Budget & Taxes (Audits & Accountability)

This bill exempts certified public accountants (CPAs) from state income tax on fees earned from auditing or examining governmental subdivisions (like cities, counties, or school districts) in Iowa. It directly affects CPAs who perform these required audits, removing tax liability on that specific income under Iowa's individual (Code 422.7) and corporate (Code 422.35) tax codes. The key mechanism is amending those tax codes to exclude income from such governmental audits, effective retroactively for tax years beginning January 1, 2025. This creates a concrete tax benefit for CPAs working with local government entities, with no new reporting requirements for the affected income.

HSB 341 is a legislative bill that allocates funding for the administration and regulation of various Iowa state government departments and offices for the fiscal year 2025-2026. It provides appropriations for salaries, operations, and full-time equivalent positions for entities like the Department of Administrative Services, Auditor of State, and the offices of the Governor and Lieutenant Governor. The bill also establishes a separate workers' compensation fund for state employees and sets an administrative charge for state employee health insurance plans. Additionally, it specifies how the Auditor of State should allocate its funds for audit work, including federally required audits and investigations.