Bill Text: IA SF2104 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the earned income tax credit available against the individual income tax and including retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-17 - Fiscal note. [SF2104 Detail]
Download: Iowa-2021-SF2104-Introduced.html
Senate
File
2104
-
Introduced
SENATE
FILE
2104
BY
JOCHUM
A
BILL
FOR
An
Act
relating
to
the
earned
income
tax
credit
available
1
against
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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2104
Section
1.
Section
422.12B,
subsection
1,
paragraph
a,
Code
1
2022,
is
amended
to
read
as
follows:
2
a.
The
taxes
imposed
under
this
subchapter
less
the
credits
3
allowed
under
section
422.12
shall
be
reduced
by
an
earned
4
income
credit
equal
to
the
following
percentage
of
the
federal
5
earned
income
credit
provided
in
section
32
of
the
Internal
6
Revenue
Code:
7
(1)
For
the
tax
year
beginning
in
the
2013
calendar
year,
8
fourteen
percent.
9
(2)
(1)
For
tax
years
beginning
on
or
after
January
1,
2014,
10
but
before
January
1,
2022,
fifteen
percent.
11
(2)
For
tax
years
beginning
on
or
after
January
1,
2022,
12
twenty
percent
for
a
taxpayer
who
does
not
claim
a
dependent,
13
and
twenty-five
percent
for
a
taxpayer
who
claims
a
dependent.
14
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
15
retroactively
to
January
1,
2022,
for
tax
years
beginning
on
16
or
after
that
date.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
the
earned
income
tax
credit
available
21
against
the
individual
income
tax.
22
Currently,
the
state
earned
income
tax
credit
is
a
23
refundable
tax
credit
equal
to
15
percent
of
the
federal
earned
24
income
tax
credit.
25
The
bill
increases
the
state
earned
income
tax
credit
equal
26
to
the
following
percentage
of
the
federal
earned
income
27
tax
credit:
if
the
taxpayer
does
not
claim
a
dependent,
20
28
percent;
if
the
taxpayer
claims
a
dependent,
25
percent.
29
The
bill
applies
retroactively
to
tax
years
beginning
on
or
30
after
January
1,
2022.
31
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