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.
HF 811 repeals Iowa's school tuition organization (STO) tax credit, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to STOs. The bill ends this credit for contributions made on or after July 1, 2025, and reduces the 2025 credit cap from $20 million to $10 million. It fully repeals the tax credit provision on July 1, 2031, removing all future eligibility and references to the credit in tax law. This directly affects individuals, corporations, and STOs that previously used or issued these tax credits.
This bill modifies Iowa's property tax calculation system by introducing a cap on annual tax increases for qualified properties starting in fiscal year 2026. It limits tax increases for residential and agricultural properties to 103% of the previous year's tax (108% for commercial/industrial), unless improvements occurred during the base year. A "qualified parcel" must not have changed ownership, undergone new construction, or been subject to exemptions in the base year. The cap applies only to standard annual property taxes (excluding special assessments or bond payments) and aims to prevent sudden large tax jumps for eligible property owners.
HSB 89 modifies Iowa's tax code across multiple areas, including personal income, property, sales, motor fuel, and inheritance taxes. Key changes include allowing the Department of Revenue to share tax information with law enforcement for suspected tax fraud (e.g., false filings or evasion), expanding a farm tenancy income exclusion for eligible long-term farmers, and aligning Iowa's pass-through entity tax rules with federal Internal Revenue Code procedures. The bill also requires annual tax statistics reporting and updates property tax refund timelines. These provisions directly affect Iowa taxpayers, businesses, and law enforcement agencies interacting with tax administration.
This bill sets new limits on property tax rates for Iowa counties and cities. It caps annual tax rates for general services based on a formula comparing current tax collections to property values, excluding increases from new construction or boundary changes. For counties and cities, rates cannot exceed a specific dollar amount per $1,000 of assessed value, with adjustments tied to prior years' actual tax collections and property value growth. The rules apply to fiscal years starting July 1, 2026, and directly affect local government budgeting for property taxes.
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.
This bill (HSB 324) requires credit and debit card networks to exclude sales tax amounts from the total transaction when calculating interchange fees charged to sellers. It directly affects retailers and businesses that collect sales tax on credit/debit card purchases, as they currently pay fees on the full transaction amount including tax. The key provision mandates that payment networks either deduct tax amounts from interchange fees at settlement or provide rebates proportional to the tax portion. This change aims to reduce costs for sellers by ensuring they are not charged fees on tax amounts collected for the government. The bill also includes penalties for non-compliance and a process for sellers to claim rebates if tax wasn't captured at checkout.
This bill proposes a constitutional amendment requiring a two-thirds vote in both Iowa House and Senate for any bill that increases income tax rates (individual or corporate) or creates new income-based taxes. It would directly affect Iowa's legislative process for tax changes, making it harder to raise taxes without broad bipartisan support. Key provisions include a one-year deadline for legal challenges to tax bills passed under this rule and a requirement that all such bills include a specific statement about the two-thirds vote requirement. If approved by voters in 2026, this amendment would change how Iowa enacts most tax legislation.
This bill adjusts property tax rates for Iowa counties, directly affecting local governments and property owners. It sets new tax rate formulas for general and rural county services, requiring counties to maintain tax revenue at least 1.5% above the prior year’s actual collections (with exceptions for inflation). The rates are tied to the consumer price index, adjusting the maximum allowable tax increase based on inflation thresholds (e.g., 4-6% inflation triggers a 103% adjustment factor). These changes apply to fiscal years starting July 1, 2024, through 2028, with specific rules for 2026-2027 budget cycles.
SJR 11 proposes an amendment to the Iowa Constitution that would change the requirements for passing certain state tax laws. It mandates that any bill increasing state individual or corporate income tax rates, or establishing a new state tax on income or reserves, must receive a two-thirds majority vote in both the House and Senate. This requirement does not apply to taxes imposed by local governments. The amendment also sets a one-year limit for legal challenges to the enactment of such tax bills. If passed by two consecutive General Assemblies, Iowa voters would consider this amendment in the November 2026 general election.
