Bill Text: IA HF4 | 2021-2022 | 89th 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.(See HF 370.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-02-10 - Withdrawn. H.J. 368. [HF4 Detail]

Download: Iowa-2021-HF4-Introduced.html
House File 4 - Introduced HOUSE FILE 4 BY BOSSMAN 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 TLSB 1169YH (2) 89 jm/jh
H.F. 4 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 the 4 business. The credit may be applied against income tax imposed 5 under chapter 422, subchapter II or III, the franchise tax 6 imposed under chapter 422, subchapter 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 subchapter, 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 35 -1- LSB 1169YH (2) 89 jm/jh 1/ 3
H.F. 4 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 2021, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 31. The taxes imposed under this subchapter 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 2021, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 14. The taxes imposed under this subchapter 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 2021, 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, 2022. 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: 35 -2- LSB 1169YH (2) 89 jm/jh 2/ 3
H.F. 4 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, 2022. 10 -3- LSB 1169YH (2) 89 jm/jh 3/ 3
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