SF 2380 - Tax Law Amendments - Iowa Key Vote
done
Steve Kettering voted Nay (Concurrence Vote) on this Legislation.
Timeline
- Executive Signed
- April 15, 2010
- Senate Concurrence Vote Passed
- March 22, 2010
- House Bill Passed
- March 19, 2010
- Senate Bill Passed
- March 17, 2010
- Introduced
- March 16, 2010
Related Issues
Stage Details
Title: Tax Law Amendments
Signed by Governor Chet Culver
See How Your Politicians Voted
Title: Tax Law Amendments
Vote Smart's Synopsis:
Vote to concur with House amendments and pass a bill that amends the maximum limits and amounts of various tax credits and establishes the Legislative Tax Expenditure Committee to review tax expenditures and tax incentives.
Highlights:
-Prohibits registration of new projects under the film, television, and video project promotion tax credit and income exclusion program until July 1, 2013, effective upon enactment of this bill (Secs. 5-6). -Reduces the maximum aggregate tax credit limit for the following economic development programs so that credits may not be authorized for such purposes in an amount exceeding $120 million, rather than the $185 million limit authorized by existing law (Sec. 4):
- -The high quality job creation program;
-The film, television, and video project promotion program;
-The corporate tax research credit under the quality jobs enterprise zone program;
-The enterprise zones program; and
-The assistive device tax credit program.
- -Existing law:
- -The credit equals the sum of 6.5 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 6.5 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities;
- -For eligible businesses whose gross revenues do not exceed $20 million per year, the credit equals the sum of 10 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 10 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities; and
-For eligible businesses whose gross revenues do exceed $20 million per year, the credit equals the sum of 3 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 3 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities.
- -Be composed of 10 members of the general assembly (5 members from each house) that will be appointed by the legislative council; and
-Out of the 5 members from each house, the council shall appoint 3 members from the majority party and 2 members from the minority party.
- -Evaluating any tax expenditure under Iowa law and assessing its equity, simplicity, competitiveness, public purpose, adequacy, and extent of conformance with the original purposes of the legislation that enacted the tax expenditure;
-Establishing and maintaining a system for making available to the public information about the amount and effectiveness of tax expenditures as they relate to the original intent of their associated legislation;
-Submitting a report to the legislative council containing the results of the review of tax expenditures, which may include recommendations for better aligning tax expenditures with the original intent of the legislation that enacted the tax expenditure; and
-Submitting tax expenditure estimates and recommendations for the each fiscal year to the Governor by December 15, to be used for the budget process.
- -In 2011, review the high quality job program,the tax credits for increasing research activities, the franchise tax credits and the earned income tax credit;
-In 2012, review the Iowa fund of funds program, property tax revenue divisions for urban renewal areas, targeted jobs withholding credits, funding for urban renewal projects with increased local sales and services tax revenues, school tuition organization tax credits, and tuition and textbook tax credits;
-In 2013, review the child and dependent care and early childhood development tax credits, the endow Iowa tax credits, the redevelopment tax credits, the disaster recovery housing tax credits and the tax credits available for film, television and video project promotion;
-In 2014, review tax credits for investments in qualifying businesses and community-based seed capital funds, historic preservation and cultural and entertainment district tax credits, wind energy production tax credits, renewable energy tax credits, ethanol promotion tax credits, E-85 gasoline promotion tax credits, and the bio-diesel blended fuel tax credits; and
-In 2015, review the agricultural assets transfer tax credit, the assistance device corporate tax credit, the charitable conservation contribution tax credit, the motor vehicle fuel tax credit, the new jobs tax credits and the financial assistance available under the enterprise zones program.
See How Your Politicians Voted
Title: Tax Law Amendments
Vote Smart's Synopsis:
Vote to pass a bill that amends the maximum limits and amounts of various tax credits and establishes the Legislative Tax Expenditure Committee to review tax expenditures and tax incentives.
Highlights:
-Prohibits registration of new projects under the film, television, and video project promotion tax credit and income exclusion program until July 1, 2013, effective upon enactment of this bill (Secs. 5-6). -Reduces the maximum aggregate tax credit limit for the following economic development programs so that credits may not be authorized for such purposes in an amount exceeding $120 million, rather than the $185 million limit authorized by existing law (Sec. 4):
- -The high quality job creation program;
-The film, television, and video project promotion program;
-The corporate tax research credit under the quality jobs enterprise zone program;
-The enterprise zones program; and
-The assistive device tax credit program.
