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 to six and one=half fifteen 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