HF 2709 (LSB 1309HV (3) 90)

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 amount of wages of caretakers who provide services to disabled individuals and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  44.  a.  As used in this subsection:
   (1)  “Caretaker” means the same as defined in section 235B.2.
   (2)  “Wages” means wages, tips, and other compensation reported on an internal revenue service form W-2 wage and tax statement.
   b.  Subtract the amount of wages, not to exceed ten thousand dollars, received by a caretaker for services provided to individuals domiciled in this state who have a physical or mental impairment that substantially limits one or more major life activities.
    Sec. 2.  EFFECTIVE DATE.  This Act takes effect January 1, 2025.
    Sec. 3.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2025.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill exempts from the individual income tax wages, not to exceed $10,000, received by an individual who is a caretaker as defined in Code section 235B.2 for services provided to individuals domiciled in this state who have a physical or mental impairment that substantially limits one or more major life activities.
   The bill takes effect January 1, 2025, and applies to tax years beginning on or after that date.