Text: HF02110 Text: HF02112 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.12C, Code 2003, is amended by
1 2 adding the following new subsection:
1 3 NEW SUBSECTION. 1A. For the purposes of this subsection,
1 4 "child with special needs" means the same as "family member"
1 5 as defined in section 225C.35. Notwithstanding subsection 1,
1 6 regardless of net income, if a taxpayer resides in a county in
1 7 which the department of human services does not offer the
1 8 children-at-home program and the taxpayer has a dependent
1 9 child with special needs, the taxes imposed under this
1 10 division, less the credits allowed under sections 422.11A,
1 11 422.11B, 422.12, and 422.12B, shall be reduced by a child and
1 12 dependent care credit equal to one hundred percent of the
1 13 federal child and dependent care credit provided in section 21
1 14 of the Internal Revenue Code.
1 15 Sec. 2. RETROACTIVE APPLICABILITY. This Act is
1 16 retroactively applicable to the tax year beginning January 1,
1 17 2004, and is applicable on and after that date.
1 18 EXPLANATION
1 19 This bill modifies the income requirements of the child and
1 20 dependent care state income tax credit for taxpayers with a
1 21 child with special needs.
1 22 Under current law, this credit is provided as a percentage
1 23 of the federal child and dependent care credit on a sliding
1 24 scale, depending upon the net income of the taxpayer. The
1 25 credit is completely phased out for taxpayers with a net
1 26 income of $40,000 or more.
1 27 The bill provides that a taxpayer who resides in a county
1 28 in which the department of human services does not offer the
1 29 children-at-home program and who has a dependent child with
1 30 special needs is eligible for 100 percent of the federal child
1 31 and dependent care credit, regardless of the taxpayer's net
1 32 income. The children-at-home program provides grant funding
1 33 in 14 counties to families with a special needs child, based
1 34 upon eligibility criteria used for the family support subsidy
1 35 program, except for annual income. Under the bill, a "child
2 1 with special needs" means the same as the definition of
2 2 "family member" for the family support subsidy program in Code
2 3 section 225C.35: a person who is less than 18 years of age
2 4 and who by educational determination has a moderate, severe,
2 5 or profound educational disability or special health care
2 6 needs, or who otherwise meets the definition of developmental
2 7 disability in federal law.
2 8 The bill is retroactively applicable to the tax year
2 9 beginning July 1, 2004, and is effective on and after that
2 10 date.
2 11 LSB 5408YH 80
2 12 jp/pj/5
Text: HF02110 Text: HF02112 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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