Senate
File
387
-
Introduced
SENATE
FILE
387
BY
COMMITTEE
ON
ECONOMIC
GROWTH/REBUILD
IOWA
(SUCCESSOR
TO
SF
145)
A
BILL
FOR
An
Act
providing
for
a
manufacturing
jobs
program
and
including
1
retroactive
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
MANUFACTURING
JOBS
PROGRAM
2
Section
1.
NEW
SECTION
.
15.321
Short
title.
3
This
part
shall
be
known
and
may
be
cited
as
the
4
“Manufacturing
Jobs
Program”
.
5
Sec.
2.
NEW
SECTION
.
15.322
Definitions.
6
1.
“Capital
investment”
means
expenditures
that
are
made
by
7
an
eligible
manufacturer
to
retool
or
reconfigure
a
facility
8
and
that
are
directly
related
to
the
manufacturing
of
a
new
9
product
or
to
the
expansion
of
production
capacity
for
an
10
existing
product.
11
2.
“Department”
means
the
department
of
economic
12
development.
13
3.
“Eligible
manufacturer”
means
a
manufacturer
meeting
the
14
requirements
of
section
15.323.
15
4.
“Facility”
means
a
building
or
other
structure
at
which
16
an
eligible
manufacturer
manufactures
a
product.
17
5.
“Program”
means
the
manufacturing
jobs
program
18
established
pursuant
to
this
part.
19
Sec.
3.
NEW
SECTION
.
15.323
Eligible
manufacturer.
20
1.
To
be
eligible
to
receive
incentives
under
the
program
21
described
in
this
part,
a
manufacturer
shall
meet
all
of
the
22
following
conditions:
23
a.
Be
an
Iowa-based
business
manufacturing
goods
at
a
24
facility
in
Iowa.
25
b.
Have
a
North
American
industry
classification
system
code
26
within
the
manufacturing
sector
range
31-33.
27
c.
Increase
manufacturing
activities
in
the
state
either
by
28
manufacturing
a
new
product
or
by
expanding
production
capacity
29
for
an
existing
product.
30
d.
Make
a
minimum
capital
investment.
For
purposes
of
this
31
paragraph,
the
amount
of
the
minimum
capital
investment
shall
32
be:
33
(1)
Twenty-five
thousand
dollars
per
job,
in
the
case
of
a
34
new
product.
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(2)
Fifteen
thousand
dollars
per
job,
in
the
case
of
1
expanded
capacity
for
an
existing
product.
2
e.
Meet
all
of
the
requirements
of
an
eligible
business
3
under
section
15.329
except
the
qualifying
investment
amount
in
4
section
15.329,
subsection
1,
paragraph
“a”
.
5
2.
A
manufacturer
receiving
assistance
under
this
part
6
shall
not
be
eligible
for
assistance
under
the
high
quality
7
jobs
program
described
in
part
13
of
this
subchapter.
8
Sec.
4.
NEW
SECTION
.
15.324
Agreement.
9
1.
An
eligible
manufacturer
receiving
financial
assistance
10
under
the
program
shall
enter
into
an
agreement
with
the
11
department
specifying
the
requirements
that
must
be
met
to
12
confirm
eligibility
pursuant
to
this
part.
13
2.
An
agreement
entered
into
under
the
program
shall
conform
14
to
the
minimum
requirements
specified
in
section
15.330.
15
Sec.
5.
NEW
SECTION
.
15.325
Manufacturing
activities
tax
16
credit.
17
1.
a.
An
eligible
manufacturer
may
claim
a
tax
credit
18
against
the
taxes
imposed
in
chapter
422,
division
II
or
19
III
equal
to
one
hundred
percent
of
the
amount
of
capital
20
investment
directly
related
to
increasing
manufacturing
21
activities
in
the
state.
22
b.
An
individual
may
claim
the
tax
credit
under
this
23
subsection
of
a
partnership,
limited
liability
company,
24
S
corporation,
estate,
or
trust
electing
to
have
income
25
taxed
directly
to
the
individual.
