Bills › 89th General Assembly
Creating a parent investment tax credit available against the individual income tax and including retroactive applicability provisions
Topics:K–12 educationFamilies & human servicesTaxesIncome taxesTax credits & incentives
Where it is now
- Done: IntroducedFebruary 2, 2021
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Married people living in Iowa could get a tax credit of $500 if they have a child in school and earn less than $10,000. The credit increases to $1,000 if the parent teaches their child privately or volunteers at their child's school for at least 180 hours. To qualify, the person and their family cannot be receiving certain types of public assistance.1
Read the official explanation
This bill creates a parent investment tax credit available against the individual income tax for a married person who meets certain requirements specified in the bill. First, the person must be an Iowa resident and must have a dependent enrolled in Iowa in a preschool program or in any grade from kindergarten through grade 12, or receiving private instruction in this state in accordance with Code chapter 299A. Second, the person, the person’s spouse, and the person’s dependents (person’s family) cannot be participating in a public assistance program, defined in the bill to mean the family investment, food assistance, and medical assistance programs administered by the department of human services. Third, the person’s earned income for the tax year must not exceed $10,000. “Earned income” and “dependent” are defined in the bill. The parent investment tax credit may only be claimed by one spouse. The credit is equal to $500. However, the credit is equal to $1,000 if the person also provides private instruction to the person’s dependent in this state during the tax year in accordance with Code chapter 299A or, if the dependent is enrolled in school, the person volunteers at least 180 hours with the school during the tax year. The person is required to obtain a written statement from the school verifying the number of hours the person volunteered during the tax year. If a person’s family participated in a public assistance program for part of the year, but the person otherwise meets the requirements for the tax credit, the amount of tax credit is prorated based upon the number of months during the tax year the person’s family was not participating in a public assistance program. The credit is nonrefundable, but any excess tax credit may be carried forward to future tax years until fully depleted. The credit applies retroactively to tax years beginning on or after January 1, 2021.