1. 1.

   1. a. The taxes imposed under this subchapter less the credits allowed under section 422.12 shall be reduced by an earned income credit equal to the following percentage of the federal earned income credit provided in section 32 of the Internal Revenue Code:

      1. (1) For the tax year beginning in the 2013 calendar year, fourteen percent.
      2. (2) For tax years beginning on or after January 1, 2014, fifteen percent.
   2. b. Any credit in excess of the tax liability is refundable.
2. 2. Taxpayers affected by the allocation provisions of section 422.8 shall be permitted a deduction for the credit only in the amount fairly and equitably allocable to Iowa under rules prescribed by the director.

2018 amendment to subsection 2 is effective January 1, 2023, and applies to tax years on or after that date; 2018 Acts, ch 1161, §133, 134; 2021 Acts, ch 177, §1 2023 amendment to subsection 2 applies retroactively to January 1, 2023, for tax years beginning on or after that date; 2023 Acts, ch 115, §12

89 Acts, ch 268, §6; 90 Acts, ch 1171, §4; 91 Acts, ch 159, §14; 91 Acts, ch 215, §3; 2000 Acts, ch 1146, §5, 9, 11; 2007 Acts, ch 161, §1, 22; 2013 Acts, ch 123, §70, 71; 2018 Acts, ch 1161, §123, 133, 134; 2020 Acts, ch 1062, §94; 2021 Acts, ch 177, §1; 2023 Acts, ch 115, §10, 12

Referred to in §2.48, 422.16