Text: HF00419 Text: HF00421 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11H BUSINESS HEALTH CARE TAX
1 2 CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a business health care tax credit for the cost to a business
1 6 of providing health care benefits to employees and retirees of
1 7 the business. The amount of the credit equals twenty-five
1 8 percent of the total cost to the business of providing the
1 9 heath care benefits not to exceed the lesser of the following:
1 10 a. A total of two thousand five hundred dollars.
1 11 b. An average of two hundred fifty dollars per employee
1 12 who receives health care benefits and who resides and works in
1 13 the state.
1 14 Any credit in excess of the tax liability shall be
1 15 refunded. In lieu of claiming a refund, a taxpayer may elect
1 16 to have the overpayment shown on the taxpayer's final,
1 17 completed return credited to the tax liability for the
1 18 following taxable year.
1 19 2. An individual may claim a business health care tax
1 20 credit allowed a partnership, limited liability company, S
1 21 corporation, estate, or trust electing to have the income
1 22 taxed directly to the individual. The amount claimed by the
1 23 individual shall be based upon the pro rata share of the
1 24 individual's earnings of the partnership, limited liability
1 25 company, S corporation, estate, or trust.
1 26 3. A taxpayer claiming a credit under this section shall
1 27 not be precluded, in computing taxable income, from deducting
1 28 the amount of costs for providing health care benefits allowed
1 29 under any section of the Internal Revenue Code.
1 30 Sec. 2. Section 422.33, Code 2003, is amended by adding
1 31 the following new subsection:
1 32 NEW SUBSECTION. 14. a. The taxes imposed under this
1 33 division shall be reduced by a business health care tax credit
1 34 for the cost to a business of providing health care benefits
1 35 to employees and retirees of the business. The amount of the
2 1 credit equals twenty-five percent of the total cost to the
2 2 business of providing the health care benefits not to exceed
2 3 the lesser of the following:
2 4 (1) A total of two thousand five hundred dollars.
2 5 (2) An average of two hundred fifty dollars per employee
2 6 who receives health care benefits and who resides and works in
2 7 the state.
2 8 Any credit in excess of the tax liability shall be
2 9 refunded. In lieu of claiming a refund, a taxpayer may elect
2 10 to have the overpayment shown on the taxpayer's final,
2 11 completed return credited to the tax liability for the
2 12 following taxable year.
2 13 b. A taxpayer claiming a credit under this subsection
2 14 shall not be precluded, in computing net income, from
2 15 deducting the amount of costs for providing health care
2 16 benefits allowed under any section of the Internal Revenue
2 17 Code.
2 18 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 19 retroactively to January 1, 2003, for tax years beginning on
2 20 or after that date.
2 21 EXPLANATION
2 22 This bill allows a refundable tax credit for individual and
2 23 corporate tax purposes for a business in providing health care
2 24 benefits to its employees and retirees. The amount of credit
2 25 equals 25 percent of the lesser of $2,500 or an average of
2 26 $250 for each employee receiving health care benefits who
2 27 resides and works in the state.
2 28 The bill applies beginning with tax years beginning in the
2 29 2003 calendar year.
2 30 LSB 1784HH 80
2 31 mg/cl/14.1
Text: HF00419 Text: HF00421 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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