Text: HF02538 Text: HF02540 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 renting, or modifying an assistive device or making workplace 1 7 modifications for an individual with a disability who is 1 8 employed or will be employed by the small business is entitled 1 9 to receive this assistive device tax credit which is equal to 1 10 fifty percent of the first five thousand dollars paid during 1 11 the tax year for the purchase, rental, or modification of the 1 12 assistive device or for making the workplace modifications. 1 13 Any credit in excess of the tax liability shall be refunded 1 14 with interest computed under section 422.25. In lieu of 1 15 claiming a refund, a taxpayer may elect to have the 1 16 overpayment shown on the taxpayer's final, completed return 1 17 credited to the tax liability for the following tax year. If 1 18 the small business elects to take the assistive device tax 1 19 credit, the small business shall reduce the deduction for the 1 20 costs of purchasing, renting, or modifying an assistive device 1 21 or making workplace modifications by the amount of the credit. 1 22 2. An individual may claim an assistive device tax credit 1 23 allowed a partnership, limited liability company, S 1 24 corporation, estate, or trust electing to have the income 1 25 taxed directly to the individual. The amount claimed by the 1 26 individual shall be based upon the pro rata share of the 1 27 individual's earnings of the partnership, limited liability 1 28 company, S corporation, estate, or trust. 1 29 3. For purposes of this section: 1 30 a. "Assistive device" means any item, piece of equipment, 1 31 or product system which is used to increase, maintain, or 1 32 improve the functional capabilities of an individual with a 1 33 disability in the workplace or on the job. "Assistive device" 1 34 does not mean any medical device, surgical device, or organ 1 35 implanted or transplanted into or attached directly to an 2 1 individual. "Assistive device" does not include any device 2 2 for which a certificate of title is issued by the state 2 3 department of transportation, but does include any item, piece 2 4 of equipment, or product system otherwise meeting the 2 5 definition of "assistive device" that is incorporated, 2 6 attached, or included as a modification in or to such a device 2 7 issued a certificate of title. 2 8 b. "Disability" means the same as defined in section 2 9 225C.46. 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 fourteen 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 Supplement 1999, is amended 2 17 by adding the following new subsection: 2 18 NEW SUBSECTION. 9. The taxes imposed under this division 2 19 shall be reduced by an assistive device tax credit. A small 2 20 business purchasing, renting, or modifying an assistive device 2 21 or making workplace modifications for purposes of an 2 22 individual with a disability who is employed or will be 2 23 employed by the small business is entitled to receive this 2 24 assistive device tax credit which is equal to fifty percent of 2 25 the first five thousand dollars paid during the tax year for 2 26 the purchase, rental, or modification of the assistive device 2 27 or for making the workplace modifications. Any credit in 2 28 excess of the tax liability shall be refunded with interest 2 29 computed under section 422.25. In lieu of claiming a refund, 2 30 a taxpayer may elect to have the overpayment shown on the 2 31 taxpayer's final, completed return credited to the tax 2 32 liability for the following tax year. If the small business 2 33 elects to take the assistive device tax credit, the small 2 34 business shall reduce the deduction for the costs of 2 35 purchasing, renting, or modifying an assistive device or 3 1 making workplace modifications by the amount of the credit. 3 2 a. For purposes of this subsection, "assistive device" 3 3 means any item, piece of equipment, or product system which is 3 4 used to increase, maintain, or improve the functional 3 5 capabilities of an individual with a disability in the 3 6 workplace or on the job. "Assistive device" does not mean any 3 7 medical device, surgical device, or organ implanted or 3 8 transplanted into or attached directly to an individual. 3 9 "Assistive device" does not include any device for which a 3 10 certificate of title is issued by the state department of 3 11 transportation, but does include any item, piece of equipment, 3 12 or product system otherwise meeting the definition of 3 13 "assistive device" that is incorporated, attached, or included 3 14 as a modification in or to such a device issued a certificate 3 15 of title. 3 16 b. "Disability" means the same as defined in section 3 17 225C.46. 3 18 c. "Small business" means a business that either had gross 3 19 receipts for its preceding tax year of three million dollars 3 20 or less or employed not more than fourteen full-time employees 3 21 during its preceding tax year. 3 22 d. "Workplace modifications" means physical alterations to 3 23 the work environment. 3 24 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE. 3 25 This Act, being deemed of immediate importance, takes effect 3 26 upon enactment and applies retroactively to January 1, 2000, 3 27 for tax years beginning on or after that date. 3 28 EXPLANATION 3 29 The bill allows a tax credit equal to 50 percent of the 3 30 first $5,000 paid for the purchase, rental, or modification of 3 31 an assistive device or for the renovation of the workplace for 3 32 an individual with a disability. The credit is refundable and 3 33 applies to both the individual and corporate income taxes. 3 34 Only small businesses are entitled to the credit. A small 3 35 business is one that either had gross receipts in the 4 1 preceding tax year of $3 million or less or employed not more 4 2 than 14 full-time employees during its preceding tax year. An 4 3 assistive device is an item, piece of equipment, or product 4 4 system which is used to increase, maintain, or improve the 4 5 functional capabilities of an individual with a disability in 4 6 the workplace or on the job. 4 7 The bill takes effect upon enactment and applies 4 8 retroactively to January 1, 2000, for tax years beginning on 4 9 or after that date. 4 10 LSB 5339HV 78 4 11 mg/cls/14
Text: HF02538 Text: HF02540 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2000 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: Thu Apr 27 03:35:28 CDT 2000
URL: /DOCS/GA/78GA/Legislation/HF/02500/HF02539/000307.html
jhf