House File 2709 - Introduced HOUSE FILE 2709 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 264) A BILL FOR An Act exempting from the individual income tax a certain 1 amount of wages of caretakers who provide services to 2 disabled individuals and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1309HV (3) 90 jm/jh

H.F. 2709 Section 1. Section 422.7, Code 2024, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 44. a. As used in this subsection: 3 (1) “Caretaker” means the same as defined in section 235B.2. 4 (2) “Wages” means wages, tips, and other compensation 5 reported on an internal revenue service form W-2 wage and tax 6 statement. 7 b. Subtract the amount of wages, not to exceed ten thousand 8 dollars, received by a caretaker for services provided to 9 individuals domiciled in this state who have a physical or 10 mental impairment that substantially limits one or more major 11 life activities. 12 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 13 2025. 14 Sec. 3. APPLICABILITY. This Act applies to tax years 15 beginning on or after January 1, 2025. 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 exempts from the individual income tax wages, not 20 to exceed $10,000, received by an individual who is a caretaker 21 as defined in Code section 235B.2 for services provided to 22 individuals domiciled in this state who have a physical or 23 mental impairment that substantially limits one or more major 24 life activities. 25 The bill takes effect January 1, 2025, and applies to tax 26 years beginning on or after that date. 27 -1- LSB 1309HV (3) 90 jm/jh 1/ 1