Text: SSB03213 Text: SSB03215 Text: SSB03200 - SSB03299 Text: SSB 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 1 9 eligible, subject to availability of credits, to receive this 1 10 assistive device tax credit which is equal to fifty percent of 1 11 the first five thousand dollars paid during the tax year for 1 12 the purchase, rental, or modification of the assistive device 1 13 or for making the workplace modifications. Any credit in 1 14 excess of the tax liability shall be refunded with interest 1 15 computed under section 422.25. In lieu of claiming a refund, 1 16 a taxpayer may elect to have the overpayment shown on the 1 17 taxpayer's final, completed return credited to the tax 1 18 liability for the following tax year. If the small business 1 19 elects to take the assistive device tax credit, the small 1 20 business shall not deduct for Iowa tax purposes any amount of 1 21 the cost of an assistive device or workplace modifications 1 22 which is deductible for federal tax purposes. 1 23 2. To receive the assistive device tax credit, the 1 24 eligible small business must submit an application to the 1 25 department of economic development. If the taxpayer meets the 1 26 criteria for eligibility, the department of economic 1 27 development shall issue to the taxpayer a certification of 1 28 entitlement for the assistive device tax credit. However, the 1 29 combined amount of tax credits that may be approved for a 1 30 fiscal year under this section and section 422.33, subsection 1 31 9, shall not exceed five hundred thousand dollars. Tax 1 32 credit certificates shall be issued on an earliest filed 1 33 basis. The certification shall contain the taxpayer's name, 1 34 address, tax identification number, the amount of the credit, 1 35 and tax year for which the certificate applies. The taxpayer 2 1 must file the tax credit certificate with the taxpayer's 2 2 individual income tax return in order to claim the tax credit. 2 3 The departments of economic development and revenue and 2 4 finance shall each adopt rules to jointly administer this 2 5 section and shall provide by rule for the method to be used to 2 6 determine for which fiscal year the tax credits are approved. 2 7 3. An individual may claim an assistive device tax credit 2 8 allowed a partnership, limited liability company, S 2 9 corporation, estate, or trust electing to have the income 2 10 taxed directly to the individual. The amount claimed by the 2 11 individual shall be based upon the pro rata share of the 2 12 individual's earnings of the partnership, limited liability 2 13 company, S corporation, estate, or trust. 2 14 4. For purposes of this section: 2 15 a. "Assistive device" means any item, piece of equipment, 2 16 or product system which is used to increase, maintain, or 2 17 improve the functional capabilities of an individual with a 2 18 disability in the workplace or on the job. "Assistive device" 2 19 does not mean any medical device, surgical device, or organ 2 20 implanted or transplanted into or attached directly to an 2 21 individual. "Assistive device" does not include any device 2 22 for which a certificate of title is issued by the state 2 23 department of transportation, but does include any item, piece 2 24 of equipment, or product system otherwise meeting the 2 25 definition of "assistive device" that is incorporated, 2 26 attached, or included as a modification in or to such a device 2 27 issued a certificate of title. 2 28 b. "Disability" means the same as defined in section 2 29 225C.46. 2 30 c. "Small business" means a business that either had gross 2 31 receipts for its preceding tax year of three million dollars 2 32 or less or employed not more than fourteen full-time employees 2 33 during its preceding tax year. 2 34 d. "Workplace modifications" means physical alterations to 2 35 the work environment. 3 1 Sec. 2. Section 422.33, Code Supplement 1999, is amended 3 2 by adding the following new subsection: 3 3 NEW SUBSECTION. 9. a. The taxes imposed under this 3 4 division shall be reduced by an assistive device tax credit. 3 5 A small business purchasing, renting, or modifying an 3 6 assistive device or making workplace modifications for an 3 7 individual with a disability who is employed or will be 3 8 employed by the small business is eligible, subject to 3 9 availability of credits, to receive this assistive device tax 3 10 credit which is equal to fifty percent of the first five 3 11 thousand dollars paid during the tax year for the purchase, 3 12 rental, or modification of the assistive device or for making 3 13 the workplace modifications. Any credit in excess of the tax 3 14 liability shall be refunded with interest computed under 3 15 section 422.25. In lieu of claiming a refund, a taxpayer may 3 16 elect to have the overpayment shown on the taxpayer's final, 3 17 completed return credited to the tax liability for the 3 18 following tax year. If the small business elects to take the 3 19 assistive device tax credit, the small business shall not 3 20 deduct for Iowa tax purposes any amount of the cost of an 3 21 assistive device or workplace modifications which is 3 22 deductible for federal income tax purposes. 