15E.305 - ENDOW IOWA TAX CREDIT.
15E.305 ENDOW IOWA TAX CREDIT.
1. For tax years beginning on or after January 1, 2003, a tax
credit shall be allowed against the taxes imposed in chapter 422,
divisions II, III, and V, and in chapter 432, and against the moneys
and credits tax imposed in section 533.329 equal to twenty-five
percent of a taxpayer's endowment gift to an endow Iowa qualified
community foundation. An individual may claim a tax credit under
this section of a partnership, limited liability company, S
corporation, estate, or trust electing to have income taxed directly
to the individual. The amount claimed by the individual shall be
based upon the pro rata share of the individual's earnings from the
partnership, limited liability company, S corporation, estate, or
trust. A tax credit shall be allowed only for an endowment gift made
to an endow Iowa qualified community foundation for a permanent
endowment fund established to benefit a charitable cause in this
state. The amount of the endowment gift for which the tax credit is
claimed shall not be deductible in determining taxable income for
state income tax purposes. Any tax credit in excess of the
taxpayer's tax liability for the tax year may be credited to the tax
liability for the following five years or until depleted, whichever
occurs first. A tax credit shall not be carried back to a tax year
prior to the tax year in which the taxpayer claims the tax credit.
2. The aggregate amount of tax credits authorized pursuant to
this section shall not exceed a total of three million dollars plus
such additional credit amount as provided by this section annually.
The maximum amount of tax credits granted to a taxpayer shall not
exceed five percent of the aggregate amount of tax credits
authorized.
a. Ten percent of the aggregate amount of tax credits
authorized in a calendar year shall be reserved for those endowment
gifts in amounts of thirty thousand dollars or less. If by September
1 of a calendar year the entire ten percent of the reserved tax
credits is not distributed, the remaining tax credits shall be
available to any other eligible applicants.
b. For purposes of this subsection, the additional credit
amount shall be an amount for each applicable calendar year
determined by the department of revenue equal to the amount of money
credited as provided by section 99F.11, subsection 3, paragraph
"d", subparagraph (3), for the prior fiscal year.
3. A tax credit shall not be transferable to any other taxpayer.
4. The department shall develop a system for registration and
authorization of tax credits under this section and shall control the
distribution of all tax credits to taxpayers providing an endowment
gift subject to this section. The department shall adopt
administrative rules pursuant to chapter 17A for the qualification
and administration of endowment gifts. Section History: Recent Form
2003 Acts, 1st Ex, ch 2, §83, 89; 2005 Acts, ch 150, §74--77, 81;
2006 Acts, ch 1151, §1--3, 7, 8; 2007 Acts, ch 174, §89; 2008 Acts,
ch 1032, § 201; 2009 Acts, ch 179, §105, 106, 153
Referred to in § 99F.11, 422.11H, 422.33, 422.60, 432.12D, 533.329
Footnotes
2005 amendments to this section take effect June 9, 2005, and
apply retroactively to January 1, 2005; intent regarding issuance of
tax credits; 2005 Acts, ch 150, §80, 81
2006 amendments to subsection 2, 2006 amendment striking
subsection 4, and 2006 amendment striking future repeal of this
section take effect July 1, 2007; 2006 Acts, ch 1151, §8
2009 amendments to subsections 1 and 2 take effect January 1,
2010, and apply to tax years beginning on or after that date; 2009
Acts, ch 179, §153