Senate
File
422
S-3043
Amend
Senate
File
422
as
follows:
1
1.
Page
1,
line
1,
by
striking
<
subsection
1,
>
2
2.
Page
1,
by
striking
lines
3
through
8
and
3
inserting:
4
<
Sec.
___.
Section
422.12B,
Code
2013,
is
amended
5
to
read
as
follows:
6
422.12B
Earned
income
tax
credit.
7
1.
The
taxes
imposed
under
this
division
less
the
8
credits
allowed
under
section
422.12
shall
be
reduced
9
by
an
earned
income
credit
equal
to
seven
one
of
10
the
following
amounts
chosen
at
the
election
of
the
11
taxpayer:
12
a.
Ten
percent
of
the
federal
earned
income
13
credit
provided
in
section
32
of
the
Internal
Revenue
14
Code.
Any
credit
in
excess
of
the
tax
liability
is
15
refundable.
16
b.
(1)
The
sum
of
the
following
amounts:
17
(a)
One
percent
of
the
first
forty
thousand
dollars
18
of
earned
income
of
the
individual.
19
(b)
Two
percent
of
the
amount
of
earned
income
of
20
the
individual
exceeding
forty
thousand
dollars
but
not
21
exceeding
sixty
thousand
dollars.
22
(2)
If
the
total
earned
income
of
the
individual
23
exceeds
sixty
thousand
dollars
the
amount
of
the
credit
24
determined
under
subparagraph
(1)
shall
be
reduced,
25
but
not
below
zero,
by
the
same
proportion
that
the
26
individual’s
total
earned
income
in
excess
of
sixty
27
thousand
dollars
bears
to
twenty
thousand
dollars.
28
(3)
Any
credit
in
excess
of
the
tax
liability
is
29
not
refundable.
30
(4)
A
credit
shall
not
be
allowed
under
this
31
paragraph
to
an
individual
who
is
a
dependent
for
32
whom
a
deduction
is
allowable
under
section
151
of
33
the
Internal
Revenue
Code
to
another
taxpayer
for
the
34
taxable
year,
or
to
an
individual
who
has
an
amount
of
35
disqualified
income
in
excess
of
three
thousand
two
36
hundred
dollars
for
the
taxable
year.
37
(5)
For
purposes
of
this
paragraph,
“earned
income”
38
and
“disqualified
income”
mean
the
same
as
defined
in
39
section
32
of
the
Internal
Revenue
Code.
40
2.
Married
taxpayers
electing
to
file
separate
41
returns
or
filing
separately
on
a
combined
return
42
may
avail
themselves
of
the
earned
income
credit
in
43
subsection
1,
paragraph
“a”
,
by
allocating
the
earned
44
income
credit
to
each
spouse
in
the
proportion
that
45
each
spouse’s
respective
earned
income
bears
to
the
46
total
combined
earned
income.
47
3.
Taxpayers
affected
by
the
allocation
provisions
48
of
section
422.8
shall
be
permitted
a
deduction
for
49
the
credit
only
in
the
amount
fairly
and
equitably
50
-1-
SF422.1045
(1)
85
mm/sc
1/
2
#1.
#2.
allocable
to
Iowa
under
rules
prescribed
by
the
1
director.
>
2
3.
By
renumbering
as
necessary.
3
______________________________
RANDY
FEENSTRA
-2-
SF422.1045
(1)
85
mm/sc
2/
2
#3.