- -Existing law:
- -The credit equals the sum of 6.5 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 6.5 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities;
- -For eligible businesses whose gross revenues do not exceed $20 million per year, the credit equals the sum of 10 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 10 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities; and
-For eligible businesses whose gross revenues do exceed $20 million per year, the credit equals the sum of 3 percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities plus 3 percent of the basic research payments determined under 26 U.S.C. 41(e)(1)(A) during the tax year based on the state's apportioned share of the qualifying expenditures for increasing research activities.
- -Be composed of 10 members of the general assembly (5 members from each house) that will be appointed by the legislative council; and
-Out of the 5 members from each house, the council shall appoint 3 members from the majority party and 2 members from the minority party.
- -Evaluating any tax expenditure under Iowa law and assessing its equity, simplicity, competitiveness, public purpose, adequacy, and extent of conformance with the original purposes of the legislation that enacted the tax expenditure;
-Establishing and maintaining a system for making available to the public information about the amount and effectiveness of tax expenditures as they relate to the original intent of their associated legislation;
-Submitting a report to the legislative council containing the results of the review of tax expenditures, which may include recommendations for better aligning tax expenditures with the original intent of the legislation that enacted the tax expenditure; and
-Submitting tax expenditure estimates and recommendations for the each fiscal year to the Governor by December 15, to be used for the budget process.
- -In 2011, review the high quality job program,the tax credits for increasing research activities, the franchise tax credits and the earned income tax credit;
-In 2012, review the Iowa fund of funds program, property tax revenue divisions for urban renewal areas, targeted jobs withholding credits, funding for urban renewal projects with increased local sales and services tax revenues, school tuition organization tax credits, and tuition and textbook tax credits;
-In 2013, review the child and dependent care and early childhood development tax credits, the endow Iowa tax credits, the redevelopment tax credits, the disaster recovery housing tax credits and the tax credits available for film, television and video project promotion;
-In 2014, review tax credits for investments in qualifying businesses and community-based seed capital funds, historic preservation and cultural and entertainment district tax credits, wind energy production tax credits, renewable energy tax credits, ethanol promotion tax credits, E-85 gasoline promotion tax credits, and the bio-diesel blended fuel tax credits; and
-In 2015, review the agricultural assets transfer tax credit, the assistance device corporate tax credit, the charitable conservation contribution tax credit, the motor vehicle fuel tax credit, the new jobs tax credits and the financial assistance available under the enterprise zones program.
See How Your Politicians Voted
Title: Tax Law Amendments
Vote Smart's Synopsis:
Vote to pass a bill that relates to tax credits, the administration and review of specified economic development programs and tax incentive programs and the reenactment of the estate tax.
Highlights:
-Establishes that the intentions of this Act are to provide for regular review of all tax credit, withholding credit, and revenue division programs in order to facilitate the reauthorization of "successful" programs at a cost that can be accommodated by the state's annual budget (Sec. 1). -Creates the Legislative Tax Expenditure Committee, which shall have the following attributes (Sec. 2):
- -Be composed of 10 members of the General Assembly (5 members from each house) that will be appointed by the Legislative Council;
-Out of the 5 members from each house, the Council shall appoint 3 members from the majority party and 2 members from the minority party.
- -2011: review the high quality jobs program and the tax credits for increasing research activities;
-2012: review the Iowa Fund of Funds program, property tax revenue divisions for urban renewal areas, targeted jobs withholding credits, funding for urban renewal projects with increased local sales and services tax revenues, school tuition organization tax credits, and tuition and textbook tax credits;
-2013: review the child and dependent care and early childhood development tax credits and the Endow Iowa tax credits;
-2014: review tax credits for investments in qualifying businesses and community-based seed capital funds, historic preservation and cultural and entertainment district tax credits, wind energy production tax credits, and renewable energy tax credits;
-2015: review the agricultural assets transfer tax credit, the claim of right tax credit, the reduction in allocating income to Iowa by S corporation shareholders, the minimum tax credit, the assistive device corporate tax credit, the charitable conservation contribution tax credit, the motor vehicle fuel tax credit.
- -For eligible businesses whose gross revenues do not exceed $20 million per year, the credit equals the sum of 10 percent of the excess of qualified research expenses during the tax year and 10 percent of the basic research payments determined by the Internal Revenue Code during the tax year (based upon the state's apportioned share of the qualifying expenditures for increasing research activities); and
-For eligible businesses whose gross revenues exceed $20 million per year, the credit equals the sum of 3 percent of the excess of qualified research expenses during the tax year, and 3 percent of the basic research payments determined by the Internal Revenue Code during the tax year (based upon the state's apportioned share of the qualifying expenditures for increasing research activities).
Title: Tax Law Amendments
Committee Sponsors
- Ways and Means Committee (Sponsor)