S.F. 2104 Section 1. Section 422.12B, subsection 1, paragraph a, Code 1 2022, is amended to read as follows: 2 a. The taxes imposed under this subchapter 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) (1) For tax years beginning on or after January 1, 2014, 10 but before January 1, 2022, fifteen percent. 11 (2) For tax years beginning on or after January 1, 2022, 12 twenty percent for a taxpayer who does not claim a dependent, 13 and twenty-five percent for a taxpayer who claims a dependent. 14 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 15 retroactively to January 1, 2022, for tax years beginning on 16 or after that date. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to the earned income tax credit available 21 against the individual income tax. 22 Currently, the state earned income tax credit is a 23 refundable tax credit equal to 15 percent of the federal earned 24 income tax credit. 25 The bill increases the state earned income tax credit equal 26 to the following percentage of the federal earned income 27 tax credit: if the taxpayer does not claim a dependent, 20 28 percent; if the taxpayer claims a dependent, 25 percent. 29 The bill applies retroactively to tax years beginning on or 30 after January 1, 2022. 31 -1- LSB 5725XS (1) 89 jm/jh 1/ 1