Providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions

Where it is now

Done: IntroducedJanuary 14, 2025
Done: SubcommitteeFebruary 20, 2025
Stopped: House committeeDied when the General Assembly ended
Next: Passes the House
Next: Senate committeeFunnel: by March 20, 2026
Next: Passes the Senate
Next: To the Governor
Next: Signed into law

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’s a funnel?

What’s in it

AI summary Iowa law firms