Iowa Bills

This bill exempts sales and use taxes on building materials, supplies, equipment, and services used to construct a regional water trail system in Iowa. It applies specifically to nonprofit corporations that have a majority of their board appointed by state political subdivisions and are responsible for implementing regional recreational and dam safety plans. To qualify for the tax exemption, the nonprofit must enter into a written construction contract where the resulting infrastructure becomes public property or the property of the designated exempt entity. The law takes effect immediately upon passage and applies retroactively to January 1, 2025, for qualifying purchases and services made on or after that date.

This bill modifies Iowa's urban renewal tax rules to ensure that property taxes collected for emergency medical services are not used to pay off municipal debt or fund low-income housing projects. Under the new provisions, these specific emergency medical service taxes must be collected from all taxable property within the district without being diverted to special funds for urban renewal. The changes apply to property taxes due in fiscal years starting on or after July 1, 2027.

This bill allocates state funds and authorizes staffing levels for various government agencies, including the Department of Administrative Services, the Auditor of State, and the Ethics and Campaign Disclosure Board, for the 2026-2027 fiscal year. Key provisions establish specific budgets for salaries, utilities, and operational costs while creating a separate fund for workers' compensation claims that can carry over to future years. The legislation also sets an administrative charge of $2.00 per contract for health insurance plans managed by the state and allows the Auditor of State to hire additional staff for reimbursable audit projects. By providing these financial resources, the bill enables these departments to continue their daily operations and fulfill their regulatory and administrative duties.

This bill allocates state funding to the Iowa Department of Agriculture and Land Stewardship for the fiscal year 2026-2027 to support its administrative operations, regulatory programs, and specific initiatives. Key provisions include funding for horse and dog racing enforcement, motor fuel inspections, dairy regulation, and various agricultural education and support programs for farmers with disabilities. The legislation also establishes rules allowing certain funds to carry over to the next fiscal year if not spent, and directs specific amounts to partner organizations like Iowa State University of Science and Technology. Additionally, the bill requires the department to submit quarterly financial reports to the General Assembly and the Department of Management.

This bill appropriates funding for the Iowa judicial branch for the fiscal year beginning July 1, 2026, covering salaries, operational expenses, and specific programs for juvenile services. It allocates over $203 million for judicial staff and operations, $3.6 million for jury and witness fees, and additional funds for juvenile court services and graduated sanctions. The legislation establishes rules for distributing juvenile service funds among districts, prohibits courts from ordering counties to pay for state-funded juvenile services, and requires the judicial branch to use existing state financial systems while submitting monthly budget reports. Furthermore, certain funds designated for juvenile services will not revert at the end of the fiscal year but will remain available for use until the close of the 2029 fiscal year.

This bill allows county recorders in Iowa to charge a convenience fee of up to $10 for non-residents who file or record legal documents, unless those individuals pay property taxes to the county and provide proof. The fee applies per transaction on each page or fraction of a page, with the money collected going into a records management fund for specified uses. Non-residents who are property taxpayers can avoid the fee by submitting proof of their tax payments to the county.

This bill exempts ethanol-blended gasoline containing 85% or more ethanol (like E85) from Iowa's excise tax when purchased exclusively for use in farm equipment (implements of husbandry) used in agricultural production. It directly affects farmers and agricultural suppliers who buy this specific fuel for farming operations. To qualify for the exemption, purchasers must provide a valid exemption certificate to the supplier, which must be signed, complete, and retained by the supplier for three years. If the fuel is later used outside agricultural production, the purchaser must pay the excise tax directly to the Iowa Department of Revenue.

SF 2279 creates a tax credit for Iowa taxpayers who donate to maternity group homes, allowing them to claim a 100% credit against several state taxes (including individual, corporate, and franchise taxes) for their donations. The credit directly affects donors and qualifying maternity group homes, which are defined as community-based residences providing housing, care, and support for pregnant or postpartum women with children. Key limits include a $3.5 million annual statewide cap on total credits and a $500,000 cap per organization, with applications approved on a first-come, first-served basis within six months of donation. The credit cannot be carried forward, transferred, or used to reduce taxable income, and excess credits are forfeited.

SF 2292 updates Iowa's corporate tax code to maintain a deduction for net controlled foreign corporation tested income (NCTI), aligning with recent federal tax law changes. It replaces the outdated reference to "global intangible low-taxed income" (GILTI) with NCTI under federal Section 951A, ensuring Iowa businesses can still claim this deduction. The bill directly affects Iowa corporations with foreign operations that previously relied on this deduction under state law. It applies retroactively to tax years beginning January 1, 2026, to correct a technical gap caused by federal legislation.

This bill (SF 2446) strengthens privacy protections for tax returns filed by captive insurance and life captive reinsurance companies in Iowa. It prohibits state employees from inspecting or disclosing these returns (Section 1, Section 2), imposing serious misdemeanor penalties including dismissal from state employment for violations. The bill also allows the Iowa Department of Revenue to share such information with federal tax authorities or other states under existing agreements (Section 1, Section 2). These provisions directly affect captive insurance companies operating in Iowa and state employees handling their tax filings.

This bill exempts local fiber optic contractors and network companies from application fees when seeking easements from drainage or levee districts to install fiber optic cable. Specifically, it prohibits districts from charging administrative fees for processing these easement requests if the applicant operates primarily as a local business. Districts may create a published list identifying qualifying local businesses to ensure the fee exemption applies. The law takes effect immediately upon enactment, aiming to reduce barriers for local broadband infrastructure expansion.

This bill changes Iowa's beer tax structure by creating two distinct tax rates based on where beer is manufactured. It imposes a $1.86 tax per 31-gallon barrel for beer made in U.S. breweries (defined as facilities located in the United States) and a $5.89 tax per barrel for imported beer (defined as beer manufactured and imported from outside the U.S.). The tax applies to wholesale sales and imports within Iowa, but exempts beer shipped out of state or transferred between permittees. The bill takes effect only after the federal government approves the tax rate difference, as specified in the contingent effective date clause.