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Bill

HF 962

A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.

2025-2026 Regular Session Introduced by Eddie Andrews and 26 co-sponsors

Iowa bill modifies child/dependent care tax credit with retroactive application, unanimously approved but later withdrawn and renumbered as HF 1020.

Withdrawn.
#children #dependentpersons #incometaxes #taxcredits
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WeVote Research Nonpartisan
Bill Summary · HF 962

Legislative bill overview

HF 962 modifies Iowa's child and dependent care credit for individual income tax purposes and includes retroactive applicability provisions, allowing the tax benefit to apply to prior tax years. The bill passed committee with unanimous support before being withdrawn on April 28, 2025, and was subsequently renumbered as HF 1020.

Why is this important

Tax credits for child and dependent care directly affect household finances for working families, potentially reducing tax liability and increasing disposable income. Retroactive applicability could provide refunds or adjusted tax assessments for previous years, creating financial relief or administrative complexity depending on implementation details.

Potential points of contention

  • Fiscal impact unclear: The bill's specific credit amount, eligibility thresholds, and retroactive scope are not detailed, making it difficult to assess cost to the state budget
  • Retroactive taxation complexity: Applying tax changes to prior years creates administrative burden for taxpayers and the Department of Revenue, potentially triggering amended returns and audits
  • Income eligibility concerns: Details about who qualifies (income limits, family structure, care type) remain unexplained, raising questions about equity and fairness across different family situations

Compiled from official sources — confirm details with the bill’s official record.

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