Bill Text: IA HF12 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act creating the Iowa job training tax credit program and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-01-12 - Introduced, referred to Economic Growth. H.J. 51. [HF12 Detail]
Download: Iowa-2021-HF12-Introduced.html
House
File
12
-
Introduced
HOUSE
FILE
12
BY
JACOBY
A
BILL
FOR
An
Act
creating
the
Iowa
job
training
tax
credit
program
and
1
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
15K.1
Title.
1
This
chapter
shall
be
known
and
may
cited
as
the
“Iowa
Job
2
Training
Tax
Credit
Program”
.
3
Sec.
2.
NEW
SECTION
.
15K.2
Definitions.
4
For
purposes
of
this
chapter,
unless
the
context
otherwise
5
requires:
6
1.
“Apprentice”
means
the
same
as
defined
in
section
15B.2.
7
2.
“Authority”
means
the
economic
development
authority
8
created
in
section
15.105.
9
3.
“Employ”
or
“employed”
means
to
be
hired
or
retained
for
10
paid
work
as
an
apprentice
or
intern
and
to
perform
the
duties
11
of
an
apprentice
or
intern.
12
4.
“Intern”
means
an
Iowa
student
engaged
in
an
internship.
13
5.
“Internship”
means
temporary
employment
of
an
Iowa
14
student
that
focuses
on
providing
the
student
with
work
15
experience
in
the
student’s
field
of
study.
16
6.
“Iowa
student”
means
the
same
as
defined
in
section
17
15.411,
subsection
3,
paragraph
“a”
.
18
7.
“Minimum
training
standards”
means
the
minimum
training
19
standards
adopted
by
the
authority
by
rule
pursuant
to
section
20
15K.3,
subsection
3.
21
8.
“Program”
means
the
job
training
tax
credit
program
22
credit
in
this
chapter.
23
9.
“Qualified
trainee”
means
a
person
who
meets
the
24
requirements
of
section
15K.3,
subsection
2,
with
respect
to
25
a
tax
year.
26
10.
“Tax
year”
means
the
calendar
year,
or
the
fiscal
year
27
ending
during
such
calendar
year,
upon
the
basis
of
which
a
tax
28
is
calculated.
29
Sec.
3.
NEW
SECTION
.
15K.3
Job
training
tax
credit
program
30
——
application
——
eligibility
requirements.
31
1.
Program
administration.
The
authority,
in
consultation
32
with
the
department
of
revenue,
shall
administer
a
job
training
33
tax
credit
program
to
provide
tax
credits
to
businesses
that
34
employ
qualified
trainees
in
Iowa
during
the
tax
year.
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2.
Qualified
trainee.
For
purposes
of
the
program,
a
person
1
is
a
qualified
trainee
of
a
business
if
the
person
meets
all
of
2
the
following
requirements
for
the
tax
year:
3
a.
The
person
is
an
apprentice
or
an
intern.
4
b.
The
person
is
employed
by
the
business
in
Iowa.
5
c.
The
person
satisfies
the
relevant
minimum
training
6
standard.
7
3.
Minimum
training
standards.
8
a.
The
authority
shall
establish
by
rule
minimum
training
9
standards
under
the
program
for
apprenticeships
and
internships
10
that
will
reflect
the
minimum
amount
of
training
necessary
to
11
provide
a
meaningful
work
experience
in
the
relevant
field
12
of
study
of
an
intern
or
to
learn
the
relevant
trade
or
job
13
position
of
an
apprentice.
The
minimum
training
standards
14
shall
be
a
value
expressed
as
a
number
of
job
training
hours,
15
or
a
ratio
of
job
training
hours
to
work
hours,
or
some
16
combination
of
both.
17
b.
In
determining
the
minimum
training
standards,
the
18
authority
shall
consider
the
relevant
field
of
study
involved,
19
the
trade
or
job
position
involved,
the
stated
goals
and
length
20
of
the
internship
or
apprenticeship,
and
any
other
factors
the
21
authority
deems
relevant.
The
authority
may
establish
more
22
than
one
minimum
training
standard.
23
c.
In
establishing
minimum
training
standards,
the
authority
24
may
consult
with
any
person
the
authority
deems
relevant,
25
including
but
not
limited
to
the
department
of
education,
26
institutions
of
higher
learning,
or
business
and
labor
27
organizations.
28
4.
Application.
29
a.
A
business
employing
one
or
more
qualified
trainees
in
30
Iowa
may
apply
to
the
authority
for
the
job
training
tax
credit
31
provided
in
section
15K.4.
32
b.
The
application
shall
be
made
in
the
manner
and
form
33
prescribed
by
the
authority.
34
c.
The
authority
may
accept
applications
on
a
continuous
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basis
or
may
establish,
by
rule,
an
annual
application
1
deadline.
2
d.
