Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.40 - High Quality Jobs Program

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods beginning on or after July 1, 2009,
				  a business which qualifies under the high quality jobs program is eligible to
				  receive tax credits. The high quality jobs program replaces the high quality
				  job creation program. An eligible business under the high quality jobs program
				  must be approved by the Iowa department of economic development and meet the
				  qualifications of Iowa Code section
				  15.329. The tax credits
				  available under the high quality jobs program are based upon the number of jobs
				  created or retained that pay a qualifying wage threshold and the amount of
				  qualifying investment. The administrative rules for the high quality jobs
				  program for the Iowa department of economic development may be found at
				  261-Chapter 68.
(1)
Research
				activities credit.
An eligible business approved under the high
				quality jobs program is eligible for an additional research activities credit
				as described in subrule 52.7(4) for awards issued by the Iowa department of
				economic development prior to July 1, 2010. The eligible business is eligible
				for the research activities credit as described in subrule 52.7(6) for awards
				issued by the Iowa department of economic development on or after July 1, 2010.
Research activities allowable for the Iowa research
				  activities credit include expenses related to the development and deployment of
				  innovative renewable energy generation components manufactured or assembled in
				  Iowa; such expenses related to the development and deployment of innovative
				  renewable energy generation components are not eligible for the federal credit
				  for increasing research activities. For purposes of this subrule, innovative
				  renewable energy generation components do not include components with more than
				  200 megawatts in installed effective nameplate capacity. The research
				  activities credit related to renewable energy generation components under the
				  high quality jobs program and the enterprise zone program shall not exceed $2
				  million for the fiscal year ending June 30, 2010, and $1 million for the fiscal
				  year ending June 30, 2011.
These expenses related to the development and deployment of
				  innovative renewable energy generation components are applicable only to the
				  additional research activities credit set forth in this subrule and in subrule
				  52.7(5) for businesses in enterprise zones, and are not applicable to the
				  research activities credit set forth in subrule 52.7(3).
(2)
Investment tax credit.
An eligible business can claim an investment tax credit equal to a percentage
				of the new investment directly related to new jobs created or retained by the
				location or expansion of an eligible business. The percentage is equal to the
				amount provided in Iowa department of economic development 261-subrule 68.4(7).
The determination of the new investment eligible for the
				  investment tax credit, the eligibility of a refundable investment tax credit
				  for value-added agricultural product or biotechnology-related projects and the
				  repayment of investment tax credits for the high quality jobs program is the
				  same as set forth in subrule 52.28(2) for the high quality job creation
				  program.
(3)
Repayment of benefits.
If an eligible business fails to
				maintain the requirements of the high quality jobs program, the taxpayer may be
				required to repay all or a portion of the tax incentives taken on Iowa returns.
				Irrespective of the fact that the statute of limitations to assess the taxpayer
				for repayment of the tax credits may have expired, the department may proceed
				to collect the tax incentives forfeited by failure of the eligible business to
				maintain the requirements of the high quality jobs program because the
				repayment is a recovery of an incentive, rather than an adjustment to the
				taxpayer's tax liability. Details on the calculation of the repayment can be
				found in 261-subrule 187.5(4) of the administrative rules of the economic
				development authority. If the business is a partnership, limited liability
				company, S corporation, estate or trust where the income of the taxpayer is
				taxed to the individual owner(s) of the business, the department may proceed to
				collect the tax incentives against the partners, members, shareholders or
				beneficiaries to whom the tax incentives were passed through. See Decision of
				the Administrative Law Judge in
Damien & Colette Trebilcock, et
				al.,
Docket No. 11DORF 042-044, June 11, 2012.
This rule is intended to implement Iowa Code chapter
				  15.