House File 2101 - Introduced



                                    HOUSE FILE       
                                    BY  BOAL, WIENCEK, BAUDLER,
                                        GRASSLEY, LUKAN, DRAKE,
                                        UPMEYER, RAECKER, GREINER,
                                        HEATON, RAYHONS, CHAMBERS,
                                        and HUSEMAN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act creating a mathematics and science teacher practical
  2    experience incentive program, providing for a tax credit, and
  3    including a retroactive applicability date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5514YH 82
  6 kh/nh/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  272.34  MATHEMATICS AND SCIENCE
  1  2 TEACHER PRACTICAL EXPERIENCE INCENTIVE PROGRAM == TAX CREDIT.
  1  3    1.  A mathematics and science teacher practical experience
  1  4 incentive program is established to provide a mathematics or
  1  5 science teacher with an opportunity to gain practical work or
  1  6 research experience through on=site employment with a
  1  7 business, industry, university, or state agency.  The purpose
  1  8 of the program is to enhance the teacher's skills, give the
  1  9 teacher a better understanding of career opportunities in the
  1 10 field for students, create enthusiasm which motivates the
  1 11 teacher's students to pursue a postsecondary education and
  1 12 career in the fields of mathematics and science, and permit
  1 13 the teacher to bring the experience of working with the latest
  1 14 technologies back to the classroom.
  1 15    2.  A teacher who is employed under an employment agreement
  1 16 with an eligible entity or a state university or agency for
  1 17 not less than two hundred forty hours during an eight=week
  1 18 period shall be credited with earning, at a minimum, eighty
  1 19 percent of the renewal units required for renewal of a license
  1 20 issued by the board of educational examiners under this
  1 21 chapter.  In computing the renewal credit, fractions shall be
  1 22 rounded up to the next higher whole number.
  1 23    3.  a.  An eligible entity that meets the following
  1 24 criteria shall be entitled to a tax credit equal to an amount
  1 25 of twenty=five percent of the gross wages paid under the
  1 26 program to the teacher:
  1 27    (1)  Enters into an employment agreement with a teacher for
  1 28 the period specified in subsection 2.
  1 29    (2)  Employs the teacher in a position on=site that
  1 30 provides substantial practical experience in the mathematics
  1 31 or science subject area in which the teacher holds an
  1 32 endorsement and is employed to teach.
  1 33    (3)  Pays the teacher an amount monthly that is at least
  1 34 equivalent to the teacher's monthly pay in the employ of the
  1 35 school district, accredited nonpublic school, or community
  2  1 college.  However, the eligible entity may pay the teacher on
  2  2 a biweekly or weekly pay period basis.
  2  3    b.  The eligible entity shall claim the tax credit against
  2  4 taxes imposed under chapter 422, division II, III, or V, and
  2  5 chapter 432 and against the moneys and credits tax imposed in
  2  6 section 533.329.  Any credit in excess of the tax liability
  2  7 shall be refunded.  In lieu of claiming a refund, a taxpayer
  2  8 may elect to have the overpayment shown on the taxpayer's
  2  9 final, completed return credited to the tax liability for the
  2 10 following taxable year.
  2 11    c.  If the eligible entity is a partnership, S corporation,
  2 12 limited liability company, or estate or trust electing to have
  2 13 the income taxed directly to the individual, an individual may
  2 14 claim the tax credit allowed.  The amount claimed by the
  2 15 individual shall be based upon the pro rata share of the
  2 16 individual's earnings of the partnership, S corporation,
  2 17 limited liability company, or estate or trust.
  2 18    d.  The eligible entity shall certify to the department of
  2 19 revenue that the program credit is in accordance with the
  2 20 agreement and shall provide other information the department
  2 21 may require.
  2 22    4.  For purposes of this section, unless the context
  2 23 otherwise requires:
  2 24    a.  "Eligible entity" means a business or consortium of
  2 25 businesses engaged in interstate or intrastate commerce and
  2 26 which substantially utilizes mathematics or science for the
  2 27 purpose of designing, engineering, manufacturing, processing,
  2 28 or assembling products, construction, conducting research and
  2 29 development, or providing services in interstate or intrastate
  2 30 commerce, but excludes a business engaged in retail services.
  2 31    b.  "State university or agency" means an institution of
  2 32 higher education governed by the state board of regents or any
  2 33 state agency.
  2 34    c.  "Teacher" means an individual who is a resident of
  2 35 Iowa; has been employed full=time as a teacher for a school
  3  1 district, accredited nonpublic school, or community college in
  3  2 Iowa for at least one year; is licensed and endorsed to teach
  3  3 mathematics or science at the secondary level by the board of
  3  4 educational examiners under this chapter; and is currently
  3  5 employed in Iowa by a school district, accredited nonpublic
  3  6 school, or community college to teach mathematics or science
  3  7 at the secondary school level for more than sixty=six percent
  3  8 of their contracted time.
