Bill Text: IA HF2290 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act providing small businesses with income, franchise, moneys and credits, and gross premiums tax credits for providing child care benefits to employees of the small business, and including applicability date provisions.
Spectrum: Partisan Bill (Democrat 41-1)
Status: (Introduced - Dead) 2020-02-10 - Subcommittee: Hagenow, Hein and Jacoby. H.J. 251. [HF2290 Detail]
Download: Iowa-2019-HF2290-Introduced.html
House
File
2290
-
Introduced
HOUSE
FILE
2290
BY
PRICHARD
,
KONFRST
,
WESSEL-KROESCHELL
,
B.
MEYER
,
OLDSON
,
STECKMAN
,
M.
SMITH
,
BROWN-POWERS
,
WILLIAMS
,
MATSON
,
DONAHUE
,
McCONKEY
,
STAED
,
KURTH
,
McKEAN
,
JAMES
,
KACENA
,
BRECKENRIDGE
,
JACOBY
,
OLSON
,
SUNDE
,
ISENHART
,
THEDE
,
GAINES
,
HUNTER
,
COHOON
,
DERRY
,
WILBURN
,
HALL
,
NIELSEN
,
BENNETT
,
JUDGE
,
EHLERT
,
WOLFE
,
FORBES
,
ANDERSON
,
MASCHER
,
WINCKLER
,
R.
SMITH
,
ABDUL-SAMAD
,
GASKILL
,
and
LENSING
A
BILL
FOR
An
Act
providing
small
businesses
with
income,
franchise,
1
moneys
and
credits,
and
gross
premiums
tax
credits
for
2
providing
child
care
benefits
to
employees
of
the
small
3
business,
and
including
applicability
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
237A.31
Small
business
child
care
1
tax
credit.
2
1.
As
used
in
this
section
“small
business”
means
any
3
enterprise
which
is
located
in
this
state,
which
is
operated
4
for
profit
and
under
a
single
management,
and
which
has
either
5
fewer
than
twenty
employees
or
an
annual
gross
income
of
less
6
than
four
million
dollars
computed
as
the
average
of
the
three
7
preceding
fiscal
years.
This
definition
does
not
apply
to
any
8
program
or
activity
for
which
a
definition
for
small
business
9
is
provided
for
the
program
or
activity
by
federal
law
or
10
regulation
or
other
state
law.
11
2.
A
small
business
may
receive
a
child
care
tax
credit
12
for
providing
child
care
employee
benefits
to
employees
of
13
the
business.
The
credit
may
be
applied
against
income
tax
14
imposed
under
chapter
422,
division
II
or
III,
the
franchise
15
tax
imposed
under
chapter
422,
division
V,
the
gross
premiums
16
tax
imposed
under
chapter
432,
or
the
moneys
and
credits
tax
17
imposed
in
section
533.329.
The
amount
of
the
credit
equals
18
the
costs
to
provide
the
benefit
up
to
three
thousand
dollars
19
per
employee
per
year.
20
3.
The
aggregate
amount
of
tax
credits
authorized
pursuant
21
to
this
section
shall
not
exceed
a
total
of
two
million
22
dollars
per
fiscal
year,
and
shall
be
awarded
on
a
first-come,
23
first-served
basis.
24
4.
To
be
eligible
for
a
small
business
child
care
tax
25
credit,
the
small
business
must
provide
child
care
employee
26
benefits
to
employees
of
the
business
through
any
of
the
27
following:
28
a.
Build
a
new
structure
or
rehabilitate
an
existing
29
structure
to
be
used
as
a
child
care
center
at
or
near
the
small
30
business
where
the
children
of
the
employees
of
the
business
31
are
provided
child
care.
A
small
business
may
construct
or
32
rehabilitate
the
structure
in
conjunction
with
another
business
33
but
only
the
actual
cost
of
the
business
shall
be
considered
in
34
determining
the
credit.
35
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b.
Operate
or
lease
a
child
care
center
at
or
near
the
small
1
business
where
the
children
of
the
employees
of
the
business
2
are
provided
child
care.
3
5.
Any
credit
in
excess
of
the
tax
liability
is
not
4
refundable
but
the
excess
for
the
tax
year
may
be
credited
5
to
the
tax
liability
for
the
following
five
years
or
until
6
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
7
adopt
rules
to
implement
this
section.
8
Sec.
2.
NEW
SECTION
.
422.12O
Small
business
child
care
tax
9
credit.
10
1.
The
taxes
imposed
under
this
division,
less
the
credits
11
allowed
under
section
422.12,
shall
be
reduced
by
a
small
12
business
child
care
tax
credit
received
pursuant
to
section
13
237A.31.
14
2.
An
individual
may
claim
the
tax
credit
allowed
a
15
partnership,
S
corporation,
limited
liability
company,
estate,
16
or
trust
electing
to
have
the
income
taxed
directly
to
the
17
individual.
The
amount
claimed
by
the
individual
shall
be
18
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
19
partnership,
S
corporation,
limited
liability
company,
estate,
20
or
trust.
21
Sec.
3.
Section
422.33,
Code
2020,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
division
24
shall
be
reduced
by
a
small
business
child
care
tax
credit
25
received
pursuant
to
section
237A.31.
26
Sec.
4.
Section
422.60,
Code
2020,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
29
shall
be
reduced
by
a
small
business
child
care
tax
credit
30
received
pursuant
to
section
237A.31.
31
Sec.
5.
NEW
SECTION
.
432.12N
Small
business
child
care
tax
32
credit.
33
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
34
a
small
business
child
care
tax
credit
received
pursuant
to
35
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section
237A.31.
1
Sec.
6.
Section
533.329,
subsection
2,
Code
2020,
is
amended
2
by
adding
the
following
new
paragraph:
3
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
4
this
section
shall
be
reduced
by
a
small
business
child
care
5
tax
credit
received
pursuant
to
section
237A.31.
6
Sec.
7.
APPLICABILITY.
This
Act
applies
to
tax
years
7
beginning
on
or
after
January
1,
2021.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
provides
small
businesses
with
income,
franchise,
12
moneys
and
credits,
and
gross
premiums
tax
credits
for
13
providing
child
care
benefits
to
employees
of
the
small
14
business.
15
The
bill
defines
“small
business”
to
mean
any
enterprise
16
which
is
located
in
this
state,
which
is
operated
for
profit
17
and
under
a
single
management,
and
which
has
either
fewer
than
18
20
employees
or
an
annual
gross
income
of
less
than
$4
million
19
computed
as
the
average
of
the
three
preceding
fiscal
years.
20
The
child
care
employee
benefits
include
the
following:
21
building
or
rehabilitating
an
existing
structure
at
or
near
22
the
small
business
as
a
child
care
center
for
employee
use,
23
or
operating
or
leasing
a
child
care
center
for
children
of
24
employees
to
attend
at
or
near
the
small
business.
25
The
amount
of
the
credit
equals
the
costs
to
provide
the
26
benefit
up
to
$3,000
per
employee
per
year.
The
aggregate
27
amount
of
tax
credits
authorized
pursuant
to
the
bill
shall
28
not
exceed
a
total
of
$2
million
per
fiscal
year,
and
shall
be
29
awarded
on
a
first-come,
first-served
basis.
The
credit
is
30
nonrefundable
but
any
excess
may
be
carried
forward
for
up
to
31
five
tax
years.
32
The
bill
applies
to
tax
years
beginning
on
or
after
January
33
1,
2021.
34
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