House File 465 - Introduced HOUSE FILE 465 BY McCONKEY , HUNTER , STAED , OLDSON , BROWN-POWERS , ANDERSON , GASKILL , DAWSON , BEARINGER , STECKMAN , BERRY , OURTH , HANSON , MASCHER , WOLFE , THEDE , and T. TAYLOR A BILL FOR An Act relating to the amount of the earned income credit and 1 including retroactive applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2218YH (3) 86 mm/sc

H.F. 465 Section 1. Section 422.12B, subsection 1, paragraph a, Code 1 2015, is amended to read as follows: 2 a. 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 the following percentage of the federal 5 earned income credit provided in section 32 of the Internal 6 Revenue Code: 7 (1) For the tax year beginning in the 2013 calendar year, 8 fourteen percent. 9 (2) For tax years beginning on or after January 1, 2014, but 10 before January 1, 2015, fifteen percent. 11 (3) For tax years beginning on or after January 1, 2015, 12 sixteen and one-half percent. 13 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 14 retroactively to January 1, 2015, for tax years beginning on 15 or after that date. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill increases the amount of the earned income credit 20 to 16.5 percent from 15 percent of the federal earned income 21 credit provided in section 32 of the Internal Revenue Code. 22 The bill applies retroactively to tax years beginning on or 23 after January 1, 2015. 24 -1- LSB 2218YH (3) 86 mm/sc 1/ 1