Senate File 474 - Introduced
SENATE FILE
BY MATHIS
A BILL FOR
1 An Act providing an individual income tax credit related to
2 the care of individuals with Alzheimer's disease or other
3 dementia=related illnesses and including applicability
4 provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1350XS (7) 86
mm/sc
PAG LIN
1 1 Section 1. Section 422.12, subsection 1, Code 2015, is
1 2 amended by adding the following new paragraphs:
1 3 NEW PARAGRAPH. 0a. "Activities of daily living" means the
1 4 same as defined in section 7702B(c)(2)(B) of the Internal
1 5 Revenue Code.
1 6 NEW PARAGRAPH. 00a. "Applicable individual" means an
1 7 individual who has been diagnosed by a physician as having
1 8 Alzheimer's disease or another dementia=related illness and
1 9 who has been certified by a physician for at least one hundred
1 10 eighty consecutive days as being unable to perform at least one
1 11 activity of daily living without substantial assistance from
1 12 another individual due to a loss of functional capacity.
1 13 NEW PARAGRAPH. 0c. "Physician" means an individual
1 14 authorized to practice medicine and surgery or osteopathic
1 15 medicine and surgery under the laws of any state.
1 16 Sec. 2. Section 422.12, subsection 2, Code 2015, is amended
1 17 by adding the following new paragraph:
1 18 NEW PARAGRAPH. e. (1) A caregiver tax credit in an amount
1 19 equal to the product of five hundred dollars multiplied by
1 20 the number of applicable individuals with respect to whom the
1 21 taxpayer is an eligible caregiver for the tax year.
1 22 (2) (a) An applicable individual shall have only one
1 23 eligible caregiver for purposes of the credit.
1 24 (b) A taxpayer shall be treated as an eligible caregiver
1 25 for any tax year with respect to the taxpayer's spouse or a
1 26 dependent.
1 27 (c) (i) If more than one individual could be considered
1 28 an eligible caregiver with respect to the same applicable
1 29 individual for a tax year, the applicable individual shall be
1 30 treated as the eligible caregiver for purposes of receiving
1 31 the credit if each of the individuals who could be considered
1 32 an eligible caregiver files a written declaration that the
1 33 individual will not claim the applicable individual for the
1 34 credit. The written declaration shall be made in the manner
1 35 and form prescribed by rule by the department.
2 1 (ii) If each individual who could be considered an eligible
2 2 caregiver does not file a written declaration as described in
2 3 subparagraph subdivision (i) of this subparagraph division, the
2 4 individual with the highest net income for the tax year shall
2 5 be treated as the eligible caregiver.
2 6 (d) If no other individual is an eligible caregiver
2 7 with respect to an applicable individual for a tax year,
2 8 the applicable individual shall be treated as the eligible
2 9 caregiver for purposes of receiving the credit.
2 10 (3) A credit shall not be allowed under this section for
2 11 any eligible caregiver whose net income for the tax year is
2 12 equal to or exceeds one hundred thousand dollars in the case of
2 13 married persons filing jointly, or fifty thousand dollars in
2 14 the case of all other persons.
2 15 Sec. 3. APPLICABILITY. This Act applies to tax years
2 16 beginning on or after January 1, 2016.
2 17 EXPLANATION
2 18 The inclusion of this explanation does not constitute agreement with
2 19 the explanation's substance by the members of the general assembly.
2 20 This bill provides a nonrefundable caregiver tax credit
2 21 against the individual income tax equal to $500 for each
2 22 applicable individual for whom a taxpayer is treated as
2 23 being an eligible caregiver for the tax year. "Applicable
2 24 individual" is defined to mean an individual who has been
2 25 diagnosed by a physician as having Alzheimer's disease or
2 26 another dementia=related illness and who has been certified
2 27 by a physician for at least 180 consecutive days as being
2 28 unable to perform at least one activity of daily living
2 29 without substantial assistance from another individual due to
2 30 loss of functional capacity. "Activities of daily living"
2 31 include eating, toileting, transferring, bathing, dressing, and
2 32 continence.
2 33 An applicable individual shall only have one eligible
2 34 caregiver for purposes of the credit. A taxpayer is considered
2 35 an eligible caregiver for an applicable individual if that
3 1 applicable individual is the taxpayer's spouse or dependent.
3 2 If more than one individual could be considered an eligible
3 3 caregiver for an applicable individual, the person with
3 4 the highest net income for the tax year shall be treated as
3 5 the eligible caregiver unless each person files a written
3 6 declaration that the person will not claim the applicable
3 7 individual for the credit. If that occurs, the applicable
3 8 individual shall be considered the eligible caregiver and may
3 9 claim the tax credit. Also, if no other individual qualifies
3 10 as an eligible caregiver for an applicable individual for a
3 11 tax year, the applicable individual shall be treated as the
3 12 eligible caregiver.
3 13 The credit is unavailable for any eligible caregiver whose
3 14 net income is $100,000 or more for the tax year in the case of
3 15 married persons filing jointly, or $50,000 or more in the case
3 16 of all other persons.
3 17 The bill applies to tax years beginning on or after January
3 18 1, 2016.
LSB 1350XS (7) 86
mm/sc