Text: HF02383 Text: HF02385 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F SMALL BUSINESS GUARANTY
1 2 FEE TAX CREDIT.
1 3 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 a small business guaranty fee tax credit. The amount of the
1 6 credit is equal to any amount paid to the United States small
1 7 business administration as a guaranty fee in order to obtain
1 8 small business administration guaranteed financing. The
1 9 credit shall be applicable to the tax year in which the
1 10 guaranty fee was paid and shall be claimed only by the small
1 11 business operating within the state which is the primary
1 12 obligor in the financing transaction and which actually paid
1 13 the guaranty fee. Any credit in excess of the tax liability
1 14 is nonrefundable but may be carried forward for up to four tax
1 15 years or until depleted. If the small business elects to take
1 16 the tax credit under this section, the small business shall
1 17 not deduct for Iowa tax purposes any amount of the small
1 18 business administration guaranty fee deducted for federal
1 19 income tax purposes.
1 20 For purposes of this section, an individual may claim the
1 21 small business guaranty fee tax credit allowed a partnership,
1 22 S corporation, limited liability company, estate, or trust
1 23 electing to have the income taxed directly to the individual.
1 24 The amount claimed by the individual shall be based upon the
1 25 pro rata share of the individual's earnings of the
1 26 partnership, S corporation, limited liability company, estate,
1 27 or trust.
1 28 For purposes of this section, "small business" means a
1 29 corporation, partnership, sole proprietorship, limited
1 30 liability company, or other business entity qualifying as
1 31 "small" under the standards contained in 13 C.F.R., pt. 121.
1 32 Sec. 2. Section 422.33, Code Supplement 2001, is amended
1 33 by adding the following new subsection:
1 34 NEW SUBSECTION. 12. The taxes imposed under this division
1 35 shall be reduced by a small business guaranty fee tax credit.
2 1 The amount of the credit is equal to any amount paid to the
2 2 United States small business administration as a guaranty fee
2 3 in order to obtain small business administration guaranteed
2 4 financing. The credit shall be applicable to the tax year in
2 5 which the guaranty fee was paid and shall be claimed only by
2 6 the small business operating within the state which is the
2 7 primary obligor in the financing transaction and which
2 8 actually paid the guaranty fee. Any credit in excess of the
2 9 tax liability is nonrefundable but may be carried forward for
2 10 up to four tax years or until depleted. If the small business
2 11 elects to take the small business guaranty fee tax credit, the
2 12 small business shall not deduct for Iowa tax purposes any
2 13 amount of the small business administration guaranty fee
2 14 deducted for federal income tax purposes.
2 15 For purposes of this subsection, "small business" means a
2 16 corporation, partnership, sole proprietorship, limited
2 17 liability company, or other business entity qualifying as
2 18 "small" under the standards contained in 13 C.F.R., pt. 121.
2 19 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 20 retroactively to January 1, 2002, for tax years beginning on
2 21 or after that date.
2 22 EXPLANATION
2 23 This bill provides a small business guaranty fee tax credit
2 24 to apply against individual income tax liability or corporate
2 25 tax liability. Only a small business which is a corporation,
2 26 partnership, sole proprietorship, limited liability company,
2 27 or other business entity qualifying as "small" under the
2 28 standards contained in 13 C.F.R., pt. 121, is eligible. The
2 29 small business must be operating within Iowa. The amount of
2 30 the credit that may be claimed is equal to any amount paid to
2 31 the United States small business administration as a guaranty
2 32 fee in order to obtain small business administration
2 33 guaranteed financing. The credit is applicable to the tax
2 34 year in which the guaranty fee was paid. The bill provides
2 35 that the credit shall be claimed only by the small business
3 1 which is the primary obligor in the financing transaction and
3 2 which actually paid the guaranty fee. Any credit in excess of
3 3 the tax liability is nonrefundable but may be carried forward
3 4 for up to four tax years or until depleted.
3 5 The bill applies retroactively to January 1, 2002, for tax
3 6 years beginning on or after that date.
3 7 LSB 6211HH 79
3 8 mg/sh/8
Text: HF02383 Text: HF02385 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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