Budget & Taxes

introduced · Iowa · House Mar 19, 2026

HF 2304: A bill for an act relating to indirect costs charged to state-funded grants, and including applicability provisions.

HF 2304 sets a statewide 5% cap on indirect costs (administrative expenses like office space or general management) charged to state-funded grants, effective July 1, 2026. It directly affects grantees - including nonprofits, local governments, schools, and for-profit organizations - and state departments managing grants by requiring separate budgeting of direct and indirect costs, prohibiting cost reclassification to bypass the cap, and mandating documentation for audits. The bill requires grant budgets to detail indirect cost calculations and retain records for ten years, with departments enforcing compliance through pre-award reviews and payment controls. Grantees must also adjust allocations if indirect costs exceed the limit, with disallowed costs recoverable through future payments or repayment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes 5% cap on indirect costs for state grants, restricting administrative spending and limiting budget allocation for overhead expenses.95% confidence

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in committee · Iowa · Senate Feb 16, 2026

SF 2328: A bill for an act relating to school lunch programs provided by school districts, charter schools, and innovation zone schools, making appropriations, and including effective date provisions.

SF 2328 requires all Iowa public school districts, charter schools (under chapters 256E and 256F), and innovation zone schools to provide free lunches to every student in attendance, regardless of family income, starting July 1, 2026. The bill appropriates state funds from the general fund to the Department of Education to cover costs not covered by federal school lunch program funds. It mandates that schools comply with existing free lunch program requirements under section 283A.6 and directs the state board of education to create administrative rules. The law takes immediate effect upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates state general fund dollars to cover free lunch program costs, directly increasing public service funding under budget appropriations.95% confidence ✓ EducationSupports EducationMandates universal free school lunches for all students, appropriates state funds to cover costs, and expands access to school meal programs under education funding.95% confidence

Sub-Topics State Budget Student Health

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died · Iowa · House Apr 9, 2026

HF 2308: A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.

HF 2308 would allow Iowa to join a federal tax credit program, enabling Iowa residents who donate to scholarship granting organizations (SGOs) to claim a state tax credit. The bill requires the governor to elect participation in the federal tax credit (under IRS Section 25F) and mandates the departments of Revenue and Education to follow federal rules to administer the program starting tax years after January 1, 2027. This would let SGOs provide scholarships of up to $1,700 per year per student for eligible elementary and secondary school expenses, directly benefiting families using nonpublic schools.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates state tax credit for donations to SGOs, providing tax relief and aligning with federal program to fund private education scholarships.90% confidence ✓ EducationSupports EducationEnables tax credits for private education scholarships, expanding student access to educational options beyond public schools through SGO funding.90% confidence

Sub-Topics Tax Credits K-12 Education School Choice Student Financial Aid

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in committee · Iowa · House Feb 23, 2026

HSB 728: A bill for an act relating to the establishment of programs administered by the economic development authority, including the interactive digital entertainment program, game studio investment matching program, game industry fellowship program, and game studio grant program, and making appropriations.

This bill establishes four new programs under Iowa's Economic Development Authority to support the state's game industry. It creates a tax credit program offering up to 30% of eligible development costs (with a $20 million annual cap) for companies maintaining a physical presence and $250,000 in state payroll. It also provides forgivable loans matching private investments in Iowa game studios (capped at $20 million per studio annually) and offers $150,000-$200,000 annual grants for industry professionals to relocate and work in education, consulting, or industry-building roles for two years. These programs directly affect game developers, investors, and industry professionals seeking to establish or grow Iowa-based operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits (up to 30% of costs) and grants for game industry, allocating state funds via tax incentives and appropriations, directly advancing business fiscal support.95% confidence ✓ TechnologySupports TechnologyProvides tax credits, forgivable loans, and grants specifically for Iowa game studios (interactive digital entertainment), directly funding the technology sector through economic development programs.95% confidence

Sub-Topics Tax Credits Tags Economic Development

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in committee · Iowa · House May 1, 2026

HF 2343: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.

This bill exempts ethanol-blended gasoline containing over 85% ethanol from Iowa's excise tax when purchased exclusively for use in farm machinery (like tractors) used in agricultural production. It requires farmers to provide a completed exemption certificate to fuel suppliers at the time of purchase, which suppliers must keep for three years. If the fuel is later used for non-farm purposes, the farmer must pay the excise tax directly to the state. The change shifts from a post-purchase refund system to an upfront exemption, applying specifically to agricultural equipment fuel.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts agricultural ethanol fuel from excise tax, providing direct tax relief to farmers using farm machinery, aligning with tax relief indicators for specific sectors.90% confidence ✓ EnergySupports EnergyExempts high-ethanol fuel from tax for farm machinery, promoting renewable energy use and reducing fossil fuel dependence.95% confidence

Sub-Topics Sales Tax

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in committee · Iowa · House Feb 10, 2026

HF 2376: A bill for an act relating to matters under the purview of the department of health and human services, including the Iowa return to community program and reimbursement rates, and making appropriations.

