SF 2495

Senate
File
2495
-
Introduced
SENATE
FILE
2495
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2279)
A
BILL
FOR
An
Act
creating
a
maternity
group
home
tax
credit
available
1
against
the
individual,
corporate,
franchise,
insurance
2
premium,
and
moneys
and
credits
taxes,
and
including
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
135E.1
Maternity
group
home
tax
1
credit.
2
1.
As
used
in
this
section
unless
the
context
otherwise
3
requires:
4
a.
“Department”
means
the
department
of
revenue.
5
b.
“Donation”
means
a
voluntary
cash
or
noncash
contribution
6
to
a
maternity
group
home
made
by
the
taxpayer
during
the
tax
7
year.
8
c.
“Maternity
group
home”
means
the
same
as
defined
in
9
section
414.27.
10
2.
For
tax
years
beginning
on
or
after
January
1,
2026,
11
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
12
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
13
and
against
the
moneys
and
credits
tax
imposed
in
section
14
533.329,
equal
to
one
hundred
percent
of
a
person’s
donation
15
to
a
maternity
group
home.
An
individual
may
claim
a
tax
16
credit
under
this
section
of
a
partnership,
limited
liability
17
company,
S
corporation,
estate,
or
trust
electing
to
have
18
income
taxed
directly
to
the
individual.
The
amount
claimed
19
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
20
individual’s
earnings
from
the
partnership,
limited
liability
21
company,
S
corporation,
estate,
or
trust.
22
3.
The
amount
of
the
donation
for
which
the
tax
credit
is
23
claimed
shall
not
be
deductible
in
determining
taxable
income
24
for
state
income
tax
purposes.
25
4.
Any
tax
credit
in
excess
of
the
person’s
tax
liability
26
shall
not
be
credited
to
the
tax
liability
for
the
following
27
tax
year.
A
tax
credit
shall
not
be
carried
back
to
a
tax
28
year
prior
to
the
tax
year
in
which
the
person
claims
the
tax
29
credit,
and
a
tax
credit
shall
not
be
transferable.
30
5.
a.
The
cumulative
value
of
the
amount
of
tax
credits
31
authorized
pursuant
to
this
section
shall
not
annually
exceed
32
three
million
five
hundred
thousand
dollars.
33
b.
The
maximum
value
of
tax
credits
granted
for
donations
34
per
an
organization
operating
a
maternity
group
home
shall
not
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annually
exceed
five
hundred
thousand
dollars.
1
6.
a.
A
taxpayer
must
submit
an
application
to
the
2
department
in
a
manner
approved
by
the
department
for
each
3
separate
and
distinct
donation.
The
application
must
be
4
approved
by
the
department
in
order
to
claim
the
tax
credit.
5
The
application
must
be
filed
within
six
months
following
the
6
tax
year
the
donation
was
made.
7
b.
The
department
shall
accept
and
approve
applications
on
8
a
first-come,
first-served
basis
until
the
maximum
value
amount
9
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
5
is
10
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
credits
11
applied
for
exceeds
the
maximum
amount
specified
in
subsection
12
5,
paragraph
“a”
or
“b”
,
the
department
shall
establish
a
13
wait
list
when
applicable.
Valid
applications
filed
by
the
14
taxpayer
within
six
months
following
the
tax
year
of
the
15
donation
but
not
approved
by
the
department
shall
be
placed
16
on
a
wait
list
in
the
order
the
applications
were
received
17
and
those
applicants
shall
be
given
priority
for
having
their
18
applications
approved
in
succeeding
years.
Placement
on
a
wait
19
list
pursuant
to
this
paragraph
shall
not
constitute
a
promise
20
binding
the
state.
The
availability
of
a
tax
credit
and
21
approval
of
a
tax
credit
application
pursuant
to
this
section
22
in
a
future
year
is
contingent
upon
the
availability
of
tax
23
credits
in
that
particular
year.
24
7.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
25
administer
this
section.
26
Sec.
2.
