Budget & Taxes (Income Tax)

signed · Iowa · Senate May 15, 2026

SF 2492: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This Iowa bill updates the state corporate income tax code to allow a deduction for net controlled foreign corporation tested income, replacing a previous reference to the now-repealed global intangible low-taxed income. The change directly affects Iowa businesses with foreign income by ensuring they can still claim a tax break for this specific category of earnings despite recent federal tax law updates. By removing the outdated terminology and keeping the deduction mechanism active, the legislation maintains the state's alignment with current federal tax definitions. The law applies retroactively to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax deduction for businesses, reducing their tax liability and promoting economic activity.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

passed · Iowa · House May 1, 2026

HF 2778: A bill for an act modifying the individual income tax credit for emergency medical services personnel to include volunteer ambulance drivers, and including retroactive applicability provisions.

This bill expands an existing Iowa state tax credit to include volunteer ambulance drivers, who were previously excluded from the benefit available to certified first responders. By amending the definition of "emergency medical services personnel," the legislation allows these volunteer drivers to claim a $250 tax credit for their services. The change applies retroactively to tax years beginning on or after January 1, 2026, ensuring that eligible individuals can claim the credit for past years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax credits for volunteer emergency medical personnel, providing fiscal relief and recognizing essential public service contributions.90% confidence ✓ HealthcareSupports HealthcareBill expands tax credit to volunteer ambulance drivers, strengthening support for emergency medical services personnel and encouraging volunteerism in healthcare.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Iowa · House Apr 27, 2026

HF 2760: A bill for an act creating an attorney loan repayment program, and making appropriations.

This bill creates a loan repayment program administered by the Iowa College Student Aid Commission to encourage attorneys to practice law in the state. Eligible participants, who must be licensed Iowa lawyers, agree to work in designated areas and provide a specific number of hours of indigent defense services in exchange for up to $10,000 per year in loan assistance for a maximum of six years. The program prioritizes attorneys working in rural counties and those who graduated from Iowa law schools, with a strict limit of 25 recipients annually. Additionally, the bill establishes a dedicated state fund for the program and ensures that the loan repayment assistance received is exempt from Iowa state income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly creates a new program and includes specific appropriations to fund it, directly advancing the topic of government spending and budget allocations.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill funds indigent defense services, improving access to legal representation and strengthening the criminal justice system.85% confidence ✓ EducationSupports EducationBill creates a loan repayment program to encourage attorneys to practice in Iowa, supporting legal education access and rural legal services.85% confidence

Sub-Topics Income Tax Higher Education

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signed · Iowa · Senate Mar 28, 2025

SF 605: A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.

This bill establishes rules for state income tax withholding on winnings from sports wagering in Iowa, directly affecting individuals who receive such winnings. It clarifies that all winnings from sports wagering are considered Iowa earned income and are subject to both state and federal income tax laws. The bill specifically mandates that state income tax be withheld from sports wagering winnings whenever federal income tax withholding is also required for those same winnings under federal tax law. These provisions are scheduled to take effect on January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates tax withholding on sports wagering winnings, ensuring state revenue collection and closing potential tax loopholes for gambling income.90% confidence

Sub-Topics Income Tax

passed · Iowa · Senate Apr 27, 2026

SF 2470: A bill for an act relating to event-driven contracts traded on dedicated contract markets by requiring a permit to conduct business in the state, imposing a tax on adjusted revenues or amounts traded, making adjustments to individual and corporate income taxes, providing for fees, and including contingent effective date, applicability, and retroactive applicability provisions.

This bill establishes a regulatory and tax framework for event-driven contracts traded on digital markets within Iowa. It requires any company operating such markets in the state to obtain a permit from the Department of Revenue, with an initial fee of $20 million and annual renewal fees of $100,000. The law imposes a 20% tax on adjusted revenues from these contracts, which are defined as financial derivatives with fixed payouts based on specific outcomes like sports events, elections, or economic indicators. Money earned by traders from these contracts is treated as Iowa earned income subject to state and federal income tax withholding. All tax revenues collected under this program go to the state's general fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes new tax framework and revenue collection for event-driven contracts, increasing state revenue through taxes and fees.85% confidence

Sub-Topics Income Tax State Budget

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in committee · Iowa · Senate Feb 11, 2026

