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Bill Detail: HB19-1058

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Title Income Tax Benefits For Family Leave
Status House Committee on Finance Postpone Indefinitely (01/31/2019)
Bill Subjects
  • Fiscal Policy & Taxes
House Sponsors L. Landgraf (R)
S. Beckman (R)
Senate Sponsors K. Priola (R)
House Committee Finance
Senate Committee
Date Introduced 01/04/2019
Description

Section 2 of the bill establishes leave savings accounts. A leave
savings account is an account with a financial institution for which the
individual uses money to pay for any expense while he or she is on
eligible leave, which includes:
  • The birth of a child of the individual and in order to care
for the child;

  • The placement of a child with the individual for adoption
or foster care;
  • Caring for a spouse, child, or parent of the individual if the
spouse, child, or parent has a serious health condition;
  • A serious health condition that makes the individual unable
to perform the functions of the position of the individual;
or
  • Any qualifying exigency, as determined by the United
States secretary of labor, arising out of the fact that a
spouse, child, or parent of the individual is on covered
active duty, or has been notified of an impending call or
order to covered active duty, in the United States armed
forces.
An individual may annually contribute up to $5,000 of state pretax wages
to a leave savings account. Employers may also make a matching
contribution to an employee's leave savings account. The department of
revenue is required to establish a form about a leave savings account, and
the individual must annually file this form to be eligible for the tax
benefit.
Sections 3 and 4 allow an employee and an employer to claim a
state income tax deduction for amounts they contribute to the employee's
leave savings account. Section 3 also allows a taxpayer to deduct any
interest or other income earned on the investment during the taxable year
from their leave savings account.
Regardless of how the money is deposited in the leave savings
account, if an individual uses money in the account for an unauthorized
purpose, then the money is subject to recapture in the year it is withdrawn
and to a penalty equal to 10% of the amount recaptured.
Section 5 creates an income tax credit for an employer that pays
an employee for leave that is between 6 and 12 weeks long for one of the
following reasons:
  • The birth of a child of the employee and in order to care for
the child;
  • Placement of a child with the employee for adoption or
foster care;
  • Caring for a spouse, child, or parent of the employee if the
spouse, child, or parent has a serious health condition;
  • A serious health condition that makes the employee unable
to perform the functions of the position of the employee; or
  • Any qualifying exigency, as determined by the United
States secretary of labor, arising out of the fact that a
spouse, child, or parent of the employee is on covered
active duty, or has been notified of an impending call or
order to covered active duty, in the United States armed
forces.
For employers with fewer than 50 employees, the credit is equal
to 50% of the amount paid, and for employers with 50 or more employees
it is equal to 25% of the amount paid. The credit is not refundable, but it
may be carried forward up to 5 years.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (01/28/2019) (most recent)  
Additional Bill Documents Bill Documents
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  • Past fiscal notes
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