Bill Text: IA SF269 | 2017-2018 | 87th 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 retroactive and other applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-16 - Subcommittee: Feenstra, Bolkcom, and Edler. S.J. 351. [SF269 Detail]

Download: Iowa-2017-SF269-Introduced.html

Senate File 269 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN

                                 (COMPANION TO HF 240
                                     BY MAXWELL)

                                      A BILL FOR

  1 An Act creating a tax credit against the individual and
  2    corporate income taxes, the franchise tax, insurance
  3    premiums tax, and the moneys and credits tax for a
  4    charitable contribution to certain institutions engaged in
  5    regenerative medicine research and including retroactive and
  6    other applicability provisions.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  NEW SECTION.  422.10C  Regenerative medicine
  1  2 research tax credit.
  1  3    1.  a.  The taxes imposed under this division, less the
  1  4 credits allowed under section 422.12, shall be reduced by a
  1  5 regenerative medicine research tax credit.
  1  6    b.  The credit shall be in an amount equal to sixty percent
  1  7 of a taxpayer's charitable contribution to an eligible research
  1  8 institution located in the state.  A charitable contribution
  1  9 shall not be eligible for the tax credit to the extent the
  1 10 contribution was taken as a deduction pursuant to section 170
  1 11 of the Internal Revenue Code for state tax purposes.  For
  1 12 purposes of this section, "eligible research institution"
  1 13 means an organization qualifying under section 501(c)(3) of
  1 14 the Internal Revenue Code as an organization exempt from
  1 15 federal income tax under section 501(a) of the Internal
  1 16 Revenue Code that is engaged in research designed to improve
  1 17 patient care through the development and dissemination of novel
  1 18 clinical therapies for the functional repair and replacement
  1 19 of diseased tissues and organs, including research for the
  1 20 treatment of cancer. "Eligible research institution" excludes
  1 21 a postsecondary institution or an entity or organization
  1 22 receiving twenty=five percent or more of its annual budget from
  1 23 a postsecondary institution.
  1 24    c.  An individual may claim the tax credit allowed a
  1 25 partnership, limited liability company, S corporation, estate,
  1 26 or trust electing to have the income taxed directly to the
  1 27 individual.  The amount claimed by the individual shall be
  1 28 based upon the pro rata share of the individual's earnings of
  1 29 the partnership, limited liability company, S corporation,
  1 30 estate, or trust.
  1 31    d.  Any tax credit in excess of the taxpayer's tax liability
  1 32 is not refundable but the excess for the tax year may be
  1 33 credited to the tax liability for the following four tax years
  1 34 or until depleted, whichever is earlier.
  1 35    2.  a.  A taxpayer must submit an application to the
  2  1 department on or after the date the charitable contribution is
  2  2 made.  The application must be approved by the department in
  2  3 order to claim the tax credit.
  2  4    b.  The department shall accept and approve applications
  2  5 on a first=come, first=served basis according to the date
  2  6 the application was received until the maximum amount of tax
  2  7 credits that may be approved under subsection 3 is reached.
  2  8 If for a fiscal year the aggregate amount of tax credits
  2  9 applied for exceeds the amount specified in subsection 3,
  2 10 the department shall establish a wait list for tax credits.
  2 11 Valid applications filed by the taxpayer but not approved by
  2 12 the department shall be placed on a wait list in the order
  2 13 the applications were received and those applicants shall
  2 14 be given priority for having their applications approved
  2 15 in succeeding years.  Placement on a wait list pursuant to
  2 16 this paragraph shall not constitute a promise binding the
  2 17 state.  The availability of a tax credit and approval of a tax
  2 18 credit application pursuant to this section in a future year
  2 19 is contingent upon the availability of tax credits in that
  2 20 particular year.
  2 21    c.  For tax credit applications received and approved by
  2 22 the department in the fiscal year during which the charitable
  2 23 contribution is made, the tax credit shall be claimed for the
  2 24 tax year during which the charitable contribution is made.  For
  2 25 tax credit applications approved in any fiscal year following
  2 26 the fiscal year during which the charitable contribution is
  2 27 made, the tax credit shall be claimed for the tax year during
  2 28 which the application is approved by the department.  A tax
