Budget & Taxes

in committee · Iowa · House Feb 6, 2025

HF 235: A bill for an act modifying the general and rural county services levy rate limitation for fiscal years beginning on or after July 1, 2026.

HF 235 modifies Iowa's property tax rate limits for general and rural county services starting July 1, 2026. It allows counties to increase their tax rate if the total property value for the new budget year is 101% or less of the current year's value, calculating the new rate as 103% of current tax dollars divided by the new property value. Each county may adjust its rate only once per fiscal year under this provision. This bill directly affects counties needing to set property tax rates for services like roads and emergency response. The change provides a limited pathway for small tax increases without exceeding existing rate caps.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies property tax rate limits to allow flexible county budget adjustments based on property values, promoting fiscal stability and responsible tax management.85% confidence

Sub-Topics Property Tax

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in committee · Iowa · House Feb 6, 2025

HF 222: A bill for an act allocating hotel and motel taxes to schools that begin school calendar years after Labor Day, creating an alternate school start date fund, and making appropriations.

HF 222 allocates hotel and motel tax revenue collected between August 23 and Labor Day to schools that begin their academic year after Labor Day. It creates an "alternate school start date fund" in the state treasury, managed by the Department of Education, which distributes funds to qualifying schools based on enrollment. Schools must meet the standard 1,080 hours of instruction (as if starting August 23, excluding weather-related closures) to receive funding. The funds are deposited into school districts' general funds as "miscellaneous income" but are not counted toward district costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates existing hotel/motel tax revenue to schools via new fund, increasing public education funding through fiscal reallocation without new taxes.95% confidence ✓ EducationSupports EducationAllocates hotel/motel tax revenue to schools starting after Labor Day, creating a dedicated fund for qualifying schools meeting instructional hour requirements.95% confidence

Sub-Topics Revenue School Funding

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in committee · Iowa · House Feb 10, 2025

HSB 138: A bill for an act relating to public school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments and transportation equity payments, modifying provisions relating to the regular program state cost per pupil and funding for shared operational functions, establishing a school district funding supplement, making appropriations, and including effective date provisions.

This bill sets the state funding growth rate at 2.25% for Iowa's 2025 school budget year, directly affecting all public school districts in the state. It modifies how property tax replacement payments are calculated using student enrollment and previous funding formulas, while also adjusting transportation equity payments. The bill establishes a new school district funding supplement and updates the regular program state cost per student. These changes determine annual state contributions to schools for the 2025 budget cycle.

Topics ✓ Budget & TaxesSupports Budget & TaxesSets 2.25% state funding growth for schools, establishes new funding supplement, and modifies formulas to maintain/adjust state contributions to public education - directly funds essential programs.95% confidence ✓ EducationSupports EducationBill sets 2.25% state funding growth for 2025 public schools and establishes a new school district funding supplement, directly increasing state education funding.95% confidence

Sub-Topics School Funding

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in committee · Iowa · Senate Feb 11, 2025

SF 206: A bill for an act authorizing school districts to use revenues from the district management levy for teacher recruitment and retention incentives.

SF 206 allows Iowa school districts to use revenues from their district management levy to fund teacher recruitment and retention incentives. The bill sets specific limits: incentives cannot exceed 10% of an initial teacher's salary annually and must end after five school budget years. School districts may choose between this program or early retirement benefits, but cannot use both simultaneously or within five years of adopting the other. It requires public comment before adoption and prohibits using levy funds for early retirement costs in the same fiscal year as recruitment/retention incentives. This directly affects school districts seeking to address teacher staffing challenges through financial incentives.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects existing tax levy revenues toward teacher retention programs, aligning with fiscal management of public funds for essential education services.85% confidence ✓ EducationSupports EducationBill authorizes school districts to use levy funds for teacher recruitment/retention incentives, directly supporting educator retention and funding within K-12 education.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAuthorizes school districts to fund teacher recruitment/retention incentives using levy revenues, directly supporting teacher wages and employment stability within defined limits.90% confidence

Sub-Topics School Funding Teachers

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in committee · Iowa · Senate Feb 11, 2025

SF 200: A bill for an act relating to the distribution of water exempt from taxation and the use of tax exemption certificates, and providing civil penalties.

