HF 976 Iowa House · 2025-2026 Regular Session

A bill for an act relating to the administration of the tax by the department of revenue by modifying provisions related to personal income, property, sales and use, motor fuel, and inheritance taxes, changing tax expenditure reviews, and including effective date and retroactive applicability provisions.

HF 976 modifies multiple tax administration rules for the Department of Revenue. It updates provisions related to personal income, property, sales/use, motor fuel, and inheritance taxes, along with changes to how tax expenditures are reviewed. The bill includes specific effective dates and rules for retroactive application of these tax code changes. This legislation directly affects taxpayers and the Department of Revenue as it alters how these taxes are processed and administered.
Bill status signed all 5 stages cleared
Introduction
Mar 2025
Committee Review
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Mar 24, 2025 Signed Jun 6, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Enrolled Enrolled with Governor's Action · 6 edits · Jun 6, 2025
MODERATE
This bill modifies Iowa's tax administration laws to improve information sharing with law enforcement, update tax reporting requirements, and clarify rules for property tax refunds and sales tax on building materials. The changes aim to strengthen enforcement against tax evasion, streamline administrative processes, and provide clearer guidance on tax liabilities for contractors and manufacturers.
Scope change
The bill expands the scope of tax information disclosure to law enforcement agencies under specific circumstances and adds retroactive applicability to certain provisions effective January 1, 2024.
ENFORCEMENT

Expanded authority for the Department of Revenue to disclose tax information to federal, state, and local law enforcement agencies when there is evidence of tax evasion, false filings, unpaid taxes, or criminal offenses.

Established new procedures for partnership and pass-through entity audits, requiring adjustments to be determined at the entity level and aligning state audit processes with federal partnership audit rules.

REQUIREMENT

Revised property tax refund procedures to clarify timelines for claiming refunds and extended filing deadlines for claimants with documented sickness, absence, or disability.

Updated sales tax rules for building materials to clarify when tax applies to contractors and builders, including provisions for when materials are withdrawn from inventory for construction purposes.

TIMELINE

Added retroactive applicability provisions, making certain tax administration changes effective as of January 1, 2024, rather than only upon enactment.

ELIGIBILITY

Modified farm tenancy income tax exclusion requirements to align holding period provisions with federal Internal Revenue Code standards.

Floor votes · Senate May 13, 2025 · House May 8, 2025

How they voted

460
Passed · 5 other
Total votes 51
May 13, 2025
D Democratic16
13 Yea 3
81% Yea
R Republican35
33 Yea 2
94% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
3
Committee
0
Jun 6, 2025
Signed into law
Signed by Governor.
lower
May 13, 2025
Upper · Passed
Passed Senate, yeas 45, nays 0.
upper
May 8, 2025
Lower · Passed
Passed House, yeas 84, nays 0.
lower
Mar 24, 2025
Introduced
Introduced, placed on Ways and Means calendar.
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.