A bill for an act exempting from the individual income tax the amount of wages received by a taxpayer for providing certain child care services, and including effective date and retroactive applicability provisions.
Impact
If HF47 is enacted, it will result in a significant shift in how income from child care services is treated under state tax law. The immediate impact will be felt by taxpayers who provide care and may find themselves better positioned to offer more competitive rates for their services. The retroactive applicability of the bill to January 1, 2023, means that those who have been providing child care services since the beginning of the year can benefit from this tax exemption in the current tax cycle. This could encourage more individuals to enter the child care profession, addressing both workforce shortages and the economic demands on families seeking affordable child care.
Summary
House File 47 (HF47) is a legislative proposal designed to exempt specific wages received by taxpayers for providing child care services from the individual income tax. The bill clearly delineates child care services as those provided within a child care home or facility, following definitions set forth in Iowa Code section 237A.1. The intent is to financially support individuals engaged in providing child care, potentially stimulating an increase in available child care services within communities across Iowa. This comes at a time when there is a pressing demand for child care options, and the bill seeks to ease the financial burden on caregivers.
Contention
While the bill is designed with a positive framework for child care providers, there could be points of contention surrounding the fiscal implications of the tax exemption on state revenue. Critics may raise concerns about the potential loss of tax income for the state, questioning whether the exemption will disproportionately benefit certain demographics or create inequities in the distribution of tax relief. The discussions surrounding this bill could focus on the balance between fiscal responsibility and the need to invest in essential services such as child care, which plays a crucial role in supporting working families and promoting economic growth.
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.)
A bill for an act exempting from the individual income tax the wages of individuals who provide services to disabled individuals and including effective date and applicability provisions.
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(Formerly HF 94.)
A bill for an act relating to state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions.(Formerly SSB 3038.)
A bill for an act exempting from the individual income tax the wages of individuals who provide services to disabled individuals and including effective date and applicability provisions.(See HF 2709.)
A bill for an act relating to individual and corporate income taxes, the insurance premium tax, and including the contingent repeal of the individual income tax, and including retroactive applicability and effective date provisions.(Formerly SSB 1126.)
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(See HF 961.)
A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions. (Formerly HF 2504.)
A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 187.)