HF 661: Relating to child care, including the child and dependent care tax credit, a child care workforce matching grant program, a small business child care tax credit, and state child care assistance, and including applicability provisions

What it does

This bill relates to child care and is separated into divisions. DIVISION I —— CHILD AND DEPENDENT CARE TAX CREDIT. The Iowa child and dependent care tax credit is a refundable credit calculated as a percentage of the federal child and dependent care tax credit, depending on the Iowa net income of the taxpayer. Currently, there are seven graduated Iowa net income thresholds used to calculate the credit. This division strikes the Iowa net income thresholds, and specifies a taxpayer may claim a tax credit to reduce Iowa net income equal to the amount of the child and dependent care credit of the federal child and dependent care credit provided in section of the Internal Revenue Code, without regard to whether or not the federal credit was limited by the taxpayer’s federal tax liability.

Lobbying · 3 for, 0 against

For: AFSCME Council 61; Iowa Integrated Health Planning and Advisory Council; Save the Children Action Network

In plain words

1. February 28, 2025Filed in the House and sent to the Health and Human Services committee