Budget & Taxes

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 & TaxesSupports Budget & TaxesBill caps property tax increases at 102% and creates $25k residential exemption, providing direct tax relief for homeowners (middle-income focus).95% confidence

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

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in committee · Iowa · House Jan 30, 2026

HF 2225: A bill for an act creating a new graduate nonresident tuition tax credit available against the individual income tax, and including retroactive applicability provisions.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% tuition difference tax credit for eligible Iowa professionals, reducing their income tax liability and incentivizing retention in key public sectors. Direct tax relief measure.95% confidence ✓ EducationSupports EducationTargets teachers as eligible for tuition tax credit, incentivizing retention in Iowa education sector through financial relief.95% confidence

Sub-Topics Income Tax Tax Credits Higher Education

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in committee · Iowa · Senate Jan 27, 2026

SF 2101: A bill for an act relating to the distribution of gambling games and sports wagering receipts for nonprofit purposes, and including applicability provisions.

SF 2101 requires Iowa gambling and sports wagering licensees to distribute at least 3% of gambling game receipts and 0.75% of sports wagering net receipts for nonprofit purposes (like education, charity, or civic projects). It mandates that these funds be allocated proportionally to Iowa counties based on where contributors reside, using data from player rewards programs. Licensees must report contributor locations to the Department of Revenue, which calculates each county’s share; if a county receives less than 3% or no nonprofit applies, funds may be held for up to three years before being transferred to a county endowment fund. The bill applies to receipts collected in fiscal years starting after its effective date.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates 3% of gambling receipts for nonprofit programs like education, directing public funds to essential services per bill's allocation requirements.85% confidence

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in committee · Iowa · House Jan 26, 2026

HF 2151: A bill for an act making appropriations to the department of education for the therapeutic classroom incentive grant program.

This bill allocates $5 million from Iowa's general fund to the Department of Education for the 2026-2027 fiscal year to establish a therapeutic classroom incentive grant program. It directly provides funding to school districts to create therapeutic classrooms for students aged 3 to 21 whose emotional, social, or behavioral needs interfere with their success in regular school settings. The program enables school districts to receive grants to set up specialized classrooms designed to support these students' learning and development. The funding is specifically designated for this purpose and cannot be used for other educational programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $5M from general fund to fund therapeutic classrooms program, directly increasing state education budget for public service.95% confidence ✓ EducationSupports EducationAllocates $5M for therapeutic classrooms supporting students with emotional/social needs, directly funding school programs to improve educational access and student support.95% confidence ✓ HealthcareSupports HealthcareBill funds therapeutic classrooms for students with emotional/behavioral needs, directly supporting mental health services within schools.95% confidence

Sub-Topics State Budget

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in committee · Iowa · House Jan 30, 2026

HF 2217: A bill for an act relating to radon testing in schools, including responsibilities of nonpublic schools, applicability to charter and innovation zone schools, establishing a school testing and mitigation of radon grant program within the department of education, making appropriations, and including effective date provisions.

HF 2217 requires all public school districts, accredited nonpublic schools, charter schools, and innovation zone schools in Iowa to test for radon gas in school buildings at least once by July 2027 and every five years thereafter, with testing limited to October-March. It creates a state grant program within the Department of Education to help schools cover the costs of radon testing and mitigation, using funds that remain available year-to-year rather than reverting to the general fund. Schools must follow specific testing protocols and address elevated radon levels (4 picocuries per liter or higher) by conducting follow-up tests or developing mitigation plans. The bill also mandates that testing results be published online and reported to health officials, with grants intended to supplement, not replace, existing school funding for radon-related work.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates state grant program within DOE for radon testing costs, using year-to-year funds to fund school safety program, directly advancing public service funding.95% confidence ✓ EducationSupports EducationCreates grant program within Dept. of Education to fund radon testing/mitigation in schools, improving school infrastructure safety for students and staff.95% confidence

Sub-Topics State Budget School Funding

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in committee · Iowa · Senate Feb 23, 2026

SF 2024: A bill for an act relating to local government by modifying property tax credits and rent reimbursements, provisions governing abandoned mobile homes and personal property in rural areas, and tax sales.

