House
File
2595
H-8098
Amend
House
File
2595
as
follows:
1
1.
By
striking
everything
after
the
enacting
clause
and
2
inserting:
3
<
DIVISION
I
4
Section
1.
Section
422.12C,
subsection
1,
Code
2020,
is
5
amended
by
striking
the
subsection
and
inserting
in
lieu
6
thereof
the
following:
7
1.
The
taxes
imposed
under
this
division,
less
the
amounts
8
of
nonrefundable
credits
allowed
under
this
division,
shall
9
be
reduced
by
a
child
and
dependent
care
credit
equal
to
the
10
following
percentages
of
the
federal
child
and
dependent
care
11
credit
provided
in
section
21
of
the
Internal
Revenue
Code,
12
without
regard
to
whether
or
not
the
federal
credit
was
limited
13
by
the
taxpayer’s
federal
tax
liability:
14
a.
For
a
taxpayer
with
net
income
of
less
than
forty-five
15
thousand
dollars,
one
hundred
percent.
16
b.
For
a
taxpayer
with
net
income
of
forty-five
thousand
17
dollars
or
more
but
less
than
ninety
thousand
dollars,
thirty
18
percent.
19
c.
For
a
taxpayer
with
net
income
of
ninety
thousand
dollars
20
or
more
but
less
than
one
hundred
thousand
dollars,
twenty-five
21
percent.
22
d.
For
a
taxpayer
with
net
income
of
one
hundred
thousand
23
dollars
or
more
but
less
than
one
hundred
twenty-five
thousand
24
dollars,
twenty
percent.
25
e.
For
a
taxpayer
with
net
income
of
one
hundred
twenty-five
26
thousand
dollars
or
more
but
less
than
one
hundred
fifty
27
thousand
dollars,
fifteen
percent.
28
f.
For
a
taxpayer
with
net
income
of
one
hundred
fifty
29
thousand
dollars
or
more
but
less
than
one
hundred
seventy-five
30
thousand
dollars,
ten
percent.
31
g.
For
a
taxpayer
with
net
income
of
one
hundred
32
seventy-five
thousand
dollars
or
more
but
less
than
two
hundred
33
fifty
thousand
dollars,
five
percent.
34
h.
For
a
taxpayer
with
net
income
of
two
hundred
fifty
35
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#1.
thousand
dollars
or
more,
zero
percent.
1
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
division
of
this
2
Act
applies
retroactively
to
January
1,
2020
for
tax
years
3
beginning
on
or
after
that
date.
4
DIVISION
II
5
Sec.
3.
NEW
SECTION
.
237D.1
Definitions.
6
As
used
in
this
chapter,
unless
the
context
otherwise
7
requires:
8
1.
“Child”
means
the
same
as
defined
in
section
237A.1.
9
2.
“Child
care”
means
the
same
as
defined
in
section
237A.1.
10
3.
“Child
development
home”
means
the
same
as
defined
in
11
section
237A.1.
12
4.
“Department”
means
the
department
of
human
services.
13
5.
“Facility”
means
the
same
as
defined
in
section
237A.1.
14
6.
“Fund”
means
the
child
care
center
and
child
development
15
home
grant
fund.
16
7.
“Home”
means
a
child
development
home.
17
8.
“Licensed
child
care
center”
or
“center”
means
a
facility
18
providing
child
care
or
preschool
services
for
seven
or
more
19
children
that
has
been
issued
a
license
by
the
department
20
pursuant
to
section
237A.2.
21
9.
“Program”
means
the
child
care
center
and
child
22
development
home
grant
program.
23
Sec.
4.
NEW
SECTION
.
237D.2
Child
care
center
and
child
24
development
home
grant
fund.
25
1.
A
child
care
center
and
child
development
home
grant
fund
26
is
created
and
established
as
a
separate
and
distinct
fund
in
27
the
state
treasury
under
the
control
of
the
department.
28
2.
a.
The
fund
may
consist
of
any
moneys
appropriated
by
29
the
general
assembly
for
purposes
of
this
chapter
and
any
other
30
moneys
that
are
lawfully
available
to
the
department.
Moneys
31
in
the
fund
are
appropriated
to
the
department
and
shall
be
32
used
for
the
purposes
of
this
chapter.
33
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
34
that
remain
unencumbered
or
unobligated
at
the
close
of
the
35
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fiscal
year
shall
not
revert
but
shall
remain
available
for
1
expenditure
for
the
purposes
of
this
section
in
succeeding
2
fiscal
years.
Notwithstanding
section
12C.7,
subsection
2,
3
interest
earned
on
moneys
in
the
fund
shall
be
credited
to
the
4
fund.
