Budget & Taxes (Business Taxes)

in committee · Iowa · House May 15, 2025

HF 1018: A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

House File 1018 amends a previous law regarding the historic preservation tax credit. This bill extends the period during which existing historic preservation tax credits are protected from changes to their refundability. Specifically, it shifts the cutoff date for preserving existing rights to these tax credits from January 1, 2023, to July 1, 2023. This means that taxpayers who were issued, awarded, or allowed historic preservation tax credits prior to July 1, 2023, will have their rights to those credits, including any carryforward amounts, protected from certain reductions in refundability.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends deadline for historic preservation tax credits, protecting existing tax benefits without altering rates or structure, aligning with tax credit preservation as a supportive fiscal measure.90% confidence

Sub-Topics Business Taxes

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in committee · Iowa · House Jan 22, 2025

HF 109: A bill for an act relating to the maximum amount of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

This bill increases Iowa's annual cap for workforce housing tax incentives from $35 million to $50 million. It directly affects developers of workforce housing projects by expanding available tax credits against individual/corporate income taxes, franchise tax, and other levies. The key change reserves $25 million specifically for projects in small cities (as defined in state law) that registered after July 1, 2017, up from $17.5 million. This adjustment aims to boost funding for affordable housing development, particularly in smaller communities.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap from $35M to $50M, reserves $25M for small city workforce housing projects, expanding state funding through tax incentives.95% confidence ✓ HousingSupports HousingIncreases workforce housing tax incentives from $35M to $50M, reserves $25M for small-city projects, directly funding affordable housing development through tax credits.95% confidence

Sub-Topics Business Taxes Affordable Housing Property Development

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in committee · Iowa · Senate Jan 22, 2025

SF 44: A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

SF 44 extends the deadline for claiming historic preservation tax credits from January 1, 2023, to July 1, 2023. It ensures taxpayers who received credits before July 1, 2023, can still apply them against individual/corporate income taxes, franchise tax, or insurance premiums tax. The bill expands an existing provision protecting pre-July 2023 credits from changes to refundability rules established by prior legislation. It does not alter the credit amount or future refundability terms.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends deadline and protects existing historic preservation tax credits, maintaining current tax relief without altering credit amounts or future terms.95% confidence

Sub-Topics Business Taxes

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in committee · Iowa · House Jan 29, 2025

HF 31: A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

HF 31 creates two new Iowa tax credits: one for "new residents" (individuals who moved to Iowa for full-time employment with no prior residency in the state) and one for "new graduates" (Iowa-educated individuals under 30 working full-time in Iowa). Both credits reduce state income tax by 100% for up to four consecutive tax years, starting with the first or second year of eligibility. The credits are non-refundable if they exceed tax liability, expire if recipients receive public assistance after the first claimed year, and apply retroactively to tax years beginning January 1, 2025. Eligibility is limited to one-time lifetime use per individual.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% income tax credits for new residents and graduates, providing direct tax relief to targeted groups and reducing state tax liability.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Iowa · House Feb 3, 2025

HF 203: A bill for an act creating a Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

HF 203 creates a tax credit allowing Iowa taxpayers to claim 25% of donations to a dedicated fund for a monument honoring basketball players Caitlin Clark and Lisa Bluder. The credit applies against individual income tax, corporate income tax, franchise tax, insurance premiums tax, and moneys and credits tax, with a total annual limit of $1 million and a maximum credit of 5% per donor. Donations of $30,000 or less are reserved for 10% of the total credit pool, and excess credits can be carried forward for up to five years. The monument fund, managed by the state authority, must be used solely for constructing the monument and expires in 2035.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing state revenue for monument donations, providing tax relief as part of tax policy.90% confidence

Sub-Topics Business Taxes

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in committee · Iowa · House Feb 12, 2025

HF 360: A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

HF 360 would exclude overtime pay from Iowa's individual income tax calculation. Specifically, it removes from taxable income the portion of compensation earned for hours worked beyond 40 in a workweek, paid at rates of 1.5 to 2 times the regular wage under federal law (29 U.S.C. §207). This change directly affects Iowa workers who earn overtime pay, reducing their taxable income for those hours. The policy takes effect for tax years beginning January 1, 2026. The bill does not alter federal overtime rules but changes how Iowa taxes that specific income.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, reducing tax burden for workers and aligning with tax relief indicators for middle/lower income earners.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from taxable income, increasing workers' net earnings for hours beyond 40 without altering federal overtime standards.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Labor Standards

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in committee · Iowa · House Feb 12, 2025

HSB 129: A bill for an act relating to the maximum amount of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

This bill increases Iowa's workforce housing tax incentive program funding limits. It raises the maximum annual allocation from $35 million to $50 million, with $25 million specifically reserved for housing projects in small cities (as defined in section 15.352) registered after July 1, 2017 - up from $17.5 million. The change directly affects developers building affordable housing for low-to-moderate-income workers, particularly those in smaller communities. The policy modifies how tax credits are distributed under existing tax code provisions without altering the program's eligibility criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases max annual tax incentive allocation from $35M to $50M, reserving $25M for small city housing projects, directly expanding funding for affordable housing via tax credits.95% confidence ✓ HousingSupports HousingIncreases $50M annual tax incentive funding for workforce housing, specifically reserving $25M for small cities' affordable projects targeting low-to-moderate-income workers.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Housing Finance

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in committee · Iowa · House Feb 20, 2025

HF 496: A bill for an act modifying the individual and alternate income tax rates, and including applicability provisions.

This Iowa bill (HF 496) lowers the state's individual income tax rates for 2026 and beyond. It reduces the standard tax rate from 3.8% to 2.5% on taxable income, and lowers the alternate tax rate from 4.3% to 3.0% for higher-income filers. The changes apply to all Iowa residents and nonresidents with taxable income, affecting most individual income tax returns filed for tax years beginning January 1, 2026. The bill modifies existing tax calculation methods but does not change filing requirements or exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces individual income tax rates for all filers, providing direct tax relief and lowering state revenue, aligning with tax reduction support indicators.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · House Feb 24, 2025

HF 208: A bill for an act relating to the allocation of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

HF 208 allocates $35 million in tax incentives for workforce housing projects, to be applied against individual and corporate income taxes, franchise tax, insurance premiums tax, and moneys and credits tax. It reserves $17.5 million specifically for housing projects in small cities (as defined in Iowa law) registered after July 1, 2017. The remaining funds may allocate up to one-third to projects in Iowa's two most populous counties, but only for projects registered after July 1, 2025. This bill directly affects developers and builders of workforce housing projects seeking tax credits under these specific allocation rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $35M tax incentives for workforce housing via tax credits against income/corporate taxes, funding affordable housing projects as public service.90% confidence ✓ HousingSupports HousingAllocates $35M tax incentives for workforce housing projects, specifically funding affordable housing development in small cities and designated areas per bill summary.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Housing Finance

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in committee · Iowa · House Apr 3, 2025

HF 30: A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions.

HF 30 creates a tax deduction for Iowa law firms representing indigent clients in specific court-appointed cases. It directly affects eligible law firms with two or more attorneys (who practice at least half the year) and attorneys licensed for fewer than 10 years, for cases appointed on or after July 1, 2025. The deduction equals the difference between $150 per hour (or the firm's actual rate) and the state's standard hourly rate ($76-$86) for such cases, calculated based on the firm's pro rata share. The deduction applies retroactively to tax years beginning January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for law firms representing indigent clients, offering tax relief to support indigent defense services.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill funds indigent defense through tax deductions, directly supporting access to counsel in criminal cases - a core criminal justice reform objective.95% confidence

Sub-Topics Business Taxes Income Tax

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