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.
SF 2061 creates a dedicated fund within Iowa's state treasury to provide competitive grants for school safety and security infrastructure projects at accredited nonpublic schools. Starting fiscal year 2027, $1 million annually will be transferred from the Secure an Advanced Vision for Education Fund into this new program. The Department of Education will administer the grant program, using funds exclusively for defined safety infrastructure improvements at eligible nonpublic schools, with unawarded funds rolling over to future years. The bill establishes clear rules for grant eligibility, application processes, and project types without specifying outcomes or policy preferences.
This bill exempts ethanol-blended gasoline containing over 85% ethanol (E-85) from Iowa's excise tax when purchased at a terminal or refinery rack exclusively for use in farm machinery. It directly affects Iowa farmers and agricultural businesses that use E-85 fuel in tractors, harvesters, and other equipment for crop production. The key provision removes the requirement to pay the tax upfront and seek a refund under current law, making the exemption automatic for this specific agricultural use. This change applies only to fuel bought for farm equipment, not general vehicle use.
HF 2240, the "Tax the Endowments Act," imposes an annual tax of 7.1% on the endowment value exceeding $500 million held by Iowa public universities (governed by the state board of regents) and accredited private colleges. The tax revenue is directed to two specific programs: funds from public institutions support workforce grant programs, while funds from private institutions supplement tuition grants for students in high-wage, high-demand majors. The bill also limits institutions to charging no more than 5% on gift proceeds and 1% annual fees on endowment management. It directly affects large Iowa colleges with substantial endowments, redirecting tax revenue to workforce development and targeted student financial aid.
This bill exempts agricultural drones used directly for farming from Iowa's aircraft registration requirements and sales tax. It amends two laws: removing the need for farmers to register these drones with the state transportation department (which currently charges fees up to $5,000 annually) and waiving the standard 6% sales tax on such purchases. The exemption applies only to remotely piloted aircraft specifically used for agricultural purposes, as defined in state law. This directly affects Iowa farmers who operate drones for crop monitoring, spraying, or other farm-related tasks. The policy change simplifies compliance and reduces costs for this specific agricultural use case.
This bill modifies Iowa's education and tax laws to ensure public funding for educational programs excludes religious instruction. It defines "property" to exclude facilities used for sectarian teaching, worship, or religious training, and requires courses for high school students taking college credit to be nonsectarian. School districts must verify comparable nonreligious courses aren't available before allowing students to enroll in eligible college courses at community colleges. Textbook funding for nonpublic schools must be for nonreligious materials, and districts must annually approve courses for academic rigor. The bill affects public school districts, community colleges, and accredited nonpublic schools in Iowa.
This bill establishes a 102% cap on annual property tax increases for local governments (excluding school districts) by limiting new tax levies to 102% of the prior year's certified tax amount, adjusted for voter-approved levies. It creates a new residential property tax exemption of up to $25,000 in taxable value for homeowners (effective 2026), excluding school district taxes. The bill also updates disclosure requirements, mandating annual mailed statements to property owners by March 15 showing tax details and limiting county/city taxes if reports are late. These changes apply retroactively to assessment years beginning January 1, 2026.
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 2101 requires Iowa gambling and sports wagering licensees to distribute at least 3% of gambling game receipts and 0.75% of sports wagering net receipts for nonprofit purposes (like education, charity, or civic projects). It mandates that these funds be allocated proportionally to Iowa counties based on where contributors reside, using data from player rewards programs. Licensees must report contributor locations to the Department of Revenue, which calculates each county’s share; if a county receives less than 3% or no nonprofit applies, funds may be held for up to three years before being transferred to a county endowment fund. The bill applies to receipts collected in fiscal years starting after its effective date.
This bill allocates $5 million from Iowa's general fund to the Department of Education for the 2026-2027 fiscal year to establish a therapeutic classroom incentive grant program. It directly provides funding to school districts to create therapeutic classrooms for students aged 3 to 21 whose emotional, social, or behavioral needs interfere with their success in regular school settings. The program enables school districts to receive grants to set up specialized classrooms designed to support these students' learning and development. The funding is specifically designated for this purpose and cannot be used for other educational programs.