5
Sec.
5.
NEW
SECTION
.
237D.3
Child
care
center
and
child
6
development
home
grant
program.
7
1.
The
department
shall
adopt
rules
to
establish
and
8
administer
a
child
care
center
and
child
development
home
9
grant
program
to
provide
for
the
allocation
of
money
in
the
10
fund
in
the
form
of
grants,
not
to
exceed
fifty
thousand
11
dollars
per
grant,
to
eligible
persons
for
costs
related
to
12
the
establishment
of
a
new
licensed
child
care
center
or
13
a
new
child
development
home,
or
for
the
expansion
of
an
14
existing
licensed
child
care
center
or
the
expansion
of
an
15
existing
child
development
home.
For
any
one
fiscal
year,
the
16
department
shall
not
approve
more
than
four
million
dollars
17
in
grants.
The
rules
adopted
by
the
department
shall
specify
18
the
eligibility
requirements
for
applicants
of
the
program
and
19
the
items
eligible
for
a
program
grant.
Items
eligible
for
a
20
program
grant
must
include
the
costs
related
to
licensing
or
21
registration,
supplies,
and
infrastructure.
22
2.
A
new
center
or
a
new
home
must
be
licensed
or
registered
23
and
fully
operational
within
two
years
of
the
date
of
an
24
applicant’s
receipt
of
a
grant.
25
3.
Of
the
children
for
whom
a
new
or
expanded
center
or
a
26
new
or
expanded
home
provide
child
care,
a
minimum
of
twenty
27
percent
of
the
children
must
be
from
a
family
that
qualifies
28
for
state
child
care
assistance
pursuant
to
section
237A.13.
29
4.
A
person
that
is
awarded
a
grant
shall
enter
into
an
30
agreement
with
the
department
that
specifies
the
requirements
31
that
must
be
maintained
throughout
the
period
of
the
agreement
32
in
order
for
the
person
to
retain
the
grant.
The
agreement
33
must
contain,
at
a
minimum,
provisions
addressing
all
of
the
34
following:
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a.
The
legal
name
of
the
person
receiving
the
grant.
1
b.
The
amount
of
the
grant.
2
c.
Annual
certification
by
the
person
to
the
department
of
3
compliance
with
the
requirements
of
the
agreement,
the
program,
4
and
this
chapter.
5
d.
The
repayment
of
the
grant,
or
a
portion
of
the
grant,
6
if
the
person
does
not
meet
all
of
the
requirements
of
the
7
agreement,
the
program,
and
this
chapter.
8
e.
If
a
new
center
or
a
new
home
for
which
the
grant
was
9
received
goes
out
of
business
within
two
years
of
the
date
the
10
new
center
or
new
home
becomes
fully
operational
pursuant
to
11
subsection
2,
the
grant
shall
be
subject
to
repayment.
If
an
12
expanded
center
or
an
expanded
home
for
which
the
grant
was
13
received
goes
out
of
business
within
two
years
of
the
date
on
14
which
the
grant
was
received,
the
grant
shall
be
subject
to
15
repayment.
16
DIVISION
III
17
Sec.
6.
NEW
SECTION
.
237A.31
Small
business
child
care
tax
18
credit.
19
1.
As
used
in
this
section
“small
business”
means
any
20
enterprise
which
is
located
in
this
state,
which
is
operated
21
for
profit
and
under
a
single
management,
and
which
has
either
22
fewer
than
twenty
employees
or
an
annual
gross
income
of
less
23
than
four
million
dollars
computed
as
the
average
of
the
three
24
preceding
fiscal
years.
This
definition
does
not
apply
to
any
25
program
or
activity
for
which
a
definition
for
small
business
26
is
provided
for
the
program
or
activity
by
federal
law
or
27
regulation
or
other
state
law.
28
2.
A
small
business
may
receive
a
child
care
tax
credit
29
for
providing
child
care
employee
benefits
to
employees
of
30
the
business.
The
credit
may
be
applied
against
income
tax
31
imposed
under
chapter
422,
division
II
or
III,
the
franchise
32
tax
imposed
under
chapter
422,
division
V,
the
gross
premiums
33
tax
imposed
under
chapter
432,
or
the
moneys
and
credits
tax
34
imposed
in
section
533.329.
The
amount
of
the
credit
equals
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the
costs
to
provide
the
benefit
up
to
three
thousand
dollars
1
per
employee
per
year.
2
3.
The
aggregate
amount
of
tax
credits
authorized
pursuant
3
to
this
section
shall
not
exceed
a
total
of
two
million
4
dollars
per
fiscal
year,
and
shall
be
awarded
on
a
first-come,
5
first-served
basis.
6
4.
