House File 718 - Introduced HOUSE FILE BY HELLAND Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a telework tax credit and including a 2 retroactive applicability date provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2179YH 83 5 tw/mg:sc/14 PAG LIN 1 1 Section 1. NEW SECTION. 422.11X TELEWORK TAX CREDIT. 1 2 1. a. The taxes imposed under this division, less the 1 3 credits allowed under section 422.12, shall be reduced by a 1 4 telework tax credit for a portion of the costs incurred by an 1 5 employer in the development and operation of a program that 1 6 allows employees to work from home using communications 1 7 technology instead of physically commuting to the workplace. 1 8 b. The amount of the tax credit shall be calculated by 1 9 adding together all of the following: 1 10 (1) Not more than ten thousand dollars for costs 1 11 associated with the initial creation of the program. These 1 12 costs may include the purchase of computer equipment, computer 1 13 software licenses, and the costs related to the planning, 1 14 consulting, and training required to develop the program. 1 15 (2) Six hundred dollars for each full=time employee who 1 16 works from home for at least twenty percent of that employee's 1 17 working days in the employer's tax year. 1 18 c. Not more than one million dollars of tax credits shall 1 19 be issued pursuant to this section, section 422.33, subsection 1 20 27, section 422.60, subsection 15, section 432.11M, and 1 21 section 533.329, subsection 2, paragraph "n". 1 22 2. An individual may claim a tax credit under this section 1 23 of a partnership, limited liability company, S corporation, 1 24 estate, or trust electing to have income taxed directly to the 1 25 individual. The amount claimed by the individual shall be 1 26 based upon the pro rata share of the individual's earnings 1 27 from the partnership, limited liability company, S 1 28 corporation, estate, or trust. 1 29 3. Any tax credit in excess of the taxpayer's liability 1 30 for the tax year is not refundable, but the taxpayer may elect 1 31 to have the excess credited to the tax liability for the 1 32 following two years or until depleted, whichever is earlier. 1 33 A tax credit shall not be carried back to a tax year prior to 1 34 the tax year in which the taxpayer first receives the tax 1 35 credit. 2 1 4. a. A taxpayer seeking to claim a tax credit pursuant 2 2 to this section shall apply to the department of revenue which 2 3 shall have the authority to approve the amount of the tax 2 4 credit and issue a tax credit certificate. 2 5 b. In applying for the certificate, the taxpayer shall 2 6 include information documenting the costs incurred and the 2 7 number of employees availing themselves of the program, as 2 8 described in subsection 1, paragraph "b". 2 9 c. A taxpayer shall apply for a tax credit certificate on 2 10 or before October 31, 2010. 2 11 d. After verifying the eligibility of a taxpayer for a tax 2 12 credit pursuant to this section, the department shall issue a 2 13 tax credit certificate to be attached to the taxpayer's tax 2 14 return. The tax credit certificate shall contain the 2 15 taxpayer's name, address, tax identification number, the 2 16 amount of the credit, and any other information required by 2 17 the department of revenue. 2 18 5. a. To claim a tax credit under this section, a 2 19 taxpayer must attach one or more tax credit certificates to 2 20 the taxpayer's tax return. A tax credit certificate attached 2 21 to the taxpayer's tax return shall be issued in the taxpayer's 2 22 name and expire on or after the last day of the taxable year 2 23 for which the taxpayer is claiming the tax credit. 2 24 b. The tax credit certificate, unless otherwise void, 2 25 shall be accepted as payment for taxes imposed pursuant to 2 26 chapter 422, divisions II, III, and V, and chapter 432, and 2 27 for the moneys and credits tax imposed pursuant to section 2 28 533.329, subject to any conditions or restrictions placed by 2 29 the department upon the face of the tax credit certificate and 2 30 subject to the limitations of this section. 2 31 c. Tax credit certificates issued under this section are 2 32 not transferable to any person or entity. 2 33 6. This section is repealed on June 30, 2011. 2 34 Sec. 2. Section 422.33, Code 2009, is amended by adding 2 35 the following new subsection: 3 1 NEW SUBSECTION. 27. The taxes imposed under this division 3 2 shall be reduced by a telework tax credit in the same manner, 3 3 for the same amount, and under the same conditions as provided 3 4 in section 422.11X. 3 5 Sec. 3. Section 422.60, Code 2009, is amended by adding 3 6 the following new subsection: 3 7 NEW SUBSECTION. 15. The taxes imposed under this division 3 8 shall be reduced by a telework tax credit in the same manner, 3 9 for the same amount, and under the same conditions as provided 3 10 in section 422.11X. 3 11 Sec. 4. NEW SECTION. 432.12M TELEWORK TAX CREDIT. 3 12 The taxes imposed under this chapter shall be reduced by a 3 13 telework tax credit in the same manner, for the same amount, 3 14 and under the same conditions as provided in section 422.11X. 3 15 Sec. 5. Section 533.329, subsection 2, Code 2009, is 3 16 amended by adding the following new paragraph: 3 17 NEW PARAGRAPH. n. The moneys and credits tax imposed 3 18 under this section shall be reduced by a telework tax credit 3 19 in the same manner, for the same amount, and under the same 3 20 conditions as provided in section 422.11X. 3 21 Sec. 6. RETROACTIVE APPLICABILITY DATE. This Act applies 3 22 retroactively to January 1, 2009, for tax years beginning on 3 23 or after that date. 3 24 EXPLANATION 3 25 This bill provides a tax credit to employers who develop 3 26 programs allowing their employees to work from home rather 3 27 than physically commuting to the workplace. The amount of the 3 28 credit is equal to the costs incurred by the employer to 3 29 establish the program, not to exceed $10,000, plus $600 per 3 30 employee participating. The tax credit is available against 3 31 the individual and corporate income taxes, the franchise tax, 3 32 the insurance companies tax, and the moneys and credits tax. 3 33 The total amount of credits that may be issued is limited 3 34 to $1 million. 3 35 Taxpayers seeking to claim the credit must apply to the 4 1 department of revenue by October 31, 2010, for a tax credit 4 2 certificate and attach the certificate to their tax return. 4 3 The tax credit is not refundable or transferable and expires 4 4 June 30, 2011. 4 5 The bill applies retroactively to January 1, 2009, for tax 4 6 years beginning on or after that date. 4 7 LSB 2179YH 83 4 8 tw/mg:sc/14