Iowa House Bill HF2709

Iowa 2023-2024 Regular Session

• Introduced: 4/18/24

Caption

A bill for an act exempting from the individual income tax a certain amount of wages of caretakers who provide services to disabled individuals and including effective date and applicability provisions.(Formerly HF 264.)

Impact

The enactment of HF2709 will directly impact Iowa's tax law, allowing caretakers to retain more of their earnings as they care for disabled individuals. This shift could also encourage more individuals to take on caretaker roles, potentially alleviating pressures on state-funded programs intended for disabled individuals. By reducing the tax burden on caretakers, the bill seeks to recognize and financially assist those providing essential services to vulnerable populations, which may lead to improved overall care outcomes.

Summary

House File 2709 proposes a significant adjustment to the Iowa income tax framework by exempting a portion of the wages earned by caretakers. Specifically, this bill allows for the exemption of up to $10,000 in wages for caretakers who provide services to individuals with physical or mental impairments that substantially limit major life activities. The intent behind this legislation is to provide financial relief to caretakers, who often play a crucial role in supporting those with disabilities while managing their own economic circumstances.

Contention

While the bill is largely aimed at providing support to caretakers and those they assist, there may be points of contention regarding its fiscal implications for the state treasury. Critics could argue that exempting income for caretakers may lead to a decrease in state revenue, raising concerns about funding for other public services. Additionally, there may be debate around the definitions of 'caretaker' and the cap on exempted wages, potentially creating disparities in who qualifies for these tax breaks and how much support they receive.