A bill for an act relating to establishing a reciprocal tax agreement study by the department of revenue, and including effective date provisions.

HF 2028 directs Iowa's Department of Revenue to study whether a reciprocal tax agreement with Wisconsin is feasible. Such an agreement would prevent double taxation for residents working across state lines - meaning Iowa workers in Wisconsin would pay tax only to Iowa, and Wisconsin workers in Iowa would pay tax only to Wisconsin. The study must be completed by December 1, 2026, with findings reported to the legislature. If deemed feasible and mutually beneficial, Iowa would draft a formal agreement for legislative approval. This bill directly affects Iowa and Wisconsin residents who commute across the border for work.