This bill establishes a maternity group home tax credit that will be available against various taxes, including individual, corporate, franchise, insurance premium, and moneys and credits taxes, starting from tax years beginning on or after January 1, 2026. The credit is defined as equal to 100 percent of a taxpayer's donation to a maternity group home, which is a community-based residential facility for women who are pregnant or have recently given birth. Notably, the amount of the donation for which the tax credit is claimed cannot be deducted from the taxpayer's state income tax. The bill also stipulates that any tax credit exceeding a taxpayer's liability cannot be carried forward to future years, nor can it be transferred.

The total annual value of tax credits authorized under this bill is capped at $3.5 million, with a maximum of $500,000 in credits available for donations to any single maternity group home organization. The Iowa Department of Revenue is tasked with administering the credit, requiring taxpayers to submit applications for each donation within six months of the tax year in which the donation was made. Applications will be processed on a first-come, first-served basis until the annual cap is reached, and a waitlist will be established for any applications that cannot be approved due to exceeding the maximum limit. The department is also empowered to adopt rules for the effective administration of this tax credit program.

Statutes affected:
Introduced: 533.329, 422.60