Budget & Taxes (Tax Incentives)

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 · Senate Feb 11, 2025

SF 200: A bill for an act relating to the distribution of water exempt from taxation and the use of tax exemption certificates, and providing civil penalties.

This bill requires water utilities in Iowa to accept and retain valid exemption certificates that allow certain water users to avoid sales or water service taxes. It directly affects water utilities and customers who possess these certificates, preventing utilities from forcing customers to seek tax refunds instead of applying the exemption directly. Utilities that refuse valid certificates must pay a civil penalty equal to the tax amount plus interest to the state revenue department. The bill also defines key terms and mandates the revenue department to create rules for implementation.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enforces tax exemption certificates, closing a loophole that prevented direct tax relief for water users, aligning with fiscal responsibility.85% confidence

Sub-Topics Revenue Tax Incentives

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in committee · Iowa · House Feb 12, 2025

HF 360: A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

HF 360 would exclude overtime pay from Iowa's individual income tax calculation. Specifically, it removes from taxable income the portion of compensation earned for hours worked beyond 40 in a workweek, paid at rates of 1.5 to 2 times the regular wage under federal law (29 U.S.C. §207). This change directly affects Iowa workers who earn overtime pay, reducing their taxable income for those hours. The policy takes effect for tax years beginning January 1, 2026. The bill does not alter federal overtime rules but changes how Iowa taxes that specific income.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, reducing tax burden for workers and aligning with tax relief indicators for middle/lower income earners.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from taxable income, increasing workers' net earnings for hours beyond 40 without altering federal overtime standards.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Labor Standards

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in committee · Iowa · House Feb 12, 2025

HSB 129: 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 workforce housing tax incentive program funding limits. It raises the maximum annual allocation from $35 million to $50 million, with $25 million specifically reserved for housing projects in small cities (as defined in section 15.352) registered after July 1, 2017 - up from $17.5 million. The change directly affects developers building affordable housing for low-to-moderate-income workers, particularly those in smaller communities. The policy modifies how tax credits are distributed under existing tax code provisions without altering the program's eligibility criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases max annual tax incentive allocation from $35M to $50M, reserving $25M for small city housing projects, directly expanding funding for affordable housing via tax credits.95% confidence ✓ HousingSupports HousingIncreases $50M annual tax incentive funding for workforce housing, specifically reserving $25M for small cities' affordable projects targeting low-to-moderate-income workers.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Housing Finance

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in committee · Iowa · House Feb 20, 2025

HF 541: A bill for an act creating a sales tax exemption period for firearms, firearm accessories, ammunition, and gun safes.

HF 541 creates a temporary sales tax exemption for firearms, firearm accessories, ammunition, and gun safes purchased on July 3, July 4, or July 5 each year. This exemption directly affects consumers making qualifying purchases on those specific dates by removing the state sales tax. The bill amends Iowa law to exempt these items from sales tax during this three-day period, and by law, this also eliminates the related use tax. The policy change is limited to those exact dates with no ongoing tax relief.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates temporary sales tax exemption for firearms, reducing state revenue during specific dates, weakening fiscal management.90% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Iowa · House Feb 24, 2025

HF 208: A bill for an act relating to the allocation 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.

HF 208 allocates $35 million in tax incentives for workforce housing projects, to be applied against individual and corporate income taxes, franchise tax, insurance premiums tax, and moneys and credits tax. It reserves $17.5 million specifically for housing projects in small cities (as defined in Iowa law) registered after July 1, 2017. The remaining funds may allocate up to one-third to projects in Iowa's two most populous counties, but only for projects registered after July 1, 2025. This bill directly affects developers and builders of workforce housing projects seeking tax credits under these specific allocation rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $35M tax incentives for workforce housing via tax credits against income/corporate taxes, funding affordable housing projects as public service.90% confidence ✓ HousingSupports HousingAllocates $35M tax incentives for workforce housing projects, specifically funding affordable housing development in small cities and designated areas per bill summary.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Housing Finance

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in committee · Iowa · House Feb 28, 2025

HF 634: A bill for an act relating to forest and fruit-tree reservations, and providing for a fee.

HF 634 establishes an annual fee for landowners who maintain forest and fruit-tree reservations that currently qualify for property tax exemptions under Iowa law. Starting January 1, 2026, fees will be paid by September 1 each year to the county treasurer and deposited into the county general fund. The fee amount depends on location: $2 per acre if the reservation is in the same county as the owner's homestead, $3 per acre if in a contiguous county, and a calculated rate based on county property taxes and corn ratings for all other reservations (including those within city limits). This replaces the current tax exemption with a location-based fee structure, directly affecting landowners with designated forest or fruit-tree reservations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new fee revenue for county general fund by replacing property tax exemptions, directly increasing local government budget resources.95% confidence

Sub-Topics Tax Incentives

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in committee · Iowa · House Feb 28, 2025

HF 625: A bill for an act providing for the future repeal of tax credits.

HF 625 sets specific expiration dates for existing Iowa tax credit programs, with most ending between 2027 and 2041. It also establishes that any new tax credit program enacted after January 1, 2026, will automatically expire six years after its effective date. The bill preserves tax credits issued or awarded before January 1, 2031, ensuring taxpayers can still claim or redeem them. This affects Iowa taxpayers who currently use or may later claim these credits, but does not alter existing agreements or credits issued prior to the specified dates.

Topics ✗ Budget & TaxesOpposes Budget & TaxesPhases out tax credits through expiration dates (2027-2041) and limits new credits, reducing tax relief for Iowa taxpayers.95% confidence

Sub-Topics Tax Credits Tax Incentives

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in committee · Iowa · House Feb 28, 2025

HF 659: A bill for an act relating to housing in the state by establishing an Iowa housing tax credit program, establishing a neighborhood renovation grant program, and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

HF 659 creates a state-administered Iowa Housing Tax Credit Program to support affordable housing development. It allows developers of qualifying low-income housing projects to claim tax credits against certain state taxes, with a $15 million annual cap (plus carryover from previous years). The bill also establishes neighborhood renovation grants and increases tax incentives for first-time homebuyers. These provisions directly affect housing developers, low-income residents, and homebuyers by providing financial tools to build and purchase housing in Iowa.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for affordable housing development and homebuyers, providing targeted tax relief and funding for housing programs within budget constraints.92% confidence ✓ HousingSupports HousingCreates tax credits for low-income housing development, neighborhood grants, and increased homebuyer incentives - all directly funding affordable housing initiatives.95% confidence

Sub-Topics Tax Incentives Affordable Housing Homeownership Housing Finance

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in committee · Iowa · House Feb 28, 2025

HF 682: A bill for an act relating to the recapture of tax expenditures and disbursed by departments of the state to businesses that violate child labor laws.

HF 682 requires Iowa state departments to recapture tax incentives (such as credits, exemptions, or rebates) from businesses that violate state or federal child labor laws (under Iowa Code chapter 92 or the Fair Labor Standards Act). It applies to businesses receiving state tax benefits and extends to their contractors, subcontractors, or third parties working at the business's facility. Beginning July 1, 2025, if a violation occurs, the business must notify the administering department within 30 days of the appeal period ending, and the state will reclaim the tax benefits using the same process as for unpaid taxes. This bill directly affects businesses receiving state tax incentives who breach child labor protections.

Topics ✓ Budget & TaxesSupports Budget & TaxesRecaptures tax incentives from violators, closing a loophole to ensure fiscal responsibility in tax administration.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires recapture of tax incentives from businesses violating child labor laws, enforcing compliance and protecting minors in the workplace.95% confidence

Sub-Topics Tax Incentives Child Labor Labor Standards

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