House File 440 - Introduced HOUSE FILE 440 BY ALONS , SHEETS , BACON , HIGHFILL , SHAW , and SCHULTZ A BILL FOR An Act relating to the state individual income tax by modifying 1 the personal exemption credit for dependents to include 2 certain unborn children, increasing the amount of the 3 credit, and including effective date and retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1373YH (3) 85 mm/sc
H.F. 440 Section 1. Section 96.3, subsection 4, Code 2013, is amended 1 to read as follows: 2 4. Determination of benefits. With respect to benefit years 3 beginning on or after July 1, 1983, an eligible individual’s 4 weekly benefit amount for a week of total unemployment shall be 5 an amount equal to the following fractions of the individual’s 6 total wages in insured work paid during that quarter of 7 the individual’s base period in which such total wages were 8 highest; the director shall determine annually a maximum weekly 9 benefit amount equal to the following percentages, to vary with 10 the number of dependents, of the statewide average weekly wage 11 paid to employees in insured work which shall be effective the 12 first day of the first full week in July: 13 If the The weekly Subject to 14 number of benefit amount the following 15 dependents shall equal maximum 16 is: the following percentage of 17 fraction of high the statewide 18 quarter wages: average 19 weekly wage: 20 0 1/23 53% 21 1 1/22 55% 22 2 1/21 57% 23 3 1/20 60% 24 4 or more 1/19 65% 25 The maximum weekly benefit amount, if not a multiple of one 26 dollar, shall be rounded to the lower multiple of one dollar. 27 However, until such time as sixty-five percent of the statewide 28 average weekly wage exceeds one hundred ninety dollars, the 29 maximum weekly benefit amounts shall be determined using the 30 statewide average weekly wage computed on the basis of wages 31 reported for calendar year 1981. As used in this section 32 “dependent” means dependent as defined in section 422.12, 33 subsection 1 , paragraph “a” has the same meaning as provided by 34 the Internal Revenue Code , as if the individual claimant was 35 -1- LSB 1373YH (3) 85 mm/sc 1/ 3
H.F. 440 a taxpayer, except that an individual claimant’s nonworking 1 spouse shall be deemed to be a dependent under this section . 2 “Nonworking spouse” means a spouse who does not earn more than 3 one hundred twenty dollars in gross wages in one week. 4 Sec. 2. Section 422.12, subsection 1, paragraph a, Code 5 2013, is amended to read as follows: 6 a. “Dependent” has the same meaning as provided by the 7 Internal Revenue Code , but also includes a fetus that has, as 8 determined by a physician, completed at least twelve weeks of 9 gestation as of the last day of the tax year and that has been 10 under the care and observation of a physician since at least 11 twelve weeks of gestation . 12 Sec. 3. Section 422.12, subsection 1, Code 2013, is amended 13 by adding the following new paragraphs: 14 NEW PARAGRAPH . 0c. “Fetus” means a human fetus. 15 NEW PARAGRAPH . 00c. “Physician” means a person licensed 16 to practice medicine and surgery, or osteopathic medicine and 17 surgery, under the laws of this state or any other state. 18 Sec. 4. Section 422.12, subsection 2, paragraph a, 19 subparagraph (3), Code 2013, is amended to read as follows: 20 (3) For each dependent, an additional forty eighty dollars. 21 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 22 immediate importance, takes effect upon enactment. 23 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 24 retroactively to January 1, 2013, for tax years beginning on 25 or after that date. 26 EXPLANATION 27 This bill relates to the individual income tax by amending 28 the personal exemption credit for dependents available under 29 Code section 422.12 to include a fetus that meets certain 30 requirements. To qualify as a dependent for purposes of the 31 exemption credit, a fetus must have completed at least 12 32 weeks of gestation as of the last day of the tax year, as 33 determined by a physician, and must have been under the care 34 and observation of a physician since at least 12 weeks of 35 -2- LSB 1373YH (3) 85 mm/sc 2/ 3
H.F. 440 gestation. Both “fetus” and “physician” are defined in the 1 bill. 2 The bill increases the amount of the credit from $40 to $80 3 per dependent. The bill makes a conforming amendment to the 4 definition of “dependent” in Code section 96.3 to prevent a 5 fetus from being included in the definition for purposes of 6 calculating unemployment compensation benefits. 7 The bill takes effect upon enactment and applies 8 retroactively to January 1, 2013, for tax years beginning on 9 or after that date. 10 -3- LSB 1373YH (3) 85 mm/sc 3/ 3