House File 2684 - Reprinted



                                     HOUSE FILE       
                                     BY  COMMITTEE ON WAYS AND MEANS

                                     (SUCCESSOR TO HF 903)
                                     (SUCCESSOR TO HF 768)
                                     (SUCCESSOR TO HSB 168)


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

                                      A BILL FOR

  1 An Act creating an insurance industry new jobs tax credit.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 6670HW 82
  4 mg/rj/24

PAG LIN



  1  1    Section 1.  NEW SECTION.  432.12L  INSURANCE INDUSTRY NEW
  1  2 JOBS TAX CREDIT.
  1  3    1.  The taxes imposed under this chapter shall be reduced
  1  4 by an insurance industry new jobs tax credit.  The insurance
  1  5 industry new jobs tax credit is in lieu of, and not in
  1  6 addition to, the new jobs tax credit as provided in section
  1  7 422.11A.  An industry which has entered into an agreement
  1  8 under chapter 260E and which has increased its base employment
  1  9 level by at least ten percent within the time set in the
  1 10 agreement or, in the case of an industry without a base
  1 11 employment level, adds new jobs within the time set in the
  1 12 agreement is entitled to an insurance industry new jobs tax
  1 13 credit for the tax year selected by the industry.  In
  1 14 determining if the industry has increased its base employment
  1 15 level by ten percent or added new jobs, only those new jobs
  1 16 directly resulting from the project covered by the agreement
  1 17 and those directly related to those new jobs shall be counted.
  1 18    2.  The amount of the credit is equal to the product of six
  1 19 percent of the taxable wages upon which an employer is
  1 20 required to contribute to the state unemployment compensation
  1 21 administration fund, as defined in section 96.19, times the
  1 22 number of new jobs existing in the tax year that directly
  1 23 result from the project covered by the agreement or new jobs
  1 24 that directly result from those new jobs.  The tax year chosen
  1 25 by the industry shall either begin or end during the period
  1 26 beginning with the date of the agreement and ending with the
  1 27 date by which the project is to be completed under the
  1 28 agreement.  Any credit in excess of the tax liability for the
  1 29 tax year may be credited to the tax liability for the
  1 30 following ten tax years or until depleted, whichever is the
  1 31 earlier.  An insurance industry new jobs tax credit may only
  1 32 be claimed once for each new qualifying job.  For purposes of
  1 33 this section, "agreement", "industry", "new job", and
  1 34 "project" mean the same as defined in section 260E.2, and
  1 35 "base employment level" means the number of full=time jobs an
  2  1 industry employs at the plant site which is covered by an
  2  2 agreement under chapter 260E on the date of that agreement.
  2  3 The insurance industry new jobs tax credit may only be claimed
  2  4 by an industry entering into an agreement under chapter 260E
  2  5 on or after July 1, 2008, that makes a good faith effort to
  2  6 recruit minority persons, as defined in section 15.102,
  2  7 subsection 5, for a portion of the new jobs created under the
  2  8 agreement.
  2  9 HF 2684
  2 10 mg/jg/25