This bill requires water utilities in Iowa to accept and retain valid exemption certificates that allow certain water users to avoid sales or water service taxes. It directly affects water utilities and customers who possess these certificates, preventing utilities from forcing customers to seek tax refunds instead of applying the exemption directly. Utilities that refuse valid certificates must pay a civil penalty equal to the tax amount plus interest to the state revenue department. The bill also defines key terms and mandates the revenue department to create rules for implementation.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enforces tax exemption certificates, closing a loophole that prevented direct tax relief for water users, aligning with fiscal responsibility.85% confidence

Sub-Topics Revenue Tax Incentives

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in committee · Iowa · House Feb 12, 2025

HF 360: A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

HF 360 would exclude overtime pay from Iowa's individual income tax calculation. Specifically, it removes from taxable income the portion of compensation earned for hours worked beyond 40 in a workweek, paid at rates of 1.5 to 2 times the regular wage under federal law (29 U.S.C. §207). This change directly affects Iowa workers who earn overtime pay, reducing their taxable income for those hours. The policy takes effect for tax years beginning January 1, 2026. The bill does not alter federal overtime rules but changes how Iowa taxes that specific income.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, reducing tax burden for workers and aligning with tax relief indicators for middle/lower income earners.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from taxable income, increasing workers' net earnings for hours beyond 40 without altering federal overtime standards.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Labor Standards

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in committee · Iowa · House Feb 12, 2025

HSB 129: A bill for an act relating to the maximum amount of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

This bill increases Iowa's workforce housing tax incentive program funding limits. It raises the maximum annual allocation from $35 million to $50 million, with $25 million specifically reserved for housing projects in small cities (as defined in section 15.352) registered after July 1, 2017 - up from $17.5 million. The change directly affects developers building affordable housing for low-to-moderate-income workers, particularly those in smaller communities. The policy modifies how tax credits are distributed under existing tax code provisions without altering the program's eligibility criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases max annual tax incentive allocation from $35M to $50M, reserving $25M for small city housing projects, directly expanding funding for affordable housing via tax credits.95% confidence ✓ HousingSupports HousingIncreases $50M annual tax incentive funding for workforce housing, specifically reserving $25M for small cities' affordable projects targeting low-to-moderate-income workers.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Housing Finance

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in committee · Iowa · House Feb 12, 2025

HF 361: A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

HF 361 exempts cash tips reported to employers via IRS Form 6053(a) from Iowa's individual income tax. It directly affects workers who receive cash tips (such as servers or bartenders) by reducing their taxable income for state tax purposes. The bill adds a provision allowing taxpayers to subtract these reported cash tips when calculating their Iowa tax liability. This change applies to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts cash tips from state income tax, providing tax relief for service workers (lower/middle income), directly aligning with support indicators.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts cash tips from state tax, increasing take-home pay for tipped workers (servers/bartenders), directly enhancing wage compensation under employment standards.90% confidence

Sub-Topics Income Tax Minimum Wage

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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 12, 2025

HSB 130: A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.

HSB 130 creates a tax credit for Iowa businesses and nonprofits investing in quantum technology infrastructure. It allows eligible applicants (including consortia) to claim credits against individual or corporate income taxes for qualifying capital investments - like lab equipment and software - used to build shared quantum facilities, provided they secure at least $2 million in federal grants. The credit is available for tax years 2026-2032, with annual funding capped at $24 million and a total program limit of $44 million. To qualify, projects must be completed before 2031 and approved by Iowa’s authority, with credits refundable if exceeding tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing taxable income for businesses investing in quantum tech, directly advancing tax incentive policy for economic development.95% confidence ✓ TechnologySupports TechnologyCreates tax credit for quantum tech infrastructure investments, directly funding technology advancement and infrastructure development.95% confidence

Sub-Topics Emerging Technology

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