Iowa Admin. Code r. 261-81.6

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 261-81.6 - Renewable chemical production tax credit

(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).

Iowa Admin. Code r. 261-81.6

Adopted by IAB March 29, 2017/Volume XXXIX, Number 20, effective 5/3/2017

Amended by IAB January 10, 2024/Volume XLVI, Number 14, effective 2/14/2024