This bill modifies individual income tax rates and introduces tax credits specifically for married persons filing a joint return. It reduces the income tax rate for married couples filing jointly to zero percent if they have five or more dependents under the age of eighteen or if they are filing jointly for the first or second time in their lifetimes. Additionally, the bill establishes a new dependent tax credit for these couples, allowing them to receive a credit of $1,000 for each dependent exceeding five but not more than ten, under the age of eighteen. Any excess credit beyond the tax liability is refundable, or taxpayers can choose to apply it to future tax liabilities for up to five years.

The bill also includes several amendments to existing tax code sections, such as changing references to the "highest" income tax rate and the "maximum" rate under section 422.5. It is designed to take effect immediately upon enactment and will apply retroactively to tax years beginning on or after January 1, 2025.

Statutes affected:
Introduced: 421.27, 422.36, 422.12, 422.5, 422.16C