Bill Text: IA SF394 | 2017-2018 | 87th 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) 2017-03-07 - Subcommittee: Feenstra, Behn, and Bolkcom. S.J. 508. [SF394 Detail]
Download: Iowa-2017-SF394-Introduced.html
Senate File 394 - Introduced SENATE FILE BY BOLKCOM A BILL FOR 1 An Act limiting the amount of research activities tax credit 2 that is refundable and including retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2320XS (2) 87 mm/sc/rn PAG LIN 1 1 Section 1. Section 15.335, subsection 8, Code 2017, is 1 2 amended to read as follows: 1 3 8. Any credit in excess of the tax liability for the taxable 1 4 year shall be refunded with interest computed under section 1 5 422.25. However, the aggregate amount of tax credit that may 1 6 be refunded pursuant to this section and section 422.10 or 1 7 section 422.33, subsection 5, shall not exceed one million 1 8 dollars per taxpayer per taxable year. In lieu of claiming a 1 9 refund, a taxpayer may elect to have the overpayment shown on 1 10 its final, completed return credited to the tax liability for 1 11 the following year. 1 12 Sec. 2. Section 422.10, subsection 4, Code 2017, is amended 1 13 to read as follows: 1 14 4. Any credit in excess of the tax liability imposed by 1 15 section 422.5 less the amounts of nonrefundable credits allowed 1 16 under this division for the taxable year shall be refunded 1 17 with interest computed under section 422.25. However, the 1 18 aggregate amount of tax credit that may be refunded pursuant to 1 19 this section and section 15.335 shall not exceed one million 1 20 dollars per taxpayer per taxable year. In lieu of claiming 1 21 a refund, a taxpayer may elect to have the overpayment shown 1 22 on the taxpayer's final, completed return credited to the tax 1 23 liability for the following taxable year. 1 24 Sec. 3. Section 422.33, subsection 5, paragraph f, Code 1 25 2017, is amended to read as follows: 1 26 f. Any credit in excess of the tax liability for the taxable 1 27 year shall be refunded with interest computed under section 1 28 422.25. However, the aggregate amount of tax credit that may 1 29 be refunded pursuant to this subsection and section 15.335 1 30 shall not exceed one million dollars per taxpayer per taxable 1 31 year. In lieu of claiming a refund, a taxpayer may elect 1 32 to have the overpayment shown on its final, completed return 1 33 credited to the tax liability for the following taxable year. 1 34 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 1 35 retroactively to January 1, 2017, for tax years beginning on 2 1 or after that date. 2 2 EXPLANATION 2 3 The inclusion of this explanation does not constitute agreement with 2 4 the explanation's substance by the members of the general assembly. 2 5 Under current law, the research activities tax credits are 2 6 refundable, meaning any amount of the tax credits in excess of 2 7 a taxpayer's tax liability are issued to the taxpayer in the 2 8 form of a tax refund. 2 9 This bill limits the aggregate amount of research activities 2 10 tax credits that may be refunded to $1 million per taxpayer 2 11 per taxable year. This limitation includes the individual and 2 12 corporate research activities credits, and the supplemental 2 13 research activities tax credit awarded by the economic 2 14 development authority under Code section 15.335. 2 15 The bill applies retroactively to January 1, 2017, for tax 2 16 years beginning on or after that date. LSB 2320XS (2) 87 mm/sc/rn