The
amount
claimed
by
the
26
individual
shall
be
based
upon
the
pro
rata
share
of
the
27
individual’s
earnings
from
the
partnership,
limited
liability
28
company,
S
corporation,
estate,
or
trust.
29
c.
Any
tax
credit
in
excess
of
the
tax
liability
for
the
tax
30
year
may
be
credited
to
the
tax
liability
for
the
following
ten
31
years
or
until
depleted,
whichever
occurs
first.
32
d.
(1)
Subject
to
prior
approval
by
the
department,
in
33
consultation
with
the
department
of
revenue,
an
eligible
34
manufacturer
may
elect
to
receive
a
refund
of
all
or
a
portion
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of
any
unused
tax
credit
in
excess
of
the
tax
liability.
1
(2)
If
the
eligible
manufacturer
is
a
partnership,
S
2
corporation,
limited
liability
company,
or
estate
or
trust
3
electing
to
have
the
income
taxed
directly
to
the
individual,
4
an
individual
may
claim
the
refund
allowed
under
subparagraph
5
(1).
The
amount
claimed
by
the
individual
shall
be
based
6
upon
the
pro
rata
share
of
the
individual’s
earnings
of
the
7
partnership,
S
corporation,
limited
liability
company,
estate,
8
or
trust.
9
2.
a.
An
eligible
manufacturer
shall
apply
to
the
10
department
of
economic
development
for
a
tax
credit
11
certificate.
After
reviewing
the
application
and
verifying
the
12
eligibility
of
a
taxpayer
for
a
tax
credit
pursuant
to
this
13
section,
the
department
shall
forward
the
application
to
the
14
board
with
a
recommendation
on
whether
or
not
to
issue
a
tax
15
credit
certificate
to
the
taxpayer.
If
the
board
approves
16
the
application,
the
department
shall
issue
a
tax
credit
17
certificate
to
the
taxpayer.
The
tax
credit
certificate
shall
18
contain
the
taxpayer’s
name,
address,
tax
identification
19
number,
the
amount
of
the
credit,
the
certificate
expiration
20
date,
and
any
other
information
required
by
the
department
of
21
revenue.
22
b.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
must
23
attach
one
or
more
tax
credit
certificates
to
the
taxpayer’s
24
tax
return.
The
tax
credit
certificate
or
certificates
25
attached
to
the
taxpayer’s
tax
return
shall
be
issued
in
the
26
taxpayer’s
name,
and
the
expiration
date
on
the
certificate
27
shall
be
a
date
that
falls
on
or
after
the
last
day
of
the
28
taxable
year
for
which
the
taxpayer
is
claiming
the
tax
credit.
29
c.
The
tax
credit
certificate,
unless
otherwise
void,
shall
30
be
accepted
by
the
department
of
revenue
as
payment
for
taxes
31
imposed
pursuant
to
chapter
422,
division
II
or
III,
subject
32
to
any
conditions
or
restrictions
placed
by
the
department
33
of
economic
development
upon
the
face
of
the
tax
credit
34
certificate
and
subject
to
the
limitations
of
this
section.
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d.
A
tax
credit
certificate
issued
under
this
section
is
not
1
transferable
to
any
person
or
entity.
2
3.
The
maximum
amount
of
tax
credit
that
may
be
claimed
3
under
this
section
by
an
eligible
manufacturer
is
five
million
4
dollars.
5
4.
The
total
amount
of
tax
credits
that
may
be
approved
by
6
the
board
under
this
section
is
fifteen
million
dollars.
7
Sec.
6.
NEW
SECTION
.
15.325A
Repeal.
8
This
part
is
repealed
on
December
31,
2020.
9
Sec.
7.
NEW
SECTION
.
422.11Y
Manufacturing
activities
tax
10
credit.
11
The
taxes
imposed
under
this
division
shall
be
reduced
by
12
a
manufacturing
activities
tax
credit
in
the
same
manner,
for
13
the
same
amount,
and
under
the
same
conditions
as
provided
in
14
chapter
15,
subchapter
II,
part
12.
15
Sec.
8.
