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

HF 268: Exempting cash tips from the individual income tax, and including applicability provisions

Became HF 1030 · Its progress continues under the new number.

What it does

This bill excludes from the individual income tax the amount of cash tips received and included on statements furnished to an employer as required by section 6053(a) of the Internal Revenue Code. The bill applies to tax years beginning on or after January 1, 2026.

Cost

See the fiscal note

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…

House subcommittee · named February 20, 2025

Rep. David E. Young (R) · david.young@legis.iowa.gov
Rep. Chad Behn (R) · chad.behn@legis.iowa.gov
Rep. Aime Wichtendahl (D) · aime.wichtendahl@legis.iowa.gov

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

February 6, 2025Filed in the House and sent to the Ways and Means committee
February 20, 2025House subcommittee named: Young, Behn and Wichtendahl
February 25, 2025Subcommittee recommended passing it
April 16, 2025Approved by the House committee
April 16, 2025Committee vote: 24–0
April 17, 2025Approved by the House committee, and given a new number: HF 1030