Bill Text: IA SSB1064 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act creating the hire a hero tax credit and including retroactive applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-03-04 - Voted - Veterans Affairs. [SSB1064 Detail]
Download: Iowa-2013-SSB1064-Introduced.html
Senate
Study
Bill
1064
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
VETERANS
AFFAIRS
BILL
BY
CHAIRPERSON
BEALL)
A
BILL
FOR
An
Act
creating
the
hire
a
hero
tax
credit
and
including
1
retroactive
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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_____
Section
1.
NEW
SECTION
.
422.10A
Hire
a
hero
tax
credit.
1
1.
The
taxes
imposed
under
this
division,
less
the
credits
2
allowed
under
section
422.12,
shall
be
reduced
by
a
hire
a
hero
3
tax
credit.
An
employer
who
hires
and
employs
an
eligible
4
employee
is
eligible
to
claim
the
tax
credit.
5
2.
As
used
in
this
section:
6
a.
“Eligible
employee”
means
a
person
who
is
a
resident
7
of
this
state
and
a
member
of
the
national
guard,
reserve,
or
8
regular
component
of
the
armed
forces
of
the
United
States
9
employed
on
a
permanent
full-time
or
a
permanent
part-time
10
basis
of
at
least
thirty
hours
per
week
each
week.
A
person
11
shall
not
be
an
eligible
employee
if
the
person
was
hired
to
12
replace
a
different
eligible
employee
whose
employment
was
13
terminated
within
the
twelve-month
period
preceding
the
date
of
14
first
employment,
unless
the
eligible
employee
being
replaced
15
left
employment
voluntarily
without
good
cause
attributable
to
16
the
employer
or
was
discharged
for
misconduct
in
connection
17
with
the
eligible
employee’s
employment.
18
b.
“Employer”
includes
a
self-employed
person
who
meets
the
19
definition
of
eligible
employee.
20
c.
“Military
service”
means
federal
active
duty,
state
21
active
duty,
or
national
guard
duty,
as
defined
in
section
22
29A.1.
23
3.
The
allowable
credit
shall
be
an
amount
equal
to
the
sum
24
of
the
following:
25
a.
(1)
One
thousand
dollars
for
each
eligible
employee
26
hired
for
employment
in
this
state
during
the
tax
year.
27
(2)
If
the
eligible
employee
was
not
employed
by
the
28
employer
for
the
entire
tax
year,
the
amount
of
the
credit
in
29
subparagraph
(1)
shall
be
prorated
and
the
amount
of
the
credit
30
for
the
taxpayer
shall
equal
the
maximum
amount
of
credit
for
31
the
tax
year,
divided
by
twelve,
multiplied
by
the
number
of
32
months
in
the
tax
year
that
the
eligible
employee
was
employed
33
by
the
employer.
The
credit
shall
be
rounded
to
the
nearest
34
dollar.
If
the
employee
was
employed
by
the
employer
during
35
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any
part
of
a
month,
the
eligible
employee
shall
be
considered
1
to
be
employed
for
the
entire
month.
2
b.
(1)
Five
hundred
dollars
for
each
eligible
employee
3
employed
in
this
state
during
a
tax
year
subsequent
to
the
tax
4
year
that
the
employee
was
hired
for
employment
in
this
state.
5
(2)
If
the
eligible
employee
was
not
employed
by
the
6
employer
for
the
entire
tax
year,
the
amount
of
the
credit
in
7
subparagraph
(1)
shall
be
prorated
and
the
amount
of
the
credit
8
for
the
taxpayer
shall
equal
the
maximum
amount
of
credit
for
9
the
tax
year,
divided
by
twelve,
multiplied
by
the
number
of
10
months
in
the
tax
year
that
the
eligible
employee
was
employed
11
by
the
employer.
The
credit
shall
be
rounded
to
the
nearest
12
dollar.
If
the
employee
was
employed
by
the
employer
during
13
any
part
of
a
month,
the
eligible
employee
shall
be
considered
14
to
be
employed
for
the
entire
month.
15
c.
In
addition
to
the
credit
amount
in
paragraph
“a”
or
“b”
,
16
five
hundred
dollars
for
each
eligible
employee
who
performs
at
17
least
thirty
days
of
military
service
during
the
tax
year
while
18
employed
by
the
employer.
19
4.
Any
credit
in
excess
of
the
tax
liability
shall
be
20
refunded.
In
lieu
of
claiming
a
refund,
a
taxpayer
may
21
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
final,
22
completed
return
credited
to
the
tax
liability
for
the
23
following
tax
year.
24
5.
An
individual
may
claim
the
tax
credit
allowed
a
25
partnership,
limited
liability
company,
S
corporation,
estate,
26
or
trust
electing
to
have
the
income
taxed
directly
to
the
27
individual.
The
amount
claimed
by
the
individual
shall
be
28
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
29
partnership,
limited
liability
company,
S
corporation,
estate,
30
or
trust.
31
Sec.
2.
Section
422.33,
Code
2013,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
11.
The
taxes
imposed
under
this
division
34
shall
be
reduced
by
a
hire
a
hero
tax
credit.
The
taxpayer
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shall
claim
the
tax
credit
according
to
the
same
requirements
1
and
calculated
in
the
same
manner
as
provided
in
section
2
422.10A.
3
Sec.
3.
Section
422.60,
Code
2013,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
12.
The
taxes
imposed
under
this
division
6
shall
be
reduced
by
a
hire
a
hero
tax
credit.
The
taxpayer
7
shall
claim
the
tax
credit
according
to
the
same
requirements
8
and
calculated
in
the
same
manner
as
provided
in
section
9
422.10A.
10
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
11
retroactively
to
January
1,
2013,
for
tax
years
beginning
on
or
12
after
that
date
and
for
eligible
employees
hired
or
employed
13
on
or
after
that
date.
14
EXPLANATION
15
This
bill
creates
the
hire
a
hero
tax
credit
for
purposes
16
of
the
state
individual
and
corporate
income
taxes
and
the
17
franchise
tax.
The
tax
credit
is
available
for
employers
in
18
the
amount
of
$1,000
per
eligible
employee
for
the
year
in
19
which
the
eligible
employee
is
hired,
$500
for
each
year
of
20
employment
subsequent
to
the
year
of
hiring,
and
$500
for
each
21
year
an
eligible
employee
is
called
to
at
least
30
days
of
22
military
service.
The
annual
credits
for
initial
and
continued
23
employment
shall
be
prorated
if
such
employment
does
not
24
extend
through
an
entire
tax
year.
Eligible
employees
must
25
be
a
resident
of
this
state
and
be
a
member
of
the
national
26
guard
or
a
reserve
or
regular
component
of
the
armed
forces
27
of
the
United
States
employed
on
a
permanent
full-time
or
28
permanent
part-time
basis
of
at
least
30
hours
per
week.
The
29
bill
provides
that
an
otherwise
eligible
employee
shall
not
be
30
considered
an
eligible
employee
if
the
eligible
employee
was
31
hired
to
replace
another
eligible
employee
whose
employment
32
was
terminated
in
the
previous
12
months
unless
the
eligible
33
employee
being
replaced
left
voluntarily
or
was
discharged
for
34
misconduct.
The
bill
applies
retroactively
to
January
1,
2013,
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