Senate
File
506
-
Reprinted
SENATE
FILE
506
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
248)
(As
Amended
and
Passed
by
the
Senate
March
21,
2011
)
A
BILL
FOR
An
Act
providing
for
a
small
employer
health
insurance
tax
1
credit
as
a
percentage
of
the
federal
credit
and
including
2
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
SF
506
(5)
84
tw/sc
S.F.
506
Section
1.
NEW
SECTION
.
422.12A
Small
employer
health
1
insurance
tax
credit.
2
1.
The
taxes
imposed
under
this
division,
less
the
credits
3
allowed
under
section
422.12,
shall
be
reduced
by
a
small
4
employer
health
insurance
tax
credit
equal
to
twenty-five
5
percent
of
the
federal
small
employer
health
insurance
tax
6
credit
provided
in
section
45R
of
the
Internal
Revenue
Code.
7
The
tax
credit
provided
in
this
section
is
available
to
8
eligible
small
employers
whose
commercial
domicile
is
Iowa.
9
2.
An
individual
may
claim
the
tax
credit
allowed
to
a
10
partnership,
limited
liability
company,
S
corporation,
estate,
11
or
trust
that
elects
to
have
the
income
taxed
directly
to
the
12
individual.
The
amount
claimed
by
the
individual
shall
be
13
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
14
the
partnership,
limited
liability
company,
S
corporation,
15
estate,
or
trust.
16
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
17
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
18
the
excess
shown
on
the
taxpayer’s
final,
completed
return
19
credited
to
the
tax
liability
for
the
following
tax
year.
20
4.
For
purposes
of
this
section,
“eligible
small
employer”
21
means
a
taxpayer
who
has
ten
or
fewer
full-time
employees
and
22
who
otherwise
meets
the
requirements
of
the
small
employer
23
health
insurance
tax
credit
allowed
under
section
45R
of
the
24
Internal
Revenue
Code.
25
Sec.
2.
Section
422.33,
Code
2011,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
13.
The
taxes
imposed
under
this
division
28
shall
be
reduced
by
a
small
employer
health
insurance
tax
29
credit
authorized
pursuant
to
section
422.12A.
30
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
31
retroactively
to
January
1,
2011,
for
tax
years
beginning
on
32
or
after
that
date.
33
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