Text: HF00084 Text: HF00086 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.12A NEWBORN TAX CREDIT –
1 2 REFUND.
1 3 1. a. The taxes imposed under this division, less the
1 4 credits allowed under section 422.12 and other nonrefundable
1 5 credits, shall be reduced by a newborn tax credit equal to
1 6 five hundred dollars for each calendar month that a child of
1 7 the taxpayer meets all of the following conditions:
1 8 (1) The child is living with the parent for more than one-
1 9 half of the month or was living with the parent during the
1 10 month the child died.
1 11 (2) The child is not older than six months at the end of
1 12 the month or, in the case where the child died, the child
1 13 would not have been older than six months at the end of the
1 14 month.
1 15 (3) The child is claimed as a dependent of the taxpayer.
1 16 b. The newborn tax credit applies to each child meeting
1 17 the qualifications in this subsection. For purposes of the
1 18 newborn tax credit, "child" includes an adopted child.
1 19 2. Any credit in excess of the tax liability shall be
1 20 refunded. In lieu of claiming a refund, a taxpayer may elect
1 21 to have the overpayment shown on the taxpayer's final,
1 22 completed return credited to the tax liability for the
1 23 following taxable year.
1 24 3. Married taxpayers who have filed joint federal returns
1 25 electing to file separate returns or to file separately on a
1 26 combined return form must determine the newborn tax credit
1 27 under subsection 1 based upon their combined net income and
1 28 allocate the total credit amount to each spouse in the
1 29 proportion that each spouse's respective net income bears to
1 30 the total combined net income. Nonresidents or part-year
1 31 residents of Iowa must determine their Iowa newborn tax credit
1 32 in the ratio of their Iowa source net income to their all
1 33 source net income. Nonresidents or part-year residents who
1 34 are married and elect to file separate returns or to file
1 35 separately on a combined return form must allocate the Iowa
2 1 newborn tax credit between the spouses in the ratio of each
2 2 spouse's Iowa source net income to the combined Iowa source
2 3 net income of the taxpayers.
2 4 Sec. 2. EFFECTIVE DATE AND APPLICABILITY. This Act, being
2 5 deemed of immediate importance, takes effect upon enactment
2 6 and applies retroactively to January 1, 2001, for tax years
2 7 beginning on or after that date.
2 8 EXPLANATION
2 9 This bill provides a newborn tax credit under the
2 10 individual income tax. The credit equals $500 per month per
2 11 child for the first six months of the child's life. The child
2 12 must be living with the taxpayer. The credit is refundable.
2 13 The bill takes effect upon enactment and applies retroactively
2 14 to January 1, 2001, for the years beginning on or after that
2 15 date.
2 16 LSB 1289HH 79
2 17 mg/pj/5
Text: HF00084 Text: HF00086 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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