Read the full stored bill text
House
File
2323
-
Introduced
HOUSE
FILE
2323
BY
BARKER
A
BILL
FOR
An
Act
relating
to
tax
credits
by
creating
the
maternity
group
1
home
and
the
strong
families
tax
credits
available
against
2
the
individual,
corporate,
franchise,
insurance
premium,
3
and
moneys
and
credits
taxes,
and
including
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
MATERNITY
GROUP
HOME
TAX
CREDIT
2
Section
1.
NEW
SECTION
.
135E.1
Maternity
group
home
tax
3
credit.
4
1.
As
used
in
this
section
unless
the
context
otherwise
5
requires:
6
a.
“Department”
means
the
department
of
revenue.
7
b.
“Donation”
means
a
voluntary
cash
or
noncash
contribution
8
to
a
maternity
group
home
made
by
the
taxpayer
during
the
tax
9
year.
10
c.
“Maternity
group
home”
means
the
same
as
defined
in
11
section
414.27.
12
2.
For
tax
years
beginning
on
or
after
January
1,
2026,
13
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
14
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
15
and
against
the
moneys
and
credits
tax
imposed
in
section
16
533.329,
equal
to
one
hundred
percent
of
a
person’s
donation
17
to
a
maternity
group
home.
An
individual
may
claim
a
tax
18
credit
under
this
section
of
a
partnership,
limited
liability
19
company,
S
corporation,
estate,
or
trust
electing
to
have
20
income
taxed
directly
to
the
individual.
The
amount
claimed
21
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
22
individual’s
earnings
from
the
partnership,
limited
liability
23
company,
S
corporation,
estate,
or
trust.
24
3.
The
amount
of
the
donation
for
which
the
tax
credit
is
25
claimed
shall
not
be
deductible
in
determining
taxable
income
26
for
state
income
tax
purposes.
27
4.
Any
credit
in
excess
of
the
tax
liability
is
not
28
refundable
but
the
excess
for
the
tax
year
may
be
credited
29
to
the
tax
liability
for
the
following
five
years
or
until
30
depleted,
whichever
is
earlier.
31
5.
a.
The
cumulative
value
of
the
amount
of
tax
credits
32
authorized
pursuant
to
this
section
shall
not
annually
exceed
33
three
million
five
hundred
thousand
dollars.
34
b.
The
maximum
value
of
tax
credits
granted
for
donations
35
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per
an
organization
operating
a
maternity
group
home
shall
not
1
annually
exceed
five
hundred
thousand
dollars.
2
6.
a.
A
taxpayer
must
submit
an
application
to
the
3
department
in
a
manner
approved
by
the
department
for
each
4
separate
and
distinct
donation.
The
application
must
be
5
approved
by
the
department
in
order
to
claim
the
tax
credit.
6
The
application
must
be
filed
within
six
months
following
the
7
tax
year
the
donation
was
made.
8
b.
The
department
shall
accept
and
approve
applications
on
9
a
first-come,
first-served
basis
until
the
maximum
value
amount
10
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
5
is
11
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
credits
12
applied
for
exceeds
the
maximum
amount
specified
in
subsection
13
5,
paragraph
“a”
or
“b”
,
the
department
shall
establish
a
14
wait
list
when
applicable.
Valid
applications
filed
by
the
15
taxpayer
within
six
months
following
the
tax
year
of
the
16
donation
but
not
approved
by
the
department
shall
be
placed
17
on
a
wait
list
in
the
order
the
applications
were
received
18
and
those
applicants
shall
be
given
priority
for
having
their
19
applications
approved
in
succeeding
years.
Placement
on
a
wait
20
list
pursuant
to
this
paragraph
shall
not
constitute
a
promise
21
binding
the
state.
The
availability
of
a
tax
credit
and
22
approval
of
a
tax
credit
application
pursuant
to
this
section
23
in
a
future
year
is
contingent
upon
the
availability
of
tax
24
credits
in
that
particular
year.
