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) For the tax year beginning in the 2013 calendar year, fourteen percent.
 (2) For tax years beginning on or after January 1, 2014, fifteen percent.
 b. Any credit in excess of the tax liability is refundable.

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Terms Used In Iowa Code 422.12B

  • Director: means the director of the department of revenue. See Iowa Code 453A.42
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • year: means twelve consecutive months. See Iowa Code 4.1
 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.