House File 2595 H-8160 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 two hundred fifty dollars for each dependent, and 16 shall not exceed five hundred dollars in the aggregate. 17 2. The additional personal exemption credit shall be 18 added to any personal exemption claimed under section 422.12, 19 subsection 2. 20 3. A taxpayer is only eligible to claim the additional 21 personal exemption credit if the taxpayer has earned income. 22 Married taxpayers who file separate returns or file separately 23 on a combined return form must allocate the personal income 24 credit to a spouse with the earned income in order to be 25 eligible to claim the credit. 26 4. A taxpayer shall be ineligible to claim the additional 27 personal exemption credit if the taxpayer claims either the 28 child and dependent care or early childhood development tax 29 credit under section 422.12C. 30 5. Any credit in excess of the tax liability is refundable. 31 However, for nonresidents or part-year residents, the amount of 32 the credit in excess of the tax liability that may be refunded 33 shall be in the ratio of their Iowa source net income to their 34 all source net income under rules prescribed by the director. 35 -1- HF2595.3773 (1) 88 jm/jh 1/ 2 #1. #2. #3.

6. For purposes of this section, “dependent” has the same 1 meaning as provided by the Internal Revenue Code, except the 2 dependent must be under the age of seven at the end of the tax 3 year. 4 Sec. ___. EFFECTIVE DATE. This division of this Act takes 5 effect January 1, 2021. 6 Sec. ___. APPLICABILITY. This division of this Act applies 7 to tax years beginning on or after January 1, 2021. > 8 4. Title page, by striking lines 1 through 5 and inserting 9 < An Act relating to tax credits and sales and use tax refunds 10 for the construction of child care facilities, adding an 11 additional personal exemption credit against the individual 12 income tax for a child, and including effective date and 13 applicability provisions. > 14 5. By renumbering as necessary. 15 ______________________________ GASSMAN of Winnebago -2- HF2595.3773 (1) 88 jm/jh 2/ 2 #4. #5.