Can families with children in Iowa get tax savings next year?

On November 21, 2024By Pranco

DES MOINES, Iowa (Gray Media Iowa State Capitol Bureau) – An Iowa lawmaker said Republicans are discussing ways to make raising children cheaper for families. State Rep. Devon Wood of New Market said the concept is still in the early discussion stages, but action is possible when the Legislature begins its new session in January.

“On our side, one of the big topics was, are we looking at child care tax credits for some of these people who are struggling?” Wood told an audience of child care providers and care center operators/owners at the Iowa Women’s Foundation “Iowa Solutions Summit: Childcare” in Altoona on Tuesday.

“Are we looking at…maybe more of a jack-off situation?” Is that how we do it? Is that the next solution?” said Wood.

Wood’s response indicated that Republicans, who will have majorities in both the House of Representatives and the Senate, could consider several options. One could focus on tax savings aimed at childcare costs for families. Another might look at a blanket tax deduction for each child. Or lawmakers could consider a different kind of tax savings for families.

Sen. Janice Weiner, a Democrat from Iowa City, said she would like to see lawmakers consider something similar to the child tax credit that the Biden administration did at the federal level.

Families can get $300 per child under the age of six into their bank account every month. Families with children between the ages of 6 and 17 would receive $3,000 per year per child.

The Brookings Institution said the 2021 child tax credit has reduced child poverty to a record low.

View the Brookings Institution report here.

Weiner said, “I am raising a seven-year-old child, and my granddaughter was in day care for several years. And so I’m very aware of how hard it is to find childcare…how hard it is to find affordable childcare.”