To
be
eligible
for
a
small
business
child
care
tax
7
credit,
the
small
business
must
provide
child
care
employee
8
benefits
to
employees
of
the
business
through
any
of
the
9
following:
10
a.
Build
a
new
structure
or
rehabilitate
an
existing
11
structure
to
be
used
as
a
child
care
center
at
or
near
the
small
12
business
where
the
children
of
the
employees
of
the
business
13
are
provided
child
care.
A
small
business
may
construct
or
14
rehabilitate
the
structure
in
conjunction
with
another
business
15
but
only
the
actual
cost
of
the
business
shall
be
considered
in
16
determining
the
credit.
17
b.
Operate
or
lease
a
child
care
center
at
or
near
the
small
18
business
where
the
children
of
the
employees
of
the
business
19
are
provided
child
care.
20
5.
Any
credit
in
excess
of
the
tax
liability
is
not
21
refundable
but
the
excess
for
the
tax
year
may
be
credited
22
to
the
tax
liability
for
the
following
five
years
or
until
23
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
24
adopt
rules
to
implement
this
section.
25
Sec.
7.
NEW
SECTION
.
422.12O
Small
business
child
care
tax
26
credit.
27
1.
The
taxes
imposed
under
this
division,
less
the
credits
28
allowed
under
section
422.12,
shall
be
reduced
by
a
small
29
business
child
care
tax
credit
received
pursuant
to
section
30
237A.31.
31
2.
An
individual
may
claim
the
tax
credit
allowed
a
32
partnership,
S
corporation,
limited
liability
company,
estate,
33
or
trust
electing
to
have
the
income
taxed
directly
to
the
34
individual.
The
amount
claimed
by
the
individual
shall
be
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based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
1
partnership,
S
corporation,
limited
liability
company,
estate,
2
or
trust.
3
Sec.
8.
Section
422.33,
Code
2020,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
division
6
shall
be
reduced
by
a
small
business
child
care
tax
credit
7
received
pursuant
to
section
237A.31.
8
Sec.
9.
Section
422.60,
Code
2020,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
11
shall
be
reduced
by
a
small
business
child
care
tax
credit
12
received
pursuant
to
section
237A.31.
13
Sec.
10.
NEW
SECTION
.
432.12N
Small
business
child
care
14
tax
credit.
15
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
16
a
small
business
child
care
tax
credit
received
pursuant
to
17
section
237A.31.
18
Sec.
11.
Section
533.329,
subsection
2,
Code
2020,
is
19
amended
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
21
this
section
shall
be
reduced
by
a
small
business
child
care
22
tax
credit
received
pursuant
to
section
237A.31.
23
Sec.
12.
APPLICABILITY.
This
division
of
this
Act
applies
24
to
tax
years
beginning
on
or
after
January
1,
2021.
25
DIVISION
IV
26
Sec.
13.
Section
237A.13,
subsection
7,
paragraph
c,
Code
27
2020,
is
amended
to
read
as
follows:
28
c.
Families
with
an
income
of
more
than
one
hundred
29
percent
but
not
more
than
one
two
hundred
forty-five
percent
30
of
the
federal
poverty
level
whose
members,
for
at
least
31
twenty-eight
hours
per
week
in
the
aggregate,
are
employed
32
or
are
participating
at
a
satisfactory
level
in
an
approved
33
training
program
or
educational
program.
34
Sec.
14.
DIRECTIVE
TO
DEPARTMENT
OF
HUMAN
SERVICES
——
CHILD
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CARE
ASSISTANCE.
1
1.
The
department
of
human
services
shall
amend
its
2
administrative
rules
pursuant
to
chapter
17A
to
do
all
of
the
3
following:
4
a.
Provide
income
eligibility
for
state
child
care
5
assistance,
according
to
family
size
for
children
needing
basic
6
care,
to
families
whose
nonexempt
gross
monthly
income
does
not
7
exceed
two
hundred
percent
of
the
federal
poverty
level.
8
b.
Adjust
the
state
child
care
assistance
copayment
9
schedule
in
incrementally
increased
amounts
for
families
whose
10
nonexempt
gross
monthly
income
does
not
exceed
two
hundred
11
percent
of
the
federal
poverty
level.
12
2.
The
rules
adopted
pursuant
to
this
section
shall
take
13
effect
January
1,
2021.
>
14
2.
Title
page,
by
striking
lines
1
through
5
and
inserting
15
<
An
Act
relating
to
child
care,
grants
and
tax
credits
relating
16
to
child
care,
state
child
care
assistance,
and
including
17
applicability
and
retroactive
applicability
provisions.
>
18
______________________________
JAMES
of
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#2.