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