House File 483 - Introduced HOUSE FILE 483 BY GASKILL A BILL FOR An Act providing an individual income tax credit for the 1 care of individuals with Alzheimer’s disease or other 2 dementia-related illnesses and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2659HH (3) 87 mm/rj

H.F. 483 Section 1. Section 422.12, subsection 1, Code 2017, is 1 amended by adding the following new paragraphs: 2 NEW PARAGRAPH . 0a. “Activities of daily living” means the 3 same as defined in section 7702B(c)(2)(B) of the Internal 4 Revenue Code. 5 NEW PARAGRAPH . 00a. “Applicable individual ” means an 6 individual who has been diagnosed by a physician as having 7 Alzheimer’s disease or another dementia-related illness and who 8 has been certified by a physician as being unable to perform 9 for at least one hundred eighty consecutive days at least one 10 activity of daily living without substantial assistance from 11 another individual due to a loss of functional capacity. 12 NEW PARAGRAPH . 0c. “Physician” means an individual 13 authorized to practice medicine and surgery or osteopathic 14 medicine and surgery under the laws of any state. 15 Sec. 2. Section 422.12, subsection 2, Code 2017, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . e. (1) A caregiver tax credit equal to five 18 hundred dollars if the taxpayer is an eligible caregiver for 19 the tax year to one or more applicable individuals. 20 (2) (a) An applicable individual shall have only one 21 eligible caregiver for purposes of the credit. 22 (b) A taxpayer shall be treated as an eligible caregiver 23 for any tax year with respect to the taxpayer’s spouse or a 24 dependent who is an applicable individual. 25 (c) (i) If more than one individual could be considered 26 an eligible caregiver with respect to the same applicable 27 individual for a tax year, the applicable individual shall be 28 treated as the eligible caregiver for purposes of receiving 29 the credit if each of the individuals who could be considered 30 an eligible caregiver files a written declaration that the 31 individual will not claim the applicable individual for the 32 credit. The written declaration shall be made in the manner 33 and form prescribed by rule by the department. 34 (ii) If each individual who could be considered an eligible 35 -1- LSB 2659HH (3) 87 mm/rj 1/ 3

H.F. 483 caregiver does not file a written declaration as described in 1 subparagraph subdivision (i), the individual with the highest 2 net income for the tax year shall be treated as the eligible 3 caregiver. 4 (d) If no other individual is an eligible caregiver 5 with respect to an applicable individual for a tax year, 6 the applicable individual shall be treated as the eligible 7 caregiver for purposes of receiving the credit. 8 (3) A credit shall not be allowed under this paragraph “e” 9 for any eligible caregiver whose net income for the tax year is 10 equal to or exceeds one hundred thousand dollars in the case of 11 married persons filing jointly, or fifty thousand dollars in 12 the case of all other persons. 13 Sec. 3. APPLICABILITY. This Act applies to tax years 14 beginning on or after January 1, 2018. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides a nonrefundable caregiver tax credit 19 against the individual income tax equal to $500 for a taxpayer 20 who is an eligible caregiver for the tax year to one or more 21 applicable individuals. “Applicable individual” is defined to 22 mean an individual who has been diagnosed by a physician as 23 having Alzheimer’s disease or another dementia-related illness 24 and who has been certified by a physician as being unable to 25 perform for at least 180 consecutive days at least one activity 26 of daily living without substantial assistance from another 27 individual due to loss of functional capacity. “Activities of 28 daily living” include eating, toileting, transferring, bathing, 29 dressing, and continence. 30 An applicable individual shall only have one eligible 31 caregiver for purposes of the credit. A taxpayer is considered 32 an eligible caregiver for an applicable individual if that 33 applicable individual is the taxpayer’s spouse or dependent. 34 If more than one individual could be considered an eligible 35 -2- LSB 2659HH (3) 87 mm/rj 2/ 3

H.F. 483 caregiver for an applicable individual, the person with 1 the highest net income for the tax year shall be treated as 2 the eligible caregiver unless each person files a written 3 declaration that the person will not claim the applicable 4 individual for the credit. If that occurs, the applicable 5 individual shall be considered the eligible caregiver and may 6 claim the tax credit. Also, if no other individual qualifies 7 as an eligible caregiver for an applicable individual for a 8 tax year, the applicable individual shall be treated as the 9 eligible caregiver. 10 The credit is unavailable for any eligible caregiver whose 11 net income is $100,000 or more for the tax year in the case of 12 married persons filing jointly, or $50,000 or more in the case 13 of all other persons. 14 The bill applies to tax years beginning on or after January 15 1, 2018. 16 -3- LSB 2659HH (3) 87 mm/rj 3/ 3