HB 687 allows Iowa tax deductions for business expenses incurred by licensed medical cannabidiol (CBD) manufacturers and dispensaries, bypassing the federal restriction under Section 280E of the Internal Revenue Code. This applies to expenses paid by entities operating under Iowa’s Chapter 124E licensing rules, excluding expenses not incurred by licensed entities or those violating Chapter 124.401. The bill retroactively applies to tax years beginning January 1, 2026, changing Iowa’s tax code to align with state-specific CBD business needs. It directly affects licensed CBD businesses by potentially reducing their state income tax liability.
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.
SF 2085 regulates "event-driven contracts" - financial bets on specific events like sports outcomes or elections traded on digital markets. It requires these markets to obtain a $10 million initial permit and pay $100,000 annually to operate in Iowa. A 20% tax is imposed on the market's "adjusted revenues" (total fees minus payouts, weighted by Iowa trader participation), with tax revenue deposited into the state general fund. The bill also adjusts Iowa income tax rules to treat these contracts differently from federal tax treatment, excluding them from certain federal tax calculations. It explicitly excludes existing systems like horse racing wagering (Chapter 99D), fantasy sports (Chapter 99E), and sports betting (Chapter 99F).
HF 2078 creates an opportunity tax credit of $4,000 per eligible dependent for Iowa taxpayers whose children are not enrolled in public school or receiving an educational savings account (ESA) payment. It directly affects parents or guardians of dependents who meet specific criteria, such as having attended public school for at least one semester, being eligible for kindergarten, or previously receiving an ESA payment. The credit is refundable, can be claimed on tax returns or requested as an advance payment from a newly created state fund, and requires the Department of Revenue to verify enrollment status with the Department of Education. The bill applies retroactively to tax years beginning January 1, 2026, and mandates annual reports starting in 2028 detailing claims and potential fraud.
HF 2225 creates a tax credit for Iowa residents who paid nonresident tuition at state universities and later work in the state as health care professionals, teachers, licensed veterinarians, or professional engineers. The credit equals 100% of the difference between the nonresident and resident tuition rates they paid during their studies, available within three years of graduation while employed in Iowa. Unused credit can be carried forward for up to five years to offset future income tax, but it is not refundable and does not apply to nonresidents. The bill requires the Board of Regents to publish historical tuition rates online and applies retroactively to tax years starting January 1, 2026.
This bill amends Iowa law to clarify the Auditor of State's access to confidential information during audits. It allows the Auditor to access certain confidential records (like agency data) while maintaining confidentiality, but explicitly prohibits access to individual income tax returns or health data identifying specific patients. The bill also removes requirements for prior consent before disclosing information in audit reports and repeals outdated dispute-resolution rules for conflicts between state agencies. These changes streamline audit processes while preserving specific privacy protections for sensitive personal data.
SF 59 expands Iowa's farm tenancy net income exclusion for individual income tax by allowing income earned through certain business entities (like partnerships, S corporations, trusts, or disregarded entities) to qualify for the exclusion, just as if received directly by the farmer. This change directly affects farmers who operate through these business structures, enabling them to exclude farm tenancy income from their taxable income under the same conditions as direct recipients. The bill clarifies that income accruing to a grantor trust or disregarded entity is deemed distributed to its sole owner if they have the right to withdraw it. It takes effect immediately upon enactment and applies retroactively to tax years beginning January 1, 2024.
HF 94 exempts up to $500,000 of income from nonqualified deferred compensation plans (like certain deferred pay for select employees) from Iowa's individual income tax for eligible individuals. This applies to people who are disabled, at least 55 years old, or surviving spouses of someone who qualified under the same rules. The exemption covers both the principal amount and earnings from these plans, mirroring existing retirement income exclusion rules. The bill applies retroactively to tax years beginning January 1, 2025.
This Iowa bill (HF 56) expands a tax exclusion for farm tenancy income. It allows farmers who receive net income from farm tenancy agreements through certain business structures - like partnerships, S-corporations, trusts, or disregarded entities - to claim the same exclusion currently available only to those receiving income directly. The key change treats income from these entities as if received directly by the farmer, provided the farmer has the right to withdraw it. The exclusion applies retroactively to tax years starting January 1, 2024, directly affecting farmers operating through such business entities.
HF 601 requires money transfer businesses (licensees) to collect a $5 fee for each wire transfer of $500 or less, plus 2% of any amount over $500. The collected fees must be sent quarterly to Iowa's Department of Revenue, which then forwards all funds to the Office to Combat Human Trafficking. Customers who file individual income tax returns with a valid Social Security or tax ID number can claim a tax credit equal to the fees they paid during the year. Money transfer businesses must post notices informing customers about this tax credit opportunity. The bill directly affects money transfer service providers and their customers using wire transfers within Iowa.
