Amend Senate File 422 as follows:
   1.  Page 1, line 1, by striking <subsection 1,>
   2.  Page 1, by striking lines 3 through 8 and inserting: 
   <Sec. ___.  Section 422.12B, Code 2013, is amended to read as follows:
   422.12B  Earned income tax credit.
   1.  The taxes imposed under this division less the credits allowed under section 422.12 shall be reduced by an earned income credit equal to seven
 
one of the following amounts chosen at the election of the taxpayer:
   a.  Ten
 
percent of the federal earned income credit provided in section 32 of the Internal Revenue Code. Any credit in excess of the tax liability is refundable.
   b.
  (1)  The sum of the following amounts:
   (a)  One percent of the first forty thousand dollars of earned income of the individual.
   (b)  Two percent of the amount of earned income of the individual exceeding forty thousand dollars but not exceeding sixty thousand dollars.
   (2)  If the total earned income of the individual exceeds sixty thousand dollars the amount of the credit determined under subparagraph (1) shall be reduced, but not below zero, by the same proportion that the individual’s total earned income in excess of sixty thousand dollars bears to twenty thousand dollars.
   (3)  Any credit in excess of the tax liability is not refundable.
   (4)  A credit shall not be allowed under this paragraph to an individual who is a dependent for whom a deduction is allowable under section 151 of the Internal Revenue Code to another taxpayer for the taxable year, or to an individual who has an amount of disqualified income in excess of three thousand two hundred dollars for the taxable year.
   (5)  For purposes of this paragraph, “earned income” and “disqualified income” mean the same as defined in section 32 of the Internal Revenue Code.
   2.  Married taxpayers electing to file separate returns or filing separately on a combined return may avail themselves of the earned income credit
 
in subsection 1, paragraph “a”, by allocating the earned income credit to each spouse in the proportion that each spouse’s respective earned income bears to the total combined earned income.
   3.  Taxpayers affected by the allocation provisions of section 422.8 shall be permitted a deduction for the credit only in the amount fairly and equitably allocable to Iowa under rules prescribed by the director.>
   3.  By renumbering as necessary.

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RANDY FEENSTRA