Budget & Taxes

passed · Iowa · House Apr 28, 2025

HF 988: A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions.

HF 988 establishes catastrophic savings accounts for Iowa residents who own homes, effective January 1, 2026. This bill allows account holders to deduct contributions to these accounts from their state income tax, with lifetime limits tied to their homeowner's insurance premiums or the home's assessed value for self-insured individuals. Interest earned on these accounts is also tax-deductible. Funds can be withdrawn tax-free to pay deductibles for homeowner's insurance related to defined catastrophic events like floods or windstorms. However, withdrawals for non-qualified expenses are subject to state income tax and a 2.5% penalty.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax deductions for homeowner savings account contributions and interest, providing direct tax relief to residents under income tax provisions.95% confidence

Sub-Topics Income Tax Property Tax

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passed · Iowa · House Apr 28, 2025

HF 1021: A bill for an act exempting the sale of dietary supplements from the sales tax.

HF 1021 proposes to exempt the sale of dietary supplements from sales tax in Iowa. This bill amends existing law to include dietary supplements, such as vitamins and minerals, within the category of "food and food ingredients" that are not subject to sales tax. As a result, consumers purchasing these products would no longer pay sales tax. The exemption would also apply to the state's use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dietary supplements from sales tax, providing tax relief to consumers purchasing essential health products.95% confidence

Sub-Topics Procurement Sales Tax

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passed · Iowa · House Apr 28, 2025

HF 1027: A bill for an act relating to radon by establishing radon mitigation requirements, creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.

House File 1027 addresses radon by establishing new requirements for residential construction and offering tax incentives for mitigation systems. It mandates that new single-family and two-family homes built after the requirement's adoption must include passive methods for radon mitigation. The bill also creates a non-refundable income tax credit, up to $1,000, for individuals and corporations to help cover the cost of purchasing and installing a radon mitigation system. This tax credit applies retroactively to systems installed for tax years beginning on or after January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates a non-refundable income tax credit ($1,000 max) against individual/corporate income taxes for radon mitigation, providing direct tax relief.95% confidence

Sub-Topics Procurement

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in committee · Iowa · House Apr 30, 2025

HSB 335: A bill for an act relating to state finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, providing for properly related matters including prohibiting state membership in the Iowa individual health benefit reinsurance association, making corrections, and including effective date and retroactive applicability provisions.

HSB 335 is a bill concerning state finances, primarily impacting education funding and state appropriations. It allocates $14 million annually for fiscal years 2025-2026 and 2026-2027 to supplement compensation for education support personnel in school districts, distributed based on student enrollment. The bill also limits funding for nonpublic school pupil transportation and sets instructional support state aid to zero for FY 2025-2026. Furthermore, it reduces overall funding for school districts and area education agencies by $25 million for FY 2025-2026. The bill also transfers over $21 million from the taxpayer relief fund to the general fund to support foundation aid and allows the use of special funds for state employee salary adjustments.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces overall school funding, sets instructional aid to zero, and limits transportation funding, defunding key education programs despite minor allocations.85% confidence ✗ EducationOpposes EducationAllocates $14M for support staff but reduces overall education funding, sets instructional aid to zero, and limits nonpublic school transportation funding.85% confidence ✗ TransportationOpposes TransportationBill explicitly limits funding for nonpublic school pupil transportation, directly reducing transportation support per summary.85% confidence

Sub-Topics Government Spending State Budget School Funding

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passed · Iowa · House Apr 30, 2025

HF 1022: A bill for an act exempting the sale of laundry soap or detergent from the sales tax.