3 23 b. To receive the assistive device tax credit, the 3 24 eligible small business must submit an application to the 3 25 department of economic development. If the taxpayer meets the 3 26 criteria for eligibility, the department of economic 3 27 development shall issue to the taxpayer a certification of 3 28 entitlement for the assistive device tax credit. However, the 3 29 combined amount of tax credits that may be approved for a 3 30 fiscal year under this subsection and section 422.11D shall 3 31 not exceed five hundred thousand dollars. Tax credit 3 32 certificates shall be issued on an earliest filed basis. The 3 33 certification shall contain the taxpayer's name, address, tax 3 34 identification number, the amount of the credit, and tax year 3 35 for which the certificate applies. The taxpayer must file the 4 1 tax credit certificate with the taxpayer's corporate income 4 2 tax return in order to claim the tax credit. The departments 4 3 of economic development and revenue and finance shall each 4 4 adopt rules to jointly administer this subsection and shall 4 5 provide by rule for the method to be used to determine for 4 6 which fiscal year the tax credits are approved. 4 7 c. For purposes of this subsection: 4 8 (1) "Assistive device" means any item, piece of equipment, 4 9 or product system which is used to increase, maintain, or 4 10 improve the functional capabilities of an individual with a 4 11 disability in the workplace or on the job. "Assistive device" 4 12 does not mean any medical device, surgical device, or organ 4 13 implanted or transplanted into or attached directly to an 4 14 individual. "Assistive device" does not include any device 4 15 for which a certificate of title is issued by the state 4 16 department of transportation, but does include any item, piece 4 17 of equipment, or product system otherwise meeting the 4 18 definition of "assistive device" that is incorporated, 4 19 attached, or included as a modification in or to such a device 4 20 issued a certificate of title. 4 21 (2) "Disability" means the same as defined in section 4 22 225C.46. 4 23 (3) "Small business" means a business that either had 4 24 gross receipts for its preceding tax year of three million 4 25 dollars or less or employed not more than fourteen full-time 4 26 employees during its preceding tax year. 4 27 (4) "Workplace modifications" means physical alterations 4 28 to the work environment. 4 29 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE. 4 30 This Act, being deemed of immediate importance, takes effect 4 31 upon enactment and applies retroactively to January 1, 2000, 4 32 for tax years beginning on or after that date. 4 33 EXPLANATION 4 34 This bill allows a tax credit equal to 50 percent of the 4 35 first $5,000 paid for the purchase, rental, or modification of 5 1 an assistive device or for the renovation of the workplace for 5 2 an individual with a disability. The credit is refundable and 5 3 applies to both the individual and corporate income taxes. 5 4 Only small businesses are entitled to the credit. A small 5 5 business is one that either had gross receipts in the 5 6 preceding tax year of $3 million or less or employed not more 5 7 than 14 full-time employees during its preceding tax year. An 5 8 assistive device is an item, piece of equipment, or product 5 9 system which is used to increase, maintain, or improve the 5 10 functional capabilities of an individual with a disability in 5 11 the workplace or on the job. If the assistive tax credit is 5 12 claimed, the small business is not allowed to deduct any 5 13 amount of the cost of the device or modification which is 5 14 deductible for federal income tax purposes. 5 15 The bill provides that only $500,000 in combined individual 5 16 and corporate income tax credits are allowed for any fiscal 5 17 year. Because of this, eligible small businesses must apply 5 18 for the credits with the department of economic development 5 19 which approves the eligible credits on an earliest date 5 20 applied basis. 5 21 The bill takes effect upon enactment and applies 5 22 retroactively to January 1, 2000, for tax years beginning on 5 23 or after that date. 5 24 LSB 6616SC 78 5 25 mg/cls/14
Text: SSB03213 Text: SSB03215 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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