This bill creates a $500 tax credit per clinical preceptorship for advanced registered nurse practitioners (ARNPs) who mentor nursing students without pay. It directly affects licensed ARNPs employed at clinical sites who provide at least 100 hours of unpaid supervision during a student’s required clinical training. The credit is capped at $2,000 annually per preceptor and requires documentation of student details, dates, and graduation year. The credit applies against individual income tax for tax years starting January 1, 2026, and excess credit is not refundable or carry-forwardable.
HF 541 creates a temporary sales tax exemption for firearms, firearm accessories, ammunition, and gun safes purchased on July 3, July 4, or July 5 each year. This exemption directly affects consumers making qualifying purchases on those specific dates by removing the state sales tax. The bill amends Iowa law to exempt these items from sales tax during this three-day period, and by law, this also eliminates the related use tax. The policy change is limited to those exact dates with no ongoing tax relief.
HF 498 eliminates Iowa's 6% state sales and use tax on retail purchases, services, and digital products, effective January 1, 2026. It removes the tax from all taxable transactions previously subject to the 6% rate, including goods, services, mobile telecommunications, and digital products. The bill also eliminates the 1% tax dedicated to the SAVE fund (Secure an Advanced Vision for Education). Local option taxes adopted under Chapter 423B remain unaffected by this change.
This Iowa bill (HF 496) lowers the state's individual income tax rates for 2026 and beyond. It reduces the standard tax rate from 3.8% to 2.5% on taxable income, and lowers the alternate tax rate from 4.3% to 3.0% for higher-income filers. The changes apply to all Iowa residents and nonresidents with taxable income, affecting most individual income tax returns filed for tax years beginning January 1, 2026. The bill modifies existing tax calculation methods but does not change filing requirements or exemptions.
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 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.
HF 568 removes interest income earned from banks and credit unions from Iowa's calculation of individual income tax. This directly affects Iowa taxpayers who earn interest on savings accounts, certificates of deposit, or similar deposits at qualifying financial institutions. The bill defines "bank" broadly (including credit unions and savings associations) and specifies that the change applies retroactively to tax years beginning on or after January 1, 2025. It does not change other tax rules but reduces taxable income for affected individuals starting in 2025.
HF 600 limits property tax increases for Iowa cities and counties. It sets a cap of 102% of a government's average property tax rate over the previous five years for fiscal years starting July 1, 2026. To temporarily exceed this cap for one year within a five-year period, voters must approve with 60% support in a special election. The legislature must also get 60% approval to change these tax limits.
HF 634 establishes an annual fee for landowners who maintain forest and fruit-tree reservations that currently qualify for property tax exemptions under Iowa law. Starting January 1, 2026, fees will be paid by September 1 each year to the county treasurer and deposited into the county general fund. The fee amount depends on location: $2 per acre if the reservation is in the same county as the owner's homestead, $3 per acre if in a contiguous county, and a calculated rate based on county property taxes and corn ratings for all other reservations (including those within city limits). This replaces the current tax exemption with a location-based fee structure, directly affecting landowners with designated forest or fruit-tree reservations.
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.
