Bills › 89th General Assembly
Creating the manufacturer activities tax credit available against the individual and corporate income taxes, and including effective date and applicability provisions
Where it is now
- Done: IntroducedFebruary 2, 2021
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Companies that make products in Iowa can receive a tax credit to lower the amount of income tax they owe. This credit is based on the money they make from selling or leasing the items they manufactured on industrial property. The law excludes certain businesses like farmers, construction workers, and utility companies from this specific credit.1
Read the official explanation
This bill creates the manufacturer activities tax credit available against individual and corporate income taxes. The amount of the credit equals the product of the following: percent; and net income derived from the sale, lease, rental, license, exchange, or other disposition of tangible personal property manufactured on property classified and taxed as industrial property in Iowa. The bill defines “manufacturer” to mean a business that primarily purchases, receives, or holds tangible personal property of any description for the purpose of adding to its value by a process of manufacturing with a view to selling the property for gain or profit. A manufacturer includes a contract manufacturer. Manufacturing includes activities commonly understood within the meaning of the term, including refining, purifying, combining different materials, packing of meats, and activities subsequent to the extractive process of quarrying or mining. The following activities are not considered manufacturing under the bill: producing, transmitting, or distributing electricity, natural gas, or water; agricultural production; construction contracting; repair of tangible personal property or real property; sale of property taxed as industrial property; and transporting for hire. The bill also excludes the following from manufacturing: activities occurring on premises primarily used to make retail sales, professions, occupations, and nonprofit organizations. The bill takes effect January 1, 2022, and applies to tax years beginning on or after that date.