SF 2161 (LSB 5477SV (4) 84)

SENATE FILE 2161

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 3116)

(As Amended and Passed by the Senate 2012-02-14)

A BILL FOR

An Act relating to the amount of the earned income tax credit and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.12B, subsection 1, Code 2011, is amended to read as follows:
   1.
  a.  The taxes imposed under this division less the credits allowed under section 422.12 shall be reduced by an earned income credit equal to seven percent
 
the following percentage of the federal earned income credit provided in section 32 of the Internal Revenue Code:
   (1)  For tax years beginning on or after January 1, 2012, and before December 31, 2012, thirteen percent.
   (2)  For tax years beginning on or after January 1, 2013, and before December 31, 2013, fifteen percent.
   (3)  For tax years beginning on or after January 1, 2014, twenty percent.
   b.  Any credit in excess of the tax liability is refundable.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2012, for tax years beginning on or after that date.