Creating a state work opportunity tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions

Where it is now

1. ✓
   Done: IntroducedJanuary 13, 2026
2. ✓
   Done: SubcommitteeJanuary 14, 2026
3. ✕
   Stopped: House committeeDied when the General Assembly ended
4. Next: Passes the House
5. Next: Senate committeeFunnel: by March 20, 2026
6. Next: Passes the Senate
7. Next: To the Governor
8. Next: Signed into law

Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill creates a state work opportunity tax credit available against the individual and corporate income taxes. The bill reduces individual or corporate income taxes, as applicable, by a work opportunity tax credit that is equal to 100 percent of the federal work opportunity tax credit provided in section of the Internal Revenue Code. The federal work opportunity tax credit is a credit based upon a percentage of wages paid by employers to persons who may face barriers to entering the workforce. The tax credit is not refundable but the excess for the tax year may be credited to the tax liability for the following year. The bill applies retroactively to tax years beginning on or after January 1, 2026.

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

House subcommittee

Named January 14, 2026. On January 22, 2026 it recommended passage.

• Rep. Chad Ingels REmail
• Rep. Larry McBurney DEmail
• Rep. Ryan Weldon REmail

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

Iowa Code it changes

Creates§422.12R

Amends§422.33

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