Text: HF02143 Text: HF02145 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.4, Code Supplement 1997, is amended
1 2 by adding the following new subsection:
1 3 NEW SUBSECTION. 15A. "Small business" means any
1 4 corporation, partnership, sole proprietorship, or other
1 5 business entity qualifying as "small" under the standards
1 6 contained in the Code of Federal Regulations, Title 13, part
1 7 121.
1 8 Sec. 2. NEW SECTION. 422.12F SMALL BUSINESS TAX CREDIT.
1 9 A small business formed under the laws of this state and
1 10 operating within the state is entitled to claim a small
1 11 business tax credit against the taxes imposed under this
1 12 division equal to any amount paid to the United States small
1 13 business administration as a guaranty fee in order to obtain
1 14 small business administration guaranteed financing. The
1 15 credit shall be applicable only to the tax year in which the
1 16 guaranty fee was paid and shall be claimed only by the small
1 17 business which is the primary obligor in the financing
1 18 transaction and which actually paid the guaranty fee. Any
1 19 credit in excess of the tax liability is nonrefundable and
1 20 shall not be carried back or forward.
1 21 Sec. 3. Section 422.32, Code Supplement 1997, is amended
1 22 by adding the following new subsection:
1 23 NEW SUBSECTION. 7A. "Small business" means any
1 24 corporation, partnership, sole proprietorship, or other
1 25 business entity qualifying as "small" under the standards
1 26 contained in the Code of Federal Regulations, Title 13, part
1 27 121.
1 28 Sec. 4. Section 422.33, Code Supplement 1997, is amended
1 29 by adding the following new subsection:
1 30 NEW SUBSECTION. 8. A small business formed under the laws
1 31 of this state and operating within the state is entitled to
1 32 claim a small business tax credit against the taxes imposed
1 33 under this division equal to any amount paid to the United
1 34 States small business administration as a guaranty fee in
1 35 order to obtain small business administration guaranteed
2 1 financing. The credit shall be applicable only to the tax
2 2 year in which the guaranty fee was paid and shall be claimed
2 3 only by the small business which is the primary obligor in the
2 4 financing transaction and which actually paid the guaranty
2 5 fee. Any credit in excess of the tax liability is
2 6 nonrefundable and shall not be carried back or forward.
2 7 EXPLANATION
2 8 This bill provides a small business tax credit to apply
2 9 against personal income tax liability or corporate tax
2 10 liability. Only a small business which is a corporation,
2 11 partnership, sole proprietorship, or other business entity
2 12 qualifying as "small" under the standards contained in the
2 13 Code of Federal Regulations, Title 13, part 121, is eligible.
2 14 The small business must be formed under Iowa law and must be
2 15 operating within Iowa. The amount of the credit is equal to
2 16 any amount paid to the United States small business
2 17 administration as a guaranty fee in order to obtain small
2 18 business administration guaranteed financing. The credit is
2 19 only applicable to the tax year in which the guaranty fee was
2 20 paid. The bill provides that the credit shall be claimed only
2 21 by the small business which is the primary obligor in the
2 22 financing transaction and which actually paid the guaranty
2 23 fee. Any credit in excess of the tax liability is
2 24 nonrefundable and shall not be carried back or forward.
2 25 LSB 3360HH 77
2 26 tm/sc/14.2
Text: HF02143 Text: HF02145 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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