A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

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.