House File 2595 H-8096 Amend House File 2595 as follows: 1 1. Page 1, before line 1 by inserting: 2 < DIVISION I 3 CHILD CARE FACILITIES > 4 2. Page 9, line 11, after < This > by inserting < division of 5 this > 6 3. Page 9, after line 13 by inserting: 7 < DIVISION II 8 ADDITIONAL PERSONAL EXEMPTION CREDIT 9 Sec. ___. NEW SECTION . 422.10C Additional personal 10 exemption credit —— child. 11 1. The taxes imposed under this division less the credits 12 allowed under this division, except for the credits for 13 withheld tax and estimated tax paid in section 422.16, shall 14 be reduced by an additional personal exemption credit in the 15 amount of one thousand dollars for each dependent. 16 2. The additional personal exemption credit shall be 17 added to any personal exemption claimed under section 422.12, 18 subsection 2. 19 3. The tax credit shall be reduced but not below zero by 20 the amount of the child and dependent care or early childhood 21 development tax credits claimed by the taxpayer pursuant to 22 section 422.12C. 23 4. Any credit in excess of the tax liability is refundable. 24 However, for nonresidents or part-year residents, the amount of 25 the credit in excess of the tax liability that may be refunded 26 shall be in the ratio of their Iowa source net income to their 27 all source net income under rules prescribed by the director. 28 5. For purposes of this section, “dependent” has the same 29 meaning as provided by the Internal Revenue Code, except the 30 dependent must be under the age of thirteen. 31 Sec. ___. EFFECTIVE DATE. This division of this Act takes 32 effect January 1, 2021. 33 Sec. ___. APPLICABILITY. This division of this Act applies 34 to tax years beginning on or after January 1, 2021. > 35 -1- HF2595.3583 (2) 88 jm/jh 1/ 2 #1. #2. #3.

4. Title page, by striking lines 1 through 5 and inserting 1 < An Act relating to tax credits and sales and use tax refunds 2 for the construction of child care facilities, adding an 3 additional personal exemption credit against the individual 4 income tax for a child, and including effective date and 5 applicability provisions. > 6 5. By renumbering as necessary. 7 ______________________________ GASSMAN of Winnebago -2- HF2595.3583 (2) 88 jm/jh 2/ 2 #4. #5.