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91st General Assembly · Funnel one-pager · Monday, November 9, 2026

HF 1030: Exempting qualified tips from the individual income tax, and including applicability provisions

Died when the session ended · The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died.

What it does

This bill excludes certain qualified tips from the calculation of net income for purposes of the individual income tax. An individual whose net income is less than $155,000, without regard to any deduction of qualified tips the individual received, is eligible to exclude up to $25,000 of such tips from the calculations of net income. The bill defines “qualified tips” to mean any cash tip received by an individual in the course of such individual’s employment in an occupation that customarily received cash tips prior to December 31, 2023.

Sponsors

Rep. Ryan Weldon (R), Rep. David E. Young (R)

Cost

Less revenue: up to $14.1M

The deduction in HF 1030 will decrease revenue to the General Fund by the following amounts: • FY 2026 = $5.6 million • FY 2027 = $12.9 million • FY 2028 = $13.2 million • FY 2029 = $13.5 million • FY 2030 = $13.8 million • FY 2031 = $14.1 million The decrease…

Lobbying · 5 for, 0 against

For: Iowa Faith and Freedom Coalition; Iowa Federation of Labor, AFL-CIO; Iowa Hotel & Lodging Association; Iowa Restaurant Association; VALOR Iowa

In plain words

  1. April 17, 2025Filed in the House
  2. April 22, 2025Cost 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/91/HF1030