Text: HF00737 Text: HF00739 Text: HF00700 - HF00799 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. However,
1 8 the amount of the credit shall not exceed two percent of the
1 9 first one hundred thousand dollars of guaranteed financing.
1 10 The credit shall be applicable to the tax year in which the
1 11 guaranty fee was paid and shall be claimed only by the small
1 12 business operating within the state which is the primary
1 13 obligor in the financing transaction and which actually paid
1 14 the guaranty fee. Any credit in excess of the tax liability
1 15 is nonrefundable but may be carried forward for up to four tax
1 16 years or until depleted. If the small business elects to take
1 17 the tax credit under this section, the small business shall
1 18 not deduct for Iowa tax purposes any amount of the small
1 19 business administration guaranty fee deducted for federal
1 20 income tax purposes.
1 21 For purposes of this section, an individual may claim the
1 22 small business guaranty fee tax credit allowed a partnership,
1 23 S corporation, limited liability company, estate, or trust
1 24 electing to have the income taxed directly to the individual.
1 25 The amount claimed by the individual shall be based upon the
1 26 pro rata share of the individual's earnings of the
1 27 partnership, S corporation, limited liability company, or
1 28 estate, or trust.
1 29 For purposes of this section, "small business" means a
1 30 corporation, partnership, sole proprietorship, limited
1 31 liability company, or other business entity qualifying as
1 32 "small" under the standards contained in 13 C.F.R., pt. 121.
1 33 Sec. 2. Section 422.33, Code 1999, is amended by adding
1 34 the following new subsection:
1 35 NEW SUBSECTION. 8. A small business operating within the
2 1 state is entitled to claim a small business guaranty fee tax
2 2 credit against the taxes imposed under this division equal to
2 3 any amount paid to the United States small business
2 4 administration as a guaranty fee in order to obtain small
2 5 business administration guaranteed financing. However, the
2 6 amount of the credit shall not exceed two percent of the first
2 7 one hundred thousand dollars of guaranteed financing. The
2 8 credit shall be applicable to the tax year in which the
2 9 guaranty fee was paid and shall be claimed only by the small
2 10 business which is the primary obligor in the financing
2 11 transaction and which actually paid the guaranty fee. Any
2 12 credit in excess of the tax liability is nonrefundable but may
2 13 be carried forward for up to four tax years or until depleted.
2 14 If the small business elects to take the small business
2 15 guaranty fee tax credit, the small business shall not deduct
2 16 for Iowa tax purposes any amount of the small business
2 17 administration guaranty fee deducted for federal income tax
2 18 purposes.
2 19 For purposes of this subsection, "small business" means a
2 20 corporation, partnership, sole proprietorship, limited
2 21 liability company, or other business entity qualifying as
2 22 "small" under the standards contained in 13 C.F.R., pt. 121.
2 23 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 24 retroactively to January 1, 1999, for tax years beginning on
2 25 or after that date.
2 26 EXPLANATION
2 27 This bill provides a small business guaranty fee tax credit
2 28 to apply against personal income tax liability or corporate
2 29 tax liability. Only a small business which is a corporation,
2 30 partnership, sole proprietorship, limited liability company,
2 31 or other business entity qualifying as "small" under the
2 32 standards contained in 13 C.F.R., pt. 121, is eligible. The
2 33 small business must be operating within Iowa. The amount of
2 34 the credit that may be claimed is equal to any amount paid to
2 35 the United States small business administration as a guaranty
3 1 fee in order to obtain small business administration
3 2 guaranteed financing. The amount of the credit cannot exceed
3 3 two percent of the first $100,000 of guaranteed financing,
3 4 however. The credit is applicable to the tax year in which
3 5 the guaranty fee was paid. The bill provides that the credit
3 6 shall be claimed only by the small business which is the
3 7 primary obligor in the financing transaction and which
3 8 actually paid the guaranty fee. Any credit in excess of the
3 9 tax liability is nonrefundable but may be carried forward for
3 10 up to four tax years or until depleted.
3 11 The bill applies retroactively to January 1, 1999, for tax
3 12 years beginning on or after that date.
3 13 LSB 1938HV 78
3 14 mg/jw/5
Text: HF00737 Text: HF00739 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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