Bill > HF962

Introduced Session

This bill relates to the Iowa child and dependent care credit available against the individual income tax. The Iowa child and dependent care credit is a refundable credit calculated as a percentage of the federal child and dependent care credit, depending on the Iowa net income of the taxpayer. Currently, there are seven graduated Iowa net income thresholds used to calculate the credit. The bill reduces the number of Iowa net income thresholds from seven thresholds to four thresholds, and removes the maximum Iowa net income threshold amount used by the taxpayer to calculate the Iowa child and dependent care tax credit. By removing the maximum Iowa net income threshold amount for eligibility purposes ($90,000), any taxpayer with Iowa net income equal to or exceeding $25,000 is eligible to use 50 percent of the federal child and dependent care credit as a refundable credit against the Iowa individual income tax, regardless of whether the taxpayer’s federal credit is limited by the taxpayer’s federal tax liability. The bill applies retroactively to tax years beginning on or after January 1, 2025.

AI Summary

Committee Categories

Eddie Andrews (R)*,  Brett Barker (R)*,  Michael Bergan (R)*,  Brooke Boden (R)*,  Jacob Bossman (R)*,  Taylor Collins (R)*,  Jon Dunwell (R)*,  Cindy Golding (R)*,  Pat Grassley (R)*,  Bob Henderson (R)*,  Steven Holt (R)*,  Heather Hora (R)*,  Chad Ingels (R)*,  Craig Johnson (R)*,  Megan Jones (R)*,  Barb Kniff McCulla (R)*,  Josh Meggers (R)*,  Ann Meyer (R)*,  Carter Nordman (R)*,  Matthew Rinker (R)*,  Jennifer Smith (R)*,  Mike Vondran (R)*,  Ryan Weldon (R)*,  Hans Wilz (R)*,  Devon Wood (R)*,  Derek Wulf (R)*,  David Young (R)*, 

Withdrawn. H.J. 1073. (on 04/28/2025)

Official Document