Budget & Taxes (Tax Credits)

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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in committee · Iowa · House Feb 24, 2025

HF 566: A bill for an act modifying individual income tax rates and providing tax credits for certain married persons filing a joint return, and including effective date and retroactive applicability provisions.

HF 566 modifies Iowa's individual income tax rates for married couples filing jointly. It sets the tax rate to 0% for couples with five or more dependents under 18 or for first/second-time joint filers, and creates a $1,000 per dependent tax credit (up to 10 dependents under 18) for these couples. Any excess credit is refundable or can be applied to future tax bills. The bill takes effect immediately upon enactment and applies retroactively to tax years beginning January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief via 0% rate and $1,000 per dependent credit for qualifying families, reducing tax burden on middle/lower income.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Iowa · House Feb 28, 2025

HF 625: A bill for an act providing for the future repeal of tax credits.

HF 625 sets specific expiration dates for existing Iowa tax credit programs, with most ending between 2027 and 2041. It also establishes that any new tax credit program enacted after January 1, 2026, will automatically expire six years after its effective date. The bill preserves tax credits issued or awarded before January 1, 2031, ensuring taxpayers can still claim or redeem them. This affects Iowa taxpayers who currently use or may later claim these credits, but does not alter existing agreements or credits issued prior to the specified dates.

Topics ✗ Budget & TaxesOpposes Budget & TaxesPhases out tax credits through expiration dates (2027-2041) and limits new credits, reducing tax relief for Iowa taxpayers.95% confidence

Sub-Topics Tax Credits Tax Incentives

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in committee · Iowa · House Mar 13, 2025

HF 958: A bill for an act creating a premarital counseling tax credit available against the individual income tax, and including retroactive applicability provisions.

HF 958 creates a tax credit for Iowa individual income taxpayers who pay for premarital counseling, reducing their tax bill by up to $500 per couple. The credit covers the full cost of counseling services (defined as preparation for marriage), with any unused portion carried forward to future tax years but not refunded. This credit applies retroactively to tax years beginning January 1, 2025, meaning couples can claim it for 2025 and later tax filings. It directly affects Iowa residents seeking premarital counseling services who file individual income tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing individual income tax liability, aligning with tax relief indicator for Budget & Taxes.95% confidence

Sub-Topics Tax Credits

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in committee · Iowa · House Mar 3, 2026

HF 327: A bill for an act creating an advanced registered nurse practitioner preceptor tax credit available against the individual income tax, and including applicability provisions.

HF 327 creates a tax credit for Iowa residents who serve as clinical preceptors for advanced registered nurse practitioner students. The credit provides $1,000 per clinical preceptorship (involving at least 100 hours of supervised learning) with a maximum $2,000 annual credit, directly affecting licensed nurse practitioners who mentor students without compensation. To qualify, preceptors must be employed at the clinical site, selected by the nursing program, and have at least one year of mentoring experience. The credit is refundable if it exceeds tax liability, and preceptors must document student details including hours and program information. The bill applies to tax years beginning January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing taxable income for qualifying preceptors, aligning with tax relief indicators for middle-income professionals in public service roles.95% confidence ✓ EducationSupports EducationBill provides tax credit to incentivize nursing preceptors, supporting higher education workforce development in healthcare education.85% confidence ✓ HealthcareSupports HealthcareCreates tax credit to incentivize nurse practitioner mentorship, expanding healthcare workforce training and improving access to care.92% confidence

Sub-Topics Tax Credits Healthcare Workforce

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