This bill modifies Iowa's property tax credit system for low-income elderly and disabled residents, ensuring timely annual payments for property taxes or rent reimbursements. It streamlines the removal of abandoned mobile homes on rural property by allowing landowners or mobile home park operators to remove "valueless homes" (defined as abandoned homes with no market value) without court orders, requiring only 10 days' written notice to the county treasurer. The bill also updates tax sale rules to prevent splits or consolidations of land parcels during redemption periods or with unpaid taxes. These changes directly affect rural property owners, mobile home park operators, and low-income homeowners/renters.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies property tax credits for low-income elderly/disabled, ensuring timely payments - provides tax relief per indicators.90% confidence ✓ HousingSupports HousingModifies property tax credits for low-income elderly/disabled, ensuring rent reimbursement payments, directly supporting affordable housing access.85% confidence

Sub-Topics Property Tax Tax Credits Property Taxes Renters

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in committee · Iowa · House Feb 24, 2026

HF 2027: A bill for an act relating to the sales tax holiday.

This bill raises the price limit for tax-free purchases during Iowa's annual sales tax holiday from $100 to $200. The holiday occurs on the first weekend in August each year. Residents purchasing qualifying items (like clothing or school supplies) under $200 will not pay state sales tax during this period. The change directly affects Iowa consumers buying eligible items during the designated weekend.

Topics ✓ Budget & TaxesSupports Budget & TaxesRaises tax-free purchase limit from $100 to $200 during sales tax holiday, providing direct tax relief to consumers on essential items like clothing/school supplies.95% confidence

Sub-Topics Procurement Sales Tax

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in committee · Iowa · House Feb 16, 2026

HSB 648: A bill for an act relating to the teach Iowa scholar program, including modifying eligibility provisions and establishing funding allocations.

This bill modifies Iowa's Teach Iowa Scholar program, which provides up to $4,000 annually (max $20,000 over five years) to teachers in STEM, ESL, special education, or hard-to-staff subjects. It removes the current requirement that applicants rank in the top 25% of their teacher preparation program. Instead, starting July 1, 2026, 20% of funds must go to teachers providing special education, and 50% to teachers in rural school districts (defined as districts with fewer than 1,000 students). These changes directly affect eligible teachers seeking program funding, shifting focus toward rural and special education roles.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies funding allocations for teacher program, mandating 20% to special ed and 50% to rural districts, directly advancing state budget allocation for education priorities.95% confidence ✓ EducationSupports EducationRemoves top 25% barrier for teacher eligibility and redirects 50% of funds to rural schools (underserved K-12 areas) and 20% to special education, directly strengthening teacher support and educational access.90% confidence

Sub-Topics Special Education Teachers

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in committee · Iowa · Senate Feb 3, 2026

SSB 3025: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production.

This bill exempts ethanol-blended gasoline containing over 85% ethanol from Iowa's excise tax when purchased exclusively for use in farm equipment. It directly affects Iowa farmers and agricultural businesses that use such fuel in machinery for farming operations. The key provision removes the tax at the point of purchase (at terminals or refineries) for qualifying fuel, eliminating the need to pay the tax and seek a refund under current law. This change applies specifically to gasoline meeting the 85% ethanol threshold used solely in agricultural implements, streamlining the tax process for this sector.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts ethanol-blended gasoline tax for farmers, providing direct tax relief to agricultural sector under tax exemptions.95% confidence ✓ EnergySupports EnergyExempts high-ethanol fuel from tax, promoting renewable energy use in agriculture by reducing costs for farmers using ethanol-blended gasoline.90% confidence

Sub-Topics Sales Tax

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in committee · Iowa · House Jan 29, 2026

HF 2208: A bill for an act related to the meaning of residential property for purposes of property taxation.

HF 2208 changes how certain single-family homes are taxed in Iowa starting January 1, 2027. It directly affects property owners who individually own more than ten single-family homes, reclassifying those homes from residential to commercial property for tax purposes. The bill defines a "single-family home" as a parcel with one dwelling unit used for human habitation. This reclassification means these properties will be subject to commercial property tax rates instead of residential rates. The change aims to adjust tax classification based on ownership scale rather than property use.

Topics ✓ Budget & TaxesSupports Budget & TaxesReclassifies multi-home properties to commercial tax rate, closing a loophole allowing lower residential rates, increasing tax revenue through fairer property taxation.95% confidence

Sub-Topics Property Tax

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