Budget & Taxes

in committee · Iowa · Senate Jun 16, 2025

SF 651: A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

This bill modifies Iowa county property tax rates for general and rural services. It sets new annual tax rate formulas based on assessed value, with specific calculations for fiscal years starting in 2024-2028. Key provisions include requiring counties to maintain tax revenue at 101.5% of the previous year's actual levy (for 2027-2028) and linking rate adjustments to changes in the consumer price index (CPI), using a "budget adjustment factor" that ranges from 102% to 105% based on CPI growth. These changes directly affect county governments' ability to set property tax levies for local services.

Topics ✓ Budget & TaxesSupports Budget & TaxesSets CPI-linked property tax rate adjustments and requires revenue maintenance (101.5% of prior year), promoting fiscal stability and preventing arbitrary tax hikes.92% confidence

Sub-Topics Property Tax Revenue State Budget

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passed · Iowa · House Feb 24, 2026

HF 970: A bill for an act relating to the double up food bucks program, the supplemental nutrition assistance program and making appropriations and including effective date provisions.

HF 970 allocates $1 million for Iowa's Double Up Food Bucks program, which helps SNAP recipients buy fresh produce at farmers markets and grocery stores. It requires grant recipients to match funds dollar-for-dollar and ensures the funds remain available beyond the fiscal year. The bill also seeks federal approval to restrict SNAP-eligible foods to healthy items like fruits, vegetables, whole grains, and lean proteins. This food eligibility change would take effect only after the USDA approves the modification. The program funding becomes effective upon federal approval of the food rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $1M for SNAP food assistance program, directly funding an essential public service per appropriations language.95% confidence ✓ HealthcareSupports HealthcareAllocates $1M for Double Up Food Bucks program, promoting healthy food access for SNAP recipients under public health nutrition initiatives.95% confidence

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in committee · Iowa · House May 15, 2025

HF 1024: A bill for an act excluding overtime pay from the individual income tax, and including applicability provisions.

HF 1024 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn compensation at a rate of one and a half times their regular pay by allowing them to subtract this income from their taxable earnings. The bill amends the state's tax code to implement this exclusion. If enacted, these provisions would apply to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, providing tax relief for workers earning overtime wages, aligning with tax relief indicators for middle-income earners.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from income tax, increasing take-home pay for workers earning overtime, aligning with expanded worker benefits.90% confidence

Sub-Topics Income Tax Labor Standards

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in committee · Iowa · House May 15, 2025

HF 1030: A bill for an act exempting qualified tips from the individual income tax, and including applicability provisions.

HF 1030 proposes to exempt certain cash tips from the individual income tax for qualifying Iowans. Individuals whose net income is less than $155,000 could subtract up to $25,000 in "qualified tips" from their taxable income. "Qualified tips" are defined as cash tips received in occupations that traditionally and customarily received cash tips before December 31, 2023. This exemption would apply to tax years beginning on or after January 1, 2026, unless the federal government enacts similar legislation.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts cash tips from tax for earners under $155k, providing tax relief to qualifying individuals per bill's tax exemption focus.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts cash tips from tax for low-income tipped workers, increasing net earnings in occupations like servers without raising taxable income.85% confidence

Sub-Topics Income Tax

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passed · Iowa · House May 20, 2025

HF 1033: A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.

HF 1033 designates rural water districts, organized under specific state chapters, as exempt entities for sales and use tax purposes. This change allows these districts to apply for refunds on sales and use tax paid for building materials, supplies, equipment, and services from contractors under written agreements. The bill specifically makes construction services provided to these districts exempt from sales tax, which differs from existing law. It also removes a current, more limited sales tax exemption for building materials to prevent duplicate provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts rural water districts from sales tax on construction, providing tax relief for public infrastructure funding and reducing operational costs for essential services.95% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · Iowa · House May 20, 2025

HF 1034: A bill for an act providing for an individual income tax credit for the purchase of firearm safety devices and including retroactive and other applicability provisions.

HF 1034 creates a new individual income tax credit in Iowa for taxpayers who purchase firearm safety devices. The credit is equal to the sales price of the device, up to a maximum of $500. Eligible devices include those designed to prevent a firearm from being operated without deactivation, or a new, personal-use "qualified gun safe" made of steel or similar strong material. Any unused credit can be carried over to the following tax year, and the bill applies retroactively to purchases made on or after January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing individual tax liability for firearm safety device purchases, aligning with tax relief indicators.90% confidence

Sub-Topics Tax Credits

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passed · Iowa · House May 20, 2025

HF 1026: 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 1026 updates the adoption tax credit available against individual income tax for taxpayers in Iowa. The bill increases the maximum credit for qualified adoption expenses from $5,000 to $20,000 per adoption. It also specifies that any credit amount exceeding a taxpayer's liability is refundable. This act takes effect upon enactment and applies retroactively to adoptions finalized on or after January 1, 2024, for tax years beginning on or after that date.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases adoption tax credit from $5k to $20k and makes it refundable, providing tax relief for adoptive families.95% confidence

Sub-Topics Tax Credits

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passed · Iowa · House Apr 16, 2025

HF 315: A bill for an act relating to budget adjustments by school districts affected by a natural disaster.

HF 315 modifies the process for budget adjustments available to Iowa school districts impacted by natural disasters. Currently, school districts can receive a budget adjustment based on the difference between their current and 101% of their previous year's regular program district cost. This bill introduces an additional year of budget adjustment for districts that have already received an adjustment and were affected by a federally declared major disaster or state disaster emergency in the base year or the year prior. This additional adjustment would be equal to the amount of the district's budget adjustment from the base year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables additional budget adjustments for school districts post-disaster, supporting fiscal management of public education funding without tax changes.90% confidence ✓ EducationSupports EducationBill provides additional budget adjustment year for disaster-affected school districts, ensuring continued funding stability and support for K-12 education infrastructure after natural disasters.92% confidence

Sub-Topics State Budget School Funding

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signed · Iowa · Senate Jun 27, 2025

SF 657: A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions.

SF 657 modifies the state's tax credit system by creating new credits, changing existing ones, and eliminating some tax incentive programs. It establishes penalties for failing to comply with these tax credit rules and specifies when the changes take effect, including retroactive application to prior tax years. This bill directly affects businesses and individuals who claim tax credits under the state's finance code. Signed into law by the Governor on June 6, 2025, it changes how taxpayers access and qualify for state tax incentives.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new tax credits and modifies existing ones to support business development and economic growth, aligning with fiscal responsibility measures.92% confidence

Sub-Topics Tax Credits Tax Incentives

signed · Iowa · House Jun 27, 2025

HF 1044: A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission, and providing for properly related matters including the deposit of captive company premium tax revenue.

HF 1044 is an appropriations bill that provides funding for multiple Iowa state agencies and offices, including the Department of Administrative Services, Auditor of State, Ethics Board, governor's offices, and the Department of Revenue. It allocates budget authority for the operation and regulation of these state entities, covering their administrative needs and existing functions. The bill directly affects the agencies listed by authorizing their use of state funds for day-to-day operations and regulatory activities. It does not create new policies or programs but ensures continued funding for current state government functions. The bill passed both chambers and was signed into law by the governor on June 11, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates state funds to multiple agencies for operations, directly supporting budget execution and fiscal management per appropriations language.95% confidence

Sub-Topics Pensions Revenue State Budget