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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