Bill Text: IA SF23 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act limiting the amount of research activities tax credit that is refundable and including retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-02-04 - Fiscal note. [SF23 Detail]
Download: Iowa-2019-SF23-Introduced.html
Senate
File
23
-
Introduced
SENATE
FILE
23
BY
BOLKCOM
A
BILL
FOR
An
Act
limiting
the
amount
of
research
activities
tax
credit
1
that
is
refundable
and
including
retroactive
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
15.335,
subsection
8,
Code
2019,
is
1
amended
to
read
as
follows:
2
8.
Any
credit
in
excess
of
the
tax
liability
for
the
taxable
3
year
shall
be
refunded
with
interest
in
accordance
with
section
4
421.60,
subsection
2
,
paragraph
“e”
.
However,
the
aggregate
5
amount
of
tax
credit
that
may
be
refunded
pursuant
to
this
6
section
and
section
422.10
or
422.33,
subsection
5,
shall
not
7
exceed
one
million
dollars
per
taxpayer
per
year.
In
lieu
of
8
claiming
a
refund,
a
taxpayer
may
elect
to
have
the
overpayment
9
shown
on
its
final,
completed
return
credited
to
the
tax
10
liability
for
the
following
year.
11
Sec.
2.
Section
422.10,
subsection
4,
Code
2019,
is
amended
12
to
read
as
follows:
13
4.
Any
credit
in
excess
of
the
tax
liability
imposed
by
14
section
422.5
less
the
amounts
of
nonrefundable
credits
allowed
15
under
this
division
for
the
taxable
year
shall
be
refunded
16
with
interest
in
accordance
with
section
421.60,
subsection
2
,
17
paragraph
“e”
.
However,
the
aggregate
amount
of
tax
credit
that
18
may
be
refunded
pursuant
to
this
section
and
section
15.335
19
shall
not
exceed
one
million
dollars
per
taxpayer
per
year.
In
20
lieu
of
claiming
a
refund,
a
taxpayer
may
elect
to
have
the
21
overpayment
shown
on
the
taxpayer’s
final,
completed
return
22
credited
to
the
tax
liability
for
the
following
taxable
year.
23
Sec.
3.
Section
422.33,
subsection
5,
paragraph
g,
Code
24
2019,
is
amended
to
read
as
follows:
25
g.
Any
credit
in
excess
of
the
tax
liability
for
the
taxable
26
year
shall
be
refunded
with
interest
in
accordance
with
section
27
421.60,
subsection
2
,
paragraph
“e”
.
However,
the
aggregate
28
amount
of
tax
credit
that
may
be
refunded
pursuant
to
this
29
subsection
and
section
15.335
shall
not
exceed
one
million
30
dollars
per
taxpayer
per
taxable
year.
In
lieu
of
claiming
a
31
refund,
a
taxpayer
may
elect
to
have
the
overpayment
shown
on
32
its
final,
completed
return
credited
to
the
tax
liability
for
33
the
following
taxable
year.
34
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
35
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retroactively
to
January
1,
2019,
for
tax
years
beginning
on
1
or
after
that
date.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
Under
current
law,
the
research
activities
tax
credits
are
6
refundable,
meaning
any
amount
of
the
tax
credits
in
excess
of
7
a
taxpayer’s
tax
liability
are
issued
to
the
taxpayer
in
the
8
form
of
a
tax
refund.
9
This
bill
limits
the
aggregate
amount
of
research
activities
10
tax
credits
that
may
be
refunded
to
$1
million
per
taxpayer
11
per
taxable
year.
This
limitation
includes
the
individual
and
12
corporate
research
activities
credits,
and
the
supplemental
13
research
activities
tax
credit
awarded
by
the
economic
14
development
authority
under
Code
section
15.335.
15
The
bill
applies
retroactively
to
January
1,
2019,
for
tax
16
years
beginning
on
or
after
that
date.
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