Bills › 91st General Assembly
Creating a maternity group home tax credit available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes, and including applicability provisions
Sponsored by the Senate Ways and Means Committee, Sen. Kara Warme (R)
Topics:Families & human servicesTaxesTax credits & incentives
Same legislation: SF 2279
Where it is now
- Done: IntroducedFebruary 11, 2026
- Done: SubcommitteeFebruary 16, 2026
- Done: Senate committeeApril 15, 2026
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committeeFunnel: by March 20, 2026
- Next: Passes the House
- 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 People who donate money to maternity group homes can receive a tax credit for the full amount of their gift. These homes provide housing, care, and support for pregnant women or new mothers living with their children. The state will limit the total amount of these tax credits to $3.5 million each year.1
Read the official explanation
This bill creates a maternity group home tax credit available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes. The bill defines “maternity group home” to mean a community-based residential home that provides room and board, personal care, supervision, training, support, and education in a family environment for women who are either pregnant or who have given birth within the preceding months and live with their children, and includes overnight room accommodations and administrative and office space for those persons who provide such services. The amount of the credit shall equal 100 percent of a person’s donation to a maternity group home. The bill specifies that the amount of the donation for which the tax credit is claimed shall not be deductible for state income tax purposes. A credit provided in the bill in excess of tax liability is not refundable and shall not be credited to a person’s tax liability in future tax years. The tax credit shall not be carried back to a tax year prior to the tax year in which the person makes the donation, and the tax credit is also not transferable.5 million. The maximum amount of tax credits granted for donations to an organization operating a maternity group home shall not annually exceed $500,000. The bill requires the department of revenue to administer the credit and to approve applications on a first-come, first-served basis until the maximum amount of tax credits authorized for the year has been reached. A taxpayer must submit an application to the department for each separate and distinct donation within six months following the tax year of the donation in such a manner approved by the department. The bill also requires the department to develop a wait list in the order the applications are received if applications for the credit exceed the annual maximum amounts authorized. The department may adopt rules to administer the bill. The bill applies to tax years beginning on or after January 1, 2026.
Why it matters. Individuals and businesses that donate to maternity group homes can claim a tax credit equal to 100 percent of their donation. The Department of Revenue will administer the credit, which is estimated to decrease State General Fund revenue by $1.1 million in fiscal year 2027, $1.9 million in fiscal year 2028, $2.1 million in fiscal year 2029, $2.3 million in fiscal year 2030, $2.5 million in fiscal year 2031, and $2.6 million in fiscal year 2032.2
1 written public comment to its subcommittee: March 4, 2026 (1) · on the Legislature’s site
Fiscal note
Less revenue: up to $2.6M Compare with other bills
AI summary Senate File 2495 creates a tax credit for people who donate to maternity group homes. This bill is estimated to decrease State General Fund revenue by $1.1 million in fiscal year 2027, $1.9 million in fiscal year 2028, $2.1 million in fiscal year 2029, $2.3 million in fiscal year 2030, $2.5 million in fiscal year 2031, and $2.6 million in fiscal year 2032. It is also expected to decrease the income surtax for schools by $28,000 in fiscal year 2027, $51,000 in fiscal year 2028, $56,000 in fiscal year 2029, $61,000 in fiscal year 2030, $66,000 in fiscal year 2031, and $71,000 in fiscal year 2032.4
Read the fiscal note
Description
Senate File 2495 creates the Maternity Group Home (MGH) Tax Credit equaling 100.0% of a taxpayer’s donation to a maternity group home. The Bill also:
- Specifies that the credit may be claimed against the individual income tax, corporate income tax, insurance premium tax, franchise tax, and the moneys and credits tax.
- Specifies that the tax credit is nonrefundable, nontransferable, and cannot be carried forward for the following tax year.
- Caps the aggregate annual maximum amount of the tax credit at $3.5 million.
- Caps the annual maximum amount of tax credits granted for donations to an organization operating an MGH at $500,000.
- Requires the Iowa Department of Revenue (IDR) to develop a wait list in the order applications for the tax credit are received if applications for the tax credit exceed the annual maximum amounts authorized in the Bill.
- Requires the IDR to adopt administrative rules to administer the MGH Tax Credit. The MGH Tax Credit applies to tax years beginning on or after January 1, 2026.
Background
Iowa Code section 414.27 defines “maternity group home” as a community-based residential home that provides room and board, personal care, supervision, training, support, and education for women who are either pregnant or who have given birth within the preceding 24 months and live with their children, and includes overnight room accommodations and administrative and office space for home providers.
Assumptions
- The Bill would impose administrative costs on the IDR related to form development, technology, staff administration, and the procedures necessary to implement the Bill, which will be absorbed within ordinary business responsibilities and operations, according to the Department, and are not estimated.
- There are five maternity group homes in Iowa, each of which would receive the maximum qualifying donations of $500,000 each tax year beginning with the first year of the tax credit. A sixth maternity group home would qualify for the full tax credit beginning TY 2028, and a seventh maternity group home would qualify for the full tax credit beginning TY 2030.
- Approximately 75.0% of tax credit awards are claimed, with 42.0% of awards claimed in the first fiscal year following the tax year and 33.0% of awards claimed in the second fiscal year following the tax year.
- All MGH Tax Credit claims will be made against the individual income tax.
- The income surtax for schools is a local option tax that is based on a taxpayer’s Iowa income tax liability. Law changes that lower Iowa income tax liability also lower the amount of income surtax owed by any taxpayer subject to the surtax. For this projection, the surtax is assumed to equal 2.7% of State individual income tax liability.
Fiscal Impact
The individual income tax rate changes in SF 2495 are projected to decrease State General Fund revenue by the following amounts:
- FY 2027 = $1.1 million
- FY 2028 = $1.9 million
- FY 2029 = $2.1 million
- FY 2030 = $2.3 million
- FY 2031 = $2.5 million
- FY 2032 = $2.6 million
The Bill is also expected to decrease the income surtax for schools by the following amounts:
- FY 2027 = $28,000
- FY 2028 = $51,000
- FY 2029 = $56,000
- FY 2030 = $61,000
- FY 2031 = $66,000
- FY 2032 = $71,000
Sources
- Iowa Department of Revenue
- Legislative Services Agency analysis
- Maternal Home Tax Credit · April 15, 2026 · $2.6M
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91st General Assembly