A bill for an act creating tax deductions against the individual income tax for veterinarians by providing a deduction for income resulting from rural veterinarian loan repayments and by allowing a deduction for the amount of interest paid on student loans for attendance at a veterinary school, and including retroactive applicability provisions.

HF 2525 creates two tax deductions for Iowa veterinarians: (1) a deduction for income from rural veterinary loan repayment programs (capped at $15,000 yearly/$60,000 lifetime), and (2) a deduction for all interest paid on veterinary school student loans (if the vet practiced in Iowa that year). The bill excludes the student loan interest deduction if a vet is simultaneously receiving rural loan repayments. To qualify, veterinarians must practice in Iowa (details to be set by the Department of Revenue), and the bill applies retroactively to tax years beginning January 1, 2026.