HF 960 expands Iowa's sales tax exemption to cover all purchases of central office or transmission equipment used by telecom companies providing commercial services, removing the prior requirement that such equipment be "primarily" used for those services. It directly affects local carriers, cable operators, municipal utilities, cooperatives, and other telecom providers that offer commercial telecommunications services. The key change broadens the existing tax exemption to include all qualifying equipment purchases, meaning these businesses will pay no sales tax on such equipment (and no use tax under Iowa law). This policy change simplifies the exemption without adding new regulations or costs to the state.
This Iowa bill updates the state corporate income tax code to allow a deduction for net controlled foreign corporation tested income, replacing a previous reference to the now-repealed global intangible low-taxed income. The change directly affects Iowa businesses with foreign income by ensuring they can still claim a tax break for this specific category of earnings despite recent federal tax law updates. By removing the outdated terminology and keeping the deduction mechanism active, the legislation maintains the state's alignment with current federal tax definitions. The law applies retroactively to tax years beginning on or after January 1, 2026.
SJR 11 proposes an amendment to the Iowa Constitution that would change the requirements for passing certain state tax laws. It mandates that any bill increasing state individual or corporate income tax rates, or establishing a new state tax on income or reserves, must receive a two-thirds majority vote in both the House and Senate. This requirement does not apply to taxes imposed by local governments. The amendment also sets a one-year limit for legal challenges to the enactment of such tax bills. If passed by two consecutive General Assemblies, Iowa voters would consider this amendment in the November 2026 general election.
This bill modifies Iowa's urban renewal law to change how property tax revenue is shared for emergency medical services. Specifically, it prevents taxes collected for emergency medical services from being used to pay off municipal loans or fund urban renewal projects. Instead, these taxes must be collected from all property within the taxing district without being diverted to a special fund for city debt or low-income housing assistance. The changes apply to property taxes due in fiscal years starting on or after July 1, 2026, and take effect immediately upon signing.
This bill modifies Iowa's rural veterinarian loan repayment program to allow recipients to exclude the value of loan payments from their taxable income. It applies to veterinarians who receive financial assistance to work for four years in designated rural or shortage areas. Under the new rules, eligible individuals can subtract up to $15,000 per year, or a total of $60,000, from their state tax return, provided the amount does not exceed their outstanding loan balance. Additionally, the legislation clarifies that recipients may transfer their service obligation to a new practice within the same rural area with commission approval.
This bill establishes a regulatory and tax framework for event-driven contracts traded on digital markets within Iowa. It requires any company operating such markets in the state to obtain a permit from the Department of Revenue, with an initial fee of $20 million and annual renewal fees of $100,000. The law imposes a 20% tax on adjusted revenues from these contracts, which are defined as financial derivatives with fixed payouts based on specific outcomes like sports events, elections, or economic indicators. Money earned by traders from these contracts is treated as Iowa earned income subject to state and federal income tax withholding. All tax revenues collected under this program go to the state's general fund.
SF 2385 directs Iowa's Department of Management to sell the state's communications network as soon as feasible, ending previous restrictions that limited the network's use to public and private agencies. The bill requires the sale to ensure current authorized users continue receiving services on commercially reasonable terms for at least 10 years, with the Department submitting quarterly progress reports to the legislature starting October 2026. Proceeds from the sale must be deposited into Iowa's general fund. Key changes take effect immediately for the sale process and July 1, 2027, for revised service rules.
HF 2303 requires promoters of professional or amateur kickboxing matches (defined as public events with admission fees, donations, or merchandise sales) to obtain a license from Iowa's state commissioner of athletics. It mandates that promoters report ticket sales and gross receipts within 20 days after an event and pay a 5% tax on those receipts (after deducting state sales tax). The bill applies the same licensing, reporting, and tax rules to kickboxing that currently govern mixed martial arts events under existing Iowa law. This formalizes kickboxing regulation under the commissioner’s authority, aligning it with current administrative practices for similar combat sports.
This bill amends Iowa's definition of "qualified education expenses" for state tax-advantaged savings plans. It aligns Iowa's definition with specific federal Internal Revenue Code sections (529(e)(3) and 529(c)(7)), expanding covered expenses to include elementary/secondary school tuition, registered apprenticeship program costs, and principal/interest payments on qualified education loans for beneficiaries or their siblings. The change directly affects Iowa residents using the state's educational savings plan trust (Code chapter 12D) by clarifying which education costs qualify for tax benefits. The bill removes an outdated reference to a specific federal amendment while updating the definition to match current federal guidelines.
SF 633 establishes a yearly program fee for landowners with forest or fruit-tree reservations that are currently exempt from property taxes under Iowa law. Starting in 2026, these landowners must pay $2-$3 per acre (depending on location relative to homesteads) to their county treasurer by September 1 each year. Fees collected before 2028 can fund general county spending, but after 2028, they must be used for property tax relief beginning in 2029, with adjustments tied to inflation. The bill directly affects landowners maintaining tax-exempt forest or fruit-tree reservations, particularly those in counties with homestead owners nearby.
