Text: HF00543 Text: HF00545 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 237A.31 EMPLOYER CHILD CARE TAX
1 2 CREDIT.
1 3 1. A business may receive an employer child care tax
1 4 credit for providing child care employee benefits to employees
1 5 of the business. The credit may be applied against the income
1 6 tax imposed under chapter 422, division II or III, the
1 7 franchise tax imposed under chapter 422, division V, or the
1 8 gross premiums tax imposed under chapter 432. The amount of
1 9 the credit equals fifty percent of the cost to provide the
1 10 child care employee benefits.
1 11 2. To be eligible for an employer child care tax credit,
1 12 the business must provide child care employee benefits to
1 13 employees of the business through any of the following:
1 14 a. Build a new structure or rehabilitate an existing
1 15 structure to be used as a child care center where children of
1 16 employees of the business are provided child care. A business
1 17 may do the building or rehabilitating in conjunction with
1 18 another business or entity but only the business's actual
1 19 costs shall be considered in determining the amount of credit.
1 20 b. Operate or lease a child care center where children of
1 21 employees of the business are provided child care.
1 22 c. Donate money, supplies, or other tangible personal
1 23 property to a child care center where children of employees of
1 24 the business are provided child care.
1 25 d. Pay the cost for children of employees of the business
1 26 to attend a child care center.
1 27 Sec. 2. NEW SECTION. 422.11C EMPLOYER CHILD CARE TAX
1 28 CREDIT.
1 29 The taxes imposed under this division, less the credits
1 30 allowed under sections 422.12 and 422.12B, shall be reduced by
1 31 an employer child care tax credit received pursuant to section
1 32 237A.31.
1 33 An individual may claim the tax credit allowed a
1 34 partnership, limited liability company, S corporation, estate,
1 35 or trust electing to have the income taxed directly to the
2 1 individual. The amount claimed by the individual shall be
2 2 based upon the pro rata share of the individual's earnings of
2 3 the partnership, limited liability company, S corporation,
2 4 estate, or trust.
2 5 Any credit in excess of the tax liability for the tax year
2 6 may be credited to the tax liability for the following five
2 7 tax years or until depleted, whichever is earlier.
2 8 Sec. 3. Section 422.33, Code 2001, is amended by adding
2 9 the following new subsection:
2 10 NEW SUBSECTION. 11. The taxes imposed under this division
2 11 shall be reduced by an employer child care tax credit received
2 12 pursuant to section 237A.31.
2 13 Any credit in excess of the tax liability for the tax year
2 14 may be credited to the tax liability for following five tax
2 15 years or until depleted, whichever is earlier.
2 16 Sec. 4. Section 422.60, Code 2001, is amended by adding
2 17 the following new subsection:
2 18 NEW SUBSECTION. 4. The taxes imposed under this division
2 19 shall be reduced by an employer child care tax credit received
2 20 pursuant to section 237A.31.
2 21 Any credit in excess of the tax liability for the tax year
2 22 may be credited to the tax liability for the following five
2 23 tax years or until depleted, whichever is earlier.
2 24 Sec. 5. NEW SECTION. 432.12A EMPLOYER CHILD CARE TAX
2 25 CREDIT.
2 26 The tax imposed under this chapter shall be reduced by an
2 27 employer child care tax credit received pursuant to section
2 28 237A.31.
2 29 Any credit in excess of the tax liability for the calendar
2 30 year may be credited to the tax liability for the following
2 31 five calendar years or until depleted, whichever is earlier.
2 32 Sec. 6. APPLICABILITY DATE. This Act applies to tax years
2 33 beginning on or after January 1, 2002.
2 34 EXPLANATION
2 35 This bill provides businesses with income, franchise, and
3 1 gross premiums tax credits for providing child care employee
3 2 benefits to their employees. The child care employee benefits
3 3 involve the business building or rehabilitating an existing
3 4 structure as a child care center for use of its employees,
3 5 paying for children of employees to attend a child care
3 6 center, and operating or leasing a center or donating money or
3 7 tangible property to a center which its employees' children
3 8 attend.
3 9 The amount of the credit equals 50 percent of the cost in
3 10 providing the child care benefits. The credit is
3 11 nonrefundable but any excess may be carried forward for up to
3 12 five tax years.
3 13 The bill applies to tax years beginning on or after January
3 14 1, 2002.
3 15 LSB 2447HH 79
3 16 mg/cls/14
Text: HF00543 Text: HF00545 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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