Senate File 422 - Introduced SENATE FILE 422 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 88) A BILL FOR An Act relating to the amount of the earned income tax credit 1 and including retroactive applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1123SV (2) 85 mm/sc
S.F. 422 Section 1. Section 422.12B, subsection 1, Code 2013, is 1 amended to read as follows: 2 1. The taxes imposed under this division less the credits 3 allowed under section 422.12 shall be reduced by an earned 4 income credit equal to seven twenty percent of the federal 5 earned income credit provided in section 32 of the Internal 6 Revenue Code. Any credit in excess of the tax liability is 7 refundable. 8 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2013, for tax years beginning on 10 or after that date. 11 EXPLANATION 12 This bill increases the amount of the state earned income 13 tax credit. Currently, the credit is equal to 7 percent of the 14 amount of a taxpayer’s federal earned income tax credit. The 15 bill increases the amount of the credit to 20 percent of the 16 federal credit. 17 The bill applies retroactively to January 1, 2013, for tax 18 years beginning on or after that date. 19 -1- LSB 1123SV (2) 85 mm/sc 1/ 1