House File 2317 S-5025 Amend the amendment, S-5022, to House File 2317, as passed by 1 the House, as follows: 2 1. Page 38, after line 25 by inserting: 3 < Sec. ___. Section 422.12C, subsection 1, Code 2022, is 4 amended by striking the subsection and inserting in lieu 5 thereof the following: 6 1. The taxes imposed under this subchapter, less the amounts 7 of nonrefundable credits allowed under this subchapter, shall 8 be reduced by a child and dependent care credit equal to the 9 following percentages of the federal child and dependent care 10 credit provided in section 21 of the Internal Revenue Code, 11 without regard to whether or not the federal credit was limited 12 by the taxpayer’s federal tax liability: 13 a. For a taxpayer of net income of less than twenty-five 14 thousand dollars, one hundred percent. 15 b. For a taxpayer with net income of twenty-five thousand 16 dollars or more but less than forty thousand dollars, ninety 17 percent. 18 c. For a taxpayer with net income of forty thousand dollars 19 or more but less than sixty thousand dollars, seventy-five 20 percent. 21 d. For a taxpayer with net income of sixty thousand dollars 22 or more but less than ninety thousand dollars, fifty percent. 23 e. For a taxpayer with net income of ninety thousand dollars 24 or more, zero percent. 25 Sec. ___. Section 422.12C, Code 2022, is amended by adding 26 the following new subsection: 27 NEW SUBSECTION . 5. a. Upon determination of the latest 28 cumulative inflation factor, the director shall multiply 29 each net income level set forth in subsection 1 or 2 by this 30 cumulative inflation factor, shall round off the resulting 31 product to the nearest one dollar, and shall incorporate the 32 result into the net income levels in subsection 1 or 2 for each 33 tax year beginning on or after January 1, 2022. 34 b. For purposes of this subsection, “cumulative inflation 35 -1- S 5022.3422 (1) 89 jm/jh 1/ 2 #1.

factor” means the product of the annual inflation factor for 1 the 2023 calendar year and all annual inflation factors for 2 subsequent calendar years as determined by section 422.4, 3 subsection 1, paragraph “a” . The cumulative inflation factor 4 applies to all tax years beginning on or after January 1 of 5 the calendar year for which the latest annual inflation factor 6 has been determined. Notwithstanding any other provision, 7 the annual inflation factor for the 2022 calendar year is one 8 hundred percent. 9 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 10 Act applies retroactively to January 1, 2022, for tax years 11 beginning on or after that date. > 12 2. Page 38, line 33, by striking < date and > and inserting 13 < date, applicability, and retroactive > 14 3. By renumbering as necessary. 15 ______________________________ SARAH TRONE GARRIOTT -2- S 5022.3422 (1) 89 jm/jh 2/ 2 #2. #3.