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

SF 7: Exempting from the individual income tax the wages of individuals who provide services to disabled individuals and including effective date and 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

This bill exempts from the individual income tax wages received by an individual from a nonprofit, tax-exempt organization organized under Code chapter 504 (revised Iowa nonprofit corporation Act) for services provided to individuals domiciled in this state who have a physical or mental impairment that substantially limits one or more major life activities. The bill takes effect January 1, 2024, and applies to tax years beginning on or after that date.

Cost

See the fiscal note

1 million each tax year. A school district that is not at its maximum Fiscal Note Fiscal Services Division 2 allowed surtax rate may choose to increase the surtax rate to maintain its annual surtax revenue.

Senate subcommittee · named January 11, 2023

Sen. Carrie Koelker (R) · carrie.koelker@legis.iowa.gov
Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
Sen. Janet Petersen (D) · janet.petersen@legis.iowa.gov

Lobbying · 22 for, 1 against

For: American Heart Association; Brain Injury Alliance of Iowa; Easterseals Iowa; Exceptional Persons, Inc.; Hills and Dales; Hope Haven Area Development Center; IA Mental Health Planning Council; Imagine the Possibilities; Iowa Association of Community Providers; Iowa Developmental Disabilities Council; Iowa Mental Health Advocacy; Link Associates; and 10 more

Against: Iowa CareGivers

In plain words

January 9, 2023Filed in the Senate and sent to the Ways and Means committee
January 11, 2023Senate subcommittee named: Koelker, Dawson and Petersen
February 20, 2023Cost estimate (fiscal note) posted