A bill for an act relating to establishing a reciprocal tax agreement study by the department of revenue, and including effective date provisions.

This bill directs the Iowa Department of Revenue to study the feasibility of creating a reciprocal tax agreement with Wisconsin, which would allow residents of each state working in the other to pay income taxes only to their home state. The study must be completed by December 1, 2026, and include findings on whether such an agreement is practical and mutually beneficial. If the study finds the agreement viable, the department must prepare a bill for legislative approval before the 2027 regular session. The legislation takes effect immediately upon enactment.