Section
422.33,
Code
2011,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
29.
The
taxes
imposed
under
this
division
18
shall
be
reduced
by
a
manufacturing
activities
tax
credit
19
in
the
same
manner,
for
the
same
amount,
and
under
the
same
20
conditions
as
provided
in
chapter
15,
subchapter
II,
part
12.
21
Sec.
9.
RETROACTIVE
APPLICABILITY.
This
division
of
this
22
Act
applies
retroactively
to
January
1,
2011,
for
tax
years
23
beginning
on
or
after
that
date.
24
DIVISION
II
25
CONFORMING
CHANGES
26
Sec.
10.
Section
2.48,
subsection
3,
paragraph
e,
Code
2011,
27
is
amended
by
adding
the
following
new
subparagraph:
28
NEW
SUBPARAGRAPH
.
(10)
The
manufacturing
activities
tax
29
credits
available
under
the
manufacturing
jobs
program
in
30
chapter
15,
subchapter
II,
part
12.
31
Sec.
11.
Section
15.104,
subsection
8,
Code
2011,
is
amended
32
by
adding
the
following
new
paragraph:
33
NEW
PARAGRAPH
.
n.
Manufacturing
jobs.
Data
on
all
34
assistance
provided
to
eligible
manufacturers
under
the
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manufacturing
jobs
program
described
in
sections
15.321
through
1
15.325A.
2
EXPLANATION
3
This
bill
creates
a
manufacturing
jobs
program
within
the
4
department
of
economic
development.
5
Division
I
of
the
bill
creates
the
program.
The
program
6
provides
corporate
and
individual
income
tax
credits
to
7
eligible
manufacturers
for
100
percent
of
their
capital
8
investment
directly
related
to
increasing
manufacturing
9
activities
in
the
state.
To
be
eligible,
a
manufacturer
must
10
be
an
Iowa-based
business
manufacturing
goods
at
a
facility
11
in
Iowa,
have
a
North
American
Industry
Classification
System
12
code
within
the
manufacturing
sector
range
31-33,
increase
13
manufacturing
activities
either
by
manufacturing
a
new
14
product
or
by
expanding
production
capacity
for
an
existing
15
product,
make
a
minimum
capital
investment,
and
meet
all
the
16
requirements
of
an
eligible
business
under
the
high
quality
17
jobs
program
specified
in
Code
section
15.329.
Meeting
the
18
requirements
of
the
high
quality
jobs
program,
by
operation
of
19
law,
requires
a
manufacturer
to
meet
certain
job
creation
and
20
wage
threshold
requirements
also
required
in
that
program
and
21
in
the
grow
Iowa
values
fund
and
financial
assistance
program.
22
A
manufacturer
receiving
assistance
under
the
manufacturing
23
jobs
program
is
not
eligible
for
assistance
under
the
high
24
quality
jobs
program.
25
The
division
provides
that
the
tax
credits
are
available
26
against
the
individual
and
corporate
income
taxes.
The
27
tax
credits
are
refundable
subject
to
the
approval
of
the
28
department
of
economic
development
or,
at
the
taxpayer’s
29
election,
may
be
carried
forward
against
future
tax
liability
30
for
up
to
10
years
or
until
depleted,
whichever
occurs
first.
31
The
tax
credits
are
not
transferable.
The
maximum
amount
32
of
tax
credit
that
an
eligible
manufacturer
may
claim
is
$5
33
million.
The
total
amount
of
tax
credits
that
may
be
approved
34
under
the
program
is
$15
million.
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The
division
applies
retroactively
to
January
1,
2011,
for
1
tax
years
beginning
on
or
after
that
date.
2
The
program
is
repealed
on
December
31,
2020.
3
Division
II
of
the
bill
adds
the
program
to
the
list
of
4
tax
credit
programs
to
be
reviewed
in
2015
by
the
general
5
assembly’s
tax
expenditure
committee.
6
The
division
also
requires
the
economic
development
board
7
to
report
annually
on
the
assistance
provided
to
eligible
8
manufacturers
under
the
program.
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