This bill allows Iowa taxpayers to voluntarily contribute $1 or more from their individual income tax return to a public school checkoff fund. The fund, managed by the state department of management, collects these contributions annually and distributes them to school districts starting in 2027 based on each district's budget enrollment. School districts receive these funds as general revenue (not counted toward district costs) and may use them for any school purpose. The checkoff will appear on tax forms for the 2026 tax year, with contributions becoming available for school funding beginning July 1, 2027.
HF 2280 expands Iowa's $250 individual income tax credit for emergency medical services personnel to include non-certified first responders who meet specific qualifications. The bill requires the Department of Revenue to establish rules defining these qualifications under Chapter 17A. It also applies the credit retroactively to tax years beginning on or after January 1, 2026, covering past tax filings. This change directly affects emergency medical personnel who currently lack certification but perform first responder duties.
HB 687 allows Iowa tax deductions for business expenses incurred by licensed medical cannabidiol (CBD) manufacturers and dispensaries, bypassing the federal restriction under Section 280E of the Internal Revenue Code. This applies to expenses paid by entities operating under Iowa’s Chapter 124E licensing rules, excluding expenses not incurred by licensed entities or those violating Chapter 124.401. The bill retroactively applies to tax years beginning January 1, 2026, changing Iowa’s tax code to align with state-specific CBD business needs. It directly affects licensed CBD businesses by potentially reducing their state income tax liability.
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.
HF 2525 creates two tax deductions for Iowa veterinarians: (1) a deduction for income from rural veterinary loan repayment programs (capped at $15,000 yearly/$60,000 lifetime), and (2) a deduction for all interest paid on veterinary school student loans (if the vet practiced in Iowa that year). The bill excludes the student loan interest deduction if a vet is simultaneously receiving rural loan repayments. To qualify, veterinarians must practice in Iowa (details to be set by the Department of Revenue), and the bill applies retroactively to tax years beginning January 1, 2026.
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.
SF 2085 regulates "event-driven contracts" - financial bets on specific events like sports outcomes or elections traded on digital markets. It requires these markets to obtain a $10 million initial permit and pay $100,000 annually to operate in Iowa. A 20% tax is imposed on the market's "adjusted revenues" (total fees minus payouts, weighted by Iowa trader participation), with tax revenue deposited into the state general fund. The bill also adjusts Iowa income tax rules to treat these contracts differently from federal tax treatment, excluding them from certain federal tax calculations. It explicitly excludes existing systems like horse racing wagering (Chapter 99D), fantasy sports (Chapter 99E), and sports betting (Chapter 99F).
HF 2078 creates an opportunity tax credit of $4,000 per eligible dependent for Iowa taxpayers whose children are not enrolled in public school or receiving an educational savings account (ESA) payment. It directly affects parents or guardians of dependents who meet specific criteria, such as having attended public school for at least one semester, being eligible for kindergarten, or previously receiving an ESA payment. The credit is refundable, can be claimed on tax returns or requested as an advance payment from a newly created state fund, and requires the Department of Revenue to verify enrollment status with the Department of Education. The bill applies retroactively to tax years beginning January 1, 2026, and mandates annual reports starting in 2028 detailing claims and potential fraud.
HF 2225 creates a tax credit for Iowa residents who paid nonresident tuition at state universities and later work in the state as health care professionals, teachers, licensed veterinarians, or professional engineers. The credit equals 100% of the difference between the nonresident and resident tuition rates they paid during their studies, available within three years of graduation while employed in Iowa. Unused credit can be carried forward for up to five years to offset future income tax, but it is not refundable and does not apply to nonresidents. The bill requires the Board of Regents to publish historical tuition rates online and applies retroactively to tax years starting January 1, 2026.
SF 2050 allows Iowa legislators to deduct unreimbursed mileage costs incurred while performing constituent services (like meeting with voters or helping residents with government issues) at the same rate used for state employee travel expenses. This deduction does not apply to mileage during legislative sessions, special sessions, or campaign-related activities. The bill applies retroactively to tax years beginning on or after January 1, 2026. It directly affects Iowa legislators who incur out-of-pocket mileage costs while serving constituents outside official session days.
