Text: HF00041 Text: HF00043 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.12C, subsection 1, Code 1999, is 1 2 amended to read as follows: 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under sections 422.11A, 422.11B, 422.12, and 422.12B, 1 5 shall be reduced by a child and dependent care credit equal to 1 6 the following percentages of the federal child and dependent 1 7 care credit provided in section 21 of the Internal Revenue 1 8 Code: 1 9 a. For a taxpayer with net income of less than ten 1 10 thousand dollars,seventy-fiveone hundred percent. 1 11 b. For a taxpayer with net income of ten thousand dollars 1 12 or more but less than twenty thousand dollars,sixty-five1 13 seventy-five percent. 1 14 c. For a taxpayer with net income of twenty thousand 1 15 dollars or more but less than twenty-five thousand dollars, 1 16 fifty-five percent. 1 17 d. For a taxpayer with net income of twenty-five thousand 1 18 dollars or more but less than thirty-five thousand dollars, 1 19 fifty percent. 1 20 e. For a taxpayer with net income of thirty-five thousand 1 21 dollars or more but less than forty thousand dollars, forty 1 22 percent. 1 23 f. For a taxpayer with net income of forty thousand 1 24 dollars or more, zerobut less than forty-five thousand 1 25 dollars, thirty percent. 1 26 g. For a taxpayer with net income of forty-five thousand 1 27 dollars or more but less than fifty thousand dollars, twenty 1 28 percent. 1 29 h. For a taxpayer with net income of fifty thousand 1 30 dollars or more, ten percent. 1 31 Sec. 2. Section 422.12C, Code 1999, is amended by adding 1 32 the following new subsection: 1 33 NEW SUBSECTION. 4. a. For the tax year beginning in the 1 34 2000 calendar year and for each subsequent tax year, the net 1 35 income amounts set forth in subsection 1 shall be multiplied 2 1 by the cumulative adjustment factor for that tax year. 2 2 "Cumulative adjustment factor" means the product of the annual 2 3 adjustment factor for the 1999 calendar year and all annual 2 4 adjustment factors for subsequent calendar years. The 2 5 cumulative adjustment factor applies to the tax year beginning 2 6 January 1 of the calendar year for which the latest annual 2 7 adjustment factor has been determined. 2 8 b. The annual adjustment factor for the 1999 calendar year 2 9 is one hundred percent. For each subsequent calendar year, 2 10 the annual adjustment factor equals the annual inflation 2 11 factor for the calendar year, in which the tax year begins, as 2 12 computed in section 422.4 for purposes of the individual 2 13 income tax. 2 14 Sec. 3. This Act applies retroactively to January 1, 1999, 2 15 for tax years beginning on or after that date. 2 16 EXPLANATION 2 17 The bill increases the child and dependent care credit 2 18 under the individual income tax. The credit is equal to a 2 19 percentage of the federal credit. Under present law the 2 20 highest credit is 75 percent if the taxpayer's net income is 2 21 less than $10,000 with the credit phased out to zero for net 2 22 incomes of $40,000 or more. Under the bill the highest credit 2 23 is 100 percent if the taxpayer's net income is less than 2 24 $10,000 with the credit reduced to 10 percent for net income 2 25 of $50,000 or more. 2 26 Beginning with the tax year beginning in calendar year 2 27 2000, the net income amounts upon which the percentage of 2 28 federal credit is determined are adjusted for inflation on an 2 29 annual basis. 2 30 The bill applies retroactively to January 1, 1999, for tax 2 31 years beginning on or after that date. 2 32 LSB 1467HH 78 2 33 mg/gg/8
Text: HF00041 Text: HF00043 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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