House Amendment 2083 PAG LIN 1 1 Amend Senate File 590, as passed by the Senate, as 1 2 follows: 1 3 #1. Page 1, by inserting after line 8 the 1 4 following: 1 5 <Sec. . Section 422.12C, Code 2007, is amended 1 6 by adding the following new subsection after 1 7 subsection 1: 1 8 NEW SUBSECTION. 1A. For tax years beginning on or 1 9 after January 1, 2007, but before January 1, 2008, 1 10 each net income amount specified in subsection 1 shall 1 11 be increased by five thousand dollars. For tax years 1 12 beginning on or after January 1, 2008, each net income 1 13 amount specified in subsection 1 shall be increased by 1 14 ten thousand dollars. 1 15 Sec. . Section 422.12C, subsection 2, 1 16 unnumbered paragraph 1, Code 2007, is amended to read 1 17 as follows: 1 18 The taxes imposed under this division, less the 1 19 amounts of nonrefundable credits allowed under this 1 20 division, may be reduced by an early childhood 1 21 development tax credit equal to twenty=five percent of 1 22 the first one thousand dollars which the taxpayer has 1 23 paid to others for each dependent, as defined in the 1 24 Internal Revenue Code, ages three through five for 1 25 early childhood development expenses. In determining 1 26 the amount of early childhood development expenses for 1 27 the tax year beginning in the 2006 calendar year only, 1 28 such expenses paid during November and December of the 1 29 previous tax year shall be considered paid in the tax 1 30 year for which the tax credit is claimed.ThisFor 1 31 the tax year beginning before January 1, 2007, this 1 32 credit is available to a taxpayer whose net income is 1 33 less than forty=five thousand dollars. For tax years 1 34 beginning on or after January 1, 2007, but before 1 35 January 1, 2008, this credit is available to taxpayers 1 36 whose net income is less than fifty thousand dollars. 1 37 For tax years beginning on or after January 1, 2008, 1 38 this credit is available to a taxpayer whose net 1 39 income is less than fifty=five thousand dollars. If 1 40 the early childhood development tax credit is claimed 1 41 for a tax year, the taxpayer and the taxpayer's spouse 1 42 shall not claim the child and dependent care credit 1 43 under subsection 1. As used in this subsection, 1 44 "early childhood development expenses" means services 1 45 provided to the dependent by a preschool, as defined 1 46 in section 237A.1, materials, and other activities as 1 47 follows:> 1 48 #2. Title page, line 1, by inserting after the 1 49 words <relating to> the following: <the increase in 1 50 the child and dependent care and early childhood 2 1 development tax credits and to>. 2 2 2 3 2 4 2 5 UPMEYER of Hancock 2 6 SF 590.702 82 2 7 mg/gg/10051 -1-