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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