Bills › 90th General Assembly
Relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and including retroactive applicability provisions
Sponsored by the House Ways and Means Committee
Topics:Taxes
Where it is now
- Done: IntroducedMarch 6, 2024
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The General Assembly adjourned on April 19, 2024. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
Under federal law, a medical cannabidiol manufacturer and a medical cannabidiol dispensary are prohibited from taking business expense deductions by section 280E of the Internal Revenue Code. Currently, Iowa computes individual net income and corporate taxable income based upon federal income calculations, and therefore Iowa currently prohibits a medical cannabidiol manufacturer and a medical cannabidiol dispensary from taking business expense deductions as well because the deductions are not allowed at the federal level.
Read the full explanation
This bill allows a medical cannabidiol manufacturer and a medical cannabidiol dispensary licensed pursuant to Code chapter 124E to deduct business expenses for purposes of the Iowa individual income tax or corporate income tax. The bill applies retroactively to tax years beginning on or after January 1, 2021.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
Fiscal note
Less revenue: up to $900,000 Compare with other bills
The individual income tax rate changes in House File 2650 are projected to decrease State General Fund revenue by the following amounts: • FY 2025 = $900,000 • FY 2026 = $200,000 • FY 2027 = $200,000 • FY 2028 = $200,000 • FY 2029 = $200,000 • FY 2030 = $200,000 The decrease in tax liability is also projected to decrease the statewide local option income surtax for schools by the following amounts: • FY 2025 = $9,000 • FY 2026 = $2,000 • FY 2027 = $2,000 • FY 2028 = $2,000 • FY 2029 = $2,000 • FY 2030 = $2,000
- Business Expense Deductions, Medical Cannabidiol · March 8, 2024
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
3 for · 0 against · 1 undecided · Who →
Family tree
Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.
90th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.
Similar bills
- HSB 687 Relating to medical cannabidiol by providing deductions from the individual and corporate …91st General Assembly · Subcommittee recommends passageVery similar
Matched by the wording of each bill’s explanation, or an identical title. Companion bills and renumbered versions of this bill aren’t listed; they’re the same bill.