House File 531 - Introduced HOUSE FILE BY SHOMSHOR and WESSEL=KROESCHELL Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the amount of the earned income tax credit 2 under the individual income tax and including a retroactive 3 applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2788HH 82 6 mg/gg/14 PAG LIN 1 1 Section 1. Section 422.12B, subsection 1, Code 2007, is 1 2 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 tosix and one=halffifteen 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 nonrefundable. 1 9 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 1 10 retroactively to January 1, 2007, 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 6.5 percent to 15 percent of the federal earned income tax 1 15 credit. 1 16 The bill applies retroactively to January 1, 2007, for tax 1 17 years beginning on or after that date. 1 18 LSB 2788HH 82 1 19 mg:rj/gg/14