House
File
2594
H-8099
Amend
House
File
2594
as
follows:
1
1.
Page
1,
before
line
1
by
inserting:
2
<
DIVISION
I
>
3
2.
Page
2,
line
27,
before
<
Act
>
by
inserting
<
division
of
4
this
>
5
3.
Page
2,
after
line
28
by
inserting:
6
<
DIVISION
II
7
Sec.
___.
Section
422.12C,
subsection
1,
Code
2020,
is
8
amended
by
striking
the
subsection
and
inserting
in
lieu
9
thereof
the
following:
10
1.
The
taxes
imposed
under
this
division,
less
the
amounts
11
of
nonrefundable
credits
allowed
under
this
division,
shall
12
be
reduced
by
a
child
and
dependent
care
credit
equal
to
the
13
following
percentages
of
the
federal
child
and
dependent
care
14
credit
provided
in
section
21
of
the
Internal
Revenue
Code,
15
without
regard
to
whether
or
not
the
federal
credit
was
limited
16
by
the
taxpayer’s
federal
tax
liability:
17
a.
For
a
taxpayer
with
net
income
of
less
than
forty-five
18
thousand
dollars,
one
hundred
percent.
19
b.
For
a
taxpayer
with
net
income
of
forty-five
thousand
20
dollars
or
more
but
less
than
ninety
thousand
dollars,
thirty
21
percent.
22
c.
For
a
taxpayer
with
net
income
of
ninety
thousand
dollars
23
or
more
but
less
than
one
hundred
thousand
dollars,
twenty-five
24
percent.
25
d.
For
a
taxpayer
with
net
income
of
one
hundred
thousand
26
dollars
or
more
but
less
than
one
hundred
twenty-five
thousand
27
dollars,
twenty
percent.
28
e.
For
a
taxpayer
with
net
income
of
one
hundred
twenty-five
29
thousand
dollars
or
more
but
less
than
one
hundred
fifty
30
thousand
dollars,
fifteen
percent.
31
f.
For
a
taxpayer
with
net
income
of
one
hundred
fifty
32
thousand
dollars
or
more
but
less
than
one
hundred
seventy-five
33
thousand
dollars,
ten
percent.
34
g.
For
a
taxpayer
with
net
income
of
one
hundred
35
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#1.
#2.
#3.
seventy-five
thousand
dollars
or
more
but
less
than
two
hundred
1
fifty
thousand
dollars,
five
percent.
2
h.
For
a
taxpayer
with
net
income
of
two
hundred
fifty
3
thousand
dollars
or
more,
zero
percent.
4
Sec.
___.
RETROACTIVE
APPLICABILITY.
This
division
of
this
5
Act
applies
retroactively
to
January
1,
2020
for
tax
years
6
beginning
on
or
after
that
date.
7
DIVISION
III
8
Sec.
___.
NEW
SECTION
.
237D.1
Definitions.
9
As
used
in
this
chapter,
unless
the
context
otherwise
10
requires:
11
1.
“Child”
means
the
same
as
defined
in
section
237A.1.
12
2.
“Child
care”
means
the
same
as
defined
in
section
237A.1.
13
3.
“Child
development
home”
means
the
same
as
defined
in
14
section
237A.1.
15
4.
“Department”
means
the
department
of
human
services.
16
5.
“Facility”
means
the
same
as
defined
in
section
237A.1.
17
6.
“Fund”
means
the
child
care
center
and
child
development
18
home
grant
fund.
19
7.
“Home”
means
a
child
development
home.
20
8.
“Licensed
child
care
center”
or
“center”
means
a
facility
21
providing
child
care
or
preschool
services
for
seven
or
more
22
children
that
has
been
issued
a
license
by
the
department
23
pursuant
to
section
237A.2.
24
9.
“Program”
means
the
child
care
center
and
child
25
development
home
grant
program.
26
Sec.
___.
NEW
SECTION
.
237D.2
Child
care
center
and
child
27
development
home
grant
fund.
28
1.
A
child
care
center
and
child
development
home
grant
fund
29
is
created
and
established
as
a
separate
and
distinct
fund
in
30
the
state
treasury
under
the
control
of
the
department.
31
2.
a.
The
fund
may
consist
of
any
moneys
appropriated
by
32
the
general
assembly
for
purposes
of
this
chapter
and
any
other
33
moneys
that
are
lawfully
available
to
the
department.
Moneys
34
in
the
fund
are
appropriated
to
the
department
and
shall
be
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used
for
the
purposes
of
this
chapter.
1
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
2
that
remain
unencumbered
or
unobligated
at
the
close
of
the
3
fiscal
year
shall
not
revert
but
shall
remain
available
for
4
expenditure
for
the
purposes
of
this
section
in
succeeding
5
fiscal
years.
