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.

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.