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
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Fri Feb 16 15:04:35 CST 1996
URL: /DOCS/GA/76GA/Legislation/SSB/02100/SSB02191/960214.html
jhf