House File 1044 H-1336 Amend House File 1044 as follows: 1 1. Page 19, after line 2 by inserting: 2 < DIVISION ___ 3 LONG-TERM CARE WORKFORCE TAX INCENTIVES 4 Sec. ___. NEW SECTION . 135E.1 Iowa supports direct care 5 professionals relocation tax credit. 6 1. A taxpayer may claim a one-time direct care professional 7 relocation tax credit of three thousand dollars if the taxpayer 8 includes all of the following with the taxpayer’s tax return: 9 a. Evidence that the taxpayer resided in another state prior 10 to residing in Iowa. 11 b. Proof of employment as a direct care professional in Iowa 12 at the time of filing the tax return. 13 c. A written acknowledgment that if the taxpayer does not 14 continue to work at least one thousand five hundred hours 15 per year in Iowa as a direct care professional for three 16 consecutive years after the date the tax return is filed, the 17 taxpayer shall be subject to a pro rata repayment of the tax 18 credit. 19 2. Any credit in excess of the tax liability is refundable. 20 In lieu of claiming a refund, the taxpayer may elect to have 21 the overpayment shown on the taxpayer’s final, completed return 22 credited to the tax liability for the following tax year. 23 3. A person who claims the tax credit under this section 24 shall not be eligible to claim the retention tax credit under 25 section 135E.2 for at least three calendar years following the 26 tax year in which the person claims the tax credit under this 27 section. 28 4. A tax credit certificate issued under this section shall 29 not be transferred to any other person. 30 5. The department of inspections, appeals, and licensing, 31 in consultation with the department of revenue, shall adopt 32 rules pursuant to chapter 17A to administer this section. 33 6. For purposes of this section, “direct care professional” 34 means a person, regardless of job title, who provides 35 -1- HF 1044.2050 (1) 91 sc/ns 1/ 3 #1.

supportive services and care to people who are aging, or 1 experiencing illness or disability, and includes but is 2 not limited to personal and home care aides, nursing aides, 3 orderlies and attendants, and home health aides. 4 Sec. ___. NEW SECTION . 135E.2 Iowa supports direct care 5 professionals retention tax credit. 6 1. A taxpayer may claim a direct care professional retention 7 tax credit of two thousand dollars for the tax year beginning 8 January 1, 2026, if the taxpayer includes all of the following 9 with the taxpayer’s tax return: 10 a. Documentation that the taxpayer worked at least one 11 thousand five hundred hours in the immediately preceding tax 12 year as a direct care professional. 13 b. Proof of employment as a direct care professional in Iowa 14 at the time of filing the tax return. 15 c. A written acknowledgment that if the taxpayer does not 16 continue to work at least one thousand five hundred hours 17 per year in Iowa as a direct care professional for three 18 consecutive years following the first day of the calendar year 19 in which the credit is issued, the taxpayer is subject to a pro 20 rata repayment of the tax credit. 21 2. For the tax year beginning January 1, 2029, a taxpayer 22 may be eligible to claim a direct care professional retention 23 tax credit every three calendar years if the taxpayer 24 provides the documentation, proof, and written acknowledgment 25 required under subsection 1 with the claim, and provides 26 documentation that the taxpayer has complied fully with all of 27 the requirements prescribed under subsection 1 for the most 28 recently claimed prior tax credit under this section. 29 3. Any credit in excess of the tax liability is refundable. 30 In lieu of claiming a refund, the taxpayer may elect to have 31 the overpayment shown on the taxpayer’s final, completed return 32 credited to the tax liability for the following tax year. 33 4. A tax credit certificate issued under this section shall 34 not be transferred to any other person. 35 -2- HF 1044.2050 (1) 91 sc/ns 2/ 3

5. The department of inspections, appeals, and licensing, 1 in consultation with the department of revenue, shall adopt 2 rules pursuant to chapter 17A to administer this section. 3 6. For the purposes of this section, “direct care 4 professional” means a person, regardless of job title, who 5 provides supportive services and care to individuals who are 6 aging, or experiencing illness or disability, and includes but 7 is not limited to personal and home care aides, nursing aides, 8 orderlies and attendants, and home health aides. 9 Sec. ___. NEW SECTION . 422.12Q Iowa supports direct care 10 professionals relocation tax credit. 11 The taxes imposed under this subchapter, less any credits 12 allowed under section 422.12, shall be reduced by an Iowa 13 supports direct care professionals relocation tax credit 14 allowed under section 135E.1. 15 Sec. ___. NEW SECTION . 422.12R Iowa supports direct care 16 professionals retention tax credit. 17 The taxes imposed under this subchapter, less any credits 18 allowed under section 422.12, shall be reduced by an Iowa 19 supports direct care professionals retention tax credit allowed 20 under section 135E.2. 21 Sec. ___. APPLICABILITY. This division of this Act applies 22 to tax years beginning on or after January 1, 2026. > 23 2. Title page, line 12, after < revenue > by inserting < and 24 the creation of tax incentive for long-term care professionals, 25 and including applicability provisions > 26 3. By renumbering as necessary. 27 ______________________________ SRINIVAS of Polk -3- HF 1044.2050 (1) 91 sc/ns 3/ 3 #2. #3.