This bill establishes a new premarital counseling tax credit under Iowa law, specifically outlined in a new section, 422.10C. The credit is designed to reduce individual income tax liabilities by the cost of premarital counseling, capped at $500. It allows individuals to claim the credit based on their pro rata share of earnings from partnerships, limited liability companies, S corporations, estates, or trusts that elect to have their income taxed directly to the individual. However, any credit exceeding the taxpayer's liability is non-refundable but can be applied to future tax years.

Additionally, the bill includes a retroactive applicability provision, meaning it will take effect for tax years beginning on or after January 1, 2025. This allows taxpayers to benefit from the credit for counseling expenses incurred from that date forward.