House File 219 - Introduced
HOUSE FILE
BY MASCHER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing individual and corporate income tax credits to
2 businesses that provide apprenticeships and internships for
3 students at community colleges or state board of regents
4 institutions and for subsequent employment, and including
5 effective and retroactive applicability date provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 2280HH 81
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PAG LIN
1 1 Section 1. NEW SECTION. 422.11K APPRENTICESHIP AND
1 2 INTERNSHIP 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 an apprenticeship and internship tax credit. To qualify for
1 6 the tax credit, a business shall be an employer of a student
1 7 at a community college established under chapter 260C or
1 8 institution of higher learning under the control of the state
1 9 board of regents under an apprenticeship program as defined in
1 10 section 260C.44, or in an internship under a work=study
1 11 program similar to one described in section 261.81. The
1 12 amount of the credit equals four hundred dollars for each tax
1 13 year during which the student is employed by the business in
1 14 the apprenticeship or internship program.
1 15 2. A business that employs an individual upon graduation
1 16 for which it has received the tax credit under subsection 1 is
1 17 entitled to an employment tax credit for that individual for
1 18 up to the first three years following the individual's
1 19 graduation from the Iowa community college or Iowa board of
1 20 regents institution. To receive the employment tax credit in
1 21 a tax year, the graduate must be employed for more than six
1 22 months in the tax year. The amount of the tax credit equals
1 23 one thousand six hundred dollars for the tax year per
1 24 individual employee.
1 25 3. An individual may claim the tax credits under
1 26 subsections 1 and 2 allowed a partnership, limited liability
1 27 company, S corporation, estate, or trust electing to have the
1 28 income taxed directly to the individual. The amount claimed
1 29 by the individual shall be based upon the pro rata share of
1 30 the individual's earnings of the partnership, limited
1 31 liability company, S corporation, estate, or trust.
1 32 4. Any credit in excess of the tax liability for the tax
1 33 year is nonrefundable but may be credited to the tax liability
1 34 for the following ten tax years or until depleted, whichever
1 35 is the earlier.
2 1 Sec. 2. Section 422.33, Code 2005, is amended by adding
2 2 the following new subsection:
2 3 NEW SUBSECTION. 17. a. The taxes imposed under this
2 4 division shall be reduced by an apprenticeship and internship
2 5 tax credit. To qualify for the tax credit, a business shall
2 6 be an employer of a student at a community college established
2 7 under chapter 260C or institution of higher learning under the
2 8 control of the state board of regents under an apprenticeship
2 9 program as defined in section 260C.44, or in an internship
2 10 under a work=study program similar to one described in section
2 11 261.81. The amount of the credit equals four hundred dollars
2 12 for each tax year during which the student is employed by the
2 13 business in the apprenticeship or internship program.
2 14 b. A business that employs an individual upon graduation
2 15 for which it has received the tax credit under paragraph "a"
2 16 is entitled to an employment tax credit for that individual
2 17 for up to the first three years following the individual's
2 18 graduation from the Iowa community college or Iowa board of
2 19 regents institution. To receive the employment tax credit in
2 20 a tax year, the graduate must be employed for more than six
2 21 months in the tax year. The amount of the tax credit equals
2 22 one thousand six hundred dollars for the tax year per
2 23 individual employee.
2 24 c. Any credit in excess of the tax liability for the tax
2 25 year is nonrefundable but may be credited to the tax liability
2 26 for the following ten tax years or until depleted, whichever
2 27 is the earlier.
2 28 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. This Act,
2 29 being deemed of immediate importance, takes effect upon
2 30 enactment and applies retroactively to January 1, 2005, for
2 31 tax years beginning on or after that date.
2 32 EXPLANATION
2 33 This bill provides an individual or corporate income tax
2 34 credit to a business that employs a student from an Iowa
2 35 community college or Iowa board of regents institution in an
3 1 apprenticeship or internship program. The amount of credit
3 2 equals $400 per student. In addition, if the business hires
3 3 that student upon graduation, the business can receive another
3 4 tax credit equal to $1,600 for each year, up to three years,
3 5 that the graduate is employed by the business. The graduate
3 6 must be employed for at least six months during the tax year.
3 7 Any tax credit in excess of the tax liability is nonrefundable
3 8 but may be carried forward for up to 10 tax years.
3 9 The bill takes effect upon enactment and applies
3 10 retroactively to January 1, 2005, for tax years beginning on
3 11 or after that date.
3 12 LSB 2280HH 81
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