Wage-Benefits Tax Credit Processing of Claims
July 1, 2007

Wage-benefits tax credits totaling $10 million were issued for the fiscal year ending June 30, 2007. Of this amount, $4 million in tax credit certificates were issued between July 2006 and March 2007. Due to the enactment of 2007 Iowa Acts, Senate File 601, section 82, the amount of wage-benefits tax credits are reduced to $4 million for the fiscal year ending June 30, 2008, and subsequent fiscal years.

In accordance with Iowa Code section 15I.3, businesses that received a wage-benefits tax credit are eligible for the credit for the subsequent four years if the business retained the new job and an application is filed for the retained job. In addition, Iowa rule 701-52.25(3) states that wage-benefits tax credit certificates are issued on a “first-come, first-served” basis.

Therefore, in issuing the $4 million of wage-benefits tax credits for the fiscal year ending June 30, 2008, preference will be given to those businesses who had filed applications for the year ending June 30, 2007, between July 2006 and March 2007 who retained the new jobs. If applications for these jobs are not received, then credits will be issued for those retained jobs for which applications were received in April 2007 for the previous fiscal year. In essence, the order in which applications were received for the fiscal year ending June 30, 2007, will determine the order in which tax credits will be issued for the period ending June 30, 2008.