HF 2376 appropriates $2 million from the general fund for the fiscal year 2026-2027 to expand Iowa's Return to Community program, which helps individuals transition from institutional care to community living. It requires the Department of Health and Human Services to report on the program's outcomes by December 31, 2027. The bill also increases reimbursement rates by 5% for adult day care services under home and community-based services waivers, while maintaining other existing reimbursement rates for medical assistance and social services. This directly affects providers of community-based care and participants in the Return to Community program.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $2M from general fund for community program expansion and increases reimbursement rates by 5% for public health services, directly funding essential programs.95% confidence ✓ HealthcareSupports HealthcareFunds $2M expansion of community care program and increases adult day care reimbursement rates, directly advancing access to home-based healthcare services.95% confidence

Sub-Topics State Budget

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in committee · Iowa · House Feb 23, 2026

HSB 742: A bill for an act relating to the two hundred fiftieth anniversary of the signing of the Declaration of Independence, and including effective date provisions.

This bill creates a sales tax exemption for clothing priced under $100 purchased on July 3-5, 2026, to commemorate the 250th anniversary of the Declaration of Independence. It also establishes a task force to organize state-wide events, decorate the Capitol complex for a holiday season display, and create an educational "250" display visible from the air. Public schools must provide Constitution-related lessons on September 17, 2026, and public broadcasting must air anniversary-focused programming in 2026-2027. The bill directly affects Iowa residents through tax relief, schools through curriculum requirements, and state agencies through event planning.

Topics ✓ Budget & TaxesSupports Budget & TaxesTemporary sales tax exemption for clothing under $100 provides direct tax relief to lower-cost shoppers, aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Iowa · Senate Feb 10, 2026

SF 2234: A bill for an act relating to U.S.S. Iowa

This bill creates special license plates for Iowa vehicles displaying the U.S.S. Iowa (SSN-797) emblem. Owners pay a one-time $35 fee for standard plates or $60 total ($35 base + $25 for personalization) for personalized plates (max 5 characters), plus annual fees of $10 (standard) or $5 (personalized). All fees collected are deposited into the road use tax fund and then transferred monthly to the state general fund to support veterans' suicide prevention grants through the Department of Veterans Affairs. The bill prohibits the state from restricting plate issuance based on order volume.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new fees ($35-$60) deposited into state general fund for veterans' suicide prevention grants, directly funding a public program through dedicated revenue.95% confidence ✓ VeteransSupports VeteransBill directs license plate fees to veterans' suicide prevention grants via Department of Veterans Affairs, explicitly funding veteran services.95% confidence

Sub-Topics Sales Tax State Budget

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in committee · Iowa · Senate Feb 11, 2026

SSB 3105: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This bill updates Iowa's corporate tax code to allow a deduction for income earned by corporations from foreign operations (now termed "net controlled foreign corporation tested income" or NCTI under federal law), replacing outdated references to the previous federal term "GILTI." It directly affects Iowa corporations with foreign subsidiaries that pay taxes on foreign earnings. The key mechanism removes the specific reference to "GILTI" in tax code section 422.35(12) and aligns the deduction with the current federal definition of NCTI under IRC section 951A. The deduction applies retroactively to tax years beginning January 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax deduction reducing state revenue, aligning with federal tax code updates for foreign income.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · House Feb 11, 2026

HF 2406: A bill for an act relating to administration of and taxation on tobacco-related products including imposing a tax on alternative nicotine products and vapor products.

HF 2406 imposes a 22.5% tax on the wholesale sales price for alternative nicotine products and vapor products, in addition to existing taxes on tobacco products like cigars and snuff. It defines "nicotine" broadly to include nicotine analogs and substances mimicking nicotine, and limits packages of alternative nicotine products to 20 individually consumable units. Starting January 1, 2029, tax rates will adjust annually based on inflation, determined by statewide surveys of cigarette retail prices (excluding tax-driven increases). The bill affects distributors and retailers of these products in Iowa, with tax revenue collected by the Iowa Department of Revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 22.5% tax on nicotine/vapor products, directly increasing state tax revenue through new taxation policy.95% confidence

Sub-Topics Revenue Sales Tax

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