Bill Text: IA HF617 | 2021-2022 | 89th 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, making appropriations, and including retroactive applicability date provisions.
Spectrum: Partisan Bill (Democrat 33-0)
Status: (Introduced - Dead) 2021-02-18 - Introduced, referred to Ways and Means. H.J. 486. [HF617 Detail]
Download: Iowa-2021-HF617-Introduced.html
House
File
617
-
Introduced
HOUSE
FILE
617
BY
PRICHARD
,
McCONKEY
,
HANSEN
,
COHOON
,
KURTH
,
JAMES
,
B.
MEYER
,
KONFRST
,
SUNDE
,
HALL
,
BOHANNAN
,
HUNTER
,
JUDGE
,
GJERDE
,
ANDERSON
,
WILBURN
,
WESSEL-KROESCHELL
,
OLSON
,
KRESSIG
,
MASCHER
,
JACOBY
,
EHLERT
,
CAHILL
,
WINCKLER
,
STAED
,
OLDSON
,
BROWN-POWERS
,
THEDE
,
DONAHUE
,
FORBES
,
BENNETT
,
WOLFE
,
and
STECKMAN
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,
making
appropriations,
and
including
retroactive
4
applicability
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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617
DIVISION
I
1
SMALL
BUSINESS
CHILD
CARE
TAX
CREDIT
2
Section
1.
NEW
SECTION
.
237A.31
Small
business
child
care
3
tax
credit.
4
1.
As
used
in
this
section
“small
business”
means
any
5
enterprise
which
is
located
in
this
state,
which
is
operated
6
for
profit
and
under
a
single
management,
and
which
has
either
7
fewer
than
twenty
employees
or
an
annual
gross
income
of
less
8
than
four
million
dollars
computed
as
the
average
of
the
three
9
preceding
fiscal
years.
This
definition
does
not
apply
to
any
10
program
or
activity
for
which
a
definition
for
small
business
11
is
provided
for
the
program
or
activity
by
federal
law
or
12
regulation
or
other
state
law.
13
2.
The
taxes
imposed
against
the
income
tax
imposed
under
14
chapter
422,
subchapter
II
or
III,
the
franchise
tax
imposed
15
under
chapter
422,
subchapter
V,
the
gross
premiums
tax
imposed
16
under
chapter
432,
or
the
moneys
and
credits
tax
imposed
in
17
section
533.329
shall
be
reduced
by
a
small
business
child
18
care
tax
credit
for
a
small
business
that
provides
child
care
19
employee
benefits
to
employees
of
the
business
as
provided
in
20
this
section.
The
amount
of
the
credit
equals
the
costs
to
21
provide
the
benefit
up
to
three
thousand
dollars
per
employee
22
per
year.
23
3.
The
aggregate
amount
of
tax
credits
authorized
pursuant
24
to
this
section
shall
not
exceed
a
total
of
two
million
25
dollars
per
fiscal
year,
and
shall
be
awarded
on
a
first-come,
26
first-served
basis.
27
4.
To
be
eligible
for
a
small
business
child
care
tax
28
credit,
the
small
business
must
provide
child
care
employee
29
benefits
to
employees
of
the
business
through
any
of
the
30
following:
31
a.
Building
a
new
structure
or
rehabilitating
an
existing
32
structure
to
be
used
as
a
child
care
center
at
or
near
the
small
33
business
where
the
children
of
the
employees
of
the
business
34
are
provided
child
care.
A
small
business
may
construct
or
35
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rehabilitate
the
structure
in
conjunction
with
another
business
1
but
only
the
actual
cost
of
the
business
shall
be
considered
in
2
determining
the
credit.
3
b.
Operating
or
leasing
a
child
care
center
at
or
near
4
the
small
business
where
the
children
of
the
employees
of
the
5
business
are
provided
child
care.
6
5.
Any
credit
in
excess
of
the
tax
liability
is
not
7
refundable
but
the
excess
for
the
tax
year
may
be
credited
8
to
the
tax
liability
for
the
following
five
years
or
until
9
depleted,
whichever
is
earlier.
10
6.
The
director
of
revenue
shall
adopt
rules
to
implement
11
this
section.
12
Sec.
