Bill Text: IA HF2594 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act providing businesses with income, franchise, moneys and credits, and gross premiums tax credits for providing child care benefits to employees of the business, and including applicability date provisions. (Formerly HF 2083.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-03-09 - Fiscal note. [HF2594 Detail]
Download: Iowa-2019-HF2594-Introduced.html
House
File
2594
-
Introduced
HOUSE
FILE
2594
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2083)
A
BILL
FOR
An
Act
providing
businesses
with
income,
franchise,
moneys
and
1
credits,
and
gross
premiums
tax
credits
for
providing
child
2
care
benefits
to
employees
of
the
business,
and
including
3
applicability
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2594
Section
1.
NEW
SECTION
.
237A.31
Employer
child
care
tax
1
credit.
2
1.
A
business
may
receive
an
employer
child
care
tax
credit
3
for
providing
child
care
employee
benefits
to
employees
of
4
the
business.
The
credit
may
be
applied
against
income
tax
5
imposed
under
chapter
422,
division
II
or
III,
the
franchise
6
tax
imposed
under
chapter
422,
division
V,
the
gross
premiums
7
tax
imposed
under
chapter
432,
or
the
moneys
and
credits
tax
8
imposed
in
section
533.329.
The
amount
of
the
credit
equals
9
the
costs
to
provide
the
benefit
up
to
one
hundred
fifty
10
thousand
dollars
per
year.
11
2.
To
be
eligible
for
an
employer
child
care
tax
credit,
the
12
business
must
provide
child
care
employee
benefits
to
employees
13
of
the
business
through
any
of
the
following:
14
a.
Build
a
new
structure
or
rehabilitate
an
existing
15
structure
to
be
used
as
a
child
care
center
where
children
of
16
employees
of
the
taxpayer
are
provided
child
care.
A
business
17
may
construct
or
rehabilitate
the
structure
in
conjunction
with
18
another
business
but
only
the
actual
cost
of
the
business
shall
19
be
considered
in
determining
the
credit.
20
b.
Lease
a
child
care
center
where
the
children
of
the
21
employees
of
the
business
are
provided
child
care.
22
c.
Pay
the
annual
operating
expenses
of
the
child
care
23
center
including
training
for
the
employees
of
the
center.
24
3.
Any
credit
in
excess
of
the
tax
liability
is
not
25
refundable
but
the
excess
for
the
tax
year
may
be
credited
26
to
the
tax
liability
for
the
following
five
years
or
until
27
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
28
adopt
rules
to
implement
this
section.
29
Sec.
2.
NEW
SECTION
.
422.12O
Employer
child
care
tax
30
credit.
31
1.
The
taxes
imposed
under
this
division,
less
the
credits
32
allowed
under
section
422.12,
shall
be
reduced
by
an
employer
33
child
care
tax
credit
received
pursuant
to
section
237A.31.
34
2.
An
individual
may
claim
the
tax
credit
allowed
a
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partnership,
S
corporation,
limited
liability
company,
estate,
1
or
trust
electing
to
have
the
income
taxed
directly
to
the
2
individual.
The
amount
claimed
by
the
individual
shall
be
3
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
4
partnership,
S
corporation,
limited
liability
company,
estate,
5
or
trust.
6
Sec.
3.
Section
422.33,
Code
2020,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
division
9
shall
be
reduced
by
an
employer
child
care
tax
credit
received
10
pursuant
to
section
237A.31.
11
Sec.
4.
Section
422.60,
Code
2020,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
division
14
shall
be
reduced
by
an
employer
child
care
tax
credit
received
15
pursuant
to
section
237A.31.
16
Sec.
5.
NEW
SECTION
.
432.12N
Employer
child
care
tax
17
credit.
18
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
an
19
employer
child
care
tax
credit
received
pursuant
to
section
20
237A.31.
21
Sec.
6.
Section
533.329,
subsection
2,
Code
2020,
is
amended
22
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
24
this
section
shall
be
reduced
by
an
employer
child
care
tax
25
credit
received
pursuant
to
section
237A.31.
26
Sec.
7.
APPLICABILITY.
This
Act
applies
to
tax
years
27
beginning
on
or
after
January
1,
2021.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
provides
businesses
with
income,
franchise,
moneys
32
and
credits,
and
gross
premiums
tax
credits
for
providing
child
33
care
benefits
to
employees
of
the
business.
34
The
child
care
employee
benefits
include
the
following:
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building
or
rehabilitating
an
existing
structure
as
a
child
1
care
center
for
employee
use,
leasing
a
child
care
center,
or
2
paying
the
annual
operating
expenses
of
the
child
care
center
3
including
training
for
the
employees
of
the
center.
4
The
amount
of
the
credit
equals
25
percent
of
the
costs
to
5
provide
the
benefit
up
to
$150,000
per
year.
The
credit
is
6
nonrefundable
but
any
excess
may
be
carried
forward
for
up
to
7
five
tax
years.
8
The
bill
applies
to
tax
years
beginning
on
or
after
January
9
1,
2021.
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