House File 802 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON WAYS
                                           AND MEANS

                                       (SUCCESSOR TO HSB 8)


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

                                      A BILL FOR

  1 An Act expanding the child and dependent care credit under the
  2    individual income tax and including an applicability date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1509HV 81
  5 mg/pj/5

PAG LIN



  1  1    Section 1.  Section 422.12C, subsection 1, paragraph f,
  1  2 Code 2005, is amended to read as follows:
  1  3    f.  For a taxpayer with net income of forty thousand
  1  4 dollars or more, zero but less than fifty thousand dollars,
  1  5 thirty percent.
  1  6    Sec. 2.  Section 422.12C, subsection 1, Code 2005, is
  1  7 amended by adding the following new paragraph:
  1  8    NEW PARAGRAPH.  g.  For a taxpayer with net income of fifty
  1  9 thousand dollars or more, zero percent.
  1 10    Sec. 3.  APPLICABILITY DATE.  This Act applies to tax years
  1 11 beginning on or after January 1, 2006.
  1 12                           EXPLANATION
  1 13    Under present law, a child and dependent care credit is
  1 14 allowed under the individual income tax.  This credit is a
  1 15 percentage of the federal credit for those with Iowa net
  1 16 incomes of less than $40,000.  This bill expands this credit
  1 17 to those with net incomes of up to $50,000.  The bill provides
  1 18 that those with net incomes between $40,000 and $50,000
  1 19 receive a credit equal to 30 percent of the federal credit.
  1 20 Those with $50,000 or over in net income receive no credit.
  1 21    The bill applies to tax years beginning on or after January
  1 22 1, 2006.
  1 23 LSB 1509HV 81
  1 24 mg:rj/pj/5