NEW
SECTION
.
422.10D
Maternity
group
home
tax
27
credit.
28
The
tax
imposed
under
this
subchapter,
less
the
credits
29
allowed
under
section
422.12,
shall
be
reduced
by
a
maternity
30
group
home
tax
credit
authorized
pursuant
to
section
135E.1.
31
Sec.
3.
Section
422.33,
Code
2026,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
11.
The
tax
imposed
under
this
subchapter
34
shall
be
reduced
by
a
maternity
group
home
tax
credit
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authorized
pursuant
to
section
135E.1.
1
Sec.
4.
Section
422.60,
Code
2026,
is
amended
by
adding
the
2
following
new
subsection:
3
NEW
SUBSECTION
.
16.
The
tax
imposed
under
this
subchapter
4
shall
be
reduced
by
a
maternity
group
home
tax
credit
5
authorized
pursuant
to
section
135E.1.
6
Sec.
5.
NEW
SECTION
.
432.12P
Maternity
group
home
tax
7
credit.
8
The
tax
imposed
under
this
chapter
shall
be
reduced
by
a
9
maternity
group
home
tax
credit
authorized
pursuant
to
section
10
135E.1.
11
Sec.
6.
Section
533.329,
subsection
2,
Code
2026,
is
amended
12
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
m.
The
moneys
and
credits
tax
imposed
under
14
this
section
shall
be
reduced
by
a
maternity
group
home
tax
15
credit
allowed
under
section
135E.1.
16
Sec.
7.
APPLICABILITY.
This
Act
applies
to
tax
years
17
beginning
on
or
after
January
1,
2026.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
creates
a
maternity
group
home
tax
credit
22
available
against
the
individual,
corporate,
franchise,
23
insurance
premium,
and
moneys
and
credits
taxes.
24
The
bill
defines
“maternity
group
home”
to
mean
a
25
community-based
residential
home
that
provides
room
and
board,
26
personal
care,
supervision,
training,
support,
and
education
in
27
a
family
environment
for
women
who
are
either
pregnant
or
who
28
have
given
birth
within
the
preceding
24
months
and
live
with
29
their
children,
and
includes
overnight
room
accommodations
and
30
administrative
and
office
space
for
those
persons
who
provide
31
such
services.
32
The
amount
of
the
credit
shall
equal
100
percent
of
a
33
person’s
donation
to
a
maternity
group
home.
34
The
bill
specifies
that
the
amount
of
the
donation
for
which
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the
tax
credit
is
claimed
shall
not
be
deductible
for
state
1
income
tax
purposes.
2
A
credit
provided
in
the
bill
in
excess
of
tax
liability
3
is
not
refundable
and
shall
not
be
credited
to
a
person’s
4
tax
liability
in
future
tax
years.
The
tax
credit
shall
not
5
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
6
the
person
makes
the
donation,
and
the
tax
credit
is
also
not
7
transferable.
8
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
9
the
bill
shall
not
annually
exceed
$3.5
million.
10
The
maximum
amount
of
tax
credits
granted
for
donations
to
11
an
organization
operating
a
maternity
group
home
shall
not
12
annually
exceed
$500,000.
13
The
bill
requires
the
department
of
revenue
to
administer
14
the
credit
and
to
approve
applications
on
a
first-come,
15
first-served
basis
until
the
maximum
amount
of
tax
credits
16
authorized
for
the
year
has
been
reached.
A
taxpayer
must
17
submit
an
application
to
the
department
for
each
separate
and
18
distinct
donation
within
six
months
following
the
tax
year
of
19
the
donation
in
such
a
manner
approved
by
the
department.
The
20
bill
also
requires
the
department
to
develop
a
wait
list
in
the
21
order
the
applications
are
received
if
applications
for
the
22
credit
exceed
the
annual
maximum
amounts
authorized.
23
The
department
may
adopt
rules
to
administer
the
bill.
24
The
bill
applies
to
tax
years
beginning
on
or
after
January
25
1,
2026.
26
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