Text: SF02282 Text: SF02284 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.333A, subsection 2, Code 1999, is 1 2 amended by striking the subsection. 1 3 Sec. 2. Section 422.11A, Code 1999, is amended to read as 1 4 follows: 1 5 422.11A NEW JOBS TAX CREDIT. 1 6 The taxes imposed under this division, less the credits 1 7 allowed under sections 422.12 and 422.12B, shall be reduced by 1 8 a new jobs tax credit. An industry which has entered into an 1 9 agreement under chapter 260E and which has increased its base 1 10 employment level by at least ten percent within the time set 1 11 in the agreement or, in the case of an industry without a base 1 12 employment level, adds new jobs within the time set in the 1 13 agreement is entitled to this new jobs tax credit for the tax 1 14 year selected by the industry. In determining if the industry 1 15 has increased its base employment level by ten percent or 1 16 added new jobs, only those new jobs directly resulting from 1 17 the project covered by the agreement and those directly 1 18 related to those new jobs shall be counted. The amount of 1 19 this credit is equal to the product of six percent of the 1 20 taxable wages upon which an employer is required to contribute 1 21 to the state unemployment compensation fund, as defined in 1 22 section 96.19, subsection 37, times the number of new jobs 1 23 existing in the tax year that directly result from the project 1 24 covered by the agreement or new jobs that directly result from 1 25 those new jobs. The tax year chosen by the industry shall 1 26 either begin or end during the period beginning with the date 1 27 of the agreement and ending with the date by which the project 1 28 is to be completed under the agreement. An individual may 1 29 claim the new jobs tax credit allowed a partnership, 1 30 subchapter S corporation, or estate or trust electing to have 1 31 the income taxed directly to the individual. The amount 1 32 claimed by the individual shall be based upon the pro rata 1 33 share of the individual's earnings of the partnership, 1 34 subchapter S corporation, or estate or trust. Any credit in 1 35 excess of the tax liability for the tax year may be credited 2 1 to the tax liability for the following ten tax years or until 2 2 depleted, whichever is the earlier. For purposes of this 2 3 section, "agreement", "industry", "new job" and "project" mean 2 4 the same as defined in section 260E.2 and "base employment 2 5 level" means the number of full-time jobs an industry employs 2 6 at the plant site which is covered by an agreement under 2 7 chapter 260E on the date of that agreement. If the tax credit 2 8 authorized under this section is claimed, the tax credit 2 9 authorized under section 432.15 shall not be claimed or 2 10 allowed for any tax year during the term of the agreement. 2 11 Sec. 3. NEW SECTION. 432.15 NEW JOBS TRAINING PROGRAM 2 12 PREMIUM TAX CREDIT. 2 13 An insurance company which has entered into an agreement 2 14 under chapter 260E and which has increased its base employment 2 15 level by at least ten percent within the time set in the 2 16 agreement or, in the case of an insurance company without a 2 17 base employment level, adds new jobs within the time set in 2 18 the agreement is entitled to a new jobs insurance premium tax 2 19 credit for the tax year selected by the insurance company. In 2 20 determining if the insurance company has increased its base 2 21 employment level by ten percent or added new jobs, only the 2 22 new jobs directly resulting from the project covered by the 2 23 agreement and new jobs directly related to those new jobs 2 24 shall be counted. The amount of the credit is equal to the 2 25 product of six percent of the taxable wages upon which an 2 26 employer is required to contribute to the state unemployment 2 27 compensation fund, as defined in section 96.19, subsection 37, 2 28 times the number of new jobs existing in the tax year that 2 29 directly result from the project covered by the agreement or 2 30 new jobs that directly result from those new jobs. The tax 2 31 year chosen by the insurance company shall either begin or end 2 32 during the period beginning with the date by which the project 2 33 is to be completed under the agreement. Any credit in excess 2 34 of the premium tax liability for the tax year may be credited 2 35 to the tax liability for the following ten tax years or until 3 1 depleted, whichever occurs earlier. For purposes of this 3 2 subsection, "agreement", "new job", and "project" mean the 3 3 same as defined in section 260E.2 and "base employment level" 3 4 means the number of full-time jobs a business employs at the 3 5 insurance company site which is covered by an agreement under 3 6 chapter 260E on the date of that agreement. If the tax credit 3 7 authorized under this section is claimed, the tax credit 3 8 authorized under section 422.11A shall not be claimed or 3 9 allowed for any tax year during the term of the agreement. 3 10 EXPLANATION 3 11 This bill strikes the second subsection of Code section 3 12 15.333A and moves it to Code chapter 432. The moved 3 13 subsection relates to one of two insurance premium tax credits 3 14 under the new jobs and income program. The bill amends the 3 15 insurance premium tax credit to make it available to an 3 16 insurance company, rather than limiting it to eligible 3 17 businesses as defined under the new jobs and income program. 3 18 The bill amends the insurance premium tax credit to allow 3 19 the credit to be carried over for a period of 10 years or 3 20 until depleted, whichever occurs earlier, rather than seven 3 21 years as provided under the new jobs and income program. 3 22 The bill provides that if the insurance premium tax credit 3 23 is claimed, the new jobs tax credit authorized under Code 3 24 section 422.11A shall not be claimed or allowed for any tax 3 25 year during the term of the agreement, with the reverse also 3 26 applying. 3 27 LSB 5329SV 78 3 28 tm/cf/24
Text: SF02282 Text: SF02284 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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