Senate File 459 - Introduced SENATE FILE 459 BY JOCHUM , KNOX , GIDDENS , WEINER , PETERSEN , QUIRMBACH , DONAHUE , DOTZLER , WINCKLER , BOULTON , WAHLS , BISIGNANO , T. TAYLOR , TRONE GARRIOTT , BENNETT , and CELSI A BILL FOR An Act increasing the earned income tax credit available 1 against the Iowa individual income tax, and including 2 retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2396XS (4) 90 jm/jh

S.F. 459 Section 1. Section 422.12B, subsection 1, paragraph a, 1 subparagraph (2), Code 2023, is amended to read as follows: 2 (2) For tax years beginning on or after January 1, 2014, but 3 before January 1, 2023, fifteen percent. 4 Sec. 2. Section 422.12B, subsection 1, paragraph a, Code 5 2023, is amended by adding the following new subparagraph: 6 NEW SUBPARAGRAPH . (3) For tax years beginning on or after 7 January 1, 2023, thirty percent. 8 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2023, for tax years beginning on 10 or after that date. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill increases the earned tax credit available against 15 the Iowa individual income tax. 16 Under current law, a taxpayer is allowed to claim an Iowa 17 earned income tax credit equal to 15 percent of the federal 18 earned income tax credit under section 32 of the Internal 19 Revenue Code. Additionally, the Iowa earned income tax credit 20 is a refundable credit. 21 The bill raises the Iowa earned income tax credit from the 22 current 15 percent of the federal earned income tax credit to 23 30 percent of the federal earned income tax credit. 24 The bill applies retroactively to tax years beginning on or 25 after January 1, 2023. 26 -1- LSB 2396XS (4) 90 jm/jh 1/ 1