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House File 370 - IntroducedA Bill ForAn Act 1providing businesses with income, franchise, moneys and
2credits, and gross premiums tax credits for providing child
3care benefits to employees of the business, and including
4applicability date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 237A.31 Employer child care tax
2credit.
31. The taxes imposed against the income tax imposed under
4chapter 422, subchapter II or III, the franchise tax imposed
5under chapter 422, subchapter V, the gross premiums tax under
6chapter 432, or the moneys and credits tax imposed under
7section 533.329 shall be reduced by an employer child care tax
8credit equal to the amount of the federal employer-provided
9child care tax credit provided in section 45F of the Internal
10Revenue Code the taxpayer was eligible for in the same tax
11year.
122. Any credit in excess of the tax liability is not
13refundable but the excess for the tax year may be credited
14to the tax liability for the following five years or until
15depleted, whichever is earlier.
163. The director of the department of revenue shall adopt
17rules pursuant to chapter 17A to administer this section.
18 Sec. 2. NEW SECTION. 422.12O Employer child care tax
19credit.
201. The taxes imposed under this subchapter, less the credits
21allowed under section 422.12, shall be reduced by an employer
22child care tax credit allowed pursuant to section 237A.31.
232. An individual may claim the tax credit allowed a
24partnership, S corporation, limited liability company, estate,
25or trust electing to have the income taxed directly to the
26individual. The amount claimed by the individual shall be
27based upon the pro rata share of the individual’s earnings of a
28partnership, S corporation, limited liability company, estate,
29or trust.
30 Sec. 3. Section 422.33, Code 2021, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 31. The taxes imposed under this subchapter
33shall be reduced by an employer child care tax credit allowed
34pursuant to section 237A.31.
35 Sec. 4. Section 422.60, Code 2021, is amended by adding the
-1-1following new subsection:
2 NEW SUBSECTION. 14. The taxes imposed under this subchapter
3shall be reduced by an employer child care tax credit allowed
4pursuant to section 237A.31.
5 Sec. 5. NEW SECTION. 432.12N Employer child care tax
6credit.
7The taxes imposed under this chapter shall be reduced by
8an employer child care tax credit allowed pursuant to section
9237A.31.
10 Sec. 6. Section 533.329, subsection 2, Code 2021, is amended
11by adding the following new paragraph:
12 NEW PARAGRAPH. l. The moneys and credits tax imposed under
13this section shall be reduced by an employer child care tax
14credit allowed pursuant to section 237A.31.
15 Sec. 7. APPLICABILITY. This Act applies to tax years
16beginning on or after January 1, 2022.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill provides businesses with income, franchise, moneys
21and credits, and gross premiums tax credits for providing child
22care benefits to employees of the business.
23The amount of the credit equals the amount of the federal
24employer-provided child care tax credit provided in section 45F
25of the Internal Revenue Code the taxpayer was eligible for in
26the same tax year. The federal employer-provided child care
27tax credit is a credit related in part to the acquisition,
28construction, rehabilitation, or expansion of property used as
29part of a child care facility. The amount of the credit shall
30not exceed $150,000 in any tax year.
31The credit is nonrefundable but any excess may be carried
32forward for up to five tax years.
33The bill applies to tax years beginning on or after January
341, 2022.
-2-jm/jh
2credits, and gross premiums tax credits for providing child
3care benefits to employees of the business, and including
4applicability date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 237A.31 Employer child care tax
2credit.
31. The taxes imposed against the income tax imposed under
4chapter 422, subchapter II or III, the franchise tax imposed
5under chapter 422, subchapter V, the gross premiums tax under
6chapter 432, or the moneys and credits tax imposed under
7section 533.329 shall be reduced by an employer child care tax
8credit equal to the amount of the federal employer-provided
9child care tax credit provided in section 45F of the Internal
10Revenue Code the taxpayer was eligible for in the same tax
11year.
122. Any credit in excess of the tax liability is not
13refundable but the excess for the tax year may be credited
14to the tax liability for the following five years or until
15depleted, whichever is earlier.
163. The director of the department of revenue shall adopt
17rules pursuant to chapter 17A to administer this section.
18 Sec. 2. NEW SECTION. 422.12O Employer child care tax
19credit.
201. The taxes imposed under this subchapter, less the credits
21allowed under section 422.12, shall be reduced by an employer
22child care tax credit allowed pursuant to section 237A.31.
232. An individual may claim the tax credit allowed a
24partnership, S corporation, limited liability company, estate,
25or trust electing to have the income taxed directly to the
26individual. The amount claimed by the individual shall be
27based upon the pro rata share of the individual’s earnings of a
28partnership, S corporation, limited liability company, estate,
29or trust.
30 Sec. 3. Section 422.33, Code 2021, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 31. The taxes imposed under this subchapter
33shall be reduced by an employer child care tax credit allowed
34pursuant to section 237A.31.
35 Sec. 4. Section 422.60, Code 2021, is amended by adding the
-1-1following new subsection:
2 NEW SUBSECTION. 14. The taxes imposed under this subchapter
3shall be reduced by an employer child care tax credit allowed
4pursuant to section 237A.31.
5 Sec. 5. NEW SECTION. 432.12N Employer child care tax
6credit.
7The taxes imposed under this chapter shall be reduced by
8an employer child care tax credit allowed pursuant to section
9237A.31.
10 Sec. 6. Section 533.329, subsection 2, Code 2021, is amended
11by adding the following new paragraph:
12 NEW PARAGRAPH. l. The moneys and credits tax imposed under
13this section shall be reduced by an employer child care tax
14credit allowed pursuant to section 237A.31.
15 Sec. 7. APPLICABILITY. This Act applies to tax years
16beginning on or after January 1, 2022.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill provides businesses with income, franchise, moneys
21and credits, and gross premiums tax credits for providing child
22care benefits to employees of the business.
23The amount of the credit equals the amount of the federal
24employer-provided child care tax credit provided in section 45F
25of the Internal Revenue Code the taxpayer was eligible for in
26the same tax year. The federal employer-provided child care
27tax credit is a credit related in part to the acquisition,
28construction, rehabilitation, or expansion of property used as
29part of a child care facility. The amount of the credit shall
30not exceed $150,000 in any tax year.
31The credit is nonrefundable but any excess may be carried
32forward for up to five tax years.
33The bill applies to tax years beginning on or after January
341, 2022.
-2-jm/jh