  2 29 credit shall not be carried back to a tax year prior to the tax
  2 30 year in which the taxpayer claims the tax credit.
  2 31    3.  The maximum aggregate amount of tax credits approved
  2 32 in a fiscal year pursuant to this section, section 422.33,
  2 33 subsection 27, section 422.60, subsection 14, section 432.12N,
  2 34 and section 533.329, subsection 2, paragraph "m", shall not
  2 35 exceed ten million dollars.
  3  1    Sec. 2.  Section 422.33, Code 2017, is amended by adding the
  3  2 following new subsection:
  3  3    NEW SUBSECTION.  27.  The taxes imposed under this division
  3  4 shall be reduced by a regenerative medicine research tax credit
  3  5 in the same manner, for the same amount, and under the same
  3  6 conditions as provided in section 422.10C.
  3  7    Sec. 3.  Section 422.60, Code 2017, is amended by adding the
  3  8 following new subsection:
  3  9    NEW SUBSECTION.  14.  The taxes imposed under this division
  3 10 shall be reduced by a regenerative medicine research tax credit
  3 11 in the same manner, for the same amount, and under the same
  3 12 conditions as provided in section 422.10C.
  3 13    Sec. 4.  NEW SECTION.  432.12N  Regenerative medicine research
  3 14 tax credit.
  3 15    The taxes imposed under this chapter shall be reduced by a
  3 16 regenerative medicine research tax credit in the same manner,
  3 17 for the same amount, and under the same conditions as provided
  3 18 in section 422.10C.
  3 19    Sec. 5.  Section 533.329, subsection 2, Code 2017, is amended
  3 20 by adding the following new paragraph:
  3 21    NEW PARAGRAPH.  m.  The moneys and credits tax imposed
  3 22 under this section shall be reduced by a regenerative medicine
  3 23 research tax credit in the same manner, for the same amount,
  3 24 and under the same conditions as provided in section 422.10C.
  3 25    Sec. 6.  APPLICABILITY.  This Act applies to charitable
  3 26 contributions to an eligible research institution located in
  3 27 this state made on or after January 1, 2017.
  3 28    Sec. 7.  RETROACTIVE APPLICABILITY.  This Act applies
  3 29 retroactively to January 1, 2017, for tax years beginning on
  3 30 or after that date.
  3 31                           EXPLANATION
  3 32 The inclusion of this explanation does not constitute agreement with
  3 33 the explanation's substance by the members of the general assembly.
  3 34    This bill provides a credit against the individual or
  3 35 corporate income tax, the franchise tax, the insurance premiums
  4  1 tax, and the moneys and credits tax for 60 percent of a
  4  2 taxpayer's contribution to a regenerative medicine research
  4  3 institution located in the state.  Contributions claimed as
  4  4 a charitable deduction for Iowa tax purposes shall not be
  4  5 eligible for the tax credit. In order to qualify for the
  4  6 credit, the regenerative medicine research institute must be
  4  7 qualified under 501(c)(3) of the Internal Revenue Code and must
  4  8 engage in research that is designed to improve patient care
  4  9 through the development and dissemination of novel clinical
  4 10 therapies for the functional repair and replacement of diseased
  4 11 tissues and organs, including cancer research. Postsecondary
  4 12 institutions and entities that receive 25 percent or more of
  4 13 their annual budget from a postsecondary institution do not
  4 14 qualify.
  4 15    In order to claim a tax credit, the taxpayer must submit
  4 16 an application to the department of revenue (department) on
  4 17 or after the date of the charitable contribution, and have
  4 18 that application approved by the department.  No more than
  4 19 $10 million in tax credits may be approved per fiscal year.
  4 20 If applications for the tax credit exceed that amount, the
  4 21 department is required to establish a wait list in the order
  4 22 the applications were received and those applicants will
  4 23 receive priority for receiving tax credits in succeeding years.
  4 24    The tax credit is nonrefundable, but any amount in excess of
  4 25 the taxpayer's tax liability may be carried forward for up to
  4 26 four years.  The tax credit cannot be carried back to a prior
  4 27 tax year.  For tax credit applications received and approved by
  4 28 the department in the fiscal year during which the charitable
  4 29 contribution is made, the tax credit shall be claimed for the
  4 30 tax year during which the charitable contribution is made.  For
  4 31 applications approved by the department in any later fiscal
  4 32 year, the tax credit shall be claimed for the tax year during
  4 33 which the application is approved.
  4 34    The bill applies retroactively to January 1, 2017, for
  4 35 tax years beginning on or after that date, and applies to
  5  1 charitable contributions made on or after that date.
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