SF 2495 (LSB 6709SV (1) 91)

SENATE FILE 2495

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 2279)

A BILL FOR

An Act creating a maternity group home tax credit available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  135E.1  Maternity group home tax credit.
   1.  As used in this section unless the context otherwise requires:
   a.  “Department” means the department of revenue.
   b.  “Donation” means a voluntary cash or noncash contribution to a maternity group home made by the taxpayer during the tax year.
   c.  “Maternity group home” means the same as defined in section 414.27.
   2.  For tax years beginning on or after January 1, 2026, a tax credit shall be allowed against the taxes imposed in chapter 422, subchapters II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, equal to one hundred percent of a person’s donation to a maternity group home. An individual may claim a tax credit under this section of a partnership, limited liability company, S corporation, estate, or trust electing to have 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 from the partnership, limited liability company, S corporation, estate, or trust.
   3.  The amount of the donation for which the tax credit is claimed shall not be deductible in determining taxable income for state income tax purposes.
   4.  Any tax credit in excess of the person’s tax liability shall not be credited to the tax liability for the following tax year. A tax credit shall not be carried back to a tax year prior to the tax year in which the person claims the tax credit, and a tax credit shall not be transferable.
   5.  a.  The cumulative value of the amount of tax credits authorized pursuant to this section shall not annually exceed three million five hundred thousand dollars.
   b.  The maximum value of tax credits granted for donations per an organization operating a maternity group home shall not annually exceed five hundred thousand dollars.
   6.  a.  A taxpayer must submit an application to the department in a manner approved by the department for each separate and distinct donation. The application must be approved by the department in order to claim the tax credit. The application must be filed within six months following the tax year the donation was made.
   b.  The department shall accept and approve applications on a first-come, first-served basis until the maximum value amount of tax credits that may be claimed pursuant to subsection 5 is reached. If for a tax year the aggregate amount of tax credits applied for exceeds the maximum amount specified in subsection 5, paragraph “a” or “b”, the department shall establish a wait list when applicable. Valid applications filed by the taxpayer within six months following the tax year of the donation but not approved by the department shall be placed on a wait list in the order the applications were received and those applicants shall be given priority for having their applications approved in succeeding years. Placement on a wait list pursuant to this paragraph shall not constitute a promise binding the state. The availability of a tax credit and approval of a tax credit application pursuant to this section in a future year is contingent upon the availability of tax credits in that particular year.
   7.  The department may adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  NEW SECTION.  422.10D  Maternity group home tax credit.
   The tax imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a maternity group home tax credit authorized pursuant to section 135E.1.
    Sec. 3.  Section 422.33, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.  The tax imposed under this subchapter shall be reduced by a maternity group home tax credit authorized pursuant to section 135E.1.
    Sec. 4.  Section 422.60, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.  The tax imposed under this subchapter shall be reduced by a maternity group home tax credit authorized pursuant to section 135E.1.
    Sec. 5.  NEW SECTION.  432.12P  Maternity group home tax credit.
   The tax imposed under this chapter shall be reduced by a maternity group home tax credit authorized pursuant to section 135E.1.
    Sec. 6.  Section 533.329, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  m.  The moneys and credits tax imposed under this section shall be reduced by a maternity group home tax credit allowed under section 135E.1.
    Sec. 7.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2026.
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 maternity group home tax credit available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes.
   The bill defines “maternity group home” to mean a community-based residential home that provides room and board, personal care, supervision, training, support, and education in a family environment for women who are either pregnant or who have given birth within the preceding 24 months and live with their children, and includes overnight room accommodations and administrative and office space for those persons who provide such services.
   The amount of the credit shall equal 100 percent of a person’s donation to a maternity group home.
   The bill specifies that the amount of the donation for which the tax credit is claimed shall not be deductible for state income tax purposes.
   A credit provided in the bill in excess of tax liability is not refundable and shall not be credited to a person’s tax liability in future tax years. The tax credit shall not be carried back to a tax year prior to the tax year in which the person makes the donation, and the tax credit is also not transferable.
   The aggregate amount of tax credits authorized pursuant to the bill shall not annually exceed $3.5 million.
   The maximum amount of tax credits granted for donations to an organization operating a maternity group home shall not annually exceed $500,000.
   The bill requires the department of revenue to administer the credit and to approve applications on a first-come, first-served basis until the maximum amount of tax credits authorized for the year has been reached. A taxpayer must submit an application to the department for each separate and distinct donation within six months following the tax year of the donation in such a manner approved by the department. The bill also requires the department to develop a wait list in the order the applications are received if applications for the credit exceed the annual maximum amounts authorized.
   The department may adopt rules to administer the bill.
   The bill applies to tax years beginning on or after January 1, 2026.