Insurance Premium Tax Credit Sample Clauses

Insurance Premium Tax Credit. 1. The Recipient may claim an insurance premium tax credit as provided in Iowa Code section 15.333A. Such credit may be claimed for a portion of the Qualifying Expenditures, as defined below in subparagraph (3), directly related to Job Obligations, as described in Exhibit D, of the start-up or location, expansion, or modernization of the business under this program. The credit shall be earned when the qualifying asset is placed in service. The Recipient shall not claim more than the amount authorized for this incentive as stated above and in Article 3 of the Contract. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. 2. The tax credit shall be amortized equally over a five-year period as specified below: January 1, 2019 – December 31, 2019 $ 31,113 January 1, 2020 – December 31, 2020 $ 31,113 January 1, 2021 – December 31, 2021 $ 31,113 January 1, 2022 – December 31, 2022 $ 31,113 January 1, 2023 – December 31, 2023 $ 31,113 3. Only Qualifying Expenditures are eligible for the insurance premium tax credit. For purposes of this benefit, “Qualifying Expenditures” means: i. The purchase price of real property and any buildings and structures located on the real property. ii. The cost of improvements made to real property which is used in operation of the business. iii. The costs of machinery and equipment, as defined in Iowa Code section 427A.1 (1) “e” and “j” purchased for use in the operation of the business and for which the purchase price may have been depreciated in accordance with GAAP. 4. If the Project includes leasing of new construction or major renovation of an existing building, the annual base rent paid to a third-party developer by Recipient must be for a period equal to the term of the lease agreement but cannot exceed the maximum term of the agreement, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land or the third-party developer’s costs to build or renovate the building for the Recipient. Limitations to annual base rent shall only be considered when the Project includes the construction of a new building or the major renovation of an existing building. The Recipient shall enter into a lease agreement with the third-party developer for a minimum of five years.