Bill Text: IA HF2337 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act exempting pay received for providing certain child care services, and creating an additional personal exemption credit against the individual income tax, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-02-12 - Subcommittee: Hagenow, Hein and Jacoby. H.J. 261. [HF2337 Detail]
Download: Iowa-2019-HF2337-Introduced.html
House
File
2337
-
Introduced
HOUSE
FILE
2337
BY
GASSMAN
A
BILL
FOR
An
Act
exempting
pay
received
for
providing
certain
child
care
1
services,
and
creating
an
additional
personal
exemption
2
credit
against
the
individual
income
tax,
and
including
3
effective
date
and
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2337
Section
1.
Section
422.7,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
27A.
a.
Subtract,
to
the
extent
included,
3
the
amount
of
pay
received
by
a
taxpayer
for
child
care
home
4
services.
5
b.
As
used
in
this
section,
“child
care
home”
means
the
same
6
as
defined
in
section
237A.1.
7
Sec.
2.
NEW
SECTION
.
422.10C
Additional
personal
exemption
8
credit
——
child.
9
1.
The
taxes
imposed
under
this
division
less
the
credits
10
allowed
under
this
division,
except
for
the
credits
for
11
withheld
tax
and
estimated
tax
paid
in
section
422.16,
shall
12
be
reduced
by
an
additional
personal
exemption
credit
in
the
13
amount
of
one
thousand
dollars
for
each
dependent.
14
2.
The
additional
personal
exemption
credit
shall
be
15
added
to
any
personal
exemption
claimed
under
section
422.12,
16
subsection
2.
17
3.
The
tax
credit
shall
be
reduced
but
not
below
zero
by
18
the
amount
of
the
child
and
dependent
care
or
early
childhood
19
development
tax
credits
claimed
by
the
taxpayer
pursuant
to
20
section
422.12C.
21
4.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
22
However,
for
nonresidents
or
part-year
residents,
the
amount
of
23
the
credit
in
excess
of
the
tax
liability
that
may
be
refunded
24
shall
be
in
the
ratio
of
their
Iowa
source
net
income
to
their
25
all
source
net
income
under
rules
prescribed
by
the
director.
26
5.
For
purposes
of
this
section,
“dependent”
has
the
same
27
meaning
as
provided
by
the
Internal
Revenue
Code,
except
the
28
dependent
must
be
under
the
age
of
thirteen.
29
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
30
2021.
31
Sec.
4.
APPLICABILITY.
This
Act
applies
to
tax
years
32
beginning
on
or
after
January
1,
2021.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
35
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
exempts
certain
pay
received
for
providing
2
certain
child
care
services,
and
creates
an
additional
personal
3
exemption
credit
against
the
individual
income
tax.
4
The
bill
exempts
from
the
individual
income
tax
pay
received
5
for
providing
child
care
home
services.
The
bill
defines
6
“child
care
home”
to
mean
the
same
as
defined
in
Code
section
7
237A.1.
8
The
bill
provides
that
a
taxpayer
may
claim
an
additional
9
personal
exemption
tax
credit
for
each
dependent
in
addition
10
to
any
personal
exemption
credit
claimed
under
Code
section
11
422.12(2).
12
The
tax
credit
is
equal
to
$1,000
for
each
dependent,
and
is
13
refundable.
14
The
tax
credit
shall
be
reduced
but
not
below
zero
by
the
15
amount
of
the
child
and
dependent
care
or
early
childhood
16
development
tax
credits
claimed
by
the
taxpayer
pursuant
to
17
Code
section
422.12C.
18
For
purposes
of
the
tax
credit,
the
bill
defines
“dependent”
19
to
mean
the
same
as
provided
by
the
Internal
Revenue
Code,
20
except
the
dependent
must
be
under
the
age
of
13.
21
The
bill
takes
effect
January
1,
2021,
and
applies
to
tax
22
years
beginning
on
or
after
that
date.
23
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