House File 803 - Introduced
HOUSE FILE
BY FORD
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for a deduction from the individual and
2 corporate income taxes for wages paid to certain newly hired
3 workers and including a retroactive applicability date
4 provision.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 2582HH 83
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PAG LIN
1 1 Section 1. Section 422.7, Code 2009, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 12B. a. If the adjusted gross income
1 4 includes income or loss from a business operated by the
1 5 taxpayer, an additional deduction shall be allowed in
1 6 computing the income or loss from the business if the business
1 7 hired for employment in the state during its annual accounting
1 8 period ending with or during the taxpayer's tax year an
1 9 individual who is sixty=five years of age or older on the date
1 10 hired.
1 11 b. The amount of the additional deduction shall be equal
1 12 to twenty percent of the wages paid to such individual, not to
1 13 exceed five thousand dollars per individual, hired for the
1 14 first time by that business during the annual accounting
1 15 period ending with or during the taxpayer's tax year.
1 16 c. The additional deduction shall not be allowed for wages
1 17 paid to an individual who was hired to replace an individual
1 18 whose employment was terminated by the employer within the
1 19 twelve=month period preceding the date of first employment.
1 20 However, if the individual being replaced left employment
1 21 voluntarily without good cause attributable to the employer or
1 22 if the individual was discharged for misconduct in connection
1 23 with the individual's employment, as determined by the
1 24 department of workforce development, the additional deduction
1 25 shall be allowed.
1 26 d. A taxpayer who is a partner of a partnership or a
1 27 shareholder of an S corporation may deduct that portion of
1 28 wages qualified under this subsection paid by the partnership
1 29 or S corporation based on the taxpayer's pro rata share of the
1 30 profits or losses from the partnership or S corporation.
1 31 Sec. 2. Section 422.35, Code 2009, is amended by adding
1 32 the following new subsection:
1 33 NEW SUBSECTION. 6B. a. If the taxpayer is a business
1 34 corporation, an additional deduction is allowed in computing
1 35 income or loss of the business equal to twenty percent of the
2 1 wages paid to an individual, not to exceed five thousand
2 2 dollars per individual, hired for the first time by the
2 3 taxpayer during the tax year for work done in this state, if
2 4 the individual is sixty=five years of age or older on the date
2 5 hired.
2 6 b. The additional deduction shall not be allowed for wages
2 7 paid to an individual who was hired to replace an individual
2 8 whose employment was terminated by the employer within the
2 9 twelve=month period preceding the date of first employment.
2 10 However, if the individual being replaced left employment
2 11 voluntarily without good cause attributable to the employer or
2 12 if the individual was discharged for misconduct in connection
2 13 with the individual's employment, as determined by the
2 14 department of workforce development, the additional deduction
2 15 shall be allowed.
2 16 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 17 retroactively to January 1, 2009, for tax years beginning on
2 18 or after that date.
2 19 EXPLANATION
2 20 This bill provides an additional individual and corporate
2 21 income tax deduction to a taxpayer who hires an individual who
2 22 is at least 65 years old for work done in the state. The
2 23 amount of the additional deduction is 20 percent of the wages
2 24 paid to the individual, not to exceed $5,000 per individual.
2 25 The deduction is in addition to any deduction provided for in
2 26 the federal Internal Revenue Code.
2 27 The bill applies retroactively to January 1, 2009, for tax
2 28 years beginning on or after that date.
2 29 LSB 2582HH 83
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