House File 2160 - Introduced



                                   HOUSE FILE       
                                   BY  UPMEYER, PAULSEN, DOLECHECK,
                                       ELGIN, ROBERTS, JENKINS,
                                       TYMESON, CHAMBERS, WILDERDYKE,
                                       HOFFMAN, and HEATON


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the net income limit for eligibility for the
  2    early childhood development tax credit.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5419YH 81
  5 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 422.12C, subsection 2, paragraph a,
  1  2 unnumbered paragraph 1, Code Supplement 2005, is amended to
  1  3 read as follows:
  1  4    In lieu of the child and dependent care credit authorized
  1  5 in subsection 1, a taxpayer may claim an early childhood
  1  6 development tax credit equal to twenty=five percent of the
  1  7 first one thousand dollars which the taxpayer has paid to
  1  8 others for each dependent, as defined in the Internal Revenue
  1  9 Code, ages three through five for early childhood development
  1 10 expenses.  In determining the amount of early childhood
  1 11 development expenses, such expenses paid during November and
  1 12 December of the previous tax year shall be considered paid in
  1 13 the tax year for which the tax credit is claimed.  This credit
  1 14 is available to a taxpayer whose net income is less than
  1 15 forty=five fifty thousand dollars for the 2006 tax year,
  1 16 fifty=five thousand dollars for the 2007 tax year, and sixty
  1 17 thousand dollars for the 2008 and subsequent tax years.  If
  1 18 the early childhood development tax credit is claimed for a
  1 19 tax year, the taxpayer and the taxpayer's spouse shall not
  1 20 claim the child and dependent care credit under subsection 1.
  1 21 As used in this subsection, "early childhood development
  1 22 expenses" means services provided to the dependent by a
  1 23 preschool, as defined in section 237A.1, materials, and other
  1 24 activities as follows:
  1 25                           EXPLANATION
  1 26    Current law limits the early childhood development tax
  1 27 credit to taxpayers whose net incomes are less than $45,000 in
  1 28 the 2006 tax year.  This bill increases this limit to net
  1 29 incomes of less than $50,000 in the 2006 tax year, $55,000 in
  1 30 the 2007 tax year, and $60,000 in the 2008 and subsequent tax
  1 31 years.
  1 32 LSB 5419YH 81
  1 33 mg:nh/sh/8