90th General Assembly · Funnel one-pager · Monday, November 9, 2026

HF 2650: 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

Died when the session ended · The General Assembly adjourned on April 19, 2024. Bills that didn’t pass both chambers died.

What it does

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.

Cost

Less revenue: up to $900,000

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 = $200,0…

House subcommittee · named February 8, 2024

Rep. Austin Harris (R) · austin.harris@legis.iowa.gov
Rep. John Forbes (D)
Rep. Brent Siegrist (R) · brent.siegrist@legis.iowa.gov

Lobbying · 3 for, 0 against

For: Iowa Cannabis Company; Iowans for Medical Marijuana; MedPharm Iowa

In plain words

February 8, 2024Filed in the House and sent to the Ways and Means committee · as HSB 683
February 8, 2024House subcommittee named: Harris, Forbes and Siegrist · as HSB 683
February 20, 2024Subcommittee recommended passing it · as HSB 683
March 6, 2024Filed in the House
March 6, 2024Approved by the House committee · as HSB 683
March 6, 2024Approved by the House committee, and given a new number: HF 2650 · as HSB 683
March 8, 2024Cost estimate (fiscal note) posted