Budget & Taxes (Business Taxes) in Iowa

in committee · Iowa · House Mar 23, 2026

HSB 596: A bill for an act relating to local government taxes, budgets, and authority, by establishing property tax limitations and modifying provisions relating to the assessment and taxation of property, certain taxpayer notices, bond issuances, and councils of governments, and including applicability and retroactive applicability provisions.

This bill establishes a 102% cap on annual property tax increases for local governments (excluding school districts) by limiting new tax levies to 102% of the prior year's certified tax amount, adjusted for voter-approved levies. It creates a new residential property tax exemption of up to $25,000 in taxable value for homeowners (effective 2026), excluding school district taxes. The bill also updates disclosure requirements, mandating annual mailed statements to property owners by March 15 showing tax details and limiting county/city taxes if reports are late. These changes apply retroactively to assessment years beginning January 1, 2026.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Property Tax Tax Incentives Tags Local Government

introduced · Iowa · Legislature

5374XD: Governmental Subdivision Audits, Income Tax Exemption (5374XD) - Auditor of State

This bill (5374XD) exempts certified public accountants (CPAs) from Iowa state income tax on fees earned from auditing or examining local governments (like cities, counties, or school districts). It amends Iowa tax codes 422.7 (individual tax) and 422.35 (corporate tax) to exclude such income from taxable earnings. The exemption applies retroactively to tax years beginning on or after January 1, 2026. The bill directly affects CPAs who perform these government audits, removing a tax liability on their fees for this specific service.

Topics ✗ Budget & Taxes

Sub-Topics Audits & Accountability Business Taxes Income Tax

in committee · Iowa · Senate Jan 22, 2025

SF 19: A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.

SF 19 expands Iowa's farm tenancy net income exclusion for individual income tax, allowing eligible farmers to exclude income from farm tenancy agreements received through certain business entities (like partnerships, S-corporations, trusts, or disregarded entities) rather than only direct payments. It specifically clarifies that net income accruing to these entities is treated as distributed to the farmer-owner if they can withdraw or compel distribution, matching the exclusion's current treatment for direct income. The bill applies retroactively to tax years beginning January 1, 2024, meaning farmers may qualify for tax adjustments on 2024 returns. This change directly affects Iowa farmers operating through pass-through business structures who previously couldn't claim this exclusion for their farm tenancy income.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Iowa · House Mar 6, 2025

HSB 229: A bill for an act relating to deducting excess business losses for purposes of the individual income tax, and including retroactive applicability provisions.

This Iowa bill (HSB 229) allows individual taxpayers to deduct business losses previously disallowed due to federal tax rules for state income tax purposes. Specifically, it permits deductions for business losses that were excluded under federal Section 461(l) limitations during tax years 2021-2022. The bill applies retroactively to those years, meaning taxpayers can now adjust their state tax filings for 2021 and 2022 to include these previously disallowed losses. It directly affects Iowa residents who filed business tax returns during 2021-2022 and had federal business losses exceeding the $305,000 (single) or $610,000 (married) federal thresholds. The change modifies Iowa’s tax code to align with federal carryforward rules for disallowed business losses during that period.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Iowa · House Feb 13, 2025

HF 370: A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.

HF 370 establishes a solar installation tax credit in Iowa for individuals and businesses that install solar energy systems on or after January 1, 2025. The credit equals 50% of two federal solar energy credits (capped at $5,000 for residential systems and $20,000 for commercial systems), applicable against income, franchise, and moneys and credits taxes. Unused credits can be carried forward for up to 10 years, and applicants must submit applications by May 1 each year. The bill limits annual credits to $5 million total, with at least $1 million reserved specifically for residential installations, and prevents double-dipping with other solar tax credits.

Topics ✓ Budget & Taxes ✓ Energy ✓ Environment

Sub-Topics Business Taxes Solar

in committee · Iowa · House Feb 20, 2025

HSB 232: 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.

This bill extends the deadline for claiming historic preservation tax credits from January 1, 2023, to July 1, 2023, for credits issued before that date. It directly affects Iowa taxpayers who claimed or were awarded these credits prior to July 1, 2023, ensuring they can still fully utilize the credits against income, corporate, franchise, and insurance premiums taxes. The key provision expands an existing "preservation of rights" clause to cover credits earned through July 1, 2023, preventing earlier reductions in refundability from impacting those specific claims. This adjustment aligns with prior legislation (House File 2317) that gradually reduced credit refundability but preserves existing rights for credits issued before the new date.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Iowa · House Feb 28, 2025

HF 661: A bill for an act relating to child care, including the child and dependent care tax credit, a child care workforce matching grant program, a small business child care tax credit, and state child care assistance, and including applicability provisions.

HF 661 creates a comprehensive child care package in Iowa. It expands the state's child and dependent care tax credit to match the federal credit amount (retroactive to 2025), establishes a state grant program to raise wages and provide health insurance/benefits for child care workers, and introduces a new small business tax credit for employers offering on-site or nearby child care (capping at $3,000 per employee annually, with a total $2 million annual limit). The bill also adjusts state child care assistance eligibility, raising required work hours for parents and increasing income thresholds to 265% (basic care) and 290% (special needs) of the federal poverty level, while requiring state reimbursement rates to match private-pay rates. These changes directly affect child care workers, small employers providing child care benefits, and low-income families seeking state assistance.

Topics ✓ Budget & Taxes ✓ Healthcare ✓ Labor & Employment

Sub-Topics Business Taxes Tax Credits

in committee · Iowa · Senate Mar 5, 2025

SSB 1181: A bill for an act prohibiting franchise fees imposed by cities and counties.

This bill prohibits cities and counties in Iowa from imposing or collecting franchise fees on businesses providing essential services (like utilities) starting July 1, 2025. It directly affects all cities and counties that previously collected such fees, which were typically based on a percentage of a business's gross sales. Key provisions eliminate the ability to charge these fees entirely after the effective date, while existing franchise agreements remain valid under current terms. The law specifically bans new franchise fees from being assessed or collected by any city or county on or after July 1, 2025.

Topics ✗ Budget & Taxes

Sub-Topics Business Taxes Fees & Licensing

in committee · Iowa · House Apr 17, 2025

HSB 270: 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.

HSB 270 modifies existing law concerning the historic preservation tax credit. The bill extends the date for which previously issued historic preservation tax credits are protected from changes to their refundability. Specifically, it shifts the protection date 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 preserved, including any carryforward amounts.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Iowa · Senate May 9, 2025

SF 170: 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 170 amends a prior law related to the historic preservation tax credit for individuals and corporations. The bill extends the date for preserving existing rights for these tax credits from January 1, 2023, to July 1, 2023. This means that historic preservation tax credits issued or awarded before July 1, 2023, will not be subject to the reduced refundability changes enacted in 2022. Taxpayers holding these credits will retain their original rights to claim or redeem them, including any carryforward amounts.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

All budget & taxes bills