Text: HF00720 Text: HF00722 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 HOUSE FILE 721
1 2
1 3 AN ACT
1 4 RELATING TO AN INSURANCE PREMIUM TAX CREDIT FOR ELIGIBLE
1 5 BUSINESSES UNDER THE NEW JOBS AND INCOME PROGRAM.
1 6
1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 8
1 9 Section 1. NEW SECTION. 15.333A INSURANCE PREMIUM TAX
1 10 CREDITS.
1 11 1. An eligible business may claim an insurance premium tax
1 12 credit up to a maximum of ten percent of the new investment
1 13 directly related to new jobs created by the location or
1 14 expansion of an eligible business under the program. Any
1 15 credit in excess of the tax liability for the tax year may be
1 16 credited to the tax liability for the following seven years or
1 17 until depleted, whichever occurs earlier.
1 18 For purposes of this section, "new investment directly
1 19 related to new jobs created by the location or expansion of an
1 20 eligible business under the program" means the cost of
1 21 machinery and equipment, as defined in section 427A.1,
1 22 subsection 1, paragraphs "e" and "j", purchased for use in the
1 23 operation of the eligible business, the purchase price of
1 24 which has been depreciated in accordance with generally
1 25 accepted accounting principles, and the cost of improvements
1 26 made to real property which is used in the operation of the
1 27 eligible business and which receives a partial property tax
1 28 exemption for the actual value added under section 15.332.
1 29 2. An eligible business which has entered into an
1 30 agreement under chapter 260E and which has increased its base
1 31 employment level by at least ten percent within the time set
1 32 in the agreement or, in the case of a business without a base
1 33 employment level, adds new jobs within the time set in the
1 34 agreement is entitled to a new jobs insurance premium tax
1 35 credit for the tax year selected by the business. In
2 1 determining if the business has increased its base employment
2 2 level by ten percent or added new jobs, only the new jobs
2 3 directly resulting from the project covered by the agreement
2 4 and the new jobs directly related to those new jobs shall be
2 5 counted. The amount of the credit is equal to the product of
2 6 six percent of the taxable wages upon which an employer is
2 7 required to contribute to the state unemployment compensation
2 8 fund, as defined in section 96.19, subsection 37, times the
2 9 number of new jobs existing in the tax year that directly
2 10 result from the project covered by the agreement or new jobs
2 11 that directly result from those new jobs. The tax year chosen
2 12 by the business shall either begin or end during the period
2 13 beginning with the date by which the project is to be
2 14 completed under the agreement. Any credit in excess of the
2 15 tax liability for the tax year may be credited to the tax
2 16 liability for the following seven years or until depleted,
2 17 whichever occurs earlier. For purposes of this subsection,
2 18 "agreement", "new job", and "project" mean the same as defined
2 19 in section 260E.2 and "base employment level" means the number
2 20 of full-time jobs a business employs at the site which is
2 21 covered by an agreement under chapter 260E on the date of that
2 22 agreement.
2 23
2 24
2 25
2 26 RON J. CORBETT
2 27 Speaker of the House
2 28
2 29
2 30
2 31 MARY E. KRAMER
2 32 President of the Senate
2 33
2 34 I hereby certify that this bill originated in the House and
2 35 is known as House File 721, Seventy-seventh General Assembly.
3 1
3 2
3 3
3 4 ELIZABETH ISAACSON
3 5 Chief Clerk of the House
3 6 Approved , 1998
3 7
3 8
3 9
3 10 TERRY E. BRANSTAD
3 11 Governor
Text: HF00720 Text: HF00722 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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