  3  9    Sec. 2.  NEW SECTION.  422.11V  MATHEMATICS AND SCIENCE
  3 10 TEACHER PRACTICAL EXPERIENCE INCENTIVE TAX CREDIT.
  3 11    The taxes imposed under this division, less the credits
  3 12 allowed under section 422.12 shall be reduced by a mathematics
  3 13 and science teacher practical experience incentive tax credit
  3 14 authorized pursuant to section 272.34, subsection 3.
  3 15    Sec. 3.  Section 422.33, Code Supplement 2007, is amended
  3 16 by adding the following new subsection:
  3 17    NEW SUBSECTION.  25.  The taxes imposed under this division
  3 18 shall be reduced by a mathematics and science teacher
  3 19 practical experience incentive tax credit authorized pursuant
  3 20 to section 272.34, subsection 3.
  3 21    Sec. 4.  Section 422.60, Code Supplement 2007, is amended
  3 22 by adding the following new subsection:
  3 23    NEW SUBSECTION.  15.  The taxes imposed under this division
  3 24 shall be reduced by a mathematics and science teacher
  3 25 practical experience incentive tax credit authorized pursuant
  3 26 to section 272.34, subsection 3.
  3 27    Sec. 5.  NEW SECTION.  432.12L  MATHEMATICS AND SCIENCE
  3 28 TEACHER PRACTICAL EXPERIENCE INCENTIVE TAX CREDIT.
  3 29    The taxes imposed under this chapter shall be reduced by a
  3 30 mathematics and science teacher practical experience incentive
  3 31 tax credit authorized pursuant to section 272.34, subsection
  3 32 3.
  3 33    Sec. 6.  Section 533.329, subsection 2, Code Supplement
  3 34 2007, is amended by adding the following new paragraph:
  3 35    NEW PARAGRAPH.  n.  The moneys and credits tax imposed
  4  1 under this section shall be reduced by a mathematics and
  4  2 science teacher practical experience incentive tax credit
  4  3 authorized pursuant to section 272.34, subsection 3.
  4  4    Sec. 7.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  4  5 retroactively to January 1, 2008, for tax years beginning on
  4  6 and after that date.
  4  7                           EXPLANATION
  4  8    This bill establishes a mathematics and science teacher
  4  9 practical experience incentive program to provide a
  4 10 mathematics or science teacher with an opportunity to gain
  4 11 practical work or research experience through on=site
  4 12 employment with an eligible entity, which includes a business,
  4 13 industry, university, or state agency.  The bill provides for
  4 14 a tax credit and includes a retroactive applicability date.
  4 15    The board of educational examiners shall credit a teacher
  4 16 who is employed under the program by a business, a consortium
  4 17 of businesses, a state university, or a state agency, for not
  4 18 less than 240 hours during an eight=week period, with earning
  4 19 80 percent of the renewal units required for renewal of a
  4 20 license issued by the board.  In computing the renewal credit,
  4 21 fractions shall be rounded up to the next higher whole number.
  4 22 The bill defines "teacher" to include a resident of Iowa who
  4 23 has been employed full=time as a teacher for a school
  4 24 district, accredited nonpublic school, or community college in
  4 25 Iowa for at least one year; is licensed and endorsed to teach
  4 26 mathematics or science at the secondary level; and is
  4 27 currently employed by a school district, school, or community
  4 28 college to teach mathematics or science at the secondary
  4 29 school level for more than 66 percent of their contracted
  4 30 time.
  4 31    A business or consortium of businesses that enters into an
  4 32 agreement with a mathematics and science teacher, that employs
  4 33 the teacher in a position on=site which provides substantial
  4 34 practical experience in the teacher's subject area, and that
  4 35 pays the teacher an amount which is at least equivalent to the
  5  1 amount the teacher is paid for the equivalent time period by a
  5  2 school district, accredited nonpublic school, or community
  5  3 college shall receive a tax credit equal to 25 percent of the
  5  4 gross wages paid under the program to the teacher.
  5  5    The tax credit is allowed against personal and corporate
  5  6 income tax liabilities, franchise tax liabilities for
  5  7 financial institutions, insurance premium tax liabilities, and
  5  8 credit union moneys and credits tax liabilities.  The tax
  5  9 credit is transferable to another taxpayer.
  5 10    The bill defines "eligible entity" as a business or
  5 11 consortium of businesses engaged in interstate or intrastate
  5 12 commerce and which substantially utilizes mathematics or
  5 13 science for the purpose of designing, engineering,
  5 14 manufacturing, processing, or assembling products,
  5 15 construction, conducting research and development, or
  5 16 providing services in interstate or intrastate commerce, but
  5 17 excludes businesses engaging in retail services.
  5 18    The bill is retroactively applicable to January 1, 2008,
  5 19 for tax years beginning on and after that date.
  5 20 LSB 5514YH 82
  5 21 kh/nh/5