Bill > HF568

This bill modifies Iowa's individual income tax code by allowing taxpayers to subtract interest income received from banks and credit unions when calculating their Iowa net income. The bill provides specific definitions for "bank" and "credit union", which include traditional banking institutions organized under state or federal laws, savings and loan associations, savings banks, and cooperative nonprofit credit unions that are insured by the national credit union administration. The bill takes effect immediately upon enactment and applies retroactively to tax years beginning on or after January 1, 2025, which means taxpayers can exclude this type of interest income from their state income tax calculations for those tax years. By creating this new tax exclusion, the bill aims to provide a financial benefit to Iowa taxpayers who earn interest from banking and credit union accounts, effectively reducing their state income tax liability.

Budget and Finance

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF568