Mike Owen [Common Good Iowa]
Common Good Iowa welcomes an expansion of the Child and Dependent Care Credit for lower and middleincome taxpayers who need assistance but is registered undecided on the bill as there is no demonstrated reason to eliminate the income cap on eligibility for a credit.The point of the credit is to help families afford the cost of child care. The state spent $25.7 million on this credit in 2021. Why would lawmakers provide no additional assistance to lowincome families, who can only receive up to 75% of the federal credit in Iowa, but then provide a new credit to households that earn well above the state average? While there is no fiscal note on the bill at this stage, there should be some fiscal analysis from LSA provided before consideration at the subcommittee level including analysis of the expected benefits to those at high incomes.Further, this change should have a fiveyear sunset to force further experiencebased review, and the cost should be paid from the Taxpayer Relief Fund, not the General Fund, which is shrinking due to incometax cuts.
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