Bill Text: IA HF370 | 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.(Formerly HF 4.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2021-02-16 - Subcommittee: Dawson, Goodwin, and Petersen. S.J. 359. [HF370 Detail]
Download: Iowa-2021-HF370-Introduced.html
House
File
370
-
Introduced
HOUSE
FILE
370
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
4)
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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370
Section
1.
NEW
SECTION
.
237A.31
Employer
child
care
tax
1
credit.
2
1.
The
taxes
imposed
against
the
income
tax
imposed
under
3
chapter
422,
subchapter
II
or
III,
the
franchise
tax
imposed
4
under
chapter
422,
subchapter
V,
the
gross
premiums
tax
under
5
chapter
432,
or
the
moneys
and
credits
tax
imposed
under
6
section
533.329
shall
be
reduced
by
an
employer
child
care
tax
7
credit
equal
to
the
amount
of
the
federal
employer-provided
8
child
care
tax
credit
provided
in
section
45F
of
the
Internal
9
Revenue
Code
the
taxpayer
was
eligible
for
in
the
same
tax
10
year.
11
2.
Any
credit
in
excess
of
the
tax
liability
is
not
12
refundable
but
the
excess
for
the
tax
year
may
be
credited
13
to
the
tax
liability
for
the
following
five
years
or
until
14
depleted,
whichever
is
earlier.
15
3.
The
director
of
the
department
of
revenue
shall
adopt
16
rules
pursuant
to
chapter
17A
to
administer
this
section.
17
Sec.
2.
NEW
SECTION
.
422.12O
Employer
child
care
tax
18
credit.
19
1.
The
taxes
imposed
under
this
subchapter,
less
the
credits
20
allowed
under
section
422.12,
shall
be
reduced
by
an
employer
21
child
care
tax
credit
allowed
pursuant
to
section
237A.31.
22
2.
An
individual
may
claim
the
tax
credit
allowed
a
23
partnership,
S
corporation,
limited
liability
company,
estate,
24
or
trust
electing
to
have
the
income
taxed
directly
to
the
25
individual.
The
amount
claimed
by
the
individual
shall
be
26
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
27
partnership,
S
corporation,
limited
liability
company,
estate,
28
or
trust.
29
Sec.
3.
Section
422.33,
Code
2021,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
subchapter
32
shall
be
reduced
by
an
employer
child
care
tax
credit
allowed
33
pursuant
to
section
237A.31.
34
Sec.
4.
Section
422.60,
Code
2021,
is
amended
by
adding
the
35
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370
following
new
subsection:
1
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
subchapter
2
shall
be
reduced
by
an
employer
child
care
tax
credit
allowed
3
pursuant
to
section
237A.31.
4
Sec.
5.
NEW
SECTION
.
432.12N
Employer
child
care
tax
5
credit.
6
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
7
an
employer
child
care
tax
credit
allowed
pursuant
to
section
8
237A.31.
9
Sec.
6.
Section
533.329,
subsection
2,
Code
2021,
is
amended
10
by
adding
the
following
new
paragraph:
11
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
12
this
section
shall
be
reduced
by
an
employer
child
care
tax
13
credit
allowed
pursuant
to
section
237A.31.
14
Sec.
7.
APPLICABILITY.
This
Act
applies
to
tax
years
15
beginning
on
or
after
January
1,
2022.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
provides
businesses
with
income,
franchise,
moneys
20
and
credits,
and
gross
premiums
tax
credits
for
providing
child
21
care
benefits
to
employees
of
the
business.
22
The
amount
of
the
credit
equals
the
amount
of
the
federal
23
employer-provided
child
care
tax
credit
provided
in
section
45F
24
of
the
Internal
Revenue
Code
the
taxpayer
was
eligible
for
in
25
the
same
tax
year.
The
federal
employer-provided
child
care
26
tax
credit
is
a
credit
related
in
part
to
the
acquisition,
27
construction,
rehabilitation,
or
expansion
of
property
used
as
28
part
of
a
child
care
facility.
The
amount
of
the
credit
shall
29
not
exceed
$150,000
in
any
tax
year.
30
The
credit
is
nonrefundable
but
any
excess
may
be
carried
31
forward
for
up
to
five
tax
years.
32
The
bill
applies
to
tax
years
beginning
on
or
after
January
33
1,
2022.
34
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