25
7.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
26
to
administer
this
section.
27
Sec.
2.
NEW
SECTION
.
422.10D
Maternity
group
home
tax
28
credit.
29
The
tax
imposed
under
this
subchapter,
less
the
credits
30
allowed
under
section
422.12,
shall
be
reduced
by
a
maternity
31
group
home
tax
credit
authorized
pursuant
to
section
135E.1.
32
Sec.
3.
Section
422.33,
Code
2026,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
11.
The
tax
imposed
under
this
subchapter
35
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shall
be
reduced
by
a
maternity
group
home
tax
credit
1
authorized
pursuant
to
section
135E.1.
2
Sec.
4.
Section
422.60,
Code
2026,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
16.
The
tax
imposed
under
this
subchapter
5
shall
be
reduced
by
a
maternity
group
home
tax
credit
6
authorized
pursuant
to
section
135E.1.
7
Sec.
5.
NEW
SECTION
.
432.12P
Maternity
group
home
tax
8
credit.
9
The
tax
imposed
under
this
chapter
shall
be
reduced
by
a
10
maternity
group
home
tax
credit
authorized
pursuant
to
section
11
135E.1.
12
Sec.
6.
Section
533.329,
subsection
2,
Code
2026,
is
amended
13
by
adding
the
following
new
paragraph:
14
NEW
PARAGRAPH
.
m.
The
moneys
and
credits
tax
imposed
under
15
this
section
shall
be
reduced
by
a
maternity
group
home
tax
16
credit
allowed
under
section
135E.1.
17
Sec.
7.
APPLICABILITY.
This
division
of
this
Act
applies
to
18
tax
years
beginning
on
or
after
January
1,
2027.
19
DIVISION
II
20
STRONG
FAMILIES
TAX
CREDIT
21
Sec.
8.
NEW
SECTION
.
217.41D
Strong
families
tax
credit.
22
1.
As
used
in
this
section:
23
a.
“Department”
means
the
department
of
revenue.
24
b.
“Organization”
means
an
organization
that
is
exempt
25
from
federal
taxation
under
section
501(c)(3)
of
the
Internal
26
Revenue
Code
that
provides
comprehensive
case
management
27
services
for
at-risk
families
or
fatherhood
parenting
services
28
in
this
state.
29
2.
The
taxes
imposed
in
chapter
422,
subchapters
II,
III,
30
and
V,
and
in
chapter
432,
and
against
the
moneys
and
credits
31
tax
imposed
in
section
533.329,
shall
be
reduced
by
a
strong
32
families
tax
credit
equal
to
one
hundred
percent
of
the
amount
33
of
the
voluntary
cash
contribution
made
by
the
taxpayer
during
34
the
tax
year
to
an
organization.
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3.
To
be
eligible
to
claim
this
credit,
all
of
the
following
1
shall
apply:
2
a.
A
deduction
pursuant
to
section
170
of
the
Internal
3
Revenue
Code
for
any
amount
of
the
contribution
is
not
taken
4
for
state
tax
purposes.
5
b.
The
contribution
does
not
designate
that
any
part
of
the
6
contribution
be
used
for
the
direct
benefit
of
the
taxpayer,
7
any
dependent
of
the
taxpayer,
or
any
other
person
designated
8
by
the
taxpayer.
9
c.
The
organization
does
not
receive
more
than
fifty
percent
10
of
annual
revenues
from
governmental
entities.
11
d.
The
organization
allocates
at
least
ninety-five
percent
12
of
annual
revenues
to
provide
comprehensive
case
management
to
13
at-risk
families
or
fatherhood
parenting
services.
14
e.
The
organization
has
provided
comprehensive
case
15
management
services
for
at-risk
families
or
fatherhood
16
parenting
services
in
this
state
for
at
least
three
consecutive
17
years.
18
f.
The
organization
does
not
provide
counseling
for
abortion
19
services.
20
4.