SSB 3105: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This bill updates Iowa's corporate tax code to allow a deduction for income earned by corporations from foreign operations (now termed "net controlled foreign corporation tested income" or NCTI under federal law), replacing outdated references to the previous federal term "GILTI." It directly affects Iowa corporations with foreign subsidiaries that pay taxes on foreign earnings. The key mechanism removes the specific reference to "GILTI" in tax code section 422.35(12) and aligns the deduction with the current federal definition of NCTI under IRC section 951A. The deduction applies retroactively to tax years beginning January 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax deduction reducing state revenue, aligning with federal tax code updates for foreign income.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · Senate Apr 15, 2026

SF 2292: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

SF 2292 updates Iowa's corporate tax code to maintain a deduction for net controlled foreign corporation tested income (NCTI), aligning with recent federal tax law changes. It replaces the outdated reference to "global intangible low-taxed income" (GILTI) with NCTI under federal Section 951A, ensuring Iowa businesses can still claim this deduction. The bill directly affects Iowa corporations with foreign operations that previously relied on this deduction under state law. It applies retroactively to tax years beginning January 1, 2026, to correct a technical gap caused by federal legislation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax deduction for foreign operations, reducing state revenue; aligns with tax breaks for businesses per indicators.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Iowa · Senate Feb 16, 2026

SF 2285: A bill for an act providing a tax credit for car registration fees paid by a disabled veteran available against the individual income tax, and including retroactive applicability provisions.

SF 2285 creates a tax credit for Iowa disabled veterans with a 100% service-connected disability rating (verified by the U.S. Department of Veterans Affairs). It allows these veterans to claim a credit against their individual income tax equal to their annual car registration fee (capped at $100), which is refundable if it exceeds their tax liability. Veterans can choose to receive the refund directly or apply the excess to their next year’s tax bill. The credit applies retroactively to tax years beginning January 1, 2026, and is administered by the Iowa Department of Revenue. This bill directly affects eligible disabled veterans who pay car registration fees under Iowa law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit (up to $100) for disabled veterans' car registration fees, reducing tax burden for lower-income veterans and aligning with tax relief policies.95% confidence ✓ VeteransSupports VeteransProvides refundable tax credit for disabled veterans' car registration fees, reducing financial burden and expanding benefits for veterans with service-connected disabilities.95% confidence

Sub-Topics Fees & Licensing Income Tax Tax Credits Veteran Healthcare

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in committee · Iowa · Senate Feb 16, 2026

SF 2331: A bill for an act establishing a classroom supply stipend for certain public school teachers, and making appropriations.

This bill establishes a $250 annual stipend for eligible public school teachers in Iowa, starting with the 2026-2027 school year. Eligible teachers are those providing primarily in-person instruction and employed by a school district before the school year begins. The stipend must be paid automatically by school districts by September 15 each year and can only be used for classroom supplies directly supporting student learning (e.g., books, technology, materials), not personal items. Funding comes from the state general fund, and the stipend is exempt from Iowa income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes mandatory state appropriations ($250 stipend) for public school teachers' classroom supplies, directly increasing government spending on education funding.95% confidence ✓ EducationSupports EducationProvides $250 annual stipend for teachers to purchase classroom supplies, directly supporting educator resources and student learning materials.95% confidence

Sub-Topics Income Tax State Budget School Funding

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in committee · Iowa · Senate Feb 18, 2026

SF 2354: A bill for an act relating to assistance animals in residential rental housing, including damage reimbursement, refundable income tax credits, and a landlord insurance risk pool, and providing penalties and effective date provisions.

SF 2354 (Iowa) establishes three options for landlords to seek reimbursement from tenants for damage caused by assistance, emotional support, service, or therapy animals in rental housing. Landlords may use the Department of Revenue’s tax setoff program, claim a refundable income tax credit, or join a state-run insurance risk pool (optional). The bill prohibits landlords from charging deposits for service animals but allows reasonable, refundable deposits for emotional support or therapy animals (used only for damage beyond normal wear and tear). It also penalizes intentional misrepresentation of an animal as an assistance or support animal with a simple misdemeanor charge. The bill takes effect July 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a refundable income tax credit for landlords, directly providing tax relief and establishing a fiscal mechanism within housing policy.90% confidence ✓ HealthcareSupports HealthcareBill removes financial barriers for service/emotional support animals, facilitating access to healthcare-related assistance in housing.80% confidence

Sub-Topics Income Tax Tax Credits

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