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Senate Study Bill 1185 - IntroducedA Bill ForAn Act 1exempting from the individual income tax wages of
2individuals received for providing services to persons with
3physical or mental impairments, and including applicability
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 18. a. Subtract the amount of wages
4received by an individual for providing services to persons
5domiciled in this state with a physical or mental impairment
6that substantially limits one or more major life activities.
7b. For purposes of this subsection, “services” means
8services performed at an intermediate care facility for persons
9with an intellectual disability as defined in section 135C.1,
10or an intermediate care facility for persons with mental
11illness as defined in section 135C.1. “Services” also includes
12services performed under a federal home and community-based
13services waiver.
14 Sec. 2. APPLICABILITY. This Act applies to tax years
15beginning on or after January 1, 2020.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19The bill exempts from the individual income tax wages of
20individuals received for providing services to persons with
21physical or mental impairments. The bill defines “services”
22to mean services performed at an intermediate care facility
23for persons with an intellectual disability as defined in Code
24section 135C.1, or an intermediate care facility for persons
25with mental illness as defined in Code section 135C.1. Under
26the bill, “services” also includes services performed under a
27federal home and community-based services waiver.
28The bill takes effect January 1, 2020, and applies to tax
29years beginning on or after that date.
-1-jm/jh
2individuals received for providing services to persons with
3physical or mental impairments, and including applicability
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 18. a. Subtract the amount of wages
4received by an individual for providing services to persons
5domiciled in this state with a physical or mental impairment
6that substantially limits one or more major life activities.
7b. For purposes of this subsection, “services” means
8services performed at an intermediate care facility for persons
9with an intellectual disability as defined in section 135C.1,
10or an intermediate care facility for persons with mental
11illness as defined in section 135C.1. “Services” also includes
12services performed under a federal home and community-based
13services waiver.
14 Sec. 2. APPLICABILITY. This Act applies to tax years
15beginning on or after January 1, 2020.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19The bill exempts from the individual income tax wages of
20individuals received for providing services to persons with
21physical or mental impairments. The bill defines “services”
22to mean services performed at an intermediate care facility
23for persons with an intellectual disability as defined in Code
24section 135C.1, or an intermediate care facility for persons
25with mental illness as defined in Code section 135C.1. Under
26the bill, “services” also includes services performed under a
27federal home and community-based services waiver.
28The bill takes effect January 1, 2020, and applies to tax
29years beginning on or after that date.
-1-jm/jh