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House File 256

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  422.11D  ASSISTIVE DEVICE TAX
  1  2 CREDIT – SMALL BUSINESS.
  1  3    1.  The taxes imposed under this division, less the credits
  1  4 allowed under sections 422.12 and 422.12B, shall be reduced by
  1  5 an assistive device tax credit.  A small business purchasing
  1  6 or renting an assistive device or making workplace
  1  7 modifications for purposes of an individual with a disability
  1  8 who is employed or will be employed by the business is
  1  9 entitled to receive this assistive device tax credit which is
  1 10 equal to fifty percent of the cost paid during the tax year
  1 11 for the purchase or rental of the assistive device or for
  1 12 making the workplace modifications.  Any credit in excess of
  1 13 the tax liability shall be refunded with interest computed
  1 14 under section 422.25.  In lieu of claiming a refund, a
  1 15 taxpayer may elect to have the overpayment shown on the
  1 16 taxpayer's final, completed return credited to the tax
  1 17 liability for the following tax year.
  1 18    2.  An individual may claim an assistive device tax credit
  1 19 allowed a partnership, limited liability company, S
  1 20 corporation, estate, or trust electing to have the income
  1 21 taxed directly to the individual.  The amount claimed by the
  1 22 individual shall be based upon the pro rata share of the
  1 23 individual's earnings of the partnership, limited liability
  1 24 company, S corporation, estate, or trust.
  1 25    3.  For purposes of this section:
  1 26    a.  "Assistive device" means any item, piece of equipment,
  1 27 or product system which is used to increase, maintain, or
  1 28 improve the functional capabilities of an individual with a
  1 29 disability in the workplace or on the job.  "Assistive device"
  1 30 does not mean any medical device, surgical device, or organ
  1 31 implanted or transplanted into or attached directly to an
  1 32 individual.  "Assistive device" does not include any device
  1 33 for which a certificate of title is issued by the state
  1 34 department of transportation, but does include any item, piece
  1 35 of equipment, or product system otherwise meeting the
  2  1 definition of "assistive device" that is incorporated,
  2  2 attached, or included as a modification in or to such a device
  2  3 issued a certificate of title.
  2  4    b.  "Disability" means any physiological disorder or
  2  5 condition, cosmetic disfigurement, or anatomical loss
  2  6 affecting one or more of the body systems or any mental or
  2  7 psychological disorder, including mental retardation, organic
  2  8 brain syndrome, emotional or mental illness and specific
  2  9 learning disabilities.
  2 10    c.  "Small business" means a business that either had gross
  2 11 receipts for its preceding tax year of three million dollars
  2 12 or less or employed not more than fifteen full-time employees
  2 13 during its preceding tax year.
  2 14    d.  "Workplace modifications" means physical alterations to
  2 15 the work environment.
  2 16    Sec. 2.  Section 422.33, Code 1999, is amended by adding
  2 17 the following new subsection:
  2 18    NEW SUBSECTION.  8.  The taxes imposed under this division
  2 19 shall be reduced by an assistive device tax credit.  A small
  2 20 business purchasing or renting an assistive device or making
  2 21 workplace modifications for purposes of an individual with a
  2 22 disability who is employed or will be employed by the business
  2 23 is entitled to receive this assistive device tax credit which
  2 24 is equal to fifty percent of the cost paid during the tax year
  2 25 for the purchase or rental of the assistive device or for
  2 26 making the workplace modifications.  Any credit in excess of
  2 27 the tax liability shall be refunded with interest computed
  2 28 under section 422.25.  In lieu of claiming a refund, a
  2 29 taxpayer may elect to have the overpayment shown on the
  2 30 taxpayer's final, completed return credited to the tax
  2 31 liability for the following tax year.
  2 32    a.  For purposes of this subsection, "assistive device"
  2 33 means any item, piece of equipment, or product system which is
  2 34 used to increase, maintain, or improve the functional
  2 35 capabilities of an individual with a disability in the
  3  1 workplace or on the job.  "Assistive device" does not mean any
  3  2 medical device, surgical device, or organ implanted or
  3  3 transplanted into or attached directly to an individual.
  3  4 "Assistive device" does not include any device for which a
  3  5 certificate of title is issued by the state department of
  3  6 transportation, but does include any item, piece of equipment,
  3  7 or product system otherwise meeting the definition of
  3  8 "assistive device" that is incorporated, attached, or included
  3  9 as a modification in or to such a device issued a certificate
  3 10 of title.
  3 11    b.  "Disability" means any physiological disorder or
  3 12 condition, cosmetic disfigurement, or anatomical loss
  3 13 affecting one or more of the body systems or any mental or
  3 14 psychological disorder, including mental retardation, organic
  3 15 brain syndrome, emotional or mental illness, and specific
  3 16 learning disabilities.
  3 17    c.  "Small business" means a business that either had gross
  3 18 receipts for its preceding tax year of three million dollars
  3 19 or less or employed not more than fifteen full-time employees
  3 20 during its preceding tax year.
  3 21    d.  "Workplace modifications" means physical alterations to
  3 22 the work environment.
  3 23    Sec. 3.  This Act, being deemed of immediate importance,
  3 24 takes effect upon enactment and applies retroactively to
  3 25 January 1, 1999, for tax years beginning on or after that
  3 26 date.  
  3 27                           EXPLANATION
  3 28    The bill allows a tax credit equal to 50 percent of the
  3 29 cost of the purchase or rental of an assistive device or for
  3 30 the renovation of the workplace for purposes of an individual
  3 31 with a disability.  The credit is refundable and applies to
  3 32 both the individual and corporate income taxes.  Only small
  3 33 businesses are entitled to the credit.  A small business is
  3 34 one that either had gross receipts in the preceding tax year
  3 35 of $3 million or less or employed not more than 15 full-time
  4  1 employees during its preceding tax year.  An assistive device
  4  2 is an item, piece of equipment, or product system which is
  4  3 used to increase, maintain, or improve the functional
  4  4 capabilities of an individual with a disability in the
  4  5 workplace or on the job.
  4  6    The bill takes effect upon enactment and applies
  4  7 retroactively to January 1, 1999, for tax years beginning on
  4  8 or after that date.  
  4  9 LSB 2051YH 78
  4 10 mg/sc/14.1
     

Text: HF00255                           Text: HF00257
Text: HF00200 - HF00299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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