HF 1022 proposes to exempt the sale of laundry soap and detergent from the state's sales tax. This change would directly affect consumers by reducing the cost of purchasing these household items. The bill amends existing state code to specifically remove sales tax from laundry soap and detergent, an exemption that would also apply to use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts laundry soap/detergent from sales tax, providing direct tax relief to consumers for essential household items, aligning with tax relief indicators.95% confidence

Sub-Topics Procurement Sales Tax

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in committee · Iowa · House Apr 30, 2025

HSB 341: A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission, and providing for properly related matters including the deposit of captive company premium tax revenue and professional licensure fee standardization.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates funding for state departments and standardizes fees, advancing fiscal management and budget execution for 2025-2026.95% confidence

Sub-Topics Audits & Accountability Pensions State Budget

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in committee · Iowa · House May 9, 2025

HSB 337: A bill for an act relating to and making appropriations to the education system, including the funding and operation of the department for the blind, department of education, and state board of regents, and including contingent effective date provisions.

HSB 337 is an appropriations bill that allocates funds from the state's general fund to various parts of the education system for the fiscal year beginning July 1, 2025, and ending June 30, 2026. It provides funding for the Department for the Blind, the Department of Education, and the State Board of Regents. The bill details specific appropriations for programs such as career and technical education, school food services, early childhood initiatives like Birth to Age Three Services and Early Head Start, and statewide student assessments. Additionally, it funds work-based learning, postsecondary summer classes for high school students, and the Jobs for America's Graduates program, and requires a report on anti-bullying programming.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates state general fund to education departments and blind services, directly funding public education and support programs per appropriations language.95% confidence ✓ EducationSupports EducationAllocates state funds to education departments, career/tech programs, and early childhood initiatives, directly supporting system funding and operations.95% confidence

Sub-Topics Appropriations State Budget Early Childhood School Funding School Safety

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in committee · Iowa · Senate May 12, 2025

SSB 1239: A bill for an act relating to the elimination of the individual income tax and alternate income tax by creating the taxpayer relief trust fund and income tax elimination board and fund, and making appropriations.

SSB 1239 proposes to eliminate Iowa's individual income tax and alternate income tax, affecting all individual taxpayers. It establishes a "taxpayer relief trust fund" and an "income tax elimination fund," along with an "income tax elimination board" to oversee this process. The bill mandates the transfer of state funds, including an initial $2.6 billion, into the taxpayer relief trust fund. These funds, to be administered by the Iowa Public Employees’ Retirement System (IPERS), are intended to generate investment returns to support the future elimination of the individual income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates individual income tax, establishes taxpayer relief fund, aligns with tax relief indicators for all taxpayers.95% confidence

Sub-Topics Income Tax Pensions

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in committee · Iowa · House May 12, 2025

HSB 340: A bill for an act relating to and making appropriations to the judicial branch, including juror compensation and judicial officer salaries, and including effective date provisions.

This bill appropriates funds to the judicial branch for the fiscal year beginning July 1, 2025. It allocates money for salaries of judicial officers and staff, general court operations, and juror and witness fees. The bill also provides significant funding for court-ordered services for juveniles, including school-based supervision and delinquent graduated sanctions, and sets guidelines for their distribution and use. Additionally, it requires the judicial branch to use state financial systems, submit regular financial reports, focus on collecting delinquent fines, and maintain clerk of court offices in all 99 counties.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates funds for judicial branch operations, salaries, and juvenile services, directly advancing government spending on essential public services.95% confidence ✓ Criminal JusticeSupports Criminal JusticeFunds juvenile justice programs (school-based supervision, graduated sanctions) and judicial operations, advancing reform-focused criminal justice initiatives through appropriations.92% confidence

Sub-Topics State Budget

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passed · Iowa · House May 13, 2025

HF 1013: A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.

HF 1013 establishes a temporary partial property tax exemption for certain residential properties. This bill directly affects individuals who purchase homes from the U.S. Department of Housing and Urban Development (HUD) in areas declared major disaster zones. To qualify, the property must be sold by HUD specifically to provide housing after a disaster, and the new owner must occupy it as their primary residence. The exemption applies for four assessment years, starting with the first full year after the sale, decreasing from 80% of the property's actual value in the first year to 20% in the fourth year.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary property tax exemption for qualifying disaster-area homebuyers, reducing tax burden on residents in affected areas.90% confidence

Sub-Topics Property Tax Tax Incentives

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