House Amendment 1459


PAG LIN




     1  1    Amend House File 877 as follows:
     1  2 #1.  Page 10, by inserting after line 6 the
     1  3 following:
     1  4    <Sec.    .  Section 422.12C, subsection 2,
     1  5 unnumbered paragraph 1, Code 2007, is amended to read
     1  6 as follows:
     1  7    The taxes imposed under this division, less the
     1  8 amounts of nonrefundable credits allowed under this
     1  9 division, may be reduced by an early childhood
     1 10 development tax credit equal to twenty=five fifty
     1 11 percent of the first one thousand dollars which the
     1 12 taxpayer has paid to others for each dependent, as
     1 13 defined in the Internal Revenue Code, ages three
     1 14 through five for early childhood development expenses.
     1 15 In determining the amount of early childhood
     1 16 development expenses for the tax year beginning in the
     1 17 2006 calendar year only, such expenses paid during
     1 18 November and December of the previous tax year shall
     1 19 be considered paid in the tax year for which the tax
     1 20 credit is claimed.  This credit is available to a
     1 21 taxpayer whose net income is less than forty=five
     1 22 fifty thousand dollars.  If the early childhood
     1 23 development tax credit is claimed for a tax year, the
     1 24 taxpayer and the taxpayer's spouse shall not claim the
     1 25 child and dependent care credit under subsection 1.
     1 26 As used in this subsection, "early childhood
     1 27 development expenses" means services provided to the
     1 28 dependent by a preschool, as defined in section
     1 29 237A.1, materials, and other activities as follows:>
     1 30 #2.  Page 10, by inserting after line 14 the
     1 31 following:
     1 32    <Sec.    .  RETROACTIVE APPLICABILITY DATE.  The
     1 33 section of this division of this Act amending section
     1 34 422.12C applies retroactively to January 1, 2007, for
     1 35 tax years beginning on or after that date.>
     1 36 #3.  Title page, line 2, by inserting after the
     1 37 word <children> the following:  <, increasing the
     1 38 income threshold and credit amount for the early
     1 39 childhood and development tax credit, including an
     1 40 applicability date provision,>.
     1 41
     1 42
     1 43                               
     1 44 KAUFMANN of Cedar
     1 45 HF 877.703 82
     1 46 jp/gg/8039
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