Budget & Taxes (Income Tax)

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foreign operations (now termed "net controlled foreign corporation tested income" or NCTI under federal law), replacing outdated references to the previous federal term "GILTI."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 It replaces the outdated reference to "global intangible low-taxed income" (GILTI) with NCTI under federal Section 951A, ensuring Iowa businesses can still claim this deduction.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 Feb 16, 2026

HF 2482: A bill for an act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.

This bill exempts certified public accountants (CPAs) from paying state income tax on fees earned from performing audits or examinations for local governments (such as cities, counties, or school districts). It modifies Iowa's tax codes (sections 422.7 and 422.35) to exclude this specific income from taxable earnings for both individual and corporate CPAs. The exemption applies retroactively to tax years beginning on or after January 1, 2026. This policy change directly affects CPAs who conduct government audits by reducing their state tax burden on those fees.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates tax exemption for CPAs, reducing state tax revenue by excluding specific income from taxation, weakening fiscal base per tax policy indicators.90% confidence

Sub-Topics Audits & Accountability 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 Jan 22, 2026

SF 2050: A bill for an act relating to the individual income tax by allowing members of the general assembly to deduct unreimbursed mileage when performing constituent services under certain circumstances, and including retroactive applicability provisions.

SF 2050 allows Iowa legislators to deduct unreimbursed mileage costs incurred while performing constituent services (like meeting with voters or helping residents with government issues) at the same rate used for state employee travel expenses. This deduction does not apply to mileage during legislative sessions, special sessions, or campaign-related activities. The bill applies retroactively to tax years beginning on or after January 1, 2026. It directly affects Iowa legislators who incur out-of-pocket mileage costs while serving constituents outside official session days.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates a new tax deduction for legislators, reducing state tax revenue through a special provision, weakening fiscal management by expanding tax breaks.95% confidence

Sub-Topics Income Tax

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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 Feb 11, 2025

SF 201: 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.

SF 201 exempts up to $500,000 of income from nonqualified deferred compensation plans (employer retirement plans for select employees) from Iowa's individual income tax for eligible individuals. It directly affects disabled people, those aged 55 or older, and surviving spouses with an insurable interest in a qualifying deceased person. The bill allows these taxpayers to exclude both the plan amount and its earnings from taxable income, mirroring existing retirement income exclusion rules. This exemption applies retroactively to tax years beginning on or after January 1, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for select high-earning employees (nonqualified deferred comp), reducing state revenue; aligns with tax breaks for wealthy, per indicators.85% confidence

Sub-Topics Income Tax

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in committee · Iowa · House Mar 26, 2025

HF 567: A bill for an act excluding the net capital gain from the sale of gold or silver from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

HF 567 excludes net capital gains from selling gold or silver from Iowa's individual income tax calculations. It directly affects Iowa taxpayers who sell gold or silver coins, bars, ingots, or pure gold/silver, allowing them to subtract these gains when computing taxable income. The bill defines "gold or silver" broadly to include common forms like coins and bars, and applies retroactively to tax years starting January 1, 2025. This change modifies how certain investment gains are taxed but does not alter the tax rate applied to other income.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes capital gains from gold/silver sales from taxable income, reducing state tax revenue. Creates targeted tax break for asset investors, weakening fiscal revenue collection.85% confidence

Sub-Topics Income Tax

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