This bill establishes two new tax credits in Iowa: the Maternity Group Home Tax Credit and the Strong Families Tax Credit, both applicable against various state taxes including individual, corporate, franchise, and moneys and credits taxes. The Maternity Group Home Tax Credit allows taxpayers to receive a credit equal to 100% of their donations to maternity group homes, with a cap of $3.5 million in total credits available annually and a maximum of $500,000 per organization. Taxpayers must apply for the credit within six months of making a donation, and any excess credit can be carried forward for up to five years. The Strong Families Tax Credit similarly provides a 100% credit for contributions to qualifying 501(c)(3) organizations that assist at-risk families, with an annual cap of $5 million and a limit of $1 million per organization unless unclaimed credits remain.

Both credits require taxpayers to submit applications to the Department of Revenue, which will approve them on a first-come, first-served basis until the annual limits are reached. The bill also mandates that organizations receiving contributions must meet specific criteria, including not receiving more than 50% of their revenue from government sources and providing services for at least three consecutive years. The Department of Revenue is tasked with administering these credits and will report annually to the General Assembly on the organizations registered and the credits approved. The provisions of the bill will take effect for tax years beginning on or after January 1, 2027.

Statutes affected:
Introduced: 533.329, 422.60