Any
credit
in
excess
of
the
tax
liability
is
not
21
refundable
but
the
excess
for
the
tax
year
may
be
credited
to
22
the
tax
liability
for
the
following
five
tax
years
or
until
23
depleted,
whichever
is
the
earlier.
24
5.
Married
taxpayers
who
file
separate
returns
must
25
determine
the
tax
credit
under
subsection
2
based
upon
their
26
combined
net
income
and
allocate
the
total
credit
amount
to
27
each
spouse
in
the
proportion
that
each
spouse’s
respective
net
28
income
bears
to
the
total
combined
net
income.
Nonresidents
or
29
part-year
residents
of
Iowa
must
determine
their
tax
credit
in
30
the
ratio
of
their
Iowa
source
net
income
to
their
all-source
31
net
income.
Nonresidents
or
part-year
residents
who
are
32
married
and
elect
to
file
separate
returns
must
allocate
the
33
tax
credit
between
the
spouses
in
the
ratio
of
each
spouse’s
34
Iowa
source
net
income
to
the
combined
Iowa
source
net
income
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of
the
taxpayers.
1
6.
An
individual
may
claim
the
tax
credit
allowed
a
2
partnership,
limited
liability
company,
S
corporation,
estate,
3
or
trust
electing
to
have
the
income
taxed
directly
to
the
4
individual.
The
amount
claimed
by
the
individual
shall
be
5
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
6
the
partnership,
limited
liability
company,
S
corporation,
7
estate,
or
trust.
8
7.
a.
In
order
for
the
taxpayer
to
claim
the
strong
9
families
tax
credit,
a
taxpayer
must
submit
an
application
10
to
the
department
detailing
the
contribution
made
to
the
11
organization.
The
application
must
be
approved
by
the
12
department
in
order
to
claim
the
tax
credit.
The
application
13
must
be
filed
with
the
department
by
December
31
of
the
tax
14
year
for
which
the
credit
is
claimed.
15
b.
The
department
shall
accept
and
approve
applications
on
16
a
first-come,
first-served
basis
until
the
maximum
amount
of
17
tax
credits
that
may
be
claimed
pursuant
to
subsection
8
is
18
reached.
If
for
a
tax
year
the
maximum
value
of
tax
credits
19
applied
for
exceeds
the
amount
specified
in
subsection
8,
the
20
department
shall
establish
a
wait
list
for
the
tax
credit.
21
8.
The
cumulative
value
of
tax
credits
approved
by
the
22
department
annually
pursuant
to
this
section
shall
not
exceed
23
five
million
dollars.
The
department
shall
not
approve
24
applications
made
to
any
organization
that
exceed
one
million
25
dollars
in
the
aggregate
in
a
calendar
year.
In
the
event
26
less
than
five
million
dollars
in
credits
in
the
aggregate
27
are
approved
in
a
calendar
year,
the
department
may
approve
28
applications
for
the
tax
credit
that
exceed
one
million
29
dollars
in
the
aggregate
to
any
organization
from
the
remaining
30
unclaimed
credits
for
the
calendar
year
on
a
first-come,
31
first-served
basis.
32
9.
An
organization
shall
initially
register
with
the
33
department.
The
organization’s
registration
shall
include
34
proof
of
section
501(c)(3)
status,
a
list
of
the
services
the
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organization
provides,
and
the
members
of
the
governing
board
1
of
the
organization.
Once
the
organization
has
registered,
the
2
organization
is
not
required
to
subsequently
register
unless
3
the
services
provided
change
or
members
of
the
organization’s
4
governing
board
change.
5
10.
An
organization
that
is
registered
pursuant
to
this
6
section
shall
report
to
the
department,
on
a
form
prescribed
by
7
the
department,
by
January
10
of
each
calendar
year,
the
total
8
number
of
families
receiving
services
in
the
previous
calendar
9
year.
10
11.
