Text: HF00522 Text: HF00524 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11H WELFARE TO WORK HEALTH
1 2 CARE TAX 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 welfare to work health care tax credit. Any business that
1 6 hires an individual who received medical assistance under
1 7 chapter 249A at any time during the six calendar months
1 8 preceding the calendar month of being hired and that provides
1 9 health care benefits to such individual is entitled to the tax
1 10 credit. The amount of the tax credit equals one hundred
1 11 dollars for each month, up to twelve months, during which the
1 12 employee receives the health care benefits.
1 13 2. Any credit in excess of the tax liability for the tax
1 14 year may be credited to the tax liability for the following
1 15 ten years or until depleted, whichever is the earlier.
1 16 3. An individual may claim the welfare to work health care
1 17 tax credit allowed a partnership, limited liability company, S
1 18 corporation, estate, or trust electing to have the income
1 19 taxed directly to the individual. The amount claimed by the
1 20 individual shall be based upon the pro rata share of the
1 21 individual's earnings of the partnership, limited liability
1 22 company, S corporation, estate, or trust.
1 23 Sec. 2. Section 422.33, Code 2003, is amended by adding
1 24 the following new subsection:
1 25 NEW SUBSECTION. 14. a. The taxes imposed under this
1 26 division shall be reduced by a welfare to work health care tax
1 27 credit. Any business that hires an individual who received
1 28 medical assistance under chapter 249A at any time during the
1 29 six calendar months preceding the calendar month of being
1 30 hired and that provides health care benefits to such
1 31 individual is entitled to the tax credit. The amount of the
1 32 tax credit equals one hundred dollars for each month, up to
1 33 twelve months, during which the employee receives the health
1 34 care benefits.
1 35 b. Any credit in excess of the tax liability for the tax
2 1 year may be credited to the tax liability for the following
2 2 ten years or until depleted, whichever is the earlier.
2 3 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. This Act,
2 4 being deemed of immediate importance, takes effect upon
2 5 enactment and applies retroactively to January 1, 2003, for
2 6 tax years beginning on or after that date.
2 7 EXPLANATION
2 8 This bill provides nonrefundable individual and corporate
2 9 income tax credits to businesses that hire individuals who
2 10 have received, at any time during the six months preceding the
2 11 month of hiring, state medical assistance (federal Medicaid)
2 12 and that provide the individual health care benefits while the
2 13 individuals are employed. The credit equals $100 for each
2 14 month, up to 12 months, during which the employee receives
2 15 health care benefits. Excess credits may be carried forward
2 16 for up to 10 years.
2 17 The bill takes effect upon enactment and applies
2 18 retroactively beginning with the 2003 tax year.
2 19 LSB 2893YH 80
2 20 mg/cl/14
Text: HF00522 Text: HF00524 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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