Read the full stored bill text
House
File
2017
-
Introduced
HOUSE
FILE
2017
BY
INGELS
A
BILL
FOR
An
Act
creating
a
state
work
opportunity
tax
credit
available
1
against
the
individual
and
corporate
income
taxes,
and
2
including
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5223YH
(3)
91
jm/jh
H.F.
2017
Section
1.
NEW
SECTION
.
422.12R
Work
opportunity
tax
1
credit.
2
1.
The
taxes
imposed
under
this
subchapter
less
the
credits
3
allowed
under
section
422.12
shall
be
reduced
by
a
work
4
opportunity
tax
credit
for
tax
years
beginning
on
or
after
5
January
1,
2026,
that
is
equal
to
one
hundred
percent
of
the
6
federal
work
opportunity
tax
credit
provided
in
section
51
of
7
the
Internal
Revenue
Code.
8
2.
Any
credit
in
excess
of
tax
liability
is
not
refundable
9
but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
10
liability
for
the
following
tax
year.
11
Sec.
2.
Section
422.33,
Code
2026,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
4.
a.
The
taxes
imposed
under
this
14
subchapter
shall
be
reduced
by
a
work
opportunity
tax
credit
15
for
tax
years
beginning
on
or
after
January
1,
2026,
that
is
16
equal
to
one
hundred
percent
of
the
federal
work
opportunity
17
tax
credit
provided
in
section
51
of
the
Internal
Revenue
Code.
18
b.
The
taxpayer
may
claim
the
credit
pursuant
to
this
19
subsection
according
to
the
same
requirements,
conditions,
and
20
limitations
as
provided
pursuant
to
section
422.12R.
21
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
22
retroactively
to
January
1,
2026,
for
tax
years
beginning
on
23
or
after
that
date.
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
creates
a
state
work
opportunity
tax
credit
28
available
against
the
individual
and
corporate
income
taxes.
29
The
bill
reduces
individual
or
corporate
income
taxes,
as
30
applicable,
by
a
work
opportunity
tax
credit
that
is
equal
to
31
100
percent
of
the
federal
work
opportunity
tax
credit
provided
32
in
section
51
of
the
Internal
Revenue
Code.
33
The
federal
work
opportunity
tax
credit
is
a
credit
based
34
upon
a
percentage
of
wages
paid
by
employers
to
persons
who
may
35
-1-
LSB
5223YH
(3)
91
jm/jh
1/
2
H.F.
2017
face
barriers
to
entering
the
workforce.
1
The
tax
credit
is
not
refundable
but
the
excess
for
the
tax
2
year
may
be
credited
to
the
tax
liability
for
the
following
3
year.
4
The
bill
applies
retroactively
to
tax
years
beginning
on
or
5
after
January
1,
2026.
6
-2-
LSB
5223YH
(3)
91
jm/jh
2/
2