Notwithstanding
section
12C.7,
subsection
2,
6
interest
earned
on
moneys
in
the
fund
shall
be
credited
to
the
7
fund.
8
Sec.
___.
NEW
SECTION
.
237D.3
Child
care
center
and
child
9
development
home
grant
program.
10
1.
The
department
shall
adopt
rules
to
establish
and
11
administer
a
child
care
center
and
child
development
home
12
grant
program
to
provide
for
the
allocation
of
money
in
the
13
fund
in
the
form
of
grants,
not
to
exceed
fifty
thousand
14
dollars
per
grant,
to
eligible
persons
for
costs
related
to
15
the
establishment
of
a
new
licensed
child
care
center
or
16
a
new
child
development
home,
or
for
the
expansion
of
an
17
existing
licensed
child
care
center
or
the
expansion
of
an
18
existing
child
development
home.
For
any
one
fiscal
year,
the
19
department
shall
not
approve
more
than
four
million
dollars
20
in
grants.
The
rules
adopted
by
the
department
shall
specify
21
the
eligibility
requirements
for
applicants
of
the
program
and
22
the
items
eligible
for
a
program
grant.
Items
eligible
for
a
23
program
grant
must
include
the
costs
related
to
licensing
or
24
registration,
supplies,
and
infrastructure.
25
2.
A
new
center
or
a
new
home
must
be
licensed
or
registered
26
and
fully
operational
within
two
years
of
the
date
of
an
27
applicant’s
receipt
of
a
grant.
28
3.
Of
the
children
for
whom
a
new
or
expanded
center
or
a
29
new
or
expanded
home
provide
child
care,
a
minimum
of
twenty
30
percent
of
the
children
must
be
from
a
family
that
qualifies
31
for
state
child
care
assistance
pursuant
to
section
237A.13.
32
4.
A
person
that
is
awarded
a
grant
shall
enter
into
an
33
agreement
with
the
department
that
specifies
the
requirements
34
that
must
be
maintained
throughout
the
period
of
the
agreement
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in
order
for
the
person
to
retain
the
grant.
The
agreement
1
must
contain,
at
a
minimum,
provisions
addressing
all
of
the
2
following:
3
a.
The
legal
name
of
the
person
receiving
the
grant.
4
b.
The
amount
of
the
grant.
5
c.
Annual
certification
by
the
person
to
the
department
of
6
compliance
with
the
requirements
of
the
agreement,
the
program,
7
and
this
chapter.
8
d.
The
repayment
of
the
grant,
or
a
portion
of
the
grant,
9
if
the
person
does
not
meet
all
of
the
requirements
of
the
10
agreement,
the
program,
and
this
chapter.
11
e.
If
a
new
center
or
a
new
home
for
which
the
grant
was
12
received
goes
out
of
business
within
two
years
of
the
date
the
13
new
center
or
new
home
becomes
fully
operational
pursuant
to
14
subsection
2,
the
grant
shall
be
subject
to
repayment.
If
an
15
expanded
center
or
an
expanded
home
for
which
the
grant
was
16
received
goes
out
of
business
within
two
years
of
the
date
on
17
which
the
grant
was
received,
the
grant
shall
be
subject
to
18
repayment.
19
DIVISION
IV
20
Sec.
___.
NEW
SECTION
.
237A.31
Small
business
child
care
21
tax
credit.
22
1.
As
used
in
this
section
“small
business”
means
any
23
enterprise
which
is
located
in
this
state,
which
is
operated
24
for
profit
and
under
a
single
management,
and
which
has
either
25
fewer
than
twenty
employees
or
an
annual
gross
income
of
less
26
than
four
million
dollars
computed
as
the
average
of
the
three
27
preceding
fiscal
years.
This
definition
does
not
apply
to
any
28
program
or
activity
for
which
a
definition
for
small
business
29
is
provided
for
the
program
or
activity
by
federal
law
or
30
regulation
or
other
state
law.
31
2.
A
small
business
may
receive
a
child
care
tax
credit
32
for
providing
child
care
employee
benefits
to
employees
of
33
the
business.
The
credit
may
be
applied
against
income
tax
34
imposed
under
chapter
422,
division
II
or
III,
the
franchise
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tax
imposed
under
chapter
422,
division
V,
the
gross
premiums
1
tax
imposed
under
chapter
432,
or
the
moneys
and
credits
tax
2
imposed
in
section
533.329.
The
amount
of
the
credit
equals
3
the
costs
to
provide
the
benefit
up
to
three
thousand
dollars
4
per
employee
per
year.
5
3.
The
aggregate
amount
of
tax
credits
authorized
pursuant
6
to
this
section
shall
not
exceed
a
total
of
two
million
7
dollars
per
fiscal
year,
and
shall
be
awarded
on
a
first-come,
8
first-served
basis.
