Budget & Taxes (Tax Credits)

introduced · Iowa · Legislature

1410XD: Economic Development Authority and Finance Authority, Programs and Duties (1410XD) - Economic Development Authority

This bill (1410XD) updates Iowa's economic development programs, primarily focusing on tax credit processes for brownfield, grayfield, and redevelopment projects. It revises how applications are reviewed (requiring council and board input), sets a 30-month completion deadline for registered projects, and mandates independent audits for tax credit claims. The bill also repeals outdated sections of Vision Iowa and community tourism programs, applying new rules retroactively to existing awards. These changes directly affect businesses and developers seeking tax credits for redevelopment, tourism infrastructure, and historic preservation projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates independent audits for tax credit claims and streamlines programs, promoting fiscal accountability in tax credit administration.85% confidence

Sub-Topics Tax Credits

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in committee · Iowa · Senate Apr 14, 2025

SF 465: A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture, and including applicability and retroactive applicability provisions.

This bill amends multiple economic development programs in Iowa, including tax credits for brownfield redevelopment, historic preservation, community tourism, and Vision Iowa. It streamlines application processes by requiring review committees for tourism programs, sets 30-month project completion deadlines for tax credit projects, and mandates independent audits for tax credit claims. The bill repeals outdated sections of law, transfers unspent funds to Vision Iowa, and applies retroactively to past applicants for tourism and redevelopment programs. It directly affects businesses, local governments, and developers seeking tax credits or financial assistance under these programs. The changes aim to clarify administrative procedures without altering the core funding mechanisms.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax credit programs (brownfield, historic preservation) and transfers unspent funds to Vision Iowa, maintaining fiscal support for development initiatives.90% confidence

Sub-Topics Tax Credits

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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 & TaxesSupports Budget & TaxesExpands tax credits for families (matching federal) and small businesses, funds child care workforce through grants, aligning with tax relief and public service funding indicators.95% confidence ✓ HealthcareSupports HealthcareBill explicitly provides health insurance benefits for child care workers via state grant program, expanding coverage for a workforce segment.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentEstablishes state grant program to raise wages and provide health benefits for child care workers, directly advancing worker compensation and benefits.95% confidence

Sub-Topics Business Taxes Tax Credits

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died · Iowa · House Apr 9, 2026

HF 601: A bill for an act relating to fees for wire transmissions, and related income tax credits.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directs transaction fees to fund anti-human trafficking program, creating new revenue stream for public service while offering tax credits to offset individual costs.95% confidence

Sub-Topics Income Tax Tax Credits

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died · Iowa · House Apr 28, 2025

HF 962: A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.

HF 962 modifies the Iowa child and dependent care tax credit, affecting taxpayers who claim this credit against their individual income tax. It reduces the number of graduated income thresholds used to calculate the credit from seven to four. The bill also removes the current maximum income threshold for eligibility, allowing taxpayers with higher incomes to potentially claim the credit. Specifically, taxpayers with Iowa net income of $25,000 or more would be eligible for 50% of the federal child and dependent care credit. These changes would apply retroactively to tax years beginning on or after January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands child care tax credit eligibility to higher-income earners ($25k+ net income), providing broader tax relief for families, aligning with support indicators for tax relief.90% confidence

Sub-Topics Tax Credits

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died · Iowa · House May 14, 2025

HF 965: A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.

HF 965 increases the state adoption tax credit available against the individual income tax. It raises the maximum credit for qualified adoption expenses from $5,000 to $20,000 per adoption, directly affecting taxpayers who adopt a child. The credit is refundable, meaning any amount exceeding a taxpayer's liability can be returned. This bill takes effect upon enactment and applies retroactively to adoptions finalized on or after January 1, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases refundable adoption tax credit from $5k to $20k, providing direct tax relief for adoptive families and reducing tax liability.95% confidence

Sub-Topics Tax Credits

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in committee · Iowa · House Jan 14, 2025

HF 27: A bill for an act relating to the deduction of the purchase amount of nonathletic school uniforms for purposes of the individual income tax, and including retroactive applicability provisions.

This bill allows Iowa taxpayers to deduct up to $500 per student for the cost of required nonathletic school uniforms purchased for children attending public or private schools. It directly affects families with school-aged children who must buy uniforms for their children's schools. The deduction applies to tax years beginning on or after January 1, 2025, and includes retroactive application to that date. The provision does not cover athletic uniforms and is limited to the purchase amount, not other school expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for school uniforms, reducing taxable income for families - direct tax relief for middle-income households under income tax policy.95% confidence

Sub-Topics Income Tax Tax Credits

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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 12, 2025

HF 358: A bill for an act relating to the individual income tax credits for volunteer fire fighters, volunteer emergency medical services personnel members, and reserve peace officers by increasing the amounts of the credits, and including retroactive applicability provisions.

HF 358 increases the state income tax credit for volunteer firefighters, emergency medical services personnel, and reserve peace officers from $250 to $1,000 per tax year. It directly affects volunteers who served the entire tax year in these roles, compensating them for their unpaid service. The bill includes retroactive application, making the higher credit available for tax years beginning on or after January 1, 2025. This change modifies existing tax code sections to adjust the credit amounts and applies to qualifying taxpayers filing returns for those years.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credits for volunteer public service workers, providing direct tax relief to lower-income individuals through higher refundable credits.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Iowa · House Feb 13, 2025

HF 417: A bill for an act modifying the tuition and textbook tax credit available against the individual income tax, and including retroactive applicability provisions.

HF 417 increases Iowa's tuition and textbook tax credit for eligible families from 25% to 50% of the first $2,000 spent annually per dependent on private or accredited public school tuition and textbooks (K-12). It directly affects Iowa taxpayers with children attending qualifying non-profit, accredited schools that comply with civil rights laws. The bill applies retroactively to tax years beginning January 1, 2025, meaning families can claim the higher credit for 2025 taxes immediately. The credit remains subject to existing eligibility rules, including school accreditation and non-profit status requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tuition/textbook tax credit from 25% to 50%, providing direct tax relief to eligible families for K-12 education expenses.95% confidence ✓ EducationSupports EducationIncreases tax credit for K-12 tuition/textbooks from 25% to 50%, expanding financial support for families and improving educational access to accredited schools.95% confidence

Sub-Topics Income Tax Tax Credits Curriculum School Choice

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