Text: HF00261 Text: HF00263 Text: HF00200 - HF00299 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 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 but may be carried forward for up to four tax 1 14 years or until depleted. If the small business elects to take 1 15 the tax credit under this section, the small business shall 1 16 not deduct for Iowa tax purposes any amount of the small 1 17 business administration guaranty fee deducted for federal 1 18 income tax purposes. 1 19 For purposes of this section, an individual may claim the 1 20 small business guaranty fee tax credit allowed a partnership, 1 21 S corporation, limited liability company, estate, or trust 1 22 electing to have the income taxed directly to the individual. 1 23 The amount claimed by the individual shall be based upon the 1 24 pro rata share of the individual's earnings of the 1 25 partnership, S corporation, limited liability company, or 1 26 estate, or trust. 1 27 For purposes of this section, "small business" means a 1 28 corporation, partnership, sole proprietorship, limited 1 29 liability company, or other business entity qualifying as 1 30 "small" under the standards contained in 13 C.F.R., pt. 121. 1 31 Sec. 2. Section 422.33, Code 1999, is amended by adding 1 32 the following new subsection: 1 33 NEW SUBSECTION. 8. A small business operating within the 1 34 state is entitled to claim a small business guaranty fee tax 1 35 credit against the taxes imposed under this division equal to 2 1 any amount paid to the United States small business 2 2 administration as a guaranty fee in order to obtain small 2 3 business administration guaranteed financing. The credit 2 4 shall be applicable to the tax year in which the guaranty fee 2 5 was paid and shall be claimed only by the small business which 2 6 is the primary obligor in the financing transaction and which 2 7 actually paid the guaranty fee. Any credit in excess of the 2 8 tax liability is nonrefundable but may be carried forward for 2 9 up to four tax years or until depleted. If the small business 2 10 elects to take the small business guaranty fee tax credit, the 2 11 small business shall not deduct for Iowa tax purposes any 2 12 amount of the small business administration guaranty fee 2 13 deducted for federal income tax purposes. 2 14 For purposes of this subsection, "small business" means a 2 15 corporation, partnership, sole proprietorship, limited 2 16 liability company, or other business entity qualifying as 2 17 "small" under the standards contained in 13 C.F.R., pt. 121. 2 18 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies 2 19 retroactively to January 1, 1999, for tax years beginning on 2 20 or after that date. 2 21 EXPLANATION 2 22 This bill provides a small business guaranty fee tax credit 2 23 to apply against personal income tax liability or corporate 2 24 tax liability. Only a small business which is a corporation, 2 25 partnership, sole proprietorship, limited liability company, 2 26 or other business entity qualifying as "small" under the 2 27 standards contained in 13 C.F.R., pt. 121, is eligible. The 2 28 small business must be operating within Iowa. The amount of 2 29 the credit is equal to any amount paid to the United States 2 30 small business administration as a guaranty fee in order to 2 31 obtain small business administration guaranteed financing. 2 32 The credit is applicable to the tax year in which the guaranty 2 33 fee was paid. The bill provides that the credit shall be 2 34 claimed only by the small business which is the primary 2 35 obligor in the financing transaction and which actually paid 3 1 the guaranty fee. Any credit in excess of the tax liability 3 2 is nonrefundable but may be carried forward for up to four tax 3 3 years or until depleted. 3 4 The bill applies retroactively to January 1, 1999, for tax 3 5 years beginning on or after that date. 3 6 LSB 1938HH 78 3 7 mg/jw/5
Text: HF00261 Text: HF00263 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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