Budget & Taxes

in committee · Iowa · House Jan 14, 2025

HF 27: A bill for an act relating to the deduction of the purchase amount of nonathletic school uniforms for purposes of the individual income tax, and including retroactive applicability provisions.

This bill allows Iowa taxpayers to deduct up to $500 per student for the cost of required nonathletic school uniforms purchased for children attending public or private schools. It directly affects families with school-aged children who must buy uniforms for their children's schools. The deduction applies to tax years beginning on or after January 1, 2025, and includes retroactive application to that date. The provision does not cover athletic uniforms and is limited to the purchase amount, not other school expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for school uniforms, reducing taxable income for families - direct tax relief for middle-income households under income tax policy.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Iowa · House Jan 22, 2025

HF 109: A bill for an act relating to the maximum amount of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

This bill increases Iowa's annual cap for workforce housing tax incentives from $35 million to $50 million. It directly affects developers of workforce housing projects by expanding available tax credits against individual/corporate income taxes, franchise tax, and other levies. The key change reserves $25 million specifically for projects in small cities (as defined in state law) that registered after July 1, 2017, up from $17.5 million. This adjustment aims to boost funding for affordable housing development, particularly in smaller communities.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap from $35M to $50M, reserves $25M for small city workforce housing projects, expanding state funding through tax incentives.95% confidence ✓ HousingSupports HousingIncreases workforce housing tax incentives from $35M to $50M, reserves $25M for small-city projects, directly funding affordable housing development through tax credits.95% confidence

Sub-Topics Business Taxes Affordable Housing Property Development

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in committee · Iowa · House Jan 22, 2025

HF 111: A bill for an act creating an advanced registered nurse practitioner preceptor tax credit available against the individual income tax, and including applicability provisions.

HF 111 creates a tax credit for advanced registered nurse practitioners (ARNPs) who serve as unpaid clinical preceptors for nursing students. Eligible preceptors receive a $500 credit per qualifying clinical mentoring session (with at least 100 hours of supervised learning), capped at $2,000 annually for individual income tax. To qualify, preceptors must provide uncompensated instruction at their workplace, be selected by nursing programs, and have at least one year of preceptor experience. The credit applies to tax years starting January 1, 2026, and any unused portion isn’t refundable or carryable to other years.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit against individual income tax for ARNPs, offering targeted tax relief aligned with fiscal support.90% confidence ✓ EducationSupports EducationBill incentivizes nursing preceptors to mentor students, directly supporting higher education training access and program capacity in nursing education.85% confidence ✓ HealthcareSupports HealthcareCreates tax credit to incentivize ARNPs to mentor nursing students, strengthening healthcare workforce development and improving future provider access.90% confidence

Sub-Topics Healthcare Workforce

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in committee · Iowa · Senate Jan 22, 2025

SF 44: A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

SF 44 extends the deadline for claiming historic preservation tax credits from January 1, 2023, to July 1, 2023. It ensures taxpayers who received credits before July 1, 2023, can still apply them against individual/corporate income taxes, franchise tax, or insurance premiums tax. The bill expands an existing provision protecting pre-July 2023 credits from changes to refundability rules established by prior legislation. It does not alter the credit amount or future refundability terms.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends deadline and protects existing historic preservation tax credits, maintaining current tax relief without altering credit amounts or future terms.95% confidence

Sub-Topics Business Taxes

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in committee · Iowa · Senate Jan 22, 2025

SF 29: A bill for an act relating to property tax exemptions by changing the homestead tax exemption to a credit for owners attaining sixty-five years of age and increasing the military service tax exemption, and including effective date and retroactive applicability provisions.

This Iowa bill (SF 29) changes property tax benefits for specific groups. It replaces the existing homestead exemption for homeowners aged 65+ with a credit equal to $6,500 in actual property taxes paid, available to those with household incomes under 250% of the federal poverty level. It also increases military veterans' property tax exemption to a credit equivalent to $4,000 (based on actual tax rates), applying to honorably discharged veterans. Both changes take effect retroactively for assessment years beginning January 1, 2025. The bill directly affects elderly homeowners and veterans who meet income or service criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits for seniors (65+) and veterans under 250% poverty level, reducing property tax burden for lower-income groups.95% confidence ✓ VeteransSupports VeteransIncreases military veterans' property tax exemption credit to $4,000, expanding benefits for honorably discharged veterans.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Iowa · House Jan 23, 2025

HF 101: A bill for an act relating to the sale of bonds by limiting the amount offered for sale.

