House File 680 - Introduced



                                       HOUSE FILE       
                                       BY  LUKAN


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

                                      A BILL FOR

  1 An Act expanding eligibility for the state child and dependent
  2    care tax credit and including a retroactive applicability date
  3    provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1847HH 83
  6 tw/mg:sc/14

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
  1  9 thousand dollars, seventy=five percent.
  1 10    b.  For a taxpayer with net income of ten thousand dollars
  1 11 or more but less than twenty thousand dollars, sixty=five
  1 12 percent.
  1 13    c.  For a taxpayer with net income of twenty thousand
  1 14 dollars or more but less than twenty=five thousand dollars,
  1 15 fifty=five percent.
  1 16    d.  For a taxpayer with net income of twenty=five thousand
  1 17 dollars or more but less than thirty=five thousand dollars,
  1 18 fifty percent.
  1 19    e.  For a taxpayer with net income of thirty=five thousand
  1 20 dollars or more but less than forty thousand dollars, forty
  1 21 percent.
  1 22    f.  For a taxpayer with net income of forty thousand
  1 23 dollars or more but less than forty=five thousand dollars,
  1 24 thirty percent.
  1 25    g.  For a taxpayer with net income of forty=five thousand
  1 26 dollars or more, zero percent.
  1 27    a.  For a taxpayer with net income of less than forty=five
  1 28 thousand dollars, one hundred twenty=five percent.
  1 29    b.  For a taxpayer with net income of more than forty=five
  1 30 thousand dollars but less than sixty thousand dollars, one
  1 31 hundred percent.
  1 32    c.  For a taxpayer with net income of sixty thousand
  1 33 dollars or more, zero percent.
  1 34    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 35 retroactively to January 1, 2009, for tax years beginning on
  2  1 or after that date.
  2  2                           EXPLANATION
  2  3    This bill adjusts the eligibility for the state child and
  2  4 dependent care tax credit.  Currently, taxpayers making more
  2  5 than $45,000 a year are not eligible for the credit, while
  2  6 taxpayers making less than $45,000 are eligible for a
  2  7 gradually increasing percentage of the amount of the federal
  2  8 child and dependent care credit as annual income decreases.
  2  9 The bill increases the income threshold for eligibility to
  2 10 $60,000.  The bill further provides that taxpayers making
  2 11 $45,000 or less are eligible for 125 percent of the federal
  2 12 credit and that taxpayers making between $45,000 and $60,000
  2 13 are eligible for 100 percent of the federal credit.
  2 14    The bill applies retroactively to January 1, 2009, for tax
  2 15 years beginning on or after that date.
  2 16 LSB 1847HH 83
  2 17 tw/mg:sc/14