This bill authorizes specific funding for the Iowa Department of Transportation for the 2026-2027 fiscal year, drawing from the Road Use Tax Fund and the Primary Road Fund. The legislation allocates money for various operational needs, including salaries for over 2,600 employees, maintenance of roads and facilities, modernization of vehicle registration systems, and support for driver licensing services. Additionally, the bill establishes rules for how any leftover funds from certain maintenance and modernization projects must be used, ensuring they remain available for up to three years after the fiscal year ends rather than reverting to the state treasury.
HF 992 increases the fee for duplicate or proof of interstate fuel tax permits from 50 cents to $1.00 per document. This affects commercial vehicles operating across state lines that use fuel purchased outside Iowa, requiring them to carry proof of tax payment for Iowa fuel taxes. The bill modifies existing law that mandates these vehicles to possess such proof while operating in Iowa. The change directly impacts businesses and drivers managing interstate fuel use compliance, without altering the underlying tax requirements or penalties for non-compliance.
This bill exempts high-ethanol gasoline, specifically blends containing more than 85 percent ethanol, from the state excise tax when purchased directly from a terminal or refinery for use in agricultural equipment. To qualify for this tax exemption, buyers must obtain and present a specific certificate to the supplier, who is required to keep these records for at least three years. The law also holds the purchaser personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production. Ultimately, the legislation removes the cost of the excise tax for farmers buying high-ethanol fuel directly from the source for their machinery.
This bill creates sales and use tax exemptions and refunds for tangible personal property, digital products, and services used to build, maintain, or restart nuclear electric generation facilities in Iowa. The tax relief applies to items directly used for construction, repair, or restarting operations after decommissioning, provided the facility begins commercial operation within twelve and a half years of receiving its license or pouring initial concrete. If a facility fails to start operations within this timeframe, it must repay all previously claimed tax exemptions and refunds. Additionally, the law defines specific equipment and systems eligible for these benefits, including nuclear components, electrical infrastructure, cybersecurity tools, and energy storage systems, while repealing the provision on July 1, 2051.
This comprehensive education bill modifies various aspects of Iowa's public school system, with a primary focus on charter schools, funding, and student services. It establishes the state board of education and the University of Northern Iowa as the sole entities authorized to approve new charter schools, while also defining how these schools can be created within or outside existing public school districts. The legislation mandates that all schools provide specific information regarding immunization exemptions to parents and requires the development of state-wide resources to support mathematics proficiency and civics education. Additionally, the bill includes provisions for teacher licensure, education savings accounts, and funding allocations, aiming to standardize oversight and operational requirements across different types of educational institutions.
This bill establishes new taxes and regulatory rules for alternative nicotine products and vapor devices. It directly affects manufacturers, sellers, and consumers of these items by creating a specific tax framework and setting compliance standards for their sale. The legislation includes provisions for how these products must be stored and tracked, ensuring that warehouse records are maintained and accessible. By defining these requirements, the bill aims to standardize how these products are handled within the state's existing tax and health systems.
This Iowa bill updates the state corporate income tax code to allow a deduction for net controlled foreign corporation tested income, replacing a previous reference to the now-repealed global intangible low-taxed income. The change directly affects Iowa businesses with foreign income by ensuring they can still claim a tax break for this specific category of earnings despite recent federal tax law updates. By removing the outdated terminology and keeping the deduction mechanism active, the legislation maintains the state's alignment with current federal tax definitions. The law applies retroactively to tax years beginning on or after January 1, 2026.
SJR 11 proposes an amendment to the Iowa Constitution that would change the requirements for passing certain state tax laws. It mandates that any bill increasing state individual or corporate income tax rates, or establishing a new state tax on income or reserves, must receive a two-thirds majority vote in both the House and Senate. This requirement does not apply to taxes imposed by local governments. The amendment also sets a one-year limit for legal challenges to the enactment of such tax bills. If passed by two consecutive General Assemblies, Iowa voters would consider this amendment in the November 2026 general election.
This bill modifies Iowa's urban renewal law to change how property tax revenue is shared for emergency medical services. Specifically, it prevents taxes collected for emergency medical services from being used to pay off municipal loans or fund urban renewal projects. Instead, these taxes must be collected from all property within the taxing district without being diverted to a special fund for city debt or low-income housing assistance. The changes apply to property taxes due in fiscal years starting on or after July 1, 2026, and take effect immediately upon signing.
This bill modifies Iowa's rural veterinarian loan repayment program to allow recipients to exclude the value of loan payments from their taxable income. It applies to veterinarians who receive financial assistance to work for four years in designated rural or shortage areas. Under the new rules, eligible individuals can subtract up to $15,000 per year, or a total of $60,000, from their state tax return, provided the amount does not exceed their outstanding loan balance. Additionally, the legislation clarifies that recipients may transfer their service obligation to a new practice within the same rural area with commission approval.
