Bill Text: IA SF2257 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act creating a child tax credit available against the individual income tax, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced) 2024-02-15 - Subcommittee: Koelker, Dawson, and Jochum. S.J. 306. [SF2257 Detail]
Download: Iowa-2023-SF2257-Introduced.html
Senate
File
2257
-
Introduced
SENATE
FILE
2257
BY
WEINER
,
CELSI
,
WINCKLER
,
TRONE
GARRIOTT
,
PETERSEN
,
BOULTON
,
DOTZLER
,
and
DONAHUE
A
BILL
FOR
An
Act
creating
a
child
tax
credit
available
against
1
the
individual
income
tax,
and
including
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2257
Section
1.
NEW
SECTION
.
422.12P
Child
tax
credit.
1
1.
As
used
in
this
section,
“child”
means
the
same
as
2
dependent
under
section
21
of
the
Internal
Revenue
Code
who
has
3
not
attained
thirteen
years
of
age.
4
2.
a.
The
taxes
imposed
under
this
subchapter,
less
the
5
amounts
of
nonrefundable
credits
allowed
under
this
subchapter,
6
shall
be
reduced
by
a
child
tax
credit
equal
to
the
following
7
amounts
per
child
in
the
case
of
married
persons
filing
8
jointly:
9
(1)
For
taxable
income
from
zero
through
thirty-five
10
thousand
dollars,
one
thousand
two
hundred
dollars.
11
(2)
For
taxable
income
exceeding
thirty-five
thousand
12
dollars
but
not
exceeding
sixty
thousand
dollars,
six
hundred
13
dollars.
14
(3)
For
taxable
income
exceeding
sixty
thousand
dollars
15
but
not
exceeding
eighty-five
thousand
dollars,
two
hundred
16
dollars.
17
b.
The
taxes
imposed
under
this
subchapter,
less
the
amounts
18
of
nonrefundable
credits
allowed
under
this
subchapter,
shall
19
be
reduced
by
a
child
tax
credit
equal
to
the
following
amounts
20
per
child
in
the
case
of
any
other
taxpayer
other
than
married
21
persons
filing
jointly:
22
(1)
For
taxable
income
from
zero
through
twenty-five
23
thousand
dollars,
one
thousand
two
hundred
dollars.
24
(2)
For
taxable
income
exceeding
twenty-five
thousand
25
dollars
but
not
exceeding
fifty
thousand
dollars,
six
hundred
26
dollars.
27
(3)
For
taxable
income
exceeding
fifty
thousand
dollars
28
but
not
exceeding
seventy-five
thousand
dollars,
two
hundred
29
dollars.
30
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
31
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
32
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
33
credited
to
the
tax
liability
for
the
following
tax
year.
34
4.
Nonresidents
or
part-year
residents
of
Iowa
must
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2257
determine
their
child
tax
credit
under
subsection
2
in
the
1
ratio
of
their
Iowa
source
net
income
to
their
all
source
net
2
income.
3
5.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
4
to
administer
this
section.
5
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
6
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
7
or
after
that
date.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
creates
a
child
tax
credit
available
against
the
12
individual
income
tax.
13
Under
the
bill,
the
child
tax
credit
is
a
refundable
tax
14
credit
available
for
a
taxpayer
based
upon
the
income
of
the
15
taxpayer
and
the
number
of
dependent
children
the
taxpayer
has
16
under
13
years
of
age.
17
The
tax
credit
is
refundable
and
in
lieu
of
claiming
a
18
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
19
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
20
liability
for
the
following
tax
year.
21
The
bill
requires
nonresidents
or
part-year
residents
of
22
this
state
to
determine
their
tax
credit
in
the
ratio
of
their
23
Iowa
source
net
income
to
their
all
source
net
income.
24
The
department
of
revenue
is
required
to
adopt
rules
to
25
administer
the
bill.
26
The
bill
applies
retroactively
to
tax
years
beginning
on
or
27
after
January
1,
2024.
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