Text: SF00155 Text: SF00157 Text: SF00100 - SF00199 Text: SF 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 or renting an assistive device or making workplace
1 7 modifications for purposes of an individual with a disability
1 8 who is employed or will be employed by the business is
1 9 entitled to receive this assistive device tax credit which is
1 10 equal to fifty percent of the cost paid during the tax year
1 11 for the purchase or rental of the assistive device or for
1 12 making the workplace modifications. Any credit in excess of
1 13 the tax liability shall be refunded with interest computed
1 14 under section 422.25. In lieu of claiming a refund, a
1 15 taxpayer may elect to have the overpayment shown on the
1 16 taxpayer's final, completed return credited to the tax
1 17 liability for the following tax year.
1 18 2. An individual may claim an assistive device tax credit
1 19 allowed a partnership, limited liability company, S
1 20 corporation, estate, or trust electing to have the income
1 21 taxed directly to the individual. The amount claimed by the
1 22 individual shall be based upon the pro rata share of the
1 23 individual's earnings of the partnership, limited liability
1 24 company, S corporation, estate, or trust.
1 25 3. For purposes of this section:
1 26 a. "Assistive device" means any item, piece of equipment,
1 27 or product system which is used to increase, maintain, or
1 28 improve the functional capabilities of an individual with a
1 29 disability in the workplace or on the job. "Assistive device"
1 30 does not mean any medical device, surgical device, or organ
1 31 implanted or transplanted into or attached directly to an
1 32 individual. "Assistive device" does not include any device
1 33 for which a certificate of title is issued by the state
1 34 department of transportation, but does include any item, piece
1 35 of equipment, or product system otherwise meeting the
2 1 definition of "assistive device" that is incorporated,
2 2 attached, or included as a modification in or to such a device
2 3 issued a certificate of title.
2 4 b. "Disability" means any physiological disorder or
2 5 condition, cosmetic disfigurement, or anatomical loss
2 6 affecting one or more of the body systems or any mental or
2 7 psychological disorder, including mental retardation, organic
2 8 brain syndrome, emotional or mental illness and specific
2 9 learning disabilities.
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 fifteen 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 1999, is amended by adding
2 17 the following new subsection:
2 18 NEW SUBSECTION. 8. The taxes imposed under this division
2 19 shall be reduced by an assistive device tax credit. A small
2 20 business purchasing or renting an assistive device or making
2 21 workplace modifications for purposes of an individual with a
2 22 disability who is employed or will be employed by the business
2 23 is entitled to receive this assistive device tax credit which
2 24 is equal to fifty percent of the cost paid during the tax year
2 25 for the purchase or rental of the assistive device or for
2 26 making the workplace modifications. Any credit in excess of
2 27 the tax liability shall be refunded with interest computed
2 28 under section 422.25. In lieu of claiming a refund, a
2 29 taxpayer may elect to have the overpayment shown on the
2 30 taxpayer's final, completed return credited to the tax
2 31 liability for the following tax year.
2 32 a. For purposes of this subsection, "assistive device"
2 33 means any item, piece of equipment, or product system which is
2 34 used to increase, maintain, or improve the functional
2 35 capabilities of an individual with a disability in the
3 1 workplace or on the job. "Assistive device" does not mean any
3 2 medical device, surgical device, or organ implanted or
3 3 transplanted into or attached directly to an individual.
3 4 "Assistive device" does not include any device for which a
3 5 certificate of title is issued by the state department of
3 6 transportation, but does include any item, piece of equipment,
3 7 or product system otherwise meeting the definition of
3 8 "assistive device" that is incorporated, attached, or included
3 9 as a modification in or to such a device issued a certificate
3 10 of title.
3 11 b. "Disability" means any physiological disorder or
3 12 condition, cosmetic disfigurement, or anatomical loss
3 13 affecting one or more of the body systems or any mental or
3 14 psychological disorder, including mental retardation, organic
3 15 brain syndrome, emotional or mental illness, and specific
3 16 learning disabilities.
3 17 c. "Small business" means a business that either had gross
3 18 receipts for its preceding tax year of three million dollars
3 19 or less or employed not more than fifteen full-time employees
3 20 during its preceding tax year.
3 21 d. "Workplace modifications" means physical alterations to
3 22 the work environment.
3 23 Sec. 3. This Act, being deemed of immediate importance,
3 24 takes effect upon enactment and applies retroactively to
3 25 January 1, 1999, for tax years beginning on or after that
3 26 date.
3 27 EXPLANATION
3 28 The bill allows a tax credit equal to 50 percent of the
3 29 cost of the purchase or rental of an assistive device or for
3 30 the renovation of the workplace for purposes of an individual
3 31 with a disability. The credit is refundable and applies to
3 32 both the individual and corporate income taxes. Only small
3 33 businesses are entitled to the credit. A small business is
3 34 one that either had gross receipts in the preceding tax year
3 35 of $3 million or less or employed not more than 15 full-time
4 1 employees during its preceding tax year. An assistive device
4 2 is an item, piece of equipment, or product system which is
4 3 used to increase, maintain, or improve the functional
4 4 capabilities of an individual with a disability in the
4 5 workplace or on the job.
4 6 The bill takes effect upon enactment and applies
4 7 retroactively to January 1, 1999, for tax years beginning on
4 8 or after that date.
4 9 LSB 2051XS 78
4 10 mg/sc/14.1
Text: SF00155 Text: SF00157 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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