Budget & Taxes (Business Taxes)

in committee · Iowa · Senate Feb 11, 2026

SSB 3105: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This bill updates Iowa's corporate tax code to allow a deduction for income earned by corporations from foreign operations (now termed "net controlled foreign corporation tested income" or NCTI under federal law), replacing outdated references to the previous federal term "GILTI." It directly affects Iowa corporations with foreign subsidiaries that pay taxes on foreign earnings. The key mechanism removes the specific reference to "GILTI" in tax code section 422.35(12) and aligns the deduction with the current federal definition of NCTI under IRC section 951A. The deduction applies retroactively to tax years beginning January 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax deduction reducing state revenue, aligning with federal tax code updates for foreign income.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · Senate Apr 15, 2026

SF 2292: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

SF 2292 updates Iowa's corporate tax code to maintain a deduction for net controlled foreign corporation tested income (NCTI), aligning with recent federal tax law changes. It replaces the outdated reference to "global intangible low-taxed income" (GILTI) with NCTI under federal Section 951A, ensuring Iowa businesses can still claim this deduction. The bill directly affects Iowa corporations with foreign operations that previously relied on this deduction under state law. It applies retroactively to tax years beginning January 1, 2026, to correct a technical gap caused by federal legislation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax deduction for foreign operations, reducing state revenue; aligns with tax breaks for businesses per indicators.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · House Jan 26, 2026

HF 2152: A bill for an act repealing the school tuition organization tax credit available against the individual and corporate income taxes and including effective date provisions.

HF 2152 repeals Iowa's school tuition organization (STO) tax credit program, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to private schools. Starting July 1, 2026, new contributions to STOs will no longer qualify for this credit, and the annual credit limit for 2026 is reduced to $10 million (down from $20 million). The program is fully repealed effective July 1, 2032, ending all future use of the credit. This directly affects Iowa taxpayers and businesses that previously claimed this credit against their state income tax bills.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals tax credit diverting state revenue to private schools, closing a tax loophole that reduced public tax revenue by $10M+ annually.95% confidence ✗ EducationOpposes EducationBill repeals tax credit funding for private school donations, directly reducing financial support for private education options and limiting educational access via tax incentives.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Higher Education School Choice

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in committee · Iowa · Senate Feb 25, 2026

SSB 3034: A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, the election of certain county officers, urban renewal areas and urban revitalization areas, establishing a rent reimbursement program, establishing a program for certain first-time homebuyers, establishing a local government shared-services grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

SSB 3034 establishes new limits on local government property tax levies and reserve funds for budgets certified after July 1, 2027. It caps the maximum property tax levy at 102% of the prior year's total plus new valuation growth (from construction, boundary changes, etc.), and restricts unassigned general fund reserves to no more than 10% of budgeted expenditures. These rules apply to cities, counties, and other local governments (excluding school districts), with the Department of Management overseeing compliance. The bill also modifies audit requirements to verify adherence to these financial limits.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCaps local property tax levies at 102% of prior year + new growth and restricts unassigned reserves to ≤10% of budgeted expenditures, limiting fiscal flexibility.90% confidence ✓ HousingSupports HousingBill establishes rent reimbursement program and first-time homebuyer program, directly funding housing assistance and affordability initiatives per bill's summary.95% confidence

Sub-Topics Business Taxes Property Tax State Budget Property Taxes Renters

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in committee · Iowa · Senate Feb 18, 2026

SSB 3074: A bill for an act relating to indirect costs charged to state-funded grants, and including applicability provisions.

This bill sets a 5% cap on indirect costs (administrative expenses like management, payroll, and facility costs) charged to state-funded grants in Iowa, effective July 1, 2026. It directly affects grant recipients (including nonprofits, local governments, schools, and for-profits) and state departments administering grants by requiring them to: 1) Separate direct and indirect costs in budgets, 2) Prohibit reclassifying indirect costs as direct costs to bypass the cap, and 3) Maintain documentation for audits. State departments must enforce the cap during grant approval and monitor compliance, with disallowed costs recoverable from grantees.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps indirect costs at 5% for state grants, restricting administrative spending on public funds and limiting budget flexibility for grant recipients.95% confidence

Sub-Topics Business Taxes State Budget

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introduced · Iowa · Legislature

5374XD: Governmental Subdivision Audits, Income Tax Exemption (5374XD) - Auditor of State

This bill (5374XD) exempts certified public accountants (CPAs) from Iowa state income tax on fees earned from auditing or examining local governments (like cities, counties, or school districts). It amends Iowa tax codes 422.7 (individual tax) and 422.35 (corporate tax) to exclude such income from taxable earnings. The exemption applies retroactively to tax years beginning on or after January 1, 2026. The bill directly affects CPAs who perform these government audits, removing a tax liability on their fees for this specific service.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts CPAs from income tax on government audit fees, reducing state revenue and creating a targeted tax break for professionals, aligning with 'creates tax breaks primarily for wealthy' indicator.90% confidence

Sub-Topics Audits & Accountability Business Taxes Income Tax

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in committee · Iowa · Senate Mar 5, 2025

SSB 1181: A bill for an act prohibiting franchise fees imposed by cities and counties.

This bill prohibits cities and counties in Iowa from imposing or collecting franchise fees on businesses providing essential services (like utilities) starting July 1, 2025. It directly affects all cities and counties that previously collected such fees, which were typically based on a percentage of a business's gross sales. Key provisions eliminate the ability to charge these fees entirely after the effective date, while existing franchise agreements remain valid under current terms. The law specifically bans new franchise fees from being assessed or collected by any city or county on or after July 1, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill prohibits cities/counties from collecting franchise fees (a revenue source), restricting local tax collection and reducing government revenue streams.95% confidence

Sub-Topics Business Taxes Fees & Licensing

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in committee · Iowa · House Feb 18, 2025

HF 444: A bill for an act relating to property assessment and property taxation by creating a recreational class of real property for golf courses.

HF 444 creates a new "recreational property" classification for golf courses operated as commercial businesses. Starting with the 2026 assessment year, these properties would be assessed at 75% of their actual value for tax purposes, rather than the standard rate applied to other property types. This would reduce property taxes for qualifying golf courses. The bill specifically defines "recreational property" as commercial golf courses subject to taxation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces property tax rate for commercial golf courses (75% valuation), creating tax break primarily for business owners (likely wealthy), aligning with OPPOSE indicators.90% confidence

Sub-Topics Business Taxes Property Tax

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in committee · Iowa · House Feb 20, 2025

HF 498: A bill for an act eliminating the state sales and use taxes and including effective date provisions.

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates 1% tax funding SAVE education program, defunding essential initiative. Removes state sales tax but directly cuts dedicated education funding.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Iowa · House Mar 6, 2025

HF 811: A bill for an act repealing the school tuition organization tax credit available against the individual and corporate income taxes and including effective date provisions.

HF 811 repeals Iowa's school tuition organization (STO) tax credit, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to STOs. The bill ends this credit for contributions made on or after July 1, 2025, and reduces the 2025 credit cap from $20 million to $10 million. It fully repeals the tax credit provision on July 1, 2031, removing all future eligibility and references to the credit in tax law. This directly affects individuals, corporations, and STOs that previously used or issued these tax credits.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals tax credit for STO donations, restricting tax incentives and reducing tax benefits for individuals/corporations.95% confidence ✗ EducationOpposes EducationRepeals tax credit for donations to private school scholarship organizations (STOs), directly restricting a funding mechanism for private education access and reducing financial support for non-public school options.92% confidence

Sub-Topics Business Taxes School Choice

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