The
application
shall
include
all
of
the
following
3
information:
4
(1)
A
description
of
the
business
and
the
apprenticeship
5
program
or
internship
program
conducted
by
the
business,
6
including
the
number
of
qualified
trainees
employed
by
the
7
business
during
the
relevant
tax
year.
8
(2)
With
respect
to
each
qualified
trainee
of
the
business:
9
(a)
The
identity
of
the
qualified
trainee,
the
period
10
of
time
the
qualified
trainee
was
employed
by
the
business
11
during
the
tax
year,
and
if
relevant,
the
institution
of
higher
12
learning
at
which
the
qualified
trainee
is
a
student.
13
(b)
A
description
of
the
qualified
trainee’s
job
duties
and
14
the
number
of
hours
those
job
duties
were
performed.
15
(c)
A
description
and
total
number
of
hours
of
job
training
16
and
instruction
provided
by
the
business
to
the
qualified
17
trainee.
18
(d)
A
statement
from
the
business
certifying
that
the
19
apprentice
or
intern
meets
the
relevant
minimum
training
20
standard
for
the
relevant
tax
year.
21
(3)
Any
other
information
reasonably
required
by
the
22
authority
in
order
to
establish
and
verify
eligibility
under
23
the
program.
24
e.
Upon
receiving
a
complete
and
accurate
application
and
25
establishing
that
all
requirements
of
the
program
have
been
26
satisfied,
the
authority
shall
issue
a
tax
credit
and
related
27
tax
credit
certificate
to
the
business
stating
the
amount
of
28
job
training
tax
credit
under
section
15K.4
the
business
may
29
claim.
30
Sec.
4.
NEW
SECTION
.
15K.4
Job
training
tax
credit.
31
1.
a.
A
business
that
satisfies
the
requirements
of
the
32
job
training
tax
credit
program
in
section
15K.3
may
claim
a
33
tax
credit
in
an
amount
equal
to
one
thousand
dollars
for
each
34
qualified
trainee
employed
in
Iowa
by
the
taxpayer
for
the
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entire
tax
year.
1
b.
If
the
qualified
trainee
is
not
employed
for
the
entire
2
tax
year,
the
maximum
amount
of
the
credit
shall
be
prorated
3
and
the
amount
of
the
credit
with
regard
to
that
qualified
4
trainee
shall
equal
the
maximum
amount
of
credit
for
the
tax
5
year,
divided
by
twelve,
multiplied
by
the
number
of
months
6
in
the
tax
year
the
qualified
trainee
was
employed
by
the
7
taxpayer.
The
credit
shall
be
rounded
to
the
nearest
dollar.
8
If
the
qualified
trainee
was
employed
during
any
part
of
the
9
month,
the
qualified
trainee
shall
be
considered
a
qualified
10
trainee
for
the
entire
month.
11
2.
An
individual
may
claim
the
tax
credit
allowed
a
12
partnership,
limited
liability
company,
S
corporation,
13
estate,
or
trust
electing
to
have
income
taxed
directly
to
14
the
individual.
The
amount
claimed
by
the
individual
shall
15
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
16
from
the
partnership,
limited
liability
company,
S
corporation,
17
estate,
or
trust.
18
3.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
19
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
20
tax
liability
for
the
following
seven
years
or
until
depleted,
21
whichever
is
earlier.
22
4.
Tax
credits
issued
under
this
section
are
not
23
transferable
to
any
person.
24
5.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
25
shall
include
one
or
more
tax
credit
certificates
with
the
26
taxpayer’s
tax
return.
27
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
28
name,
address,
tax
identification
number,
the
amount
of
the
29
credit,
and
any
other
information
required
by
the
department
30
of
revenue.
31
c.
The
tax
credit
certificate,
unless
rescinded
by
the
32
authority,
shall
be
accepted
by
the
department
of
revenue
as
33
payment
for
taxes
imposed
in
chapter
422,
subchapters
II,
III,
34
and
V,
and
in
chapter
432,
and
against
the
moneys
and
credits
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tax
imposed
in
section
533.329,
subject
to
any
conditions
or
1
restrictions
placed
by
the
authority
or
the
department
of
2
revenue
upon
the
face
of
the
tax
credit
certificate
and
subject
3
to
the
limitations
of
this
program.
4
Sec.
5.
NEW
SECTION
.
15K.5
Report
to
governor
and
general
5
assembly.
6
The
authority,
in
cooperation
with
the
department
of
7
revenue,
shall
publish
an
annual
report
of
activities
of
the
8
program
and
shall
submit
the
report
to
the
governor
and
the
9
general
assembly.
10
Sec.
6.
NEW
SECTION
.
15K.6
Rules.
11
The
authority
and
the
department
of
revenue
shall
each
adopt
12
rules
as
necessary
for
the
implementation
and
administration
of
13
this
chapter.
