House File 2375 - Introduced



                                       HOUSE FILE       
                                       BY  REICHERT


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

                                      A BILL FOR

  1 An Act relating to the amount of early childhood development tax
  2    credits allowed during a fiscal year and including a
  3    retroactive applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5244HH 81
  6 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 thousand dollars.  If the early childhood
  1 16 development tax credit is claimed for a tax year, the taxpayer
  1 17 and the taxpayer's spouse shall not claim the child and
  1 18 dependent care credit under subsection 1.  As used in this
  1 19 subsection, "early childhood development expenses" means
  1 20 services provided to the dependent by a preschool, as defined
  1 21 in section 237A.1, materials, and other activities as follows:
  1 22    Sec. 2.  Section 422.12C, subsection 2, paragraph b, Code
  1 23 Supplement 2005, is amended by striking the paragraph.
  1 24    Sec. 3.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 25 retroactively to January 1, 2006, for tax years beginning on
  1 26 or after that date.
  1 27                           EXPLANATION
  1 28    Present law limits the amount of early childhood
  1 29 development tax credits allowed in any tax year to $2.5
  1 30 million.  This bill strikes the provision relating to the
  1 31 dollar amount limitation and other related provisions.
  1 32    The bill applies retroactively to January 1, 2006, for tax
  1 33 years beginning on or after that date.
  1 34 LSB 5244HH 81
  1 35 mg:nh/sh/8