Excluding the net capital gain from the sale of certain livestock from the computation of net income for purposes of the individual income tax, and including retroactive applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 27, 2024
2. ✓
   Done: SubcommitteeFebruary 29, 2024
3. ✓
   Done: Senate committeeApril 18, 2024
4. ✓
   Done: Passes the SenateApril 19, 202446–0
5. –
   Skipped: House committeeSkipped
6. ✓
   Done: Passes the HouseMarch 19, 202494–0
7. ✓
   Done: To the GovernorApril 29, 2024
8. ✓
   Done: Signed into lawMay 15, 2024

HF 2649 became law → The same legislation passed as HF 2649, so this version was set aside. Go to HF 2649 What’s a funnel?

What’s in it

This bill excludes the net capital gain from the sale of certain livestock from the computation of net income for purposes of the individual income tax. The bill allows a taxpayer to exclude the net capital gain from the sale of cattle or horses if held by the taxpayer for breeding, draft, dairy, or sporting purposes for more than months, but only if the taxpayer received more than percent of the taxpayer’s gross income from farming or ranching operations during the tax year. The bill allows a taxpayer to exclude the net capital gain from the sale of breeding livestock, other than cattle or horses, held by the taxpayer for a period of months or more from the date of acquisition, but only if the taxpayer received more than one-half of the taxpayer’s gross income from farming or ranching operations during the tax year.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text · What changed before it passed

Senate subcommittee

Named April 18, 2024. It hasn’t reported yet.

• Sen. Dan Dawson REmail
• Sen. Dawn Driscoll REmail
• Sen. T. Taylor

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

The proposed exclusions from the individual income tax in House File 2649 are projected to decrease net individual income tax liability and State General Fund revenue by the following amounts: • FY 2025 = $5.3 million • FY 2026 = $2.6 million • FY 2027 = $2.2 million • FY 2028 = $2.2 million • FY 2029 = $2.3 million • FY 2030 = $2.3 million The decrease in tax liability is also projected to decrease the statewide local option income surtax for schools by the following amounts: • FY 2025 = $133,000 • FY 2026 = $64,000 • FY 2027 = $55,000 • FY 2028 = $56,000 • FY 2029 = $57,000 • FY 2030 = $59,000

• Final Fiscal Note — Capital Gains Deduction, Sale of Livestock · April 30, 2024
• Capital Gains Deduction, Sale of Livestock · March 21, 2024
• Capital Gains Deduction, Sale of Livestock · March 11, 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

Amends§422.7

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

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.

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.