By
January
31,
2028,
and
each
January
31
thereafter,
11
the
department
shall
report
to
the
general
assembly
the
name
of
12
each
organization
that
has
registered
under
this
section,
the
13
number
of
families
receiving
services
from
each
organization,
14
and
the
amount
of
tax
credits
approved
from
contributions
made
15
to
each
organization.
16
12.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
17
to
administer
this
section.
18
Sec.
9.
NEW
SECTION
.
422.12R
Strong
families
tax
credit.
19
The
taxes
imposed
under
this
subchapter,
less
the
credits
20
allowed
under
section
422.12,
shall
be
reduced
by
a
strong
21
families
tax
credit
allowed
pursuant
to
section
217.41D.
22
Sec.
10.
Section
422.33,
Code
2026,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
33.
The
taxes
imposed
under
this
subchapter
25
shall
be
reduced
by
a
strong
families
tax
credit
allowed
26
pursuant
to
section
217.41D.
27
Sec.
11.
Section
422.60,
Code
2026,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
30
shall
be
reduced
by
a
strong
families
tax
credit
allowed
31
pursuant
to
section
217.41D.
32
Sec.
12.
NEW
SECTION
.
432.12Q
Strong
families
tax
credit.
33
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
34
strong
families
tax
credit
allowed
pursuant
to
section
217.41D.
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Sec.
13.
Section
533.329,
subsection
2,
Code
2026,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
n.
The
moneys
and
credits
tax
imposed
under
3
this
section
shall
be
reduced
by
a
strong
families
tax
credit
4
as
provided
in
section
217.41D.
5
Sec.
14.
APPLICABILITY.
This
division
of
this
Act
applies
6
to
tax
years
beginning
on
or
after
January
1,
2027.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
creates
maternity
group
home
and
strong
families
11
tax
credits
available
against
the
individual,
corporate,
12
franchise,
insurance
premium,
and
moneys
and
credits
taxes.
13
MATERNITY
HOME
TAX
CREDIT.
The
bill
defines
“maternity
14
group
home”
to
mean
a
community-based
residential
home
that
15
provides
room
and
board,
personal
care,
supervision,
training,
16
support,
and
education
in
a
family
environment
for
women
17
who
are
either
pregnant
or
who
have
given
birth
within
the
18
preceding
24
months
and
live
with
their
children,
and
includes
19
overnight
room
accommodations
and
administrative
and
office
20
space
for
those
persons
who
provide
such
services.
21
The
amount
of
the
credit
shall
equal
100
percent
of
a
22
person’s
donation
to
a
maternity
group
home.
23
The
bill
specifies
that
the
amount
of
the
donation
for
which
24
the
tax
credit
is
claimed
shall
not
be
deductible
for
state
25
income
tax
purposes.
26
Any
credit
in
excess
of
the
tax
liability
is
not
refundable
27
but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
28
liability
for
the
following
five
years
or
until
depleted,
29
whichever
is
earlier.
30
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
31
the
bill
shall
not
annually
exceed
$3.5
million.
32
The
maximum
amount
of
tax
credits
granted
for
donations
to
33
an
organization
operating
a
maternity
group
home
shall
not
34
annually
exceed
$500,000.
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The
bill
requires
the
department
of
revenue
to
administer
1
the
credit
and
to
approve
applications
on
a
first-come,
2
first-served
basis
until
the
maximum
amount
of
tax
credits
3
authorized
for
the
year
has
been
reached.
A
taxpayer
must
4
submit
an
application
to
the
department
for
each
separate
and
5
distinct
donation
within
six
months
following
the
tax
year
of
6
the
donation
in
such
a
manner
approved
by
the
department.
The
7
bill
also
requires
the
department
to
develop
a
wait
list
in
the
8
order
the
applications
are
received
if
applications
for
the
9
credit
exceed
the
annual
maximum
amounts
authorized.
10
The
department
shall
adopt
rules
to
administer
the
tax
11
credit.
