Text: HF00078 Text: HF00080 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.11D SMALL BUSINESS GUARANTY 1 2 FEE TAX CREDIT. 1 3 The taxes imposed under this division shall be reduced by a 1 4 small business guaranty fee tax credit. The amount of the 1 5 credit is equal to any amount paid to the United States small 1 6 business administration as a guaranty fee in order to obtain 1 7 small business administration guaranteed financing. The 1 8 credit shall be applicable only to the tax year in which the 1 9 guaranty fee was paid and shall be claimed only by the small 1 10 business operating within the state which is the primary 1 11 obligor in the financing transaction and which actually paid 1 12 the guaranty fee. Any credit in excess of the tax liability 1 13 is nonrefundable and shall not be carried back or forward. If 1 14 the small business elects to take the tax credit under this 1 15 section, the small business shall not deduct for Iowa tax 1 16 purposes any amount of the small business administration 1 17 guaranty fee deducted for federal income tax purposes. 1 18 For purposes of this section, an individual may claim the 1 19 small business guaranty fee tax credit allowed a partnership, 1 20 subchapter S corporation, limited liability company, or 1 21 estate, or trust electing to have the income taxed directly to 1 22 the individual. The amount claimed by the individual shall be 1 23 based upon the pro rata share of the individual's earnings of 1 24 the partnership, subchapter S corporation, limited liability 1 25 company, or estate or trust. 1 26 For purposes of this section, "small business" means a 1 27 corporation, partnership, sole proprietorship, limited 1 28 liability company, or other business entity qualifying as 1 29 "small" under the standards contained in 13 C.F.R., pt. 121. 1 30 Sec. 2. Section 422.33, Code 1999, is amended by adding 1 31 the following new subsection: 1 32 NEW SUBSECTION. 8. A small business operating within the 1 33 state is entitled to claim a small business guaranty fee tax 1 34 credit against the taxes imposed under this division equal to 1 35 any amount paid to the United States small business 2 1 administration as a guaranty fee in order to obtain small 2 2 business administration guaranteed financing. The credit 2 3 shall be applicable only to the tax year in which the guaranty 2 4 fee was paid and shall be claimed only by the small business 2 5 which is the primary obligor in the financing transaction and 2 6 which actually paid the guaranty fee. Any credit in excess of 2 7 the tax liability is nonrefundable and shall not be carried 2 8 back or forward. If the small business elects to take the 2 9 small business guaranty fee tax credit, the small business 2 10 shall not deduct for Iowa tax purposes any amount of the small 2 11 business administration guaranty fee deducted for federal 2 12 income tax purposes. 2 13 For purposes of this subsection, "small business" means a 2 14 corporation, partnership, sole proprietorship, limited 2 15 liability company, or other business entity qualifying as 2 16 "small" under the standards contained in 13 C.F.R., pt. 121. 2 17 Sec. 3. This Act applies retroactively to January 1, 1999, 2 18 for tax years beginning on or after that date. 2 19 EXPLANATION 2 20 This bill provides a small business guaranty fee tax credit 2 21 to apply against personal income tax liability or corporate 2 22 tax liability. Only a small business which is a corporation, 2 23 partnership, sole proprietorship, limited liability company, 2 24 or other business entity qualifying as "small" under the 2 25 standards contained in 13 C.F.R., pt. 121, is eligible. The 2 26 small business must be operating within Iowa. The amount of 2 27 the credit is equal to any amount paid to the United States 2 28 small business administration as a guaranty fee in order to 2 29 obtain small business administration guaranteed financing. 2 30 The credit is only applicable to the tax year in which the 2 31 guaranty fee was paid. The bill provides that the credit 2 32 shall be claimed only by the small business which is the 2 33 primary obligor in the financing transaction and which 2 34 actually paid the guaranty fee. Any credit in excess of the 2 35 tax liability is nonrefundable and shall not be carried back 3 1 or forward. 3 2 The bill applies retroactively to January 1, 1999, for tax 3 3 years beginning on or after that date. 3 4 LSB 1464HH 78 3 5 mg/jw/5
Text: HF00078 Text: HF00080 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Jan 12 05:55:23 CST 2000
URL: /DOCS/GA/78GA/Legislation/HF/00000/HF00079/990113.html
jhf