House File 636 - Introduced



                                       HOUSE FILE       
                                       BY  SANDS


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

                                      A BILL FOR

  1 An Act increasing the eligibility for the state child and
  2    dependent care tax credit and including a retroactive
  3    applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2285YH 83
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PAG LIN



  1  1    Section 1.  Section 422.12C, subsection 1, Code 2009, is
  1  2 amended to read as follows:
  1  3    1.  The taxes imposed under this division, less the amounts
  1  4 of nonrefundable credits allowed under this division, shall be
  1  5 reduced by a child and dependent care credit equal to the
  1  6 following percentages of the federal child and dependent care
  1  7 credit provided in section 21 of the Internal Revenue Code:
  1  8    a.  For a taxpayer with net income of less than ten fifteen
  1  9 thousand dollars, seventy=five percent.
  1 10    b.  For a taxpayer with net income of ten fifteen thousand
  1 11 dollars or more but less than twenty twenty=five thousand
  1 12 dollars, sixty=five percent.
  1 13    c.  For a taxpayer with net income of twenty twenty=five
  1 14 thousand dollars or more but less than twenty=five thirty
  1 15 thousand dollars, fifty=five percent.
  1 16    d.  For a taxpayer with net income of twenty=five thirty
  1 17 thousand dollars or more but less than thirty=five forty
  1 18 thousand dollars, fifty percent.
  1 19    e.  For a taxpayer with net income of thirty=five forty
  1 20 thousand dollars or more but less than forty forty=five
  1 21 thousand dollars, forty percent.
  1 22    f.  For a taxpayer with net income of forty forty=five
  1 23 thousand dollars or more but less than forty=five fifty
  1 24 thousand dollars, thirty percent.
  1 25    g.  For a taxpayer with net income of forty=five fifty
  1 26 thousand dollars or more, zero percent.
  1 27    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 28 retroactively to January 1, 2009, for tax years beginning on
  1 29 or after that date.
  1 30                           EXPLANATION
  1 31    This bill relates to the state child and dependent care tax
  1 32 credit.
  1 33    The amount of the tax credit is calculated as a percentage
  1 34 of the amount of the credit for which a taxpayer is eligible
  1 35 under the federal child and dependent care tax credit.  The
  2  1 percentage amount is determined on a graduated basis according
  2  2 to the taxpayer's income with the amount of the credit
  2  3 decreasing as income increases, eventually phasing out for
  2  4 taxpayers with a net income of $45,000 or more.  The bill
  2  5 increases the amount at which the credit is phased out to
  2  6 $50,000 and adjusts each of the other income thresholds upward
  2  7 by $5,000.
  2  8 LSB 2285YH 83
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