12
The
tax
credit
applies
to
tax
years
beginning
on
or
after
13
January
1,
2027.
14
STRONG
FAMILIES
TAX
CREDIT.
The
bill
creates
a
strong
15
families
tax
credit
available
against
the
individual,
16
corporate,
franchise,
insurance
premium,
and
moneys
and
credit
17
taxes.
18
The
strong
families
tax
credit
is
equal
to
100
percent
19
of
the
amount
of
a
voluntary
cash
contribution
made
by
the
20
taxpayer
to
an
organization
that
is
exempt
from
taxation
under
21
section
501(c)(3)
of
the
Internal
Revenue
Code
that
provides
22
comprehensive
case
management
services
for
at-risk
families
or
23
fatherhood
parenting
services
in
this
state.
24
To
be
eligible
to
claim
the
credit,
all
of
the
following
25
must
apply:
(1)
a
deduction
is
not
taken
for
any
amount
of
26
the
contribution
for
state
tax
purposes,
(2)
the
contribution
27
is
not
designated
to
personally
benefit
the
taxpayer,
(3)
28
the
organization
does
not
receive
more
than
50
percent
of
29
revenues
from
governmental
entities,
(4)
95
percent
of
annual
30
revenues
are
allocated
to
providing
core
services,
(5)
the
31
organization
has
provided
services
in
this
state
for
at
least
32
three
consecutive
years,
and
(6)
the
organization
does
not
33
provide
abortion
services.
34
Any
credit
in
excess
of
the
tax
liability
is
not
refundable
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but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
1
liability
for
the
following
five
tax
years
or
until
depleted,
2
whichever
is
the
earlier.
3
In
order
for
the
taxpayer
to
claim
the
strong
families
tax
4
credit,
a
taxpayer
must
submit
an
application
to
the
department
5
of
revenue
(department)
detailing
the
contribution
made
to
6
the
organization.
The
application
must
be
approved
by
the
7
department
in
order
to
claim
the
tax
credit.
The
application
8
must
be
filed
with
the
department
by
December
31
of
the
tax
9
year
for
which
the
credit
is
claimed.
10
The
department
shall
accept
and
approve
applications
on
a
11
first-come,
first-served
basis
until
the
maximum
amount
of
tax
12
credits
that
may
be
claimed
pursuant
to
the
bill
is
reached.
13
If
for
a
tax
year
the
maximum
value
of
tax
credits
applied
14
for
exceeds
the
maximum
amount,
the
department
is
required
to
15
establish
a
wait
list
for
the
tax
credit.
16
The
cumulative
value
of
tax
credits
approved
by
the
17
department
annually
pursuant
to
the
bill
shall
not
exceed
$5
18
million.
The
department
shall
not
approve
applications
made
19
to
any
organization
that
exceed
$1
million
in
the
aggregate
in
20
a
calendar
year,
unless
credits
from
the
$5
million
maximum
21
remain
unclaimed.
22
The
bill
requires
an
organization
to
initially
register
with
23
the
department.
The
organization’s
registration
shall
include
24
proof
of
section
501(c)(3)
status,
a
list
of
the
services
the
25
organization
provides,
and
the
members
of
the
governing
board
26
of
the
organization.
Once
the
organization
has
registered,
it
27
is
not
required
to
subsequently
register
unless
the
services
28
provided
change
or
members
of
the
organization’s
governing
29
board
change.
30
Beginning
January
31,
2028,
and
each
January
31
thereafter,
31
the
department
shall
report
information
about
the
tax
credit
32
to
the
general
assembly
the
name
of
each
organization
that
33
has
registered
with
the
department,
the
number
of
families
34
receiving
services
from
each
organization,
and
the
amount
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of
tax
credits
approved
from
contributions
made
to
each
1
organization.
2
The
department
is
required
to
adopt
rules
to
administer
the
3
tax
credit.
4
The
tax
credit
applies
to
tax
years
beginning
on
or
after
5
January
1,
2027.
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