Text: SF02003 Text: SF02005 Text: SF02000 - SF02099 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 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 cost paid during the tax year for the
1 11 purchase, rental, or modification of the assistive device or
1 12 for making the workplace modifications. Any credit in excess
1 13 of 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. If the small business
1 18 elects to take the assistive device tax credit, the small
1 19 business shall reduce the deduction for the costs of
1 20 purchasing, renting, or modifying an assistive device or
1 21 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 cost paid during the tax year for the purchase, rental, or
2 26 modification of the assistive device or for making the
2 27 workplace modifications. Any credit in excess of the tax
2 28 liability shall be refunded with interest computed under
2 29 section 422.25. In lieu of claiming a refund, a taxpayer may
2 30 elect to have the overpayment shown on the taxpayer's final,
2 31 completed return credited to the tax liability for the
2 32 following tax year. If the small business elects to take the
2 33 assistive device tax credit, the small business shall reduce
2 34 the deduction for the costs of purchasing, renting, or
2 35 modifying an assistive device or making workplace
3 1 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 cost of the purchase, rental, or modification of an assistive
3 31 device or for the renovation of the workplace for an
3 32 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 5339SS 78
4 11 mg/cls/14
Text: SF02003 Text: SF02005 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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