HF 101 limits bond issuance for certain public projects in Iowa. For projects where voters approved bond sales after July 1, 2025, the bill restricts bond amounts to no more than 80% of the project’s total cost. The remaining 20% must be funded through non-bond sources, such as general tax revenue or other existing funds. This applies specifically to projects with bond propositions approved in elections held after the specified date, directly affecting local governments and school districts seeking to finance large capital projects.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts bond issuance for public projects, requiring 20% non-bond funding, limiting fiscal flexibility and increasing reliance on existing tax revenue.95% confidence

Sub-Topics Debt & Bonds Revenue

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in committee · Iowa · House Jan 27, 2025

HF 142: A bill for an act creating conservation area designations subject to modified property tax levy rates and eliminating the forest and fruit-tree reservation property tax exemption program.

This bill creates new conservation area designations for landowners, replacing Iowa's existing forest and fruit-tree tax exemption program. Land designated as a conservation area will be taxed at $12 per acre for commercial uses (like fruit production or pasture managed with a certified plan) or $8 per acre for other conservation uses, starting in 2026. To qualify, areas must cover at least five continuous acres and meet specific land-use requirements, such as maintaining pasture stubble height or having hunting/fishing leases. The bill phases out the old exemption program, which applied only before 2026 and will be fully repealed by 2031.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates existing tax exemption program, replacing it with mandatory property tax rates ($8-$12/acre), increasing tax burden for qualifying landowners compared to previous exemption.95% confidence ✓ EnvironmentSupports EnvironmentReplaces tax exemption with conservation area tax incentives, promoting sustainable land use and resource conservation through lower tax rates for designated conservation areas.90% confidence

Sub-Topics Property Tax Tax Incentives Conservation Forestry

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in committee · Iowa · House Jan 29, 2025

HSB 96: A bill for an act relating to permissible local sales and services tax expenditures.

This bill (HSB 96) clarifies that cities and counties in Iowa may use local sales and services tax revenue to fund nonprofit organizations (specifically those exempt under IRS 501(c)(3)) that provide public services within their communities. It directly affects local governments and qualifying nonprofits by expanding eligible recipients for these tax funds beyond previous interpretations. The key change adds explicit language to the tax code, allowing payments to 501(c)(3) nonprofits for services like emergency medical support or other public programs. This does not create new taxes or change tax rates but specifies existing tax money can now be directed to these nonprofits for public service delivery.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands eligible recipients for local tax revenue to fund public services via 501(c)(3) nonprofits, strengthening fiscal management of existing tax funds.90% confidence

Sub-Topics Revenue Sales Tax Tax Incentives

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in committee · Iowa · House Jan 29, 2025

HF 31: A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

HF 31 creates two new Iowa tax credits: one for "new residents" (individuals who moved to Iowa for full-time employment with no prior residency in the state) and one for "new graduates" (Iowa-educated individuals under 30 working full-time in Iowa). Both credits reduce state income tax by 100% for up to four consecutive tax years, starting with the first or second year of eligibility. The credits are non-refundable if they exceed tax liability, expire if recipients receive public assistance after the first claimed year, and apply retroactively to tax years beginning January 1, 2025. Eligibility is limited to one-time lifetime use per individual.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% income tax credits for new residents and graduates, providing direct tax relief to targeted groups and reducing state tax liability.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Iowa · House Jan 30, 2025

HF 156: A bill for an act raising the limit certain townships may levy for fire protection service and emergency medical service.

HF 156 increases the maximum annual tax rate townships can levy for fire and emergency medical services. Specifically, it raises the limit from 40.5 cents to 91 cents per $1,000 of taxable property value for townships without fire/EMS service agreements with special charter cities and with populations below 300,000. This change directly affects those townships by allowing them to collect higher local funding for these essential services. The bill modifies Iowa Code section 359.43 to update the tax rate thresholds, without altering existing higher limits for townships with city agreements (54 cents) or in counties over 300,000 population (67.5 cents). The policy change provides additional financial flexibility for eligible townships to support fire and emergency medical services.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax levy cap for fire/EMS services, enabling higher local funding for essential public safety programs.95% confidence ✓ HealthcareSupports HealthcareIncreases tax funding for emergency medical services (EMS) via higher levy limits, directly strengthening healthcare service provision for essential emergency care.95% confidence

Tags Public Safety

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