Text: SSB01200 Text: SSB01202 Text: SSB01200 - SSB01299 Text: SSB 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 twenty-five percent, not to exceed one 1 10 hundred thousand dollars, of the cost to provide the child 1 11 care employee benefits. 1 12 2. To be eligible for an employer child care tax credit, 1 13 the business must provide child care employee benefits to 1 14 employees of the business through any of the following: 1 15 a. Build a new structure or rehabilitate an existing 1 16 structure to be used as a child care center. A business may 1 17 do the building or rehabilitating in conjunction with another 1 18 business or entity but only the business's actual costs shall 1 19 be considered in determining the amount of credit. At least 1 20 five children of employees of the business are provided child 1 21 care at the center. 1 22 b. Operate or lease a child care center where at least 1 23 five children of employees of the business are provided child 1 24 care at the center. 1 25 c. Donate money, supplies, or other tangible personal 1 26 property to a child care center where at least five children 1 27 of employees of the business are provided child care. 1 28 d. Pay the cost for the equivalent of five children of 1 29 employees of the business to attend a child care center. 1 30 Sec. 2. NEW SECTION. 422.11C EMPLOYER CHILD CARE TAX 1 31 CREDIT. 1 32 The taxes imposed under this division, less the credits 1 33 allowed under sections 422.12 and 422.12B, shall be reduced by 1 34 an employer child care tax credit received pursuant to section 1 35 237A.31. 2 1 An individual may claim the tax credit allowed a 2 2 partnership, limited liability company, S corporation, estate, 2 3 or trust electing to have the income taxed directly to the 2 4 individual. The amount claimed by the individual shall be 2 5 based upon the pro rata share of the individual's earnings of 2 6 the partnership, limited liability company, S corporation, 2 7 estate, or trust. 2 8 Any credit in excess of the tax liability for the tax year 2 9 may be credited to the tax liability for the following five 2 10 tax years or until depleted, whichever is earlier. 2 11 Sec. 3. Section 422.33, Code 2001, is amended by adding 2 12 the following new subsection: 2 13 NEW SUBSECTION. 11. The taxes imposed under this division 2 14 shall be reduced by an employer child care tax credit received 2 15 pursuant to section 237A.31. 2 16 Any credit in excess of the tax liability for the tax year 2 17 may be credited to the tax liability for following five tax 2 18 years or until depleted, whichever is earlier. 2 19 Sec. 4. Section 422.60, Code 2001, is amended by adding 2 20 the following new subsection: 2 21 NEW SUBSECTION. 4. The taxes imposed under this division 2 22 shall be reduced by an employer child care tax credit received 2 23 pursuant to section 237A.31. 2 24 Any credit in excess of the tax liability for the tax year 2 25 may be credited to the tax liability for the following five 2 26 tax years or until depleted, whichever is earlier. 2 27 Sec. 5. NEW SECTION. 432.12A EMPLOYER CHILD CARE TAX 2 28 CREDIT. 2 29 The tax imposed under this chapter shall be reduced by an 2 30 employer child care tax credit received pursuant to section 2 31 237A.31. 2 32 Any credit in excess of the tax liability for the calendar 2 33 year may be credited to the tax liability for the following 2 34 five calendar years or until depleted, whichever is earlier. 2 35 Sec. 6. APPLICABILITY DATE. This Act applies to tax years 3 1 beginning on or after January 1, 2002. 3 2 EXPLANATION 3 3 This bill provides businesses with income, franchise, and 3 4 gross premiums tax credits for providing child care employee 3 5 benefits to their employees. The child care employee benefits 3 6 involve the business building or rehabilitating an existing 3 7 structure as a child care center for use of its employees, 3 8 paying for children of employees to attend a child care 3 9 center, operating or leasing a center, or donating money or 3 10 tangible property to a center which its employees' children 3 11 attend. 3 12 The amount of the credit equals 25 percent of the cost in 3 13 providing the child care benefits. The credit is limited to 3 14 $100,000 which is nonrefundable but any excess may be carried 3 15 forward for up to five tax years. 3 16 The bill applies to tax years beginning on or after January 3 17 1, 2002. 3 18 LSB 2048XC 79 3 19 mg/cls/14
Text: SSB01200 Text: SSB01202 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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