House File 141 - IntroducedA Bill ForAn Act 1exempting from the individual income tax the amount of
2wages received by a taxpayer for providing certain child
3care services, and including effective date and retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 422.7, Code 2021, is amended by adding
2the following new subsection:
3   NEW SUBSECTION.  27A.  a.  Subtract, to the extent included,
4the amount of wages received by a taxpayer for child care
5services.
   6b.  As used in this subsection:
   7(1)  “Child care facility” means the same as defined in
8section 237A.1.
   9(2)  “Child care home” means the same as defined in section
10237A.1.
   11(3)  “Child care services” means services provided at a child
12care home or a child care facility.
13   Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate
14importance, takes effect upon enactment.
15   Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
16retroactively to January 1, 2021, for tax years beginning on
17or after that date.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
   21This bill exempts from the individual income tax the amount
22of wages received by a taxpayer for providing certain child
23care services. The bill defines “child care services” to
24mean services provided at a child care home or a child care
25facility. The bill defines “child care home” and “child care
26facility” to mean the same as defined in Code section 237A.1.
   27The bill takes effect upon enactment, and applies
28retroactively to January 1, 2021, for tax years beginning on
29or after that date.
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