Bill Would Exempt Child Care Workers’ Pay From State Income Taxes

Des Moines, Iowa — Iowans paid to work in registered child care centers would not have to pay state taxes on that income if a bill introduced in the Iowa House becomes law.

Brad Hartkopf of the Iowa Association of Business and Industry says his group supports the bill.

 

Dave Stone of United Way of Central Iowa says it could help retain childcare workers.

A House subcommittee has voted to advance the bill, but members of the panel are considering changes, like exempting the owners of registered childcare centers from state income taxes as well. Dustin Miller of the Iowa Chamber Alliance says that could spur investment in childcare centers.

Legislators working on the bill hope to ensure the additional take home pay for child care workers doesn’t affect their Earned Income Tax Credit. Iowa Women’s Foundation president Deann Cook says that’s key.

Childcare backers say people who run child care businesses don’t make huge if any, profits, and exempting registered child care centers from property taxes might be another way to boost investment.

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