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

HF 352: Relating to an entity-level taxation election for pass-through entities and allowing a partner or shareholder to claim a credit against the individual and corporate income taxes and the franchise tax, and including effective date and retroactive applicability provisions

Signed into law

What it does

This bill relates to an entity-level taxation election for pass-through entities and allows a partner or shareholder to claim a credit against the individual income tax.5A imposed against the taxable income of the taxpayer for the taxable year. Currently, the taxable income of a partnership or S corporation passes through to the partners or shareholders of the entity and is subject to the individual income tax at the partner or shareholder level. The bill only applies to tax years as long as the limitation on individual deductions applies under section 164(b)(6) of the Internal Revenue Code.

Sponsors

Ways and Means committee

Cost

See the fiscal note

The creation of the new PTE tax will result in decreased PTE income passed through to PTE owners, thereby lowering State taxable income and State individual income tax. The revenue generated by the PTE tax will increase State tax revenue, while the new PTE tax…

Senate subcommittee · named April 20, 2023

  • Sen. Jason Schultz (R) · jason.schultz@legis.iowa.gov
  • Sen. Herman C. Quirmbach (D) · herman.quirmbach@legis.iowa.gov
  • Sen. Brad Zaun (R)

Lobbying · 11 for, 0 against

For: Associated General Contractors of Iowa; Fareway Stores, Inc.; Hubbell Realty Company; Iowa Automobile Dealers Association; Iowa Bankers Association; Iowa Grocery Industry Association; Iowa Real Estate Developers Association; Iowa Select Farms, L.L.P.; Iowa Taxpayers Association; National Federation of Independent Business (NFIB /IA); The Iowa Academy of Trust and Estate Counsel

In plain words

  1. February 20, 2023Filed in the House
  2. March 15, 2023Cost estimate (fiscal note) posted
  3. April 13, 2023Passed the House, 99–0
  4. April 17, 2023Cost estimate (fiscal note) posted
  5. April 18, 2023Sent to the Senate Ways and Means committee
  6. April 20, 2023Senate subcommittee named: Schultz, Quirmbach and Zaun
  7. April 24, 2023Subcommittee recommended passing it
  8. April 25, 2023Approved by the Senate committee
  9. April 26, 2023Passed the Senate, 46–3
  10. May 9, 2023Sent to the Governor
  11. May 11, 2023Signed into law
  12. May 16, 2023Cost estimate (fiscal note) posted

From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/90/HF352