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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