The Iowa legislature may be poised to increase the number of working Iowans who can claim a tax credit for child care expenses. Parents with an annual income above 45-thousand dollars are NOT currently eligible. A bill that’s cleared a senate subcommittee would make Iowa parents who earn up to 57-thousand dollars a year eligible for child care tax credits. Senator Randy Feenstra, a Republican from Hull, has been working on the proposal.
*
Senator Pam Jochum (YOH-kum), a Democrat from Dubuque, says it’s a significant move.
*
The bill also would set up indexing for these child care tax credits. It means there would be annual, incremental increases in the income level at which a parent is eligible to receive a tax credit for child care expenses.