Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Calculation of tax credit amount.
a. An eligible business that has entered into
an agreement pursuant to rule
261-81.5 (15) may be issued a
tax credit certificate in an amount calculated as described in Iowa Code
section 15.319(1). For example, if an eligible business produced three million
pounds of renewable chemicals during calendar year 2016 and first became an
eligible business under this chapter in calendar year 2017, the pre-eligibility
production threshold for the business is three million pounds. If the same
eligible business produced ten million pounds of renewable chemicals during
calendar year 2017, the eligible business could receive a tax credit for the
amount produced over the pre-eligibility production threshold, which in this
example equals seven million pounds.
b. If a business has facilities located in
more than one state, only those renewable chemicals produced at facilities
physically located in the state of Iowa may be counted for the purpose of
calculating the tax credit.
c. If
the same eligible business has an ownership or equity interest in multiple
facilities at which renewable chemicals are produced, the facilities under
common ownership will be considered a single eligible business for purposes of
calculating the maximum tax credit amount. In calculating the maximum tax
credit amount, only the pro rata share of each eligible business's ownership in
a facility will be attributed to that eligible business.
d. The maximum amount of tax credit that may
be issued under the program to an eligible business for the production of
renewable chemicals in a calendar year shall not exceed the amount authorized
by Iowa Code section 15.318(3)
"a" as amended by 2023 Iowa Acts, Senate File 575.
(2)
Eligible business
only. An eligible business shall not receive a tax credit for
renewable chemicals produced before the date the business first qualified as an
eligible business pursuant to rule
261-81.3 (15).
(3)
Maximum number of
credits. An eligible business shall not receive more tax credit
certificates under the program than specified in Iowa Code section
15.318(3)
"d" as amended by 2023 Iowa Acts, Senate File 575. Each tax
credit must be applied for separately, and each application will be reviewed
independently of past tax credits. Receipt of a tax credit in one year does not
guarantee receipt of a tax credit in a subsequent year.
(4)
Termination and
repayment. Tax credits may be reduced, terminated, or rescinded
pursuant to Iowa Code section
15.318(4).
