Bill Text: IA SF382 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing an individual income tax credit related to the care of individuals with Alzheimer’s disease or other dementia-related illnesses and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-08 - Subcommittee reassigned: Feenstra, Carlin, and Dotzler. S.J. 42. [SF382 Detail]
Download: Iowa-2017-SF382-Introduced.html
Senate File 382 - Introduced SENATE FILE BY MATHIS A BILL FOR 1 An Act providing an individual income tax credit related to 2 the care of individuals with Alzheimer's disease or other 3 dementia=related illnesses and including applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2333SS (2) 87 mm/rj PAG LIN 1 1 Section 1. Section 422.12, subsection 1, Code 2017, is 1 2 amended by adding the following new paragraphs: 1 3 NEW PARAGRAPH. 0a. "Activities of daily living" means the 1 4 same as defined in section 7702B(c)(2)(B) of the Internal 1 5 Revenue Code. 1 6 NEW PARAGRAPH. 00a. "Applicable individual" means an 1 7 individual who has been diagnosed by a physician as having 1 8 Alzheimer's disease or another dementia=related illness and who 1 9 has been certified by a physician as being unable to perform 1 10 for at least one hundred eighty consecutive days at least one 1 11 activity of daily living without substantial assistance from 1 12 another individual due to a loss of functional capacity. 1 13 NEW PARAGRAPH. 0c. "Physician" means an individual 1 14 authorized to practice medicine and surgery or osteopathic 1 15 medicine and surgery under the laws of any state. 1 16 Sec. 2. Section 422.12, subsection 2, Code 2017, is amended 1 17 by adding the following new paragraph: 1 18 NEW PARAGRAPH. e. (1) A caregiver tax credit in an amount 1 19 equal to the product of five hundred dollars multiplied by 1 20 the number of applicable individuals with respect to whom the 1 21 taxpayer is an eligible caregiver for the tax year. 1 22 (2) (a) An applicable individual shall have only one 1 23 eligible caregiver for purposes of the credit. 1 24 (b) A taxpayer shall be treated as an eligible caregiver 1 25 for any tax year with respect to the taxpayer's spouse or a 1 26 dependent who is an applicable individual. 1 27 (c) (i) If more than one individual could be considered 1 28 an eligible caregiver with respect to the same applicable 1 29 individual for a tax year, the applicable individual shall be 1 30 treated as the eligible caregiver for purposes of receiving 1 31 the credit if each of the individuals who could be considered 1 32 an eligible caregiver files a written declaration that the 1 33 individual will not claim the applicable individual for the 1 34 credit. The written declaration shall be made in the manner 1 35 and form prescribed by rule by the department. 2 1 (ii) If each individual who could be considered an eligible 2 2 caregiver does not file a written declaration as described in 2 3 subparagraph subdivision (i), the individual with the highest 2 4 net income for the tax year shall be treated as the eligible 2 5 caregiver. 2 6 (d) If no other individual is an eligible caregiver 2 7 with respect to an applicable individual for a tax year, 2 8 the applicable individual shall be treated as the eligible 2 9 caregiver for purposes of receiving the credit. 2 10 (3) A credit shall not be allowed under this paragraph "e" 2 11 for any eligible caregiver whose net income for the tax year is 2 12 equal to or exceeds one hundred thousand dollars in the case of 2 13 married persons filing jointly, or fifty thousand dollars in 2 14 the case of all other persons. 2 15 Sec. 3. APPLICABILITY. This Act applies to tax years 2 16 beginning on or after January 1, 2018. 2 17 EXPLANATION 2 18 The inclusion of this explanation does not constitute agreement with 2 19 the explanation's substance by the members of the general assembly. 2 20 This bill provides a nonrefundable caregiver tax credit 2 21 against the individual income tax equal to $500 for each 2 22 applicable individual for whom a taxpayer is treated as 2 23 being an eligible caregiver for the tax year. "Applicable 2 24 individual" is defined to mean an individual who has been 2 25 diagnosed by a physician as having Alzheimer's disease or 2 26 another dementia=related illness and who has been certified 2 27 by a physician as being unable to perform for at least 180 2 28 consecutive days at least one activity of daily living without 2 29 substantial assistance from another individual due to loss of 2 30 functional capacity. "Activities of daily living" include 2 31 eating, toileting, transferring, bathing, dressing, and 2 32 continence. 2 33 An applicable individual shall only have one eligible 2 34 caregiver for purposes of the credit. A taxpayer is considered 2 35 an eligible caregiver for an applicable individual if that 3 1 applicable individual is the taxpayer's spouse or dependent. 3 2 If more than one individual could be considered an eligible 3 3 caregiver for an applicable individual, the person with 3 4 the highest net income for the tax year shall be treated as 3 5 the eligible caregiver unless each person files a written 3 6 declaration that the person will not claim the applicable 3 7 individual for the credit. If that occurs, the applicable 3 8 individual shall be considered the eligible caregiver and may 3 9 claim the tax credit. Also, if no other individual qualifies 3 10 as an eligible caregiver for an applicable individual for a 3 11 tax year, the applicable individual shall be treated as the 3 12 eligible caregiver. 3 13 The credit is unavailable for any eligible caregiver whose 3 14 net income is $100,000 or more for the tax year in the case of 3 15 married persons filing jointly, or $50,000 or more in the case 3 16 of all other persons. 3 17 The bill applies to tax years beginning on or after January 3 18 1, 2018. LSB 2333SS (2) 87 mm/rj
