An act creating a premarital counseling tax credit available against the individual income tax, and including retroactive applicability provisions, the official text

House File 958 - Introduced HOUSE FILE 958 BY JONES A BILL FOR An Act creating a premarital counseling tax credit available 1 against the individual income tax, and including retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2561YH (3) 91 jm/jh H.F. 958 Section 1. NEW SECTION . 422.10C Premarital counseling tax 1 credit. 2 1. As used in this section, “premarital counseling” means 3 the application of counseling techniques upon prospective 4 spouses in preparation of marriage. 5 2. The taxes imposed under this subchapter, less the credits 6 allowed under section 422.12, shall be reduced by a premarital 7 counseling credit equal to the cost of premarital counseling, 8 not to exceed five hundred dollars. 9 3. An individual may claim the tax credit allowed a 10 partnership, limited liability company, S corporation, estate, 11 or trust electing to have the income taxed directly to the 12 individual. The amount claimed by the individual shall be 13 based upon the pro rata share of the individual’s earnings of 14 the partnership, limited liability company, S corporation, 15 estate, or trust. 16 4. Any credit in excess of the taxpayer’s tax liability 17 for the tax year is not refundable but the excess for the tax 18 year may be credited to the tax liability for the following tax 19 year. 20 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 21 retroactively to January 1, 2025, for tax years beginning on 22 or after that date. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill creates a premarital counseling tax credit 27 (credit) available against the individual income tax. 28 The bill defines “premarital counseling” to mean the 29 application of counseling techniques upon prospective spouses 30 in preparation of marriage. 31 The credit is equal to the cost for premarital counseling, 32 not to exceed $500. Any credit in excess of the taxpayer’s 33 liability is not refundable but may be credited to the tax 34 liability for the following tax year. 35 -1- LSB 2561YH (3) 91 jm/jh 1/ 2 H.F. 958 The bill applies retroactively to January 1, 2025, for tax 1 years beginning on or after that date. 2 -2- LSB 2561YH (3) 91 jm/jh 2/ 2