Text: HF803            Text: HF805


House File 804

HOUSE FILE BY S. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to an income tax credit for the purchase of 2 furnaces that are designed to burn field corn or field corn 3 products and including a retroactive applicability date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1959YH 81 6 mg/pj/5 PAG LIN 1 1 Section 1. NEW SECTION. 422.11K CORN=BURNING FURNACE == 1 2 TAX CREDIT. 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under sections 422.12 and 422.12B, shall be reduced by 1 5 a corn=burning furnace tax credit equal to the purchase price 1 6 of a furnace that burns agricultural field corn or corn 1 7 products and is to be used by the taxpayer for heating 1 8 purposes. 1 9 2. An individual may claim the corn=burning furnace tax 1 10 credit allowed a partnership, S corporation, or estate or 1 11 trust electing to have the income taxed directly to the 1 12 individual. The amount claimed by the individual shall be 1 13 based upon the pro rata share of the individual's earnings of 1 14 the partnership, S corporation, or estate or trust. 1 15 3. Any credit in excess of the tax liability for the tax 1 16 year is nonrefundable but may be credited to the tax liability 1 17 for the following ten tax years or until depleted, whichever 1 18 is the earlier. 1 19 Sec. 2. Section 422.33, Code 2005, is amended by adding 1 20 the following new subsection: 1 21 NEW SUBSECTION. 17. a. The taxes imposed under this 1 22 division shall be reduced by a corn=burning furnace tax credit 1 23 equal to the purchase price of a furnace that burns 1 24 agricultural field corn or corn products and is to be used by 1 25 the taxpayer for heating purposes. 1 26 b. Any credit in excess of the tax liability for the tax 1 27 year is nonrefundable but may be credited to the tax liability 1 28 for the following ten tax years or until depleted, whichever 1 29 is the earlier. 1 30 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies 1 31 retroactively to January 1, 2005, for tax years beginning on 1 32 or after that date. 1 33 EXPLANATION 1 34 This bill allows a tax credit under the individual and 1 35 corporate income taxes for the purchase of furnaces that 2 1 provide heat by burning agricultural field corn or corn 2 2 products. The credit is nonrefundable, but any excess may be 2 3 carried forward for up to 10 years. 2 4 The bill applies retroactively to January 1, 2005, to tax 2 5 years beginning on or after that date. 2 6 LSB 1959YH 81 2 7 mg:nh/pj/5
Text: HF803            Text: HF805