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

SF 551: Relating to decoupling federal additional first-year depreciation for Iowa tax purposes, and including effective date and retroactive applicability provisions

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

What it does

This bill relates to decoupling for Iowa tax purposes with federal additional first-year depreciation changes under section 168(k) of the Internal Revenue Code (bonus depreciation). BACKGROUND. The Tax Cut and Jobs Act of 2017 (TCJA), in part, made substantial changes to bonus depreciation by increasing the deduction amount from percent of qualified property to 100 percent of qualified property. Beginning with property placed in service after December 31, 2022, the federal bonus depreciation deduction amount begins to phase down by percent per year until property placed in service after December 31, 2026, is no longer eligible for bonus depreciation.

Sponsors

Ways and Means committee

Cost

See the fiscal note

The change in the Bill to the amount of depreciation allowed in the year an asset is placed in service is projected to reduce individual income, corporate income, and bank franchise taxes owed to the State and, therefore, reduce State General Fund revenue.

Senate subcommittee · named January 9, 2024

  • Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
  • Sen. Carrie Koelker (R) · carrie.koelker@legis.iowa.gov
  • Sen. Cindy Winckler (D) · cindy.winckler@legis.iowa.gov

Lobbying · 5 for, 1 against

For: Iowa Association of Business and Industry (ABI); Iowa Farm Bureau Federation; Iowa Taxpayers Association; Lumen; National Federation of Independent Business (NFIB /IA)

Against: Common Good Iowa

In plain words

  1. February 2, 2023Filed in the Senate and sent to the Ways and Means committee · as SSB 1127
  2. February 2, 2023Senate subcommittee named: Koelker, Dickey and Winckler · as SSB 1127
  3. March 14, 2023Subcommittee recommended passing it · as SSB 1127
  4. March 15, 2023Filed in the Senate
  5. March 15, 2023Approved by the Senate committee
  6. March 15, 2023Approved by the Senate committee, and given a new number: SF 551 · as SSB 1127
  7. March 31, 2023Cost estimate (fiscal note) posted
  8. June 5, 2023Sent to the Senate Ways and Means committee
  9. January 9, 2024Senate subcommittee named: Dawson, Koelker and Winckler

From public records at legis.iowa.gov, compiled by Iowa Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/90/SF551