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INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES, §422.11A
422.11A New jobs tax credit.
The taxes imposed under this division, less the credits allowed under section 422.12, shall
be reduced by a new jobs tax credit. An industry which has entered into an agreement under
chapter 260E and which has increased its base employment level by at least ten percent within
the time set in the agreement or, in the case of an industry without a base employment level,
adds new jobs within the time set in the agreement is entitled to this new jobs tax credit for
the tax year selected by the industry. In determining if the industry has increased its base
employment level by ten percent or added new jobs, only those new jobs directly resulting
from the project covered by the agreement and those directly related to those new jobs shall be
counted. The amount of this credit is equal to the product of six percent of the taxable wages
upon which an employer is required to contribute to the state unemployment compensation
fund, as defined in section 96.19, subsection 37, times the number of new jobs existing in
the tax year that directly result from the project covered by the agreement or new jobs that
directly result from those new jobs. The tax year chosen by the industry shall either begin or
end during the period beginning with the date of the agreement and ending with the date by
which the project is to be completed under the agreement. An individual may claim the new
jobs tax credit allowed a partnership, subchapter S corporation, or estate or trust electing to
have the income taxed directly to the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings of the partnership, subchapter
S corporation, or estate or trust. Any credit in excess of the tax liability for the tax year may
be credited to the tax liability for the following ten tax years or until depleted, whichever is
the earlier. For purposes of this section, “agreement”, “industry”, “new job”, and “project”
mean the same as defined in section 260E.2 and “base employment level” means the number
of full-time jobs an industry employs at the plant site which is covered by an agreement under
chapter 260E on the date of that agreement.
85 Acts, ch 32, §80; 89 Acts, ch 251, §14; 91 Acts, ch 159, §11; 2007 Acts, ch 161, §3, 22
Referred to in §2.48, §422.5, §422.16
Wed Feb 08 03:44:38 2017
Iowa Code 2017, Section 422.11A (12, 0)
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