Bill > HF2017

This bill establishes a new state work opportunity tax credit, which will reduce both individual and corporate income taxes for tax years beginning on or after January 1, 2026. This credit will be equivalent to 100% of the federal work opportunity tax credit, a federal incentive designed to encourage employers to hire individuals facing barriers to employment by offering a tax credit based on a percentage of wages paid to these workers. The state credit is not refundable, meaning if the credit exceeds the tax owed, the unused portion can be carried forward to reduce tax liability in the following year. The bill also includes provisions for retroactive applicability, meaning it will apply to tax years starting from January 1, 2026.

Labor and Employment

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF2017