A bill for an act relating to eligibility for claiming the research activities tax credit available against the individual and corporate income tax, and including retroactive applicability provisions.(See HF 2660.)
Impact
The implementation of HSB727 is expected to have significant implications for tax policy in Iowa, particularly in the realm of agricultural innovation. By including agriscience research under the eligible activities for tax credits, the bill encourages individuals and organizations to invest in research that can improve agricultural practices and outcomes in the state. This change could potentially lead to enhanced economic development as agricultural innovations become more widely pursued and funded.
Summary
House Study Bill 727 addresses the eligibility criteria for claiming the research activities tax credit under Iowa's income tax code. The bill seeks to amend existing laws by clarifying that individuals engaged in agriscience research—defined in the bill as research related to animal science, veterinary medicine, nutritional science, or genetic science—are eligible for this tax credit. Previously, individuals engaged in agricultural production were excluded from this eligibility, but the bill aims to promote greater innovation within the field of agriscience.
Contention
Some points of contention may arise from the bill's retroactive applicability clause, which states that the provisions of the bill are applicable retroactively to tax years beginning on or after January 1, 2017. This aspect could lead to debates regarding fairness and the implications for individuals and entities that may have operated under the previous regulatory framework. Furthermore, opponents might argue that the definition of agriscience research should be more stringent to ensure that only impactful research qualifies for these tax credits.
Notable_points
Overall, HSB727 highlights the state's commitment to supporting agricultural innovation through financial incentives. It acknowledges the evolving landscape of agricultural research and the necessity of adapting tax policies to fit emerging scientific fields. As discussions progress, stakeholders will need to consider how to balance support for agriscience research while maintaining equitable tax practices.
Replaced by
A bill for an act relating to eligibility for claiming the research activities tax credit available against the individual and corporate income tax, and including retroactive applicability provisions.(Formerly HSB 727.)
A bill for an act relating to eligibility for claiming the research activities tax credit available against the individual and corporate income tax, and including retroactive applicability provisions.(Formerly HSB 727.)
A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.
A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)
A bill for an act creating an electric outdoor power equipment tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.
A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.
A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.
A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.
A bill for an act creating a private instruction organization tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.
A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.(See HF 2666.)
A bill for an act relating to eligibility for claiming the research activities tax credit available against the individual and corporate income tax, and including retroactive applicability provisions.(Formerly HSB 727.)
Corporate income tax: credits; definitions for research and development tax credits; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 716.