House Amendment 1697 PAG LIN 1 1 Amend House File 883 as follows: 1 2 #1. Page 1, by inserting after line 8 the 1 3 following: 1 4 <Sec. . Section 422.12C, Code 2007, is amended 1 5 by adding the following new subsection after 1 6 subsection 1: 1 7 NEW SUBSECTION. 1A. For tax years beginning on or 1 8 after January 1, 2007, but before January 1, 2008, 1 9 each net income amount specified in subsection 1 shall 1 10 be increased by five thousand dollars. For tax years 1 11 beginning on or after January 1, 2008, each net income 1 12 amount specified in subsection 1 shall be increased by 1 13 ten thousand dollars. 1 14 Sec. . Section 422.12C, subsection 2, 1 15 unnumbered paragraph 1, Code 2007, is amended to read 1 16 as follows: 1 17 The taxes imposed under this division, less the 1 18 amounts of nonrefundable credits allowed under this 1 19 division, may be reduced by an early childhood 1 20 development tax credit equal to twenty=five percent of 1 21 the first one thousand dollars which the taxpayer has 1 22 paid to others for each dependent, as defined in the 1 23 Internal Revenue Code, ages three through five for 1 24 early childhood development expenses. In determining 1 25 the amount of early childhood development expenses for 1 26 the tax year beginning in the 2006 calendar year only, 1 27 such expenses paid during November and December of the 1 28 previous tax year shall be considered paid in the tax 1 29 year for which the tax credit is claimed.ThisFor 1 30 the tax year beginning before January 1, 2007, this 1 31 credit is available to a taxpayer whose net income is 1 32 less than forty=five thousand dollars. For tax years 1 33 beginning on or after January 1, 2007, but before 1 34 January 1, 2008, this credit is available to taxpayers 1 35 whose net income is less than fifty thousand dollars. 1 36 For tax years beginning on or after January 1, 2008, 1 37 this credit is available to a taxpayer whose net 1 38 income is less than fifty=five thousand dollars. If 1 39 the early childhood development tax credit is claimed 1 40 for a tax year, the taxpayer and the taxpayer's spouse 1 41 shall not claim the child and dependent care credit 1 42 under subsection 1. As used in this subsection, 1 43 "early childhood development expenses" means services 1 44 provided to the dependent by a preschool, as defined 1 45 in section 237A.1, materials, and other activities as 1 46 follows:> 1 47 #2. Title page, line 1, by inserting after the 1 48 words <relating to> the following: <the increase in 1 49 the child and dependent care and early childhood 1 50 development tax credits and to>. 2 1 2 2 2 3 2 4 UPMEYER of Hancock 2 5 HF 883.702 82 2 6 mg/gg/8356 -1-