260E.5 - NEW JOBS CREDIT FROM WITHHOLDING.
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