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