Senate File 459 - IntroducedA Bill ForAn Act 1increasing the earned income tax credit available
2against the Iowa individual income tax, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12B, subsection 1, paragraph a,
2subparagraph (2), Code 2023, is amended to read as follows:
3(2) For tax years beginning on or after January 1, 2014, but
4before January 1, 2023, fifteen percent.
5 Sec. 2. Section 422.12B, subsection 1, paragraph a, Code
62023, is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (3) For tax years beginning on or after
8January 1, 2023, thirty percent.
9 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
10retroactively to January 1, 2023, for tax years beginning on
11or after that date.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill increases the earned tax credit available against
16the Iowa individual income tax.
17Under current law, a taxpayer is allowed to claim an Iowa
18earned income tax credit equal to 15 percent of the federal
19earned income tax credit under section 32 of the Internal
20Revenue Code. Additionally, the Iowa earned income tax credit
21is a refundable credit.
22The bill raises the Iowa earned income tax credit from the
23current 15 percent of the federal earned income tax credit to
2430 percent of the federal earned income tax credit.
25The bill applies retroactively to tax years beginning on or
26after January 1, 2023.
-1-jm/jh
2against the Iowa individual income tax, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12B, subsection 1, paragraph a,
2subparagraph (2), Code 2023, is amended to read as follows:
3(2) For tax years beginning on or after January 1, 2014, but
4before January 1, 2023, fifteen percent.
5 Sec. 2. Section 422.12B, subsection 1, paragraph a, Code
62023, is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (3) For tax years beginning on or after
8January 1, 2023, thirty percent.
9 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
10retroactively to January 1, 2023, for tax years beginning on
11or after that date.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill increases the earned tax credit available against
16the Iowa individual income tax.
17Under current law, a taxpayer is allowed to claim an Iowa
18earned income tax credit equal to 15 percent of the federal
19earned income tax credit under section 32 of the Internal
20Revenue Code. Additionally, the Iowa earned income tax credit
21is a refundable credit.
22The bill raises the Iowa earned income tax credit from the
23current 15 percent of the federal earned income tax credit to
2430 percent of the federal earned income tax credit.
25The bill applies retroactively to tax years beginning on or
26after January 1, 2023.
-1-jm/jh