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.)
Impact
From a legal standpoint, HF264 amends Section 422.7 of the Iowa Code by introducing a new subsection that allows for the exclusion of specific wages from taxable income. This exemption is designed to relieve financial burdens for those who provide essential services to individuals with physical or mental impairments. The legislation underscores Iowa’s commitment to supporting both the workforce that aids disabled individuals and advocating for those in need of special services.
Summary
House File 264, also known as HF264, is a legislative proposal aimed at providing tax relief to individuals who serve disabled individuals. The bill proposes an exemption from the individual income tax for wages earned by those who work for nonprofit organizations that are identified under Iowa's nonprofit corporation Act. Specifically, this bill seeks to benefit individuals employed by tax-exempt organizations, thereby incentivizing work in the service of disabled populations.
Contention
While the bill aims to support a vulnerable demographic, discussions around HF264 may center on its potential implications for the state’s revenue. Critics may argue that tax exemptions can lead to a decrease in state funds, which could affect public services. Supporters, however, highlight the importance of incentivizing work in the service sector for disabled individuals, thereby arguing that the bill's social benefits outweigh any potential budgetary concerns. Additionally, the effective date of January 1, 2024, presents an opportunity for further discussions regarding its implementation and the measurement of its impact over time.
Similar To
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.
IA HF2709
Similar To
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 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 amount of wages received by a taxpayer for providing certain child care services, and including effective date and retroactive applicability provisions.
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 state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions.(Formerly SSB 3038.)