Budget & Taxes

HF 515 increases state funding for Iowa school districts that share school resource officer (SRO) services with other entities. It raises the supplementary weighting for SRO sharing from 2 to 4 pupils per shared function (up from current law), meaning districts sharing SRO duties receive more state funding based on this higher rate. The bill applies to school budget years starting July 1, 2025, and affects any district sharing SRO operational functions for at least 20% of the school year with a political subdivision or another district. This change redirects additional resources toward student programming by adjusting the funding formula for shared SRO services.

HF 624 expands Iowa's farm tenancy net income exclusion for individual income tax, allowing farmers who earn income through certain business structures (like partnerships, S-corporations, trusts, or single-owner entities) to claim the exclusion as if they received the income directly. It specifically clarifies that net income distributed from these entities qualifies, provided the farmer has the right to withdraw or compel distribution of that income. The change applies retroactively to tax years beginning January 1, 2024, meaning eligible farmers can adjust prior-year taxes. This directly benefits Iowa farmers operating through business entities rather than personally, aligning their tax treatment with farmers who receive income directly from farm tenancies.