Text: SF00013 Text: SF00015 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.7, subsection 12, unnumbered 1 2 paragraph 1, Code 1999, is amended to read as follows: 1 3 If the adjusted gross income includes income or loss from a 1 4smallbusiness operated by the taxpayer, an additional 1 5 deduction shall be allowed in computing the income or loss 1 6 from thesmallbusiness if thesmallbusiness hired for 1 7 employment in the state during its annual accounting period 1 8 ending with or during the taxpayer's tax year any of the 1 9 following: 1 10 Sec. 2. Section 422.7, subsection 12, unnumbered 1 11 paragraphs 4 and 6, Code 1999, are amended to read as follows: 1 12 A taxpayer who is a partner of a partnership, member of a 1 13 limited liability company, or a shareholder of a subchapter S 1 14 corporation, may deduct that portion of wages qualified under 1 15 this subsection paid by the partnership company, or subchapter 1 16 S corporation based on the taxpayer's pro rata share of the 1 17 profits or losses from the partnership company, or subchapter 1 18 S corporation. 1 19For purposes of this subsection, "small business" means1 20small business as defined in section 16.1, subsection 36,1 21except that it shall also include the operation of a farm.1 22 Sec. 3. Section 422.7, subsection 12A, Code 1999, is 1 23 amended by striking the subsection. 1 24 Sec. 4. Section 422.35, subsection 6, unnumbered paragraph 1 25 1, Code 1999, is amended to read as follows: 1 26 If the taxpayer is asmallbusiness corporation, subtract 1 27 an amount equal to sixty-five percent of the wages paid to 1 28 individuals, but not to exceed twenty thousand dollars per 1 29 individual, named in paragraphs "a", "b", and "c" who were 1 30 hired for the first time by the taxpayer during the tax year 1 31 for work done in this state: 1 32 Sec. 5. Section 422.35, subsection 6, unnumbered paragraph 1 33 4, Code 1999, is amended by striking the unnumbered paragraph. 1 34 Sec. 6. Section 422.35, subsection 6A, Code 1999, is 1 35 amended by striking the subsection. 2 1 Sec. 7. This Act, being deemed of immediate importance, 2 2 takes effect upon enactment and applies retroactively to 2 3 January 1, 1999, for tax years beginning on or after that 2 4 date. 2 5 EXPLANATION 2 6 Present law provides for an additional deduction of 65 2 7 percent of wages paid to an individual with an impairment 2 8 hired during the tax year by a small business. This deduction 2 9 applies in computing individual and corporate income taxes. 2 10 The bill makes this additional deduction available for all 2 11 businesses regardless of their size. The definition of small 2 12 business is a business with 20 or fewer full-time equivalent 2 13 positions or not more than $3 million in gross revenues for 2 14 the preceding fiscal year or as the average for the three 2 15 preceding fiscal years, includes a farm operation, and 2 16 requires that the business is not a subsidiary or affiliate of 2 17 a business with more than 20 full-time equivalent employees 2 18 and more than $3 million of annual gross revenues. 2 19 The bill takes effect upon enactment and applies 2 20 retroactively to January 1, 1999, for tax years beginning on 2 21 or after that date. 2 22 LSB 1373XS 78 2 23 mg/cf/24.1
Text: SF00013 Text: SF00015 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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