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
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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
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