House File 2150 - Introduced



                                  HOUSE FILE       
                                  BY  T. OLSON, TOMENGA, MAY, HORBACH,
                                      BAILEY, FOEGE, ZIRKELBACH,
                                      L. MILLER, RAYHONS, HEATON,
                                      GAYMAN, GASKILL, SWAIM, FREVERT,
                                      UPMEYER, ABDUL=SAMAD, QUIRK,
                                      SCHUELLER, PETERSEN, D. OLSON,
                                      and MERTZ


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

                                      A BILL FOR

  1 An Act increasing the amount of the state earned income tax
  2    credit and including a retroactive applicability date
  3    provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5780HH 82
  6 mg/sc/5

PAG LIN



  1  1    Section 1.  Section 422.12B, subsection 1, Code Supplement
  1  2 2007, is amended to read as follows:
  1  3    1.  The taxes imposed under this division less the credits
  1  4 allowed under section 422.12 shall be reduced by an earned
  1  5 income credit equal to seven and one=half percent of the
  1  6 federal earned income credit provided in section 32 of the
  1  7 Internal Revenue Code.  Any credit in excess of the tax
  1  8 liability is refundable.
  1  9    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 10 retroactively to January 1, 2008, for tax years beginning on
  1 11 or after that date.
  1 12                           EXPLANATION
  1 13    This bill increases the state earned income tax credit from
  1 14 7 percent to 7.5 percent of the federal earned income tax
  1 15 credit.
  1 16    The bill applies retroactively to January 1, 2008, for tax
  1 17 years beginning on or after that date.
  1 18 LSB 5780HH 82
  1 19 mg/sc/5