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INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES, §422.60
422.60 Imposition of tax — credit.
1. A franchise tax according to and measured by net income is imposed on financial
institutions for the privilege of doing business in this state as financial institutions.
2. a. In addition to all taxes imposed under this division, there is imposed upon each
financial institution doing business within the state the greater of the tax determined in
section 422.63 or the state alternative minimum tax equal to sixty percent of the maximum
state franchise tax rate, rounded to the nearest one-tenth of one percent, of the state
alternative minimum taxable income of the taxpayer computed under this subsection.
b. The state alternative minimum taxable income of a taxpayer is equal to the taxpayer’s
state taxable income as computed with the adjustments in section 422.61, subsection 3, and
with the following adjustments:
(1) Add items of tax preference included in federal alternative minimum taxable income
under section 57, except subsections (a)(1) and (a)(5), of the Internal Revenue Code, make
the adjustments included in federal alternative minimum taxable income under section 56,
except subsections (a)(4), (c)(1), (d), and (g), of the Internal Revenue Code, and add losses
as required by section 58 of the Internal Revenue Code.
(2) Make the adjustments provided in section 56(c)(1) of the Internal Revenue Code,
except that in making the calculation under section 56(g)(1) of the Internal Revenue Code
the state alternative minimum taxable income, computed without regard to the adjustments
made by this subparagraph, the exemption provided for in subparagraph (4), and the state
alternative tax net operating loss described in subparagraph (5), shall be substituted for the
items described in section 56(g)(1)(B) of the Internal Revenue Code.
(3) Apply the allocation and apportionment provisions of section 422.63.
(4) Subtract an exemption amount of forty thousand dollars. This exemption amount shall
be reduced, but not below zero, by an amount equal to twenty-five percent of the amount by
which the alternative minimum taxable income of the taxpayer, computed without regard to
the exemption amount in this subparagraph, exceeds one hundred fifty thousand dollars.
(5) In the case of a net operating loss beginning after December 31, 1986, which is carried
back or carried forward to the current taxable year, the net operating loss shall be reduced
by the amount of items of tax preference and adjustments arising in the tax year which was
taken into account in computing the net operating loss in section 422.35, subsection 11. The
deduction for a net operating loss for a tax year beginning after December 31, 1986, which
is carried back or carried forward to the current taxable year shall not exceed ninety percent
of the alternative minimum taxable income determined without regard for the net operating
loss deduction.
3. a. (1) There is allowed as a credit against the tax determined in section 422.63 for a
tax year an amount equal to the minimum tax credit for that tax year.
(2) The minimum tax credit for a tax year is the excess, if any, of the net minimum tax
imposed for all prior tax years beginning on or after January 1, 1987, over the amount
allowable as a credit under this subsection for those prior tax years.
b. (1) The allowable credit under paragraph “a” for a tax year shall not exceed the excess,
if any, of the tax determined in section 422.63 over the state alternative minimum tax as
determined in subsection 2.
(2) The net minimum tax for a tax year is the excess, if any, of the tax determined in
subsection 2 for the tax year over the tax determined in section 422.63 for the tax year.
4. The taxes imposed under this division shall be reduced by a historic preservation and
cultural and entertainment district tax credit allowed under chapter 404A.
5. a. The taxes imposed under this division shall be reduced by an investment tax credit
authorized pursuant to section 15E.43 for an investment in a qualifying business.
b. The taxes imposed under this division shall be reduced by investment tax credits
authorized pursuant to sections 15.333 and 15E.193B, subsection 6, Code 2014.
6. The taxes imposed under this division shall be reduced by an endow Iowa tax credit
authorized pursuant to section 15E.305.
7. The taxes imposed under this division shall be reduced by tax credits for wind energy
production allowed under chapter 476B and for renewable energy allowed under chapter
476C.
Wed Feb 08 03:44:59 2017
Iowa Code 2017, Section 422.60 (49, 1)
§422.60, INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES
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8. The taxes imposed under this division shall be reduced by a corporate tax credit
authorized pursuant to section 15.331C for certain sales taxes paid by a third-party developer.
