This bill prohibits school districts from using foundation property tax revenues (levied under Iowa Code section 257.3) for urban renewal projects approved on or after January 1, 2025, that include planning, construction, or operation of stadiums or arenas primarily for professional sports teams. It directly affects school districts and municipalities that rely on tax increment financing (division of revenue under Code chapter 403) for urban renewal projects. The key provision amends Iowa law to block the use of specific school tax funds for stadium-related developments in new urban renewal initiatives. The bill takes effect immediately upon enactment, with the restriction applying only to projects approved after 2025.
This bill exempts certified public accountants (CPAs) from paying state income tax on fees earned from performing audits or examinations for local governments (such as cities, counties, or school districts). It modifies Iowa's tax codes (sections 422.7 and 422.35) to exclude this specific income from taxable earnings for both individual and corporate CPAs. The exemption applies retroactively to tax years beginning on or after January 1, 2026. This policy change directly affects CPAs who conduct government audits by reducing their state tax burden on those fees.
This bill requires a signed "declaration of value" from at least one seller, buyer, or their agent when most real estate transfers (like home sales) are recorded with county offices. It specifically expands existing exemptions to exclude certain transactions: corporate mergers/reorganizations, transfers between family entities and their owners without payment, and trust asset distributions to beneficiaries with no consideration. These changes simplify paperwork for those specific property transfers, reducing the need for declarations in those cases. The bill affects sellers, buyers, and county recorders handling property deeds across Iowa.
SF 2301 creates Iowa's "EDGE Program" (Headquarters Expansion and Development for Growth and Employment), which offers tax incentives to eligible businesses that retain or establish corporate headquarters in the state. It directly affects businesses in advanced manufacturing, bioscience, insurance/finance, technology, or R&D - requiring them to generate over 50% of revenue outside Iowa, offer comprehensive employee benefits, and demonstrate state-level competition for their headquarters. Key mechanisms include tax credits tied to creating new corporate jobs (e.g., strategic roles at headquarters) or retaining existing ones at risk, with incentives calculated based on qualifying wage thresholds in the local area. The bill also repeals older programs like the New Jobs Tax Credit and Industrial New Jobs Training Program while establishing new funds for electric transmission planning.
This bill exempts ethanol-blended gasoline containing 85% or more ethanol (like E85) from Iowa's excise tax when purchased exclusively for use in farm equipment (implements of husbandry) used in agricultural production. It directly affects farmers and agricultural suppliers who buy this specific fuel for farming operations. To qualify for the exemption, purchasers must provide a valid exemption certificate to the supplier, which must be signed, complete, and retained by the supplier for three years. If the fuel is later used outside agricultural production, the purchaser must pay the excise tax directly to the Iowa Department of Revenue.
This bill creates the "EDGE Program" to incentivize businesses with global presence to establish or retain corporate headquarters in Iowa by offering tax credits for creating or retaining high-wage jobs. To qualify, businesses must generate over 51% of revenue outside Iowa, operate in qualifying sectors (like tech or bioscience), and provide comprehensive employee benefits. The bill repeals several existing programs, including the New Jobs Tax Credit and Major Economic Growth Attraction Program, while establishing a new fund for electric transmission system planning. It also creates a separate "Business Incentives for Growth Program Training Fund" to support workforce development.
HF 2152 repeals Iowa's school tuition organization (STO) tax credit program, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to private schools. Starting July 1, 2026, new contributions to STOs will no longer qualify for this credit, and the annual credit limit for 2026 is reduced to $10 million (down from $20 million). The program is fully repealed effective July 1, 2032, ending all future use of the credit. This directly affects Iowa taxpayers and businesses that previously claimed this credit against their state income tax bills.
HF 2192 raises the voter approval threshold for school district bond proposals from 60% to 80% of total votes cast, while maintaining the 60% requirement for other local entities like counties or cities. It also requires school districts to set aside at least 50% of a project's total cost in dedicated funds before holding a bond election, and prohibits a school district from resubmitting a failed bond proposal for four years after a vote rejection. The bill directly affects Iowa school districts seeking to issue bonds for capital projects, such as building or renovating schools. These changes aim to strengthen voter approval requirements and ensure financial commitment before bond elections.
This bill establishes new limits on local government property tax collections and reserve funds. It requires cities, counties, and other local entities (excluding school districts) to cap unassigned general fund reserves at 10% of budgeted spending and sets a maximum property tax levy at 102% of the prior year's total plus new property valuation growth. These rules apply to budgets certified for fiscal years beginning July 1, 2027, and will be verified through annual audits. The bill also modifies related tax assessment, budgeting, and reporting requirements for local governments.
SSB 3034 establishes new limits on local government property tax levies and reserve funds for budgets certified after July 1, 2027. It caps the maximum property tax levy at 102% of the prior year's total plus new valuation growth (from construction, boundary changes, etc.), and restricts unassigned general fund reserves to no more than 10% of budgeted expenditures. These rules apply to cities, counties, and other local governments (excluding school districts), with the Department of Management overseeing compliance. The bill also modifies audit requirements to verify adherence to these financial limits.
