Text: SF00415 Text: SF00417 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.12F CHILD CARE TAX CREDIT.
1 2 1. The taxes imposed under this division, less all
1 3 nonrefundable credits, shall be reduced by a child care tax
1 4 credit for married taxpayers where one spouse is not gainfully
1 5 employed for longer than one month during the tax year and
1 6 that spouse provides household services and care for a
1 7 qualifying child. The amount of the credit shall be equal to
1 8 the following:
1 9 a. For married taxpayers with a net income of forty
1 10 thousand dollars or less, one hundred twenty dollars.
1 11 b. For married taxpayers with a net income of more than
1 12 forty thousand dollars, one hundred twenty dollars reduced by
1 13 ten dollars for each one thousand dollars or fraction of one
1 14 thousand dollars of net income in excess of forty thousand
1 15 dollars.
1 16 2. Any credit in excess of the tax liability is
1 17 nonrefundable. The credit is only available to married
1 18 taxpayers filing jointly. A taxpayer shall not claim a credit
1 19 under this section and section 422.12C for the same tax year.
1 20 3. "Qualifying child" means a dependent with respect to
1 21 whom the taxpayer is entitled to a deduction under section
1 22 151(c) of the Internal Revenue Code who is a child, stepchild,
1 23 or adopted child, or other lineal descendent of the taxpayer
1 24 and who is less than five years of age at the end of the tax
1 25 year.
1 26 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
1 27 retroactively to January 1, 1999, for tax years beginning on
1 28 or after that date.
1 29 EXPLANATION
1 30 The bill provides a $120 individual income tax credit for
1 31 married taxpayers where one spouse remains at home to provide
1 32 household services and care for a qualifying child and who is
1 33 not gainfully employed for longer than 30 days during the tax
1 34 year. The $120 credit is for taxpayers with net incomes of
1 35 not more than $40,000. The credit is reduced by $10 for each
2 1 $1,000 (or fractions thereof) of net income in excess of
2 2 $40,000.
2 3 A qualifying child is a dependent who is a child,
2 4 stepchild, adopted child, or other lineal dependent of the
2 5 taxpayer who is less than five years old at the end of the tax
2 6 year.
2 7 The bill applies retroactively to January 1, 1999, for tax
2 8 years beginning on or after that date.
2 9 LSB 2397XS 78
2 10 mg/gg/8
Text: SF00415 Text: SF00417 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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