14
Sec.
7.
NEW
SECTION
.
422.10C
Job
training
tax
credit.
15
The
taxes
imposed
under
this
subchapter,
less
the
credits
16
allowed
under
section
422.12,
shall
be
reduced
by
a
job
17
training
tax
credit
allowed
under
chapter
15K.
18
Sec.
8.
Section
422.33,
Code
2021,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
21
shall
be
reduced
by
a
job
training
tax
credit
allowed
under
22
chapter
15K.
23
Sec.
9.
Section
422.60,
Code
2021,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
subchapter
26
shall
be
reduced
by
a
job
training
tax
credit
allowed
under
27
chapter
15K.
28
Sec.
10.
NEW
SECTION
.
432.12N
Job
training
tax
credit.
29
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
30
job
training
tax
credit
allowed
under
chapter
15K.
31
Sec.
11.
Section
533.329,
subsection
2,
Code
2021,
is
32
amended
by
adding
the
following
new
paragraph:
33
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
34
this
section
shall
be
reduced
by
a
job
training
tax
credit
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allowed
under
chapter
15K.
1
Sec.
12.
APPLICABILITY.
This
Act
applies
to
tax
years
2
beginning
on
or
after
January
1,
2022.
3
Sec.
13.
APPLICABILITY.
This
Act
applies
to
qualified
4
trainees
employed
in
Iowa
on
or
after
January
1,
2022.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
creates
a
job
training
tax
credit
program
9
(program)
administered
by
the
economic
development
authority
10
(EDA)
in
consultation
with
the
department
of
revenue
(DOR)
11
to
provide
tax
credits
to
businesses
that
employ
for
pay
12
qualified
trainees
in
Iowa
during
the
tax
year.
To
qualify
13
as
a
“qualified
trainee”
under
the
program,
a
person
must
be
14
an
apprentice
or
an
intern,
must
be
employed
by
a
business
in
15
Iowa,
and
must
satisfy
the
relevant
minimum
training
standard.
16
“Apprentice”
is
defined
in
the
bill
to
mean
an
Iowa
resident
17
employed
in
an
apprenticeable
occupation
and
registered
as
such
18
with
the
U.S.
office
of
apprenticeship.
“Intern”
is
defined
19
in
the
bill
to
mean
an
Iowa
college
student,
or
a
student
who
20
graduated
from
high
school
in
Iowa
but
who
now
attends
college
21
outside
of
Iowa,
who
is
engaged
in
temporary
employment
that
22
focuses
on
providing
the
student
with
work
experience
in
the
23
student’s
field
of
study.
24
EDA
is
required
to
establish
by
rule
minimum
training
25
standards
that
will
reflect
the
minimum
training
necessary
to
26
provide
a
meaningful
work
experience
for
an
intern
or
to
learn
27
a
trade
or
job
position
for
an
apprentice.
The
bill
describes
28
how
the
minimum
training
standards
should
be
quantified,
as
29
well
as
the
factors
EDA
shall
consider
and
the
persons
with
30
whom
EDA
may
consult
in
determining
the
standards.
The
bill
31
provides
that
EDA
may
establish
more
than
one
minimum
training
32
standard.
33
In
order
to
receive
a
tax
credit,
a
business
must
apply
34
to
the
authority
in
the
manner
and
form
prescribed
by
the
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authority,
and
the
bill
describes
the
required
information
1
that
must
be
contained
in
an
application.
EDA
is
required
to
2
review
applications
and,
upon
determining
that
the
requirements
3
of
the
program
have
been
satisfied,
issue
a
tax
credit
to
the
4
business.
5
The
tax
credit
equals
$1,000
for
each
qualified
trainee
6
employed
in
Iowa
by
a
business
for
the
entire
tax
year.
If
7
a
qualified
trainee
was
not
employed
by
the
business
for
the
8
entire
tax
year,
the
amount
of
the
credit
is
prorated
based
9
upon
the
number
of
months
of
employment.
The
tax
credit
10
may
be
claimed
against
the
individual
and
corporate
income
11
taxes,
the
franchise
tax,
the
insurance
companies
tax,
and
the
12
moneys
and
credits
tax.
The
tax
credit
is
nonrefundable
and
13
nontransferable,
but
any
excess
may
be
carried
forward
for
14
seven
years.
15
The
bill
requires
EDA
and
DOR
to
adopt
rules
as
necessary
16
for
the
implementation
of
the
bill,
and
requires
EDA
and
DOR
to
17
publish
and
submit
annual
reports
to
the
governor
and
general
18
assembly
containing
information
as
described
in
the
bill.
19
The
bill
applies
to
tax
years
beginning
on
or
after
January
20
1,
2022,
and
to
qualified
trainees
employed
in
Iowa
on
or
after
21
that
date.
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