Bill Text: IA SF94 | 2021-2022 | 89th General Assembly | Introduced

Iowa Senate Bill 94 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act creating a Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credit tax.(See SF 575.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-10 - Committee report approving bill, renumbered as SF 575. S.J. 593. [SF94 Detail]

Download: Iowa-2021-SF94-Introduced.html

Senate File 94 - Introduced SENATE FILE 94 BY ZAUN A BILL FOR An Act creating a Hoover presidential library tax credit 1 available against the individual and corporate income taxes, 2 the franchise tax, the insurance premiums tax, and the 3 moneys and credit tax. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1352XS (1) 89 jm/jh

S.F. 94 Section 1. NEW SECTION . 15E.364 Hoover presidential library 1 tax credit. 2 1. For tax years beginning on or after January 1, 2021, but 3 before January 1, 2024, a tax credit shall be allowed against 4 the taxes imposed in chapter 422, subchapters II, III, and V, 5 and in chapter 432, and against the moneys and credits tax 6 imposed in section 533.329, equal to twenty-five percent of a 7 person’s donation to the Hoover presidential foundation for 8 the Hoover presidential library and museum renovation project 9 fund. An individual may claim a tax credit under this section 10 of a partnership, limited liability company, S corporation, 11 estate, or trust electing to have income taxed directly to 12 the individual. The amount claimed by the individual shall 13 be based upon the pro rata share of the individual’s earnings 14 from the partnership, limited liability company, S corporation, 15 estate, or trust. 16 2. The amount of the donation for which the tax credit is 17 claimed shall not be deductible in determining taxable income 18 for state income tax purposes. 19 3. Any tax credit in excess of the person’s tax liability 20 for the tax year may be credited to the tax liability for the 21 following five years or until depleted, whichever occurs first. 22 A tax credit shall not be carried back to a tax year prior to 23 the tax year in which the person claims the tax credit. 24 4. a. The aggregate amount of tax credits authorized 25 pursuant to this section shall not exceed a total of five 26 million dollars. 27 b. The maximum amount of tax credits granted to a person 28 shall not exceed five percent of the aggregate amount of tax 29 credits authorized. 30 c. Ten percent of the aggregate amount of tax credits 31 authorized shall be reserved for those donations in amounts 32 of thirty thousand dollars or less. If any portion of the 33 reserved tax credits have not been distributed by September 1, 34 2023, the remaining reserved tax credits shall be available to 35 -1- LSB 1352XS (1) 89 jm/jh 1/ 4

S.F. 94 any other eligible person. 1 5. The tax credit shall not be transferable to any other 2 person. 3 6. The authority shall develop a system for authorization 4 of tax credits under this section and shall control the 5 distribution of all tax credits to persons providing a 6 donation subject to this section. The authority shall 7 adopt administrative rules pursuant to chapter 17A for the 8 qualification and administration of the donations made pursuant 9 to this section. 10 7. This section is repealed December 31, 2029. 11 Sec. 2. NEW SECTION . 422.11T Hoover presidential library 12 tax credit. 13 The tax imposed under this subchapter, less the credits 14 allowed under section 422.12, shall be reduced by Hoover 15 presidential library tax credit authorized pursuant to section 16 15E.364. 17 Sec. 3. Section 422.33, Code 2021, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 31. The taxes imposed under this subchapter 20 shall be reduced by a Hoover presidential library tax credit 21 allowed under section 15E.364. 22 Sec. 4. Section 422.60, Code 2021, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 14. The taxes imposed under this subchapter 25 shall be reduced by a Hoover presidential library tax credit 26 allowed under section 15E.364. 27 Sec. 5. NEW SECTION . 432.12N Hoover presidential library 28 tax credit. 29 The taxes imposed under this chapter shall be reduced by a 30 Hoover presidential library tax credit allowed under section 31 15E.364. 32 Sec. 6. Section 533.329, subsection 2, Code 2021, is amended 33 by adding the following new paragraph: 34 NEW PARAGRAPH . l. The moneys and credits tax imposed under 35 -2- LSB 1352XS (1) 89 jm/jh 2/ 4

S.F. 94 this section shall be reduced by a Hoover presidential library 1 tax credit allowed under section 15E.364. 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 This bill creates a Hoover presidential library tax credit 6 available against the individual, corporate, franchise, 7 insurance premium, and moneys and credits taxes. 8 The amount of the credit shall equal 25 percent of a person’s 9 donation to the Hoover presidential foundation for the Hoover 10 presidential library and museum renovation project fund, an 11 organization exempt from federal taxation. 12 The bill specifies that the amount of the donation for which 13 the tax credit is claimed shall not be deductible for state 14 income tax purposes. 15 A credit provided in the bill in excess of tax liability is 16 not refundable but the excess for the tax year may be credited 17 to a person’s tax liability for the following five years or 18 until depleted, whichever occurs first. The tax credit shall 19 not be carried back to a tax year prior to the tax year in which 20 the person claims the tax credit. 21 The aggregate amount of tax credits authorized pursuant to 22 the bill shall not exceed $5 million. 23 The maximum amount of tax credits granted to a person shall 24 not exceed five percent of the aggregate amount of tax credits 25 authorized under the bill. 26 The bill provides that 10 percent of the aggregate amount of 27 tax credits authorized shall be reserved for those donations 28 in amounts of $30,000 or less. If any portion of the reserved 29 tax credits have not been distributed by September 1, 2023, the 30 remaining reserved tax credits shall be available to any other 31 eligible person. 32 The bill prohibits the transfer of the credit to any other 33 person. 34 The bill requires the economic development authority 35 -3- LSB 1352XS (1) 89 jm/jh 3/ 4

S.F. 94 to develop a system for authorization of tax credits and 1 shall control the distribution of all tax credits to persons 2 providing a donation subject to this Code section. 3 The bill applies to tax years beginning on or after January 4 1, 2021, but before January 1, 2024. 5 The tax credit is repealed December 31, 2029, to account for 6 the carryforward of any excess credit that may be credited to 7 the person’s tax liability for up to five years. 8 -4- LSB 1352XS (1) 89 jm/jh 4/ 4