Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.26 - Wage-benefits Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years ending on or after June 9, 2006, a
				  wage-benefits tax credit equal to a percentage of the annual wages and benefits
				  paid for a qualified new job created by the location or expansion of the
				  business in Iowa is available for qualified businesses.
(1)
Definitions.
The
				following definitions are applicable to this rule:
"Average county wage"
means the annualized
				  average hourly wage calculated by the Iowa department of economic development
				  using the most current four quarters of wage and employment information as
				  provided in the Quarterly Covered Wage and Employment Data report provided by
				  the department of workforce development. Agricultural/mining and governmental
				  employment categories are deleted in compiling the wage information.
"Benefits"
means all of the
				  following:
1. Medical and dental
				insurance plans.
2. Pension and
				profit-sharing plans.
3. Child care
				services.
4. Life insurance
				coverage.
5. Vision insurance
				plan.
6. Disability
				coverage.
"Department"
means the Iowa department of
				  revenue.
"Full-time"
means the equivalent of
				  employment of one person:
1. For 8
				hours per day for a five-day, 40-hour workweek for 52 weeks per year, including
				paid holidays, vacations, and other paid leave, or
2. The number of hours or days per week,
				including paid holidays, vacations, and other paid leave, currently established
				by schedule, custom or otherwise, as constituting a week of full-time work for
				the kind of service an individual performs for an employing unit.
"Grow Iowa values fund"
means the grow Iowa
				  values fund created in Iowa Code Supplement section
				  15G.108.
"Nonqualified new job"
means any one of the
				  following:
1. A job previously filled
				by the same employee in Iowa.
2. A
				job that was relocated from another location in Iowa.
3. A job that is created as a result of a
				consolidation, merger, or restructuring of a business entity if the job does
				not represent a new job in Iowa.
"Qualified new job"
or
"job
				  creation"
means a job that meets all of the following criteria:
1. Is anew full-time job that has not existed
				in the business in Iowa within the previous 12 months.
2. Is filled by a new employee for at least
				12 months.
3. Is filled by a
				resident of the state of Iowa.
4.
				Is not created as a result of a change in ownership.
5. Was created on or after June 9,
				2005.
"Retail business"
means a business which
				  sells its product directly to a consumer.
"Retained qualified new job"
or
"job
				  retention"
means the continued employment, after the first 12 months
				  of employment, of the same employee in a qualified new job for another 12
				  months.
"Service business"
means a business which is
				  not engaged in the sale of tangible personal property, and which provides
				  services to a local consumer market and does not have a significant proportion
				  of its sales coming from outside Iowa.