15.333A - INSURANCE PREMIUM TAX CREDITS.
15.333A INSURANCE PREMIUM TAX CREDITS.
1. An eligible business may claim an insurance premium tax credit
equal to a percentage of the new investment directly related to new
jobs created by the location or expansion of an eligible business
under the program. The tax credit shall be amortized equally over a
five-year period. The tax credit shall be allowed against taxes
imposed in chapter 432. A tax credit in excess of the tax liability
for the tax year may be credited to the tax liability for the
following seven years or until depleted, whichever occurs first. The
percentage shall be determined as provided in section 15.335A.
2. For purposes of this section, "new investment directly
related to new jobs created by the location or expansion of an
eligible business under the program" means the cost of machinery
and equipment, as defined in section 427A.1, subsection 1, paragraphs
"e" and "j", purchased for use in the operation of the
eligible business, the purchase price of which has been depreciated
in accordance with generally accepted accounting principles, the
purchase price of real property and any buildings and structures
located on the real property, and the cost of improvements made to
real property which is used in the operation of the eligible
business. "New investment directly related to new jobs created by
the location or expansion of an eligible business under the
program" also means the annual base rent paid to a third-party
developer by an eligible business for a period not to exceed ten
years, provided the cumulative cost of the base rent payments for
that period does not exceed the cost of the land and the third-party
developer's costs to build or renovate the building for the eligible
business. The eligible business shall enter into a lease agreement
with the third-party developer for a minimum of five years. If,
however, within five years of purchase, the eligible business sells,
disposes of, razes, or otherwise renders unusable all or a part of
the land, buildings, or other existing structures for which tax
credit was claimed under this section, the tax liability of the
eligible business for the year in which all or part of the property
is sold, disposed of, razed, or otherwise rendered unusable shall be
increased by one of the following amounts:
a. One hundred percent of the tax credit claimed under this
section if the property ceases to be eligible for the tax credit
within one full year after being placed in service.
b. Eighty percent of the tax credit claimed under this
section if the property ceases to be eligible for the tax credit
within two full years after being placed in service.
c. Sixty percent of the tax credit claimed under this section
if the property ceases to be eligible for the tax credit within three
full years after being placed in service.
d. Forty percent of the tax credit claimed under this section
if the property ceases to be eligible for the tax credit within four
full years after being placed in service.
e. Twenty percent of the tax credit claimed under this
section if the property ceases to be eligible for the tax credit
within five full years after being placed in service. Section History: Recent Form
98 Acts, ch 1084, §1; 2000 Acts, ch 1213, §2, 10; 2004 Acts, ch
1003, §5, 12; 2005 Acts, ch 150, §49, 68, 69
Referred to in § 15.119, 15.335A, 15E.196, 432.12C
For aggregate limitations on amount of tax credits, see §15.119 Footnotes
2005 amendments to this section apply to tax years ending on or
after July 1, 2005; continuation of contracts under new jobs and
income program; 2005 Acts, ch 150, §68, 69