Text: HF02478 Text: HF02480 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.11F APPRENTICESHIP AND 1 2 INTERNSHIP TAX CREDIT. 1 3 1. The tax imposed under this division, less the credits 1 4 allowed under sections 422.12 and 422.12B, shall be reduced by 1 5 an apprenticeship and internship tax credit. To qualify for 1 6 the tax credit, a business shall be an employer of a student 1 7 at an Iowa community college or Iowa board of regents 1 8 institution under the certified school-to-career program, as 1 9 defined in section 15.362, under an apprenticeship program as 1 10 defined in section 260C.44, or in an internship under a work- 1 11 study program similar to one described in section 261.81. The 1 12 amount of the credit equals four hundred dollars for each tax 1 13 year during which the student is employed by the business in 1 14 the school-to-career, apprenticeship, or internship program. 1 15 2. A business that employs an individual upon graduation 1 16 for which it has received the tax credit under subsection 1 is 1 17 entitled to an employment tax credit for that individual for 1 18 up to the first three years following the individual's 1 19 graduation from the Iowa community college or Iowa board of 1 20 regents institution. To receive the employment tax credit in 1 21 a tax year, the graduate must be employed for more than six 1 22 months in the tax year. The amount of the tax credit equals 1 23 one thousand six hundred dollars for the tax year per 1 24 individual employee. 1 25 3. An individual may claim the tax credits under 1 26 subsections 1 and 2 allowed a partnership, limited liability 1 27 company, S corporation, estate, or trust electing to have the 1 28 income taxed directly to the individual. The amount claimed 1 29 by the individual shall be based upon the pro rata share of 1 30 the individual's earnings of the partnership, limited 1 31 liability company, S corporation, estate, or trust. 1 32 4. Any credit in excess of the tax liability for the tax 1 33 year is nonrefundable but may be credited to the tax liability 1 34 for the following ten tax years or until depleted, whichever 1 35 is the earlier. 2 1 Sec. 2. Section 422.33, Code Supplement 2001, is amended 2 2 by adding the following new subsection: 2 3 NEW SUBSECTION. 12. a. The tax imposed under this 2 4 division shall be reduced by an apprenticeship and internship 2 5 tax credit. To qualify for the tax credit, a business shall 2 6 be an employer of a student at an Iowa community college or 2 7 Iowa board of regents institution under the certified school- 2 8 to-career program, as defined in section 15.362, under an 2 9 apprenticeship program as defined in section 260C.44, or in an 2 10 internship under a work-study program similar to one described 2 11 in section 261.81. The amount of the credit equals four 2 12 hundred dollars for each tax year during which the student is 2 13 employed by the business in the school-to-career, 2 14 apprenticeship, or internship program. 2 15 b. A business that employs an individual upon graduation 2 16 for which it has received the tax credit under paragraph "a" 2 17 is entitled to an employment tax credit for that individual 2 18 for up to the first three years following the individual's 2 19 graduation from the Iowa community college or Iowa board of 2 20 regents institution. To receive the employment tax credit in 2 21 a tax year, the graduate must be employed for more than six 2 22 months in the tax year. The amount of the tax credit equals 2 23 one thousand six hundred dollars for the tax year per 2 24 individual employee. 2 25 c. Any credit in excess of the tax liability for the tax 2 26 year is nonrefundable but may be credited to the tax liability 2 27 for the following ten tax years or until depleted, whichever 2 28 is the earlier. 2 29 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. This Act, 2 30 being deemed of immediate importance, takes effect upon 2 31 enactment and applies retroactively to January 1, 2002, for 2 32 tax years beginning on or after that date. 2 33 EXPLANATION 2 34 This bill provides an individual or corporate income tax 2 35 credit to a business that employs a student from an Iowa 3 1 community college or Iowa board of regents institution in an 3 2 apprenticeship or internship program. The amount of credit 3 3 equals $400 per student. In addition, if the business hires 3 4 that student upon graduation, the business can receive another 3 5 tax credit equal to $1,600 for each year, up to three years, 3 6 that the graduate is employed by the business. The graduate 3 7 must be employed for at least six months during the tax year. 3 8 Any tax credit in excess of the tax liability is nonrefundable 3 9 but may be carried forward for up to 10 tax years. 3 10 The bill takes effect upon enactment and applies 3 11 retroactively to January 1, 2002, for tax years beginning on 3 12 or after that date. 3 13 LSB 6307HH 79 3 14 mg/cls/14
Text: HF02478 Text: HF02480 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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