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More Iowans may become eligible for child care tax credits

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April 17th, 2019 by Ric Hanson

(Radio Iowa) — The 2019 Iowa legislature may be poised to increase the number 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. “It’s important that parents have dollars that they can spend on child care and so forth,” Feenstra says, “and that’s what this does.”

Senator Pam Jochum, a Democrat from Dubuque, says it’s a significant move. “I think that really helps working families a great deal by raising their eligibility limit to get into that credit,” Jochum says. 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.