Bill Text: IA SF449 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act providing for a small employer health insurance tax credit against the individual and corporate income tax, the franchise tax, the insurance premium tax, the county and state mutual insurance associations premium taxes, and the moneys and credits tax, and including retroactive applicability provisions. (Formerly SSB 1024 and SF 412.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF449 Detail]
Download: Iowa-2013-SF449-Introduced.html
Senate
File
449
-
Introduced
SENATE
FILE
449
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
412)
(SUCCESSOR
TO
SSB
1024)
A
BILL
FOR
An
Act
providing
for
a
small
employer
health
insurance
tax
1
credit
against
the
individual
and
corporate
income
tax,
2
the
franchise
tax,
the
insurance
premium
tax,
the
county
3
and
state
mutual
insurance
associations
premium
taxes,
4
and
the
moneys
and
credits
tax,
and
including
retroactive
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
1223SZ
(3)
85
mm/sc
S.F.
449
Section
1.
NEW
SECTION
.
422.11E
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
to
7
a
taxpayer
whose
commercial
domicile,
as
defined
in
section
8
422.32,
is
in
this
state.
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.
The
credit
shall
be
claimed
in
the
manner
and
on
the
21
forms
prescribed
by
the
director
of
revenue.
22
Sec.
2.
Section
422.33,
Code
2013,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
15.
The
taxes
imposed
under
this
division
25
shall
be
reduced
by
a
small
employer
health
insurance
tax
26
credit
authorized
pursuant
to
section
422.11E.
27
Sec.
3.
Section
422.60,
Code
2013,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
12.
The
taxes
imposed
under
this
division
30
shall
be
reduced
by
a
small
employer
health
insurance
tax
31
credit
authorized
pursuant
to
section
422.11E.
32
Sec.
4.
NEW
SECTION
.
432.12N
Small
employer
health
33
insurance
tax
credit.
34
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
35
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3
S.F.
449
small
employer
health
insurance
tax
credit
authorized
pursuant
1
to
section
422.11E.
2
Sec.
5.
Section
518.18,
Code
2013,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
4.
The
taxes
imposed
under
this
section
5
shall
be
reduced
by
a
small
employer
health
insurance
tax
6
credit
authorized
pursuant
to
section
422.11E.
7
Sec.
6.
Section
518A.35,
Code
2013,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
4.
The
taxes
imposed
under
this
section
10
shall
be
reduced
by
a
small
employer
health
insurance
tax
11
credit
authorized
pursuant
to
section
422.11E.
12
Sec.
7.
Section
533.329,
subsection
2,
Code
2013,
is
amended
13
by
adding
the
following
new
paragraph:
14
NEW
PARAGRAPH
.
k.
The
moneys
and
credits
tax
imposed
15
under
this
section
shall
be
reduced
by
a
small
employer
health
16
insurance
tax
credit
authorized
pursuant
to
section
422.11E.
17
Sec.
8.
RETROACTIVE
APPLICABILITY.
This
Act
applies
18
retroactively
to
January
1,
2013,
for
tax
years
beginning
on
19
or
after
that
date.
20
EXPLANATION
21
The
federal
Patient
Protection
and
Affordable
Care
Act
(Pub.
22
L.
No.
111-148)
provided
for
a
small
employer
health
insurance
23
income
tax
credit
(section
45R
of
the
Internal
Revenue
Code)
24
equal
to
a
certain
percentage
of
the
cost
of
health
insurance
25
premiums
made
by
an
eligible
small
employer
on
behalf
of
its
26
employees.
This
bill
provides
for
an
Iowa
tax
credit
against
27
the
individual
and
corporate
income
tax,
the
franchise
tax,
the
28
insurance
premiums
tax,
the
county
and
state
mutual
insurance
29
associations
premium
taxes,
and
the
moneys
and
credits
tax,
30
in
an
amount
equal
to
25
percent
of
the
federal
credit
for
a
31
taxpayer
whose
commercial
domicile
is
in
this
state.
32
An
individual
may
claim
the
tax
credit
allowed
a
33
partnership,
limited
liability
company,
S
corporation,
estate,
34
or
trust
electing
to
have
the
income
taxed
directly
to
the
35
-2-
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(3)
85
mm/sc
2/
3
S.F.
449
individual,
based
upon
the
pro
rata
share
of
the
individual’s
1
earnings.
The
tax
credit
is
refundable
or
may
be
carried
2
forward
to
the
next
tax
year.
The
credit
shall
be
claimed
3
in
the
manner
and
on
the
forms
prescribed
by
the
director
of
4
revenue.
5
The
bill
applies
retroactively
to
January
1,
2013,
for
tax
6
years
beginning
on
or
after
that
date.
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3