S.F. 2279 Section 1. NEW SECTION . 135E.1 Maternity group home tax 1 credit. 2 1. As used in this section unless the context otherwise 3 requires: 4 a. “Department” means the department of revenue. 5 b. “Donation” means a voluntary cash or noncash contribution 6 to a maternity group home made by the taxpayer during the tax 7 year. 8 c. “Maternity group home” means the same as defined in 9 section 414.27. 10 2. For tax years beginning on or after January 1, 2026, 11 a tax credit shall be allowed against the taxes imposed in 12 chapter 422, subchapters II, III, and V, and in chapter 432, 13 and against the moneys and credits tax imposed in section 14 533.329, equal to one hundred percent of a person’s donation 15 to a maternity group home. An individual may claim a tax 16 credit under this section of a partnership, limited liability 17 company, S corporation, estate, or trust electing to have 18 income taxed directly to the individual. The amount claimed 19 by the individual shall be based upon the pro rata share of the 20 individual’s earnings from the partnership, limited liability 21 company, S corporation, estate, or trust. 22 3. The amount of the donation for which the tax credit is 23 claimed shall not be deductible in determining taxable income 24 for state income tax purposes. 25 4. Any tax credit in excess of the person’s tax liability 26 shall not be credited to the tax liability for the following 27 tax year. A tax credit shall not be carried back to a tax 28 year prior to the tax year in which the person claims the tax 29 credit, and a tax credit shall not be transferable. 30 5. a. The cumulative value of the amount of tax credits 31 authorized pursuant to this section shall not annually exceed 32 three million five hundred thousand dollars. 33 b. The maximum value of tax credits granted for donations 34 per an organization operating a maternity group home shall not 35 -1- LSB 6709XS (1) 91 jm/jh 1/ 4

S.F. 2279 annually exceed five hundred thousand dollars. 1 6. a. A taxpayer must submit an application to the 2 department in a manner approved by the department for each 3 separate and distinct donation. The application must be 4 approved by the department in order to claim the tax credit. 5 The application must be filed within six months following the 6 tax year the donation was made. 7 b. The department shall accept and approve applications on 8 a first-come, first-served basis until the maximum value amount 9 of tax credits that may be claimed pursuant to subsection 5 is 10 reached. If for a tax year the aggregate amount of tax credits 11 applied for exceeds the maximum amount specified in subsection 12 5, paragraph “a” or “b” , the department shall establish a 13 wait list when applicable. Valid applications filed by the 14 taxpayer within six months following the tax year of the 15 donation but not approved by the department shall be placed 16 on a wait list in the order the applications were received 17 and those applicants shall be given priority for having their 18 applications approved in succeeding years. Placement on a wait 19 list pursuant to this paragraph shall not constitute a promise 20 binding the state. The availability of a tax credit and 21 approval of a tax credit application pursuant to this section 22 in a future year is contingent upon the availability of tax 23 credits in that particular year. 24 7. The department may adopt rules pursuant to chapter 17A to 25 administer this section. 26 Sec. 2. NEW SECTION . 422.10D Maternity group home tax 27 credit. 28 The tax imposed under this subchapter, less the credits 29 allowed under section 422.12, shall be reduced by a maternity 30 group home tax credit authorized pursuant to section 135E.1. 31 Sec. 3. Section 422.33, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 11. The tax imposed under this subchapter 34 shall be reduced by a maternity group home tax credit 35 -2- LSB 6709XS (1) 91 jm/jh 2/ 4

S.F. 2279 authorized pursuant to section 135E.1. 1 Sec. 4. Section 422.60, Code 2026, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 16. The tax imposed under this subchapter 4 shall be reduced by a maternity group home tax credit 5 authorized pursuant to section 135E.1. 6 Sec. 5. NEW SECTION . 432.12P Maternity group home tax 7 credit. 8 The tax imposed under this chapter shall be reduced by a 9 maternity group home tax credit authorized pursuant to section 10 135E.1. 11 Sec. 6. Section 533.329, subsection 2, Code 2026, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . m. The moneys and credits tax imposed under 14 this section shall be reduced by a maternity group home tax 15 credit allowed under section 135E.1. 16 Sec. 7. APPLICABILITY. This Act applies to tax years 17 beginning on or after January 1, 2026. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill creates a maternity group home tax credit 22 available against the individual, corporate, franchise, 23 insurance premium, and moneys and credits taxes. 24 The bill defines “maternity group home” to mean a 25 community-based residential home that provides room and board, 26 personal care, supervision, training, support, and education in 27 a family environment for women who are either pregnant or who 28 have given birth within the preceding 24 months and live with 29 their children, and includes overnight room accommodations and 30 administrative and office space for those persons who provide 31 such services. 32 The amount of the credit shall equal 100 percent of a 33 person’s donation to a maternity group home. 34 The bill specifies that the amount of the donation for which 35 -3- LSB 6709XS (1) 91 jm/jh 3/ 4

S.F. 2279 the tax credit is claimed shall not be deductible for state 1 income tax purposes. 2 A credit provided in the bill in excess of tax liability 3 is not refundable and shall not be credited to a person’s 4 tax liability in future tax years. The tax credit shall not 5 be carried back to a tax year prior to the tax year in which 6 the person makes the donation, and the tax credit is also not 7 transferable. 8 The aggregate amount of tax credits authorized pursuant to 9 the bill shall not annually exceed $3.5 million. 10 The maximum amount of tax credits granted for donations to 11 an organization operating a maternity group home shall not 12 annually exceed $500,000. 13 The bill requires the department of revenue to administer 14 the credit and to approve applications on a first-come, 15 first-served basis until the maximum amount of tax credits 16 authorized for the year has been reached. A taxpayer must 17 submit an application to the department for each separate and 18 distinct donation within six months following the tax year of 19 the donation in such a manner approved by the department. The 20 bill also requires the department to develop a wait list in the 21 order the applications are received if applications for the 22 credit exceed the annual maximum amounts authorized. 23 The department may adopt rules to administer the bill. 24 The bill applies to tax years beginning on or after January 25 1, 2026. 26 -4- LSB 6709XS (1) 91 jm/jh 4/ 4