Deere, Rockwell Collins top state research tax credit recipients

Deere & Co. and Rockwell Collins were the top recipients of Iowa's research activities tax credit in 2012, according to a report released Friday by the Iowa Department of Revenue.

Deere received $11.9 million and Cedar Rapids-based Rockwell Collins and its subsidiaries got $13.8 million. If Deere's construction and forestry unit is included, the Moline, Ill., company's research-and-development tax credit totaled $14.3 million.

Rockwell Collins invested more than $900 million in R&D for new products and services in fiscal year 2012 and Clay Jones, its chairman and CEO, told shareholders that the company expects to invest about $1 billion in R&D during the current fiscal year.

Pam Tvrdy, media relations manager for the avionics company, said the Iowa research activities tax credit supports the company's extensive R&D efforts.

"One example is our advanced technology center, which is based in (Cedar Rapids)," Tvrdy said. "It develops a lot of the future technologies that we use for new program pursuits. Pro Line Fusion, a highly successful platform that is saving a lot of jobs for us, is an example of the technology developed by the advanced technology center."

Rockwell Collins is Iowa's largest technology company, employing more than 4,000 engineers, scientists and information technology workers. Direct R&D-related jobs generate  a payroll of more than $400 million annually.

Nine companies filed claims in excess of $500,000 for research activities tax credits and/or supplemental research activities tax credits accounting for $42.1 million. A total of 190 corporate claims and 1,254 individual claims were filed for $50.5 million of R&D tax credits.

In addition to Rockwell Collins and Deere, other Iowa businesses receiving R&D tax credits were Dupont ($8.5 million),  Monsanto ($1.7 million), Vermeer Manufacturing ($775,000),  CNH America ($704,000),  Kemin Industries ($615,000) and Skyworks Solutions ($571,000).

The Revenue Department also reported that it received 141 corporate and 340 individual claims for tax credit refunds totaling $34.2 million for 2012.

The research activities tax credit and the supplemental research activities tax credit are refundable, which means the taxpayer can claim the entire credit even if the claim exceeds current year tax liability.