HF 2342: Providing for the future repeal of tax credits

What it does

This bill provides for the future repeal of certain existing state income and property tax credits, and provides for the future repeal of tax credits enacted by the general assembly in the future. DIVISION I —— FUTURE REPEAL OF EXISTING TAX CREDITS. Division I repeals tax credits on a rolling basis over a five-year period beginning January 1, 2028, through January 1, 2032. The bill repeals the following tax credits that currently have no repeal date: the accelerated career education program job tax credit; the beginning farmer tax credit; the sales and use tax refunds under the major economic growth attraction program (MEGA program) and the business incentives for growth program (BIG program); the investment tax credit; the school tuition organization tax credit; the solar energy system tax credit; the innovation fund investment tax credit; the qualifying investment tax credits under the MEGA program and the BIG program; the wind energy production tax credit; the charitable conservation contribution tax credit; the new jobs credits from withholding available under the Iowa industrial new job training program; the research and development tax credit; the renewable energy tax credit; the targeted jobs withholding tax credit; the endow Iowa tax credit; the historic preservation tax credit; the new jobs tax credit; the emergency personnel and tuition textbook tax credits; the adoption tax credit; the earned income tax credit; the child and dependent care or early childhood development tax credit; the geothermal heat pump tax credit; the public safety officer moving expense tax credit; the homestead tax credit; the elderly and disabled property tax credit or reimbursement; and the agricultural land credit.

Lobbying · 1 for, 5 against

For: Americans For Prosperity

Against: Common Good Iowa; Gevo; Iowa Association of Christian Schools; Iowa Farmers Union; Kemin Industries

In plain words

1. February 6, 2026Filed in the House and sent to the Ways and Means committee