Text: SSB02190 Text: SSB02192 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.33, Code Supplement 1995, is
1 2 amended by adding the following new subsection:
1 3 NEW SUBSECTION. 9. a. The taxes imposed under this
1 4 division shall be reduced by a dependent care assistance to
1 5 transitional employees credit as provided in this subsection.
1 6 The amount of the credit equals the applicable percentage of
1 7 the sum of the dependent care assistance, not to exceed the
1 8 maximum cost, paid by the taxpayer to or for the benefit of
1 9 each transitional employee. A credit shall not be allowed for
1 10 a transitional employee unless the employee's wages equal at
1 11 least six dollars per hour.
1 12 b. For purposes of this subsection:
1 13 (1) "Applicable percentage" means fifty percent for the
1 14 first tax year during which the transitional employee is
1 15 employed, twenty-five percent for the second tax year during
1 16 which the transitional employee is employed, and zero percent
1 17 thereafter.
1 18 (2) "Dependent care assistance" means the term as defined
1 19 in section 129(e) of the Internal Revenue Code.
1 20 (3) "Maximum cost" means one hundred dollars per week for
1 21 dependent care assistance provided for a dependent who is
1 22 under the age of thirteen or eighty dollars per week for any
1 23 other dependent.
1 24 (4) "Transitional employee" means an individual who at the
1 25 time of initial employment is or immediately prior to initial
1 26 employment was an SSI recipient, general assistance recipient,
1 27 or an eligible work incentive employee, as those terms are
1 28 defined in section 51(d), paragraphs (5), (6), and (9),
1 29 respectively, of the Internal Revenue Code.
1 30 Sec. 2. This Act, being deemed of immediate importance,
1 31 takes effect upon enactment and applies retroactively to
1 32 January 1, 1996, for tax years beginning on or after that
1 33 date.
1 34 EXPLANATION
1 35 The bill grants a corporate income tax credit for providing
2 1 dependent care assistance to employees who were on public
2 2 assistance prior to being employed by the corporation. The
2 3 amount of the credit would be 50 percent of the amount of the
2 4 assistance for the first tax year and 25 percent of the amount
2 5 of the assistance for the second tax year. In computing the
2 6 amount of credit, $100 per week for a dependent under 13 years
2 7 old or $80 per week for all other dependents is the maximum
2 8 amount of assistance that is considered. A credit may only be
2 9 allowed if the employee's job pays at least $6 per hour.
2 10 The bill takes effect upon enactment and applies
2 11 retroactively to January 1, 1996, for tax years beginning on
2 12 or after that date.
2 13 LSB 4238SC 76
2 14 mg/cf/24
Text: SSB02190 Text: SSB02192 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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