SSB 1033

This bill creates a new resident tax credit available against the individual income tax. The bill defines “new resident” to mean an individual who is a resident of Iowa working in this state, and who has not been a resident of this state at any time during the previous two tax years prior to establishing residency. The credit authorized in the bill is available to a new resident for the five consecutive tax years following the establishment of residency in this state. A new resident may begin to claim the credit during either the first or second tax year of residency. The amount of the credit is equal to a percent of the income tax imposed, determined as follows: for the first year, percent; for the second year, percent; for the third year, percent; for the fourth year, percent; and for the fifth year, 100 percent. Any credit provided in the bill in excess of tax liability is not refundable but the excess for the tax year may be credited to the tax liability for the following five years or until depleted, whichever is earlier. The bill applies to tax years beginning on or after January 1, 2022.