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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