9
4.
To
be
eligible
for
a
small
business
child
care
tax
10
credit,
the
small
business
must
provide
child
care
employee
11
benefits
to
employees
of
the
business
through
any
of
the
12
following:
13
a.
Build
a
new
structure
or
rehabilitate
an
existing
14
structure
to
be
used
as
a
child
care
center
at
or
near
the
small
15
business
where
the
children
of
the
employees
of
the
business
16
are
provided
child
care.
A
small
business
may
construct
or
17
rehabilitate
the
structure
in
conjunction
with
another
business
18
but
only
the
actual
cost
of
the
business
shall
be
considered
in
19
determining
the
credit.
20
b.
Operate
or
lease
a
child
care
center
at
or
near
the
small
21
business
where
the
children
of
the
employees
of
the
business
22
are
provided
child
care.
23
5.
Any
credit
in
excess
of
the
tax
liability
is
not
24
refundable
but
the
excess
for
the
tax
year
may
be
credited
25
to
the
tax
liability
for
the
following
five
years
or
until
26
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
27
adopt
rules
to
implement
this
section.
28
Sec.
___.
NEW
SECTION
.
422.12P
Small
business
child
care
29
tax
credit.
30
1.
The
taxes
imposed
under
this
division,
less
the
credits
31
allowed
under
section
422.12,
shall
be
reduced
by
a
small
32
business
child
care
tax
credit
received
pursuant
to
section
33
237A.31.
34
2.
An
individual
may
claim
the
tax
credit
allowed
a
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partnership,
S
corporation,
limited
liability
company,
estate,
1
or
trust
electing
to
have
the
income
taxed
directly
to
the
2
individual.
The
amount
claimed
by
the
individual
shall
be
3
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
4
partnership,
S
corporation,
limited
liability
company,
estate,
5
or
trust.
6
Sec.
___.
Section
422.33,
Code
2020,
is
amended
by
adding
7
the
following
new
subsection:
8
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
division
9
shall
be
reduced
by
a
small
business
child
care
tax
credit
10
received
pursuant
to
section
237A.31.
11
Sec.
___.
Section
422.60,
Code
2020,
is
amended
by
adding
12
the
following
new
subsection:
13
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
14
shall
be
reduced
by
a
small
business
child
care
tax
credit
15
received
pursuant
to
section
237A.31.
16
Sec.
___.
NEW
SECTION
.
432.12N
Small
business
child
care
17
tax
credit.
18
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
19
a
small
business
child
care
tax
credit
received
pursuant
to
20
section
237A.31.
21
Sec.
___.
Section
533.329,
subsection
2,
Code
2020,
is
22
amended
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
24
this
section
shall
be
reduced
by
a
small
business
child
care
25
tax
credit
received
pursuant
to
section
237A.31.
26
Sec.
___.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
tax
years
beginning
on
or
after
January
1,
2021.
28
DIVISION
V
29
Sec.
___.
Section
237A.13,
subsection
7,
paragraph
c,
Code
30
2020,
is
amended
to
read
as
follows:
31
c.
Families
with
an
income
of
more
than
one
hundred
32
percent
but
not
more
than
one
two
hundred
forty-five
percent
33
of
the
federal
poverty
level
whose
members,
for
at
least
34
twenty-eight
hours
per
week
in
the
aggregate,
are
employed
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or
are
participating
at
a
satisfactory
level
in
an
approved
1
training
program
or
educational
program.
2
Sec.
___.
DIRECTIVE
TO
DEPARTMENT
OF
HUMAN
SERVICES
——
CHILD
3
CARE
ASSISTANCE.
4
1.
The
department
of
human
services
shall
amend
its
5
administrative
rules
pursuant
to
chapter
17A
to
do
all
of
the
6
following:
7
a.
Provide
income
eligibility
for
state
child
care
8
assistance,
according
to
family
size
for
children
needing
basic
9
care,
to
families
whose
nonexempt
gross
monthly
income
does
not
10
exceed
two
hundred
percent
of
the
federal
poverty
level.
11
b.
Adjust
the
state
child
care
assistance
copayment
12
schedule
in
incrementally
increased
amounts
for
families
whose
13
nonexempt
gross
monthly
income
does
not
exceed
two
hundred
14
percent
of
the
federal
poverty
level.
15
2.
The
rules
adopted
pursuant
to
this
section
shall
take
16
effect
January
1,
2021.
>
17
4.
Title
page,
by
striking
lines
1
through
4
and
inserting
18
<
An
Act
relating
to
child
care,
grants
and
tax
credits
relating
19
to
child
care,
state
child
care
assistance,
and
including
20
applicability
and
retroactive
applicability
provisions.
>
21
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#4.