SF 2138 – VTF appropriations
SF 2141 – ‘Hire a Hero’ employer tax credit
COMMITTEE ACTION:
SF 2138 (SSB 3127) makes appropriations from the Veterans Trust Fund (VTF) to the Commission of Veterans Affairs (CVA) to be used for the provision of veterans services. Currently, the interest and earnings from the VTF are used for certain services for eligible veterans in need (e.g., emergency home or vehicle repair, dental emergencies). Nationwide, interest has been low or nil on savings and investments, and as a result the VTF has little expendable money to help but has seen an increase in requests. The legislation would allow the first $300,000 transferred to the VTF from the proceeds of Iowa Lottery sales of Veterans scratch-off and pull-tab tickets each fiscal year to be used by the CVA to help meet the need. Moneys appropriated to the CVA that remain unobligated or unexpended at the end of each fiscal year revert to the VTF. SF 2138 also provides for a one-time appropriation of $300,000 from the VTF to the CVA for the current fiscal year (July 1, 2011 to June 30, 2012) to help the immediate need to provide the specific services for eligible veterans, effective upon enactment. The bill was referred to Appropriations Committee for further consideration. [2/6: short form]
SF 2142 (SSB 3068) creates the “Hire a Hero” tax credit for state individual and corporate income taxes and the franchise tax, available for employers in the amount of $1,000 per eligible employee for the year in which the eligible employee is hired, $500 for each year of employment subsequent to the year of hiring, and $500 for each year an eligible employee is called to at least 30 days of military service. Eligible employees are Iowa residents who are members of the National Guard, Reserve or Regular component of the U.S. Armed Forces who are employed full-time or at least 30 hours per week permanent part-time. A servicemember is not an eligible employee if he or she was hired to replace a servicemember whose employment was terminated in the previous 12 months unless the servicemember being replaced left voluntarily or was discharged for misconduct. The annual credits for initial and continued employment will be prorated based on the number of weeks the employee worked if the employment does not extend through an entire tax year. The tax credit applies retroactively to tax years beginning on or after January 1, 2012. [2/6: short form]