Budget & Taxes

failed · Iowa · Senate May 14, 2025

SF 297: A bill for an act relating to contracts entered into by state agencies and including applicability provisions.

SF 297 sets new rules for contracts state agencies in Iowa must use when buying goods or services. It bans 19 specific contract terms that could unfairly burden the state, such as clauses requiring the state to cover a vendor’s legal costs, using foreign law, hiding payment terms, or forcing arbitration. The bill also requires all contracts to follow Iowa law and be litigated in Iowa courts. These rules apply to all state agency contracts signed or renewed after the bill takes effect, directly affecting how state agencies negotiate and manage vendor agreements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill prevents state financial burdens by banning costly contract terms, promoting fiscal responsibility in government spending management.85% confidence

Sub-Topics Procurement

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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 · Senate Feb 23, 2026

SF 493: A bill for an act prohibiting political subdivisions from using certain moneys to hire lobbyists or pay instrumentalities, and providing penalties.

SF 493 prohibits local governments in Iowa (such as cities, counties, and school districts) from using tax revenue to hire lobbyists or pay government-affiliated groups that hire lobbyists. It specifically targets organizations like the Iowa League of Cities, the Iowa State Association of Counties, and the Iowa School Board Association, while excluding certain insurance or benefits groups. Violating this law constitutes a serious misdemeanor, punishable by fines up to $2,560 and potential job sanctions for the person involved. The bill aims to prevent the use of public tax funds for lobbying activities by local entities.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts use of tax revenue for lobbying, limiting government spending on lobbying activities and promoting fiscal responsibility through budgetary restriction.95% confidence

Sub-Topics Revenue Tags Local Government

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in committee · Iowa · House May 15, 2025

HF 1018: A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

House File 1018 amends a previous law regarding the historic preservation tax credit. This bill extends the period during which existing historic preservation tax credits are protected from changes to their refundability. Specifically, it shifts the cutoff date for preserving existing rights to these tax credits from January 1, 2023, to July 1, 2023. This means that taxpayers who were issued, awarded, or allowed historic preservation tax credits prior to July 1, 2023, will have their rights to those credits, including any carryforward amounts, protected from certain reductions in refundability.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends deadline for historic preservation tax credits, protecting existing tax benefits without altering rates or structure, aligning with tax credit preservation as a supportive fiscal measure.90% confidence

Sub-Topics Business Taxes

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in committee · Iowa · House May 15, 2025

HF 961: A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.

HF 961 exempts up to $500,000 of income from nonqualified deferred compensation plans from state individual income tax. This exemption applies to taxpayers who are disabled, 55 years of age or older, or the surviving spouse or survivor with an insurable interest of an individual who would have qualified. The bill amends the state's tax code to include this new subtraction from net income. It also includes retroactive applicability, making it effective for tax years beginning on or after January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts $500k income from tax for disabled, 55+, or surviving spouses, providing targeted tax relief per tax code amendment.95% confidence

Sub-Topics Income Tax

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signed · Iowa · Senate Jun 27, 2025

SF 660: A bill for an act relating to sports wagering and tourism, making appropriations, and including effective date provisions.

SF 660 establishes a regulatory framework for legal sports wagering within the state and allocates state funds to support tourism initiatives. It directly affects licensed sports betting operators, state tourism agencies, and businesses in the hospitality sector. Key provisions include creating licensing requirements for sports wagering entities, setting tax rates on bets, and directing new revenue toward tourism marketing and infrastructure projects. The bill was signed into law by the Governor on June 11, 2025, following unanimous passage in the Senate.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax revenue from sports betting and allocates funds to tourism infrastructure, directly funding public initiatives through new appropriations.95% confidence

died · Iowa · House Jun 27, 2025

HF 980: A bill for an act relating to unemployment insurance taxes on employers.

HF 980 changes Iowa's unemployment insurance tax system for employers. It reduces the percentage used to calculate taxable wages from 66.66% to 33.33% of the statewide average weekly wage (previously used for maximum benefit calculations), and adjusts the contribution rate tables to lower tax rates for most employers. The bill also requires employers to use any tax savings from these changes to pay employee salaries/benefits or cover seasonal unemployment, rather than keeping the savings. This directly affects all Iowa employers paying unemployment insurance taxes, particularly those with out-of-state workers, by lowering their tax burden under the new structure.

Topics ✗ Budget & TaxesOpposes Budget & TaxesReduces employer unemployment insurance tax rates, weakening state revenue for unemployment program funding.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires employers to use tax savings for employee salaries/benefits, directly advancing worker compensation under labor & employment policies.90% confidence

Sub-Topics Unemployment

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passed · Iowa · House Jan 22, 2026

HF 986: A bill for an act relating to matters under the purview of the department of insurance and financial services, the utilities commission, and the department of transportation, including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, service contracts, the Iowa individual health benefit reinsurance association, and the Iowa cemetery Act, motor vehicle financial liability coverage, and including penalties and effective date provisions.

HF 986 establishes new funds and initiatives to enhance financial literacy and prevent financial exploitation for the public. It creates a Financial Literacy and Investor Education Fund and a Financial Exploitation Prevention Fund, which are partially funded by reallocating a portion of agent registration fees. The bill also establishes a Senior Health Insurance Information Program Fund to provide educational materials on health insurance for older Iowans. These provisions aim to educate Iowans on financial topics and assist potential victims of financial exploitation.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new funds (Financial Literacy, Exploitation Prevention) via reallocated agent fees, advancing fiscal responsibility through targeted budgeting.95% confidence ✓ HealthcareSupports HealthcareCreates Senior Health Insurance Information Program Fund to educate seniors on health insurance options, improving access to coverage understanding.75% confidence

Sub-Topics Insurance

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introduced · Iowa · Legislature

1330DP: Public Funds, Innovation and Efficiencies (1330DP) - Auditor of State

This Iowa bill (1330DP) requires the state Auditor of State to annually create and update a list of practical, innovative best practices for efficiently using public funds - without needing new laws. The auditor must distribute these recommendations to all public entities (like cities, counties, and schools) and ask them to report which practices they are using. The auditor then compiles an annual report analyzing these responses. The bill directly affects all public entities in Iowa by establishing a voluntary reporting process for fund efficiency improvements.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates efficient public fund practices through Auditor's annual report, promoting fiscal responsibility without new spending or tax changes.90% confidence

Sub-Topics Audits & Accountability

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introduced · Iowa · Legislature

1337DP: Governmental Subdivision Audits, Income Tax Exemption (1337DP) - Auditor of State

This bill exempts certified public accountants (CPAs) from state income tax on fees earned from auditing or examining governmental subdivisions (like cities, counties, or school districts) in Iowa. It directly affects CPAs who perform these required audits, removing tax liability on that specific income under Iowa's individual (Code 422.7) and corporate (Code 422.35) tax codes. The key mechanism is amending those tax codes to exclude income from such governmental audits, effective retroactively for tax years beginning January 1, 2025. This creates a concrete tax benefit for CPAs working with local government entities, with no new reporting requirements for the affected income.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill exempts CPAs from tax on governmental audit fees, reducing state tax revenue and weakening fiscal management under Budget & Taxes.90% confidence

Sub-Topics Audits & Accountability Tax Incentives

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