Senate Study Bill 1185 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act exempting from the individual income tax wages of 1 individuals received for providing services to persons with 2 physical or mental impairments, and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2601XC (2) 88 jm/jh

S.F. _____ Section 1. Section 422.7, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 18. a. Subtract the amount of wages 3 received by an individual for providing services to persons 4 domiciled in this state with a physical or mental impairment 5 that substantially limits one or more major life activities. 6 b. For purposes of this subsection, “services” means 7 services performed at an intermediate care facility for persons 8 with an intellectual disability as defined in section 135C.1, 9 or an intermediate care facility for persons with mental 10 illness as defined in section 135C.1. “Services” also includes 11 services performed under a federal home and community-based 12 services waiver. 13 Sec. 2. APPLICABILITY. This Act applies to tax years 14 beginning on or after January 1, 2020. 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 The bill exempts from the individual income tax wages of 19 individuals received for providing services to persons with 20 physical or mental impairments. The bill defines “services” 21 to mean services performed at an intermediate care facility 22 for persons with an intellectual disability as defined in Code 23 section 135C.1, or an intermediate care facility for persons 24 with mental illness as defined in Code section 135C.1. Under 25 the bill, “services” also includes services performed under a 26 federal home and community-based services waiver. 27 The bill takes effect January 1, 2020, and applies to tax 28 years beginning on or after that date. 29 -1- LSB 2601XC (2) 88 jm/jh 1/ 1