HF 958 (LSB 2561YH (3) 91)

HOUSE FILE 958

BY  JONES

A BILL FOR

An Act creating a premarital counseling tax credit available against the individual income tax, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.10C  Premarital counseling tax credit.
   1.  As used in this section, “premarital counseling” means the application of counseling techniques upon prospective spouses in preparation of marriage.
   2.  The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a premarital counseling credit equal to the cost of premarital counseling, not to exceed five hundred dollars.
   3.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate, or trust.
   4.  Any credit in excess of the taxpayer’s tax liability for the tax year is not refundable but the excess for the tax year may be credited to the tax liability for the following tax year.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2025, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a premarital counseling tax credit (credit) available against the individual income tax.
   The bill defines “premarital counseling” to mean the application of counseling techniques upon prospective spouses in preparation of marriage.
   The credit is equal to the cost for premarital counseling, not to exceed $500. Any credit in excess of the taxpayer’s liability is not refundable but may be credited to the tax liability for the following tax year.
   The bill applies retroactively to January 1, 2025, for tax years beginning on or after that date.