Text: HF2245            Text: HF2247
Complete Bill History


House File 2246

HOUSE FILE BY SCHICKEL Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing a tax credit to a small business for 2 unemployment benefits paid to national guard and military 3 reserve replacement workers and including a retroactive 4 applicability date provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5289YH 81 7 mg/je/5 PAG LIN 1 1 Section 1. NEW SECTION. 422.11M UNEMPLOYMENT BENEFITS 1 2 TAX CREDIT == SMALL BUSINESSES. 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under sections 422.12 and 422.12B, shall be reduced by 1 5 an unemployment benefits tax credit. This credit shall only 1 6 be available to small businesses that employed not more than 1 7 fifty permanent full=time employees during the previous tax 1 8 year. The amount of the unemployment benefits tax credit 1 9 equals one hundred percent of the state unemployment benefits 1 10 received by each temporary employee hired by the eligible 1 11 small business to temporarily replace a permanent full=time 1 12 employee who was a member of the Iowa national guard or 1 13 reserve forces of the United States and who was activated for 1 14 federal duty, other than training, for a minimum aggregate of 1 15 ninety days. 1 16 Notwithstanding any confidentiality provision, upon 1 17 application to the department of workforce development by the 1 18 taxpayer, the department shall provide the taxpayer with the 1 19 amount of state unemployment benefits paid to the temporary 1 20 employees for whom the state tax credit is claimed. 1 21 2. If the unemployment benefits tax credit exceeds the tax 1 22 liability of the taxpayer, the excess is nonrefundable but may 1 23 be credited to the tax liability for the following seven years 1 24 or until depleted, whichever is the earlier. 1 25 3. An individual may claim an unemployment benefits tax 1 26 credit allowed a partnership, limited liability company, S 1 27 corporation, estate, or trust electing to have the income 1 28 taxed directly to the individual. The amount claimed by the 1 29 individual shall be based upon the pro rata share of the 1 30 individual's earnings of the partnership, limited liability 1 31 company, S corporation, estate, or trust. 1 32 Sec. 2. Section 422.33, Code Supplement 2005, is amended 1 33 by adding the following new subsection: 1 34 NEW SUBSECTION. 20. The taxes imposed under this division 1 35 shall be reduced by an unemployment benefits tax credit 2 1 allowed small businesses in the manner and under the 2 2 requirements specified in section 422.11M. 2 3 Sec. 3. Section 422.60, Code Supplement 2005, is amended 2 4 by adding the following new subsection: 2 5 NEW SUBSECTION. 11. The taxes imposed under this division 2 6 shall be reduced by an unemployment benefits tax credit 2 7 allowed small businesses in the manner and under the 2 8 requirements specified in section 422.11M. 2 9 Sec. 4. NEW SECTION. 432.12H UNEMPLOYMENT BENEFITS TAX 2 10 CREDIT. 2 11 The taxes imposed under this chapter shall be reduced by an 2 12 unemployment benefits tax credit allowed small businesses in 2 13 the manner and under the requirements specified in section 2 14 422.11M. 2 15 Sec. 5. Section 533.24, Code Supplement 2005, is amended 2 16 by adding the following new subsection: 2 17 NEW SUBSECTION. 8. The moneys and credits tax imposed 2 18 under this section shall be reduced by an unemployment 2 19 benefits tax credit allowed small businesses in the manner and 2 20 under the requirements specified in section 422.11M. 2 21 Sec. 6. RETROACTIVE APPLICABILITY DATE. This Act applies 2 22 retroactively to January 1, 2006, for tax years beginning on 2 23 or after that date. 2 24 EXPLANATION 2 25 This bill allows a tax credit under the individual and 2 26 corporate income taxes, franchise tax, premiums tax, and 2 27 moneys and credits tax for small businesses in the amount of 2 28 the unemployment benefits paid to each employee who 2 29 temporarily replaces a permanent full=time employee who was a 2 30 member of the Iowa national guard or reserve forces and who 2 31 was activated for federal duty, other than training, for a 2 32 minimum aggregate of 90 days. The credit is nonrefundable but 2 33 may be carried forward for up to seven tax years. 2 34 The bill applies retroactively to January 1, 2006, for tax 2 35 years beginning on or after that date. 3 1 LSB 5289YH 81 3 2 mg:rj/je/5
Text: HF2245            Text: HF2247 Complete Bill History