Proyectos de ley › 88.ª Asamblea General
Limiting the amount of research activities tax credit that is refundable and including retroactive applicability provisions
Dónde está ahora
- Hecho: Presentado15 de enero de 2019
- Hecho: Subcomité15 de enero de 2019
- Se detuvo: Comité del SenadoMurió al terminar la Asamblea General
- Sigue: Lo aprueba el Senado
- Sigue: Comité de la Cámara
- Sigue: Lo aprueba la Cámara
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2020 terminó el 14 de junio de 2020, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.
Under current law, the research activities tax credits are refundable, meaning any amount of the tax credits in excess of a taxpayer’s tax liability are issued to the taxpayer in the form of a tax refund. This bill limits the aggregate amount of research activities tax credits that may be refunded to $1 million per taxpayer per taxable year. This limitation includes the individual and corporate research activities credits, and the supplemental research activities tax credit awarded by the economic development authority under Code section 15.335. The bill applies retroactively to January 1, 2019, for tax years beginning on or after that date.
Senate subcommittee
Named January 15, 2019. It hasn’t reported yet.
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Nota fiscal
Resumen con IA This bill limits the amount of Research Activities Tax Credit refunds a single taxpayer can receive to $1.0 million per year. This change is expected to increase net General Fund revenue by $11.1 million for fiscal year 2021 and $25.7 million for fiscal year 2022, with increases growing 3.6% each fiscal year after fiscal year 2022. The Department of Revenue will have a one-time expenditure of $16,000 to update tax forms and computer programming. (en inglés)2
Lea la nota fiscal (en inglés)
Description
Senate File 23 limits the aggregate amount of Research Activities Tax Credit that may be refunded to a single taxpayer to no more than $1.0 million per year. The aggregate limitation also includes any Supplemental Research Activities Tax Credit. The limitation is applied retroactively to tax years beginning on or after January 1, 2019.
Assumptions
- There were 35 Research Activities Tax Credit claims totaling $160.0 million that represented tax refunds in excess of $1.0 million for a tax year over the past five tax years. The average of these 35 claims exceeded $1.0 million by $3.6 million. The average number of claims each year was seven. Therefore, the average annual total refunded amount each year in excess of $1.0 million was $25.2 million.
- An affiliated group of C-Corporations filing a consolidated Iowa tax return will be considered one taxpayer for purposes of the $1.0 million annual limit.
- Tax filings by taxpayers requesting the refundable tax credits and the processing time of the Department of Revenue will follow the same pattern shown in previous tax years. The pattern has been shown to delay the actual refund associated with the claim for about two fiscal years.
- Refund claims are projected to increase 3.6% per tax year. This is based on historical growth in Research Activities Tax Credit claims.
- Reductions in tax refunds issued will result in an increase in net General Fund revenue.
Fiscal Impacts
A $1.0 million annual refund limit per taxpayer per fiscal year for the Research Activities Tax Credit (and Supplemental) is expected to reduce such refunds by $25.2 million per tax year. Due to filing and processing delays, the expected increase in net General Fund revenue is projected to equal $11.1 million for FY 2021 and $25.7 million for FY 2022. The projected net revenue increase is projected to grow 3.6% each fiscal year after FY 2022.
The Department of Revenue projects that updating tax forms and additional computer programming costs to implement the $1.0 million cap will require a one-time Department expenditure of $16,000.
Source
- Iowa Department of Revenue
- Research Activities Tax Credit, Refund Limitation · 4 de febrero de 2019
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
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88th General Assembly
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- SF 27 Limiting the amount of research activities tax credit that is refundable and including ret…89th General Assembly · In committeeNearly identical
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