9. The taxes imposed under this division shall be reduced by a tax credit authorized
pursuant to section 15E.66, if redeemed, for investments in the Iowa fund of funds.
10. The taxes imposed under this division shall be reduced by a redevelopment tax credit
allowed under chapter 15, subchapter II, part 9.
11. The taxes imposed under this division shall be reduced by an innovation fund
investment tax credit allowed under section 15E.52.
12. a. The taxes imposed under this division shall be reduced by a solar energy system
tax credit equal to sixty percent of the federal energy credit related to solar energy systems
provided in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue
Code, not to exceed twenty thousand dollars. For installations occurring on or after January
1, 2016, the applicable percentage of the federal energy credit related to solar energy systems
shall be fifty percent.
b. The taxpayer may claim the credit pursuant to this subsection according to the same
requirements, conditions, and limitations as provided pursuant to section 422.11L.
13. The taxes imposed under this division shall be reduced by a workforce housing
investment tax credit allowed under section 15.355, subsection 3.
[C71, 73, 75, 77, 79, 81, §422.60; 82 Acts, ch 1023, §16, 31]
83 Acts, ch 179, §17, 22; 86 Acts, ch 1241, §28; 87 Acts, 1st Ex, ch 1, §14; 89 Acts, ch 285,
§6; 2002 Acts, ch 1003, §3, 5; 2002 Acts, ch 1006, §9, 13; 2002 Acts, ch 1156, §4, 8; 2003 Acts,
1st Ex, ch 2, §86, 89; 2004 Acts, ch 1175, §406, 418; 2005 Acts, ch 150, §15, 63, 69; 2005 Acts,
ch 160, §3, 14; 2006 Acts, ch 1158, §34 – 38; 2007 Acts, ch 162, §9, 13; 2007 Acts, ch 165, §6, 9;
2008 Acts, ch 1173, §10; 2008 Acts, ch 1191, §164; 2009 Acts, ch 41, §126; 2010 Acts, ch 1138,
§13, 16, 23, 26; 2011 Acts, ch 25, §82, 143; 2011 Acts, ch 130, §43, 47, 71; 2012 Acts, ch 1136,
§36, 39 – 41; 2014 Acts, ch 1093, §27 – 29; 2014 Acts, ch 1118, §10, 12; 2014 Acts, ch 1130,
§21, 24 – 26, 39; 2014 Acts, ch 1141, §78 – 80; 2015 Acts, ch 30, §119; 2015 Acts, ch 124, §4, 9;
2015 Acts, ch 138, §122, 126, 127
Referred to in §2.48, §422.85
2012 strike of former subsections 10 and 11 takes effect May 25, 2012, and applies retroactively to January 1, 2012, for tax years beginning
on or after that date, and does not apply to contracts or agreements entered into on or before May 25, 2012; 2012 Acts, ch 1136, §39 – 41
2014 amendment to subsection 4 applies to agreements entered into by an eligible taxpayer on or after July 1, 2014; 2014 Acts, ch 1118,
§12
Subsection 12 as enacted by 2014 Acts, ch 1093, §27, is effective April 10, 2014; amendment to subsection 12, paragraph a, by 2014 Acts,
ch 1141, §78, is effective May 30, 2014; subsection 12 applies retroactively to January 1, 2014, for tax years beginning on or after that date;
2014 Acts, ch 1093, §28, 29; 2014 Acts, ch 1141, §79, 80
Subsection 13 takes effect May 30, 2014; applies retroactively to January 1, 2014, for tax years beginning on or after that date; and
applies to qualifying new investment costs incurred on or after May 30, 2014; 2014 Acts, ch 1130, §24 – 26
2015 amendment to subsection 5, paragraph a, takes effect July 2, 2015, and applies to equity investments in a qualifying business made
on or after that date; 2015 Acts, ch 138, §126, 127
Wed Feb 08 03:44:59 2017
Iowa Code 2017, Section 422.60 (49, 1)
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