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WAYS
AND MEANS COMMITTEE PROVIDES INCOME TAX RELIEF
On Tuesday, March 15,
the House Ways and Means Committee approved two measures
providing income tax relief for Iowans.
House Study Bill 8
– Child and Dependent Care Tax Credit Expansion
The Iowa Child and
Dependent care tax credit is an individual income tax credit
which is computed as a percentage of the child and dependent
care credit allowed for federal income tax purposes. The
federal credit is $1,000 for each child. Previously, the
federal credit had been $700, but last fall Congress extended
the higher amount until 2010. The Iowa credit is computed so
that those with lower net incomes are allowed higher percentages
of their federal child care credit than taxpayers with higher
net incomes. Percentages of the federal credit allowed for Iowa
purposes by size of net income are:
- Less than
$10,000 – 75%
- $10,000 to
$20,000 – 65%
- $20,000 to
$25,000 – 55%
- $25,000 to
$35,000 – 50%
- $35,000 to
$40,000 – 40%
- $40,000
and above – no credit
HSB 8 allows for Iowa
families earning between $40,000 and $50,000 to receive 30% of
the federal credit on their Iowa income taxes, as well. This
bill has the potential to affect several thousand middle-class
Iowa families.
House Study Bill
207 – Income Tax Deduction for Organ Donation Expenses
HSB 207 allows for an
individual income tax deduction up to $10,000 for un-reimbursed
expenses an organ donor incurs. The expenses include travel
expenses, lodging expenses and lost wages incurred when a
taxpayer donates all or part of their liver, pancreas, kidney,
intestine, lung or bone marrow.
HOUSE PASSES TOUGHEST ANTI-METH LEGISLATION IN THE COUNTRY
(DES MOINES) – The Iowa
House passed the toughest anti-methamphetamine legislation in
the country Wednesday, hoping to curb production in Iowa, which
is the second-biggest meth producer in the United States.
“This poison has plagued
every county in this state and shows no signs of stopping,” said
Rep. Jamie Van Fossen. “The Legislature has stepped in and
passed the toughest law in the country that will curb the
production of this addictive, dangerous drug. It not only harms
the user, but meth harms our environment, families and
way-of-life.”
The
bill, Senate File 169, places restrictions on the purchase and
sale of the most essential meth-making ingredient,
pseudoephedrine, and a popular and widely available
decongestant. The bill classifies most pseudoephedrine products
as a Schedule V controlled substance, which requires it to be
sold in a pharmacy.
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The bill does make
exceptions by allowing a consumer to purchase a small dosage of
products containing up to 360 mg of pseudoephedrine in liquid or
liquid-filled capsules. These will be available in retail outlets
such as grocery and convenience stores. A consumer is allowed to
purchase up to 7,500 mg of pseudoephedrine within a 30-day period,
unless he or she has a prescription for more.
“We have struck a fair
balance that allows law-abiding consumer access to the medication
while putting the clamps on would-be meth cookers,” said Van Fossen.
Persons purchasing more than
7,500 mg of pseudoephedrine products in a 30-day period either from
a pharmacy, retail establishment or combination of the two will face
a serious misdemeanor charge, punishable by up to one year in jail
and a fine of $250 to $1,500.
Retailers also face civil
penalties for knowingly selling more pseudoephedrine than the law
allows, and will be required to establish a logbook of purchasers.
“Nearly everyone in Iowa
knows a family affected by this black plague engulfing our society,”
said Van Fossen. “We in the Legislature have chosen to fight back
and send a clear message to these criminals wishing to harm our
innocent children and pollute our environment. We will continue our
fight for Iowa’s families and our fight against meth makers.”
Ways
& Means Update
Bills introduced in committee this week:
HF 513- A bill for an act relating to
the speed limit for vehicular traffic on highways, the fines for
violations, and making an appropriation, and relating to court costs
for simple misdemeanor offenses and providing a fee.
HSB 282- A study bill
relating to the regulation by the department of agriculture and land
stewardship of the sale of motor vehicle fuel including increasing
the license inspection fee for retail motor vehicle fuel pumps,
prohibiting the sale of gasoline below a certain cost, providing for
penalties, and making appropriations.
HSB 283- A study bill
relating to original jurisdiction over actions seeking declaratory
judgments on constitutional nexus issues for sales or use tax
purposes.
HSB 285- A study bill
relating to entities eligible to claim certain property- related tax
credits.
HSB 286-
A study bill establishing an economic development tax credit
certificate transfer program.
Bills passed out of
committee this week:
HSB 8 -
A study bill expanding the child
and dependent care credit under the individual income tax and
including a retroactive applicability date.
HF 513- A bill for an act relating to the speed limit for
vehicular traffic on highways, the fines for violations, and making
an appropriation, and relating to court costs for simple misdemeanor
offenses and providing a fee.
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Week
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