Bills › 91st General Assembly
Modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions
Sponsored by the House Ways and Means Committee, Rep. Eddie Andrews (R), Rep. Brett Barker (R), Rep. Michael R. Bergan (R), Rep. Brooke Boden (R), Rep. Jacob Bossman (R), Rep. Taylor R. Collins (R), Rep. Cindy Golding (R), Rep. Pat Grassley (R), Rep. Bob Henderson (R), Rep. Steven C. Holt (R), Rep. Heather Hora (R), Rep. Chad Ingels (R), Rep. Craig P. Johnson (R), Rep. Megan Jones (R), Rep. Barb Kniff McCulla (R), Rep. Joshua Meggers (R), Rep. Ann Meyer (R), Rep. Carter F. Nordman (R), Rep. Matthew Rinker (R), Rep. Jennifer J. Smith (R), Rep. Mike Vondran (R), Rep. Ryan Weldon (R), Rep. Hans C. Wilz (R), Rep. Devon Wood (R), Rep. Derek Wulf (R), Rep. David E. Young (R)
Topics:Families & human servicesTaxesIncome taxes
Same legislation: HF 962
Where it is now
- Done: IntroducedMarch 17, 2025
- Done: SubcommitteeApril 8, 2025
- Done: House committeeApril 16, 2025
- Done: Passes the HouseApril 23, 202593–0
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, 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 Iowa is changing how it calculates the tax credit for people who pay for childcare. Instead of using seven different income levels to decide the credit amount, the state will now use only four. This change removes the upper income limit, meaning anyone earning $25,000 or more can qualify for the credit.1
Read the official explanation
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.
Why it matters. Taxpayers who claim the Iowa child and dependent care credit would see changes to how the credit is calculated based on their income. The number of income thresholds used to determine the credit would decrease from seven to four, and the $90,000 income limit for eligibility would be removed. Any taxpayer with an Iowa net income of $25,000 or more would be eligible for the credit for tax years beginning on or after January 1, 2025.2
Senate subcommittee
Named April 28, 2025. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
1 written public comment to its subcommittee: April 9, 2025 (1) · on the Legislature’s site
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91st General Assembly