House Study Bill 543 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON ALONS) A BILL FOR An Act exempting from the individual income tax and the 1 corporate income tax certain payments received in connection 2 with the federal medical foster home program, and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5279YC (2) 85 mm/sc

H.F. _____ Section 1. Section 422.7, Code 2014, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 57. Subtract, to the extent included, 3 payments received from a veteran resident for care provided 4 by a medical foster home caregiver to the veteran resident 5 in connection with the federal medical foster home program 6 governed by 38 C.F.R. §17.73 and 17.74. For purposes of 7 this subsection, “medical foster home caregiver” and “veteran 8 resident” mean the same as defined in 38 C.F.R. §17.73. 9 Sec. 2. Section 422.33, Code 2014, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 23. Subtract, to the extent included, 12 payments received from a veteran resident for care provided 13 by a medical foster home caregiver to the veteran resident 14 in connection with the federal medical foster home program 15 governed by 38 C.F.R. §17.73 and §17.74. For purposes of 16 this subsection, “medical foster home caregiver” and “veteran 17 resident” mean the same as defined in 38 C.F.R. §17.73. 18 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 19 retroactively to January 1, 2014, for tax years beginning on 20 or after that date. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill exempts from the individual and corporate income 25 tax payments received from a veteran resident for care provided 26 by a medical foster home caregiver to the veteran resident 27 in connection with the federal medical foster home program 28 governed by 38 C.F.R. §17.73 and 17.74. 29 The federal medical foster home program is a program 30 administered by the United States department of veterans 31 affairs in which certain disabled veterans are placed in 32 private medical foster homes (homes) to receive lodging and 33 full-time care from medical foster home caregivers (caregiver). 34 In order for a home to qualify under the program it must be 35 -1- LSB 5279YC (2) 85 mm/sc 1/ 2

H.F. _____ occupied by the caregiver, owned or rented by the caregiver, 1 and must meet several safety and other requirements. The home 2 and the caregiver must be approved by the federal department of 3 veterans affairs. Payment for care provided by the caregiver 4 in the home is pursuant to a private agreement between the 5 caregiver and the veteran resident. 6 The bill applies retroactively to January 1, 2014, for tax 7 years beginning on or after that date. 8 -2- LSB 5279YC (2) 85 mm/sc 2/ 2