Text: SF00297 Text: SF00299 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11C TARGETED SMALL BUSINESS
1 2 GUARANTY FEE TAX CREDIT.
1 3 The taxes imposed under this division shall be reduced by a
1 4 targeted small business guaranty fee tax credit. The amount
1 5 of the credit is equal to any amount paid to the United States
1 6 small business administration as a guaranty fee in order to
1 7 obtain small business administration guaranteed financing.
1 8 The credit shall be applicable to the tax year in which the
1 9 guaranty fee was paid and shall be claimed only by the
1 10 targeted small business operating within the state which is
1 11 the primary obligor in the financing transaction and which
1 12 actually paid the guaranty fee. Any credit in excess of the
1 13 tax liability is nonrefundable but may be carried forward for
1 14 up to four tax years or until depleted. If the targeted small
1 15 business elects to take the tax credit under this section, the
1 16 targeted small business shall not deduct for Iowa tax purposes
1 17 any amount of the small business administration guaranty fee
1 18 deducted for federal income tax purposes.
1 19 An individual may claim the targeted small business
1 20 guaranty fee tax credit allowed a partnership, S corporation,
1 21 limited liability company, estate, or trust electing to have
1 22 the income taxed directly to the individual. The amount
1 23 claimed by the individual shall be based upon the pro rata
1 24 share of the individual's earnings of the partnership, S
1 25 corporation, limited liability company, or estate, or trust.
1 26 For purposes of this section, "targeted small business"
1 27 means the same as defined in section 15.102.
1 28 Sec. 2. Section 422.33, Code 2001, is amended by adding
1 29 the following new subsection:
1 30 NEW SUBSECTION. 11. A targeted small business operating
1 31 within the state is entitled to claim a targeted small
1 32 business guaranty fee tax credit against the taxes imposed
1 33 under this division equal to any amount paid to the United
1 34 States small business administration as a guaranty fee in
1 35 order to obtain small business administration guaranteed
2 1 financing. The credit shall be applicable to the tax year in
2 2 which the guaranty fee was paid and shall be claimed only by
2 3 the targeted small business which is the primary obligor in
2 4 the financing transaction and which actually paid the guaranty
2 5 fee. Any credit in excess of the tax liability is
2 6 nonrefundable but may be carried forward for up to four tax
2 7 years or until depleted. If the targeted small business
2 8 elects to take the targeted small business guaranty fee tax
2 9 credit, the targeted small business shall not deduct for Iowa
2 10 tax purposes any amount of the small business administration
2 11 guaranty fee deducted for federal income tax purposes.
2 12 For purposes of this subsection, "targeted small business"
2 13 means the same as defined in section 15.102.
2 14 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 15 retroactively to January 1, 2001, for tax years beginning on
2 16 or after that date.
2 17 EXPLANATION
2 18 This bill provides a targeted small business guaranty fee
2 19 tax credit to apply against personal income tax liability or
2 20 corporate tax liability. The tax credit is available only to
2 21 a small business which is owned and actively managed by one or
2 22 more women, minorities, or persons with a disability and has
2 23 an annual gross income of less than $3 million average of the
2 24 last three taxable years. The small business must be
2 25 operating within Iowa. The amount of the credit that may be
2 26 claimed is equal to any amount paid to the United States small
2 27 business administration as a guaranty fee in order to obtain
2 28 small business administration guaranteed financing. The
2 29 credit is applicable to the tax year in which the guaranty fee
2 30 was paid. The bill provides that the credit shall be claimed
2 31 only by the targeted small business which is the primary
2 32 obligor in the financing transaction and which actually paid
2 33 the guaranty fee. Any credit in excess of the tax liability
2 34 is nonrefundable but may be carried forward for up to four tax
2 35 years or until depleted.
3 1 The bill applies retroactively to January 1, 2001, for tax
3 2 years beginning on or after that date.
3 3 LSB 3033XS 79
3 4 mg/cf/24.1
Text: SF00297 Text: SF00299 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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