260E.5 - NEW JOBS CREDIT FROM WITHHOLDING. - Iowa Statutes

260E.5 NEW JOBS CREDIT FROM WITHHOLDING. If an agreement provides that all or part of program costs are to be met by receipt of new jobs credit from withholding, it shall be done as follows: 1. New jobs credit from withholding shall be based upon the wages paid to the employees in the new jobs. 2. An amount equal to one and one-half percent of the gross wages paid by the employer to each employee participating in a project shall be credited from the payment made by an employer pursuant to section 422.16. If the amount of the withholding by the employer is less than one and one-half percent of the gross wages paid to the employees covered by the agreement, then the employer shall receive a credit against other withholding taxes due by the employer. The employer shall remit the amount of the credit quarterly in the same manner as withholding payments are reported to the department of revenue, to the community college to be allocated to and when collected paid into a special fund of the community college to pay the principal of and interest on certificates issued by the community college to finance or refinance, in whole or in part, the project. When the principal and interest on the certificates have been paid, the employer credits shall cease and any money received after the certificates have been paid shall be remitted to the treasurer of state to be deposited in the general fund of the state. 3. The new jobs credit from withholding and the special fund into which it is paid, may be irrevocably pledged by a community college for the payment of the principal of and interest on the certificate issued by a community college to finance or refinance, in whole or in part, the project. 4. The employer shall certify to the department of revenue that the credit in withholding is in accordance with an agreement and shall provide other information the department may require. 5. A community college shall certify to the department of revenue the amount of new jobs credit from withholding an employer has remitted to the special fund and shall provide other information the department may require. 6. An employee participating in a project will receive full credit for the amount withheld as provided in section 422.16.          Section History: Recent Form 83 Acts, ch 171, § 5, 8 CS83, § 280B.5 90 Acts, ch 1253, § 80 C93, § 260E.5 2003 Acts, ch 145, §286 Referred to in § 15A.7, 15A.9, 15E.197, 260E.2, 403.19A See also §15A.9