Creating the Iowa job training tax credit program and including applicability provisions

EDA is required to establish by rule minimum training standards that will reflect the minimum training necessary to provide a meaningful work experience for an intern or to learn a trade or job position for an apprentice. The bill describes how the minimum training standards should be quantified, as well as the factors EDA shall consider and the persons with whom EDA may consult in determining the standards. The bill provides that EDA may establish more than one minimum training standard. authority, and the bill describes the required information that must be contained in an application. EDA is required to review applications and, upon determining that the requirements of the program have been satisfied, issue a tax credit to the business. The tax credit equals $1,000 for each qualified trainee employed in Iowa by a business for the entire tax year. If a qualified trainee was not employed by the business for the entire tax year, the amount of the credit is prorated based upon the number of months of employment. The tax credit may be claimed against the individual and corporate income taxes, the franchise tax, the insurance companies tax, and the moneys and credits tax. The tax credit is nonrefundable and nontransferable, but any excess may be carried forward for seven years. The bill requires EDA and DOR to adopt rules as necessary for the implementation of the bill, and requires EDA and DOR to publish and submit annual reports to the governor and general assembly containing information as described in the bill. The bill applies to tax years beginning on or after January 1, 2022, and to qualified trainees employed in Iowa on or after that date.