2,
paragraph
“n”
,
shall
not
exceed
ten
25
million
dollars.
26
Sec.
2.
Section
422.33,
Code
2011,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
29.
The
taxes
imposed
under
this
division
29
shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
30
in
the
same
manner,
for
the
same
amount,
and
under
the
same
31
conditions
as
provided
in
section
422.11Y.
32
Sec.
3.
Section
422.60,
Code
2011,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
13.
The
taxes
imposed
under
this
division
35
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shall
be
reduced
by
a
regenerative
medicine
research
tax
credit
1
in
the
same
manner,
for
the
same
amount,
and
under
the
same
2
conditions
as
provided
in
section
422.11Y.
3
Sec.
4.
NEW
SECTION
.
432.12M
Regenerative
medicine
research
4
tax
credit.
5
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
6
regenerative
medicine
research
tax
credit
in
the
same
manner,
7
for
the
same
amount,
and
under
the
same
conditions
as
provided
8
in
section
422.11Y.
9
Sec.
5.
Section
533.329,
subsection
2,
Code
2011,
is
amended
10
by
adding
the
following
new
paragraph:
11
NEW
PARAGRAPH
.
1.
The
moneys
and
credits
tax
imposed
12
under
this
section
shall
be
reduced
by
a
regenerative
medicine
13
research
tax
credit
in
the
same
manner,
for
the
same
amount,
14
and
under
the
same
conditions
as
provided
in
section
422.11Y.
15
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
Act
applies
16
retroactively
to
January
1,
2011,
for
tax
years
beginning
on
17
or
after
that
date.
18
EXPLANATION
19
This
bill
provides
a
credit
against
the
individual
or
20
corporate
income
tax,
the
franchise
tax,
the
insurance
21
premiums
tax,
and
the
moneys
and
credits
tax
for
20
percent
22
of
a
taxpayer’s
contribution
to
a
regenerative
medicine
23
research
institution
located
in
the
state.
Generally,
24
such
contributions
are
tax
deductible
under
current
federal
25
and
state
law,
and
taking
a
deduction
for
the
contribution
26
precludes
the
taxpayer
from
claiming
the
credit.
27
The
tax
credit
is
not
refundable
but,
at
the
taxpayer’s
28
election,
may
be
credited
to
the
taxpayer’s
tax
liability
for
29
up
to
four
subsequent
tax
years
or
until
depletion,
whichever
30
is
earlier.
The
tax
credits
are
not
transferable.
The
tax
31
credits
are
issued
on
a
first-come,
first-served
basis,
and
the
32
maximum
amount
of
tax
credits
is
limited
to
$10
million
in
any
33
one
fiscal
year.
The
department
of
revenue
approves
the
tax
34
credits
and
issues
the
tax
credit
certificates
to
taxpayers.
35
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