2.
NEW
SECTION
.
422.12O
Small
business
child
care
tax
13
credit.
14
1.
The
taxes
imposed
under
this
subchapter,
less
the
credits
15
allowed
under
section
422.12,
shall
be
reduced
by
a
small
16
business
child
care
tax
credit
allowed
pursuant
to
section
17
237A.31.
18
2.
An
individual
may
claim
the
tax
credit
allowed
a
19
partnership,
S
corporation,
limited
liability
company,
estate,
20
or
trust
electing
to
have
the
income
taxed
directly
to
the
21
individual.
The
amount
claimed
by
the
individual
shall
be
22
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
23
partnership,
S
corporation,
limited
liability
company,
estate,
24
or
trust.
25
Sec.
3.
Section
422.33,
Code
2021,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
subchapter
28
shall
be
reduced
by
a
small
business
child
care
tax
credit
29
allowed
pursuant
to
section
237A.31.
30
Sec.
4.
Section
422.60,
Code
2021,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
subchapter
33
shall
be
reduced
by
a
small
business
child
care
tax
credit
34
allowed
pursuant
to
section
237A.31.
35
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Sec.
5.
NEW
SECTION
.
432.12N
Small
business
child
care
tax
1
credit.
2
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
3
a
small
business
child
care
tax
credit
allowed
pursuant
to
4
section
237A.31.
5
Sec.
6.
Section
533.329,
subsection
2,
Code
2021,
is
amended
6
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
8
this
section
shall
be
reduced
by
a
small
business
child
care
9
tax
credit
allowed
pursuant
to
section
237A.31.
10
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
Act
applies
11
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
12
or
after
that
date.
13
DIVISION
II
14
APPROPRIATION
15
Sec.
8.
TAXPAYER
RELIEF
FUND
——
APPROPRIATION.
There
is
16
appropriated
from
the
taxpayer
relief
fund
created
in
section
17
8.57E
to
the
general
fund
of
the
state
for
the
fiscal
year
18
beginning
July
1,
2021,
and
ending
June
30,
2022,
the
following
19
amounts,
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
20
purposes
designated:
21
For
the
small
business
child
care
tax
credit
pursuant
to
22
section
237A.31:
23
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
provides
small
businesses
with
income,
franchise,
28
moneys
and
credits,
and
gross
premiums
tax
credits
for
29
providing
child
care
benefits
to
employees
of
the
small
30
business.
31
DIVISION
I
——
SMALL
BUSINESS
CHILD
CARE
TAX
CREDIT.
The
32
bill
defines
“small
business”
to
mean
any
enterprise
which
is
33
located
in
this
state,
which
is
operated
for
profit
and
under
a
34
single
management,
and
which
has
either
fewer
than
20
employees
35
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or
an
annual
gross
income
of
less
than
$4
million
computed
as
1
the
average
of
the
three
preceding
fiscal
years.
2
The
child
care
employee
benefits
include
the
following:
3
building
or
rehabilitating
an
existing
structure
at
or
near
4
the
small
business
as
a
child
care
center
for
employee
use,
5
or
operating
or
leasing
a
child
care
center
for
children
of
6
employees
to
attend
at
or
near
the
small
business.
7
The
amount
of
the
credit
equals
the
costs
to
provide
the
8
benefit
up
to
$3,000
per
employee
per
year.
The
aggregate
9
amount
of
tax
credits
authorized
pursuant
to
the
bill
shall
10
not
exceed
a
total
of
$2
million
per
fiscal
year,
and
shall
be
11
awarded
on
a
first-come,
first-served
basis.
The
credit
is
12
nonrefundable
but
any
excess
may
be
carried
forward
for
up
to
13
five
tax
years.
14
The
division
applies
retroactively
to
tax
years
beginning
on
15
or
after
January
1,
2021.
16
DIVISION
II
——
APPROPRIATIONS.
The
bill
makes
an
17
appropriation
from
the
taxpayer
relief
fund
to
the
general
fund
18
of
the
state
for
fiscal
year
2022
in
the
same
amount
as
the
19
amount
of
small
business
child
care
tax
credits
allowed
in
the
20
bill
for
that
fiscal
year.
21
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