House File 2561 PAG LIN 1 1 HOUSE FILE 2561 1 2 1 3 AN ACT 1 4 CREATING A JOB CORPS CENTER NEW JOBS TAX CREDIT AND PROVIDING 1 5 EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. NEW SECTION. 422.11J JOB CORPS CENTER NEW 1 10 JOBS TAX CREDIT. 1 11 The taxes imposed under this division, less the credits 1 12 allowed under sections 422.12 and 422.12B, shall be reduced by 1 13 a job corps center new jobs tax credit. An employer who hires 1 14 a graduate of a job corps center on a full=time basis within 1 15 six months of the employee's graduation from the job corps 1 16 center or within three years of the employee's graduation from 1 17 the job corps center if the job corps center graduate elects 1 18 to attend a community college in Iowa within six months of the 1 19 employee's graduation from the job corps center is entitled to 1 20 the job corps center new jobs tax credit. The amount of the 1 21 tax credit for each employed job corps graduate is equal to 1 22 the product of six percent of the taxable wages paid to the 1 23 graduate upon which the employer is required to contribute to 1 24 the state unemployment compensation fund, as defined in 1 25 section 96.19, subsection 37, multiplied by the number of 1 26 whole months the graduate is employed by the employer during 1 27 the tax year divided by twelve. The tax credit applies only 1 28 to the first twelve months of employment for each graduate 1 29 hired. An individual may claim the tax credit allowed a 1 30 partnership, subchapter S corporation, or estate or trust 1 31 electing to have the income taxed directly to the individual. 1 32 The amount claimed by the individual shall be based upon the 1 33 pro rata share of the individual's earnings of the 1 34 partnership, subchapter S corporation, or estate or trust. 1 35 For purposes of this section, "job corps center" is defined as 2 1 a campus located in Iowa that is part of the nationwide 2 2 network of campuses organized under the federal job corps 2 3 program authorized by the federal Workforce Investment Act of 2 4 1998, Pub. L. No. 10=222. 2 5 Sec. 2. Section 422.33, Code Supplement 2003, is amended 2 6 by adding the following new subsection: 2 7 NEW SUBSECTION. 16. The taxes imposed under this division 2 8 shall be reduced by a job corps center new jobs tax credit. 2 9 An employer who hires a graduate of a job corps center on a 2 10 full=time basis within six months of the employee's graduation 2 11 from the job corps center or within three years of the 2 12 employee's graduation from the job corps center if the job 2 13 corps center graduate elects to attend a community college in 2 14 Iowa within six months of the employee's graduation from the 2 15 job corps center is entitled to the job corps center new jobs 2 16 tax credit. The amount of the tax credit for each employed 2 17 job corps graduate is equal to the product of six percent of 2 18 the taxable wages paid to the graduate upon which the employer 2 19 is required to contribute to the state unemployment 2 20 compensation fund, as defined in section 96.19, subsection 37, 2 21 multiplied by the number of whole months the graduate is 2 22 employed by the employer during the tax year divided by 2 23 twelve. The tax credit applies only to the first twelve 2 24 months of employment for each graduate hired. An individual 2 25 may claim the tax credit allowed a partnership, subchapter S 2 26 corporation, or estate or trust electing to have the income 2 27 taxed directly to the individual. The amount claimed by the 2 28 individual shall be based upon the pro rata share of the 2 29 individual's earnings of the partnership, subchapter S 2 30 corporation, or estate or trust. For purposes of this 2 31 section, "job corps center" is defined as a campus located in 2 32 Iowa that is part of the nationwide network of campuses 2 33 organized under the federal job corps program authorized by 2 34 the federal Workforce Investment Act of 1998, Pub. L. No. 10= 2 35 222. 3 1 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. This Act, 3 2 being deemed of immediate importance, takes effect upon 3 3 enactment. This Act applies retroactively to January 1, 2004, 3 4 and is applicable to tax years beginning on and after that 3 5 date. 3 6 3 7 3 8 3 9 CHRISTOPHER C. RANTS 3 10 Speaker of the House 3 11 3 12 3 13 3 14 JEFFREY M. LAMBERTI 3 15 President of the Senate 3 16 3 17 I hereby certify that this bill originated in the House and 3 18 is known as House File 2561, Eightieth General Assembly. 3 19 3 20 3 21 3 22 MARGARET THOMSON 3 23 Chief Clerk of the House 3 24 Approved , 2004 3 25 3 26 3 27 3 28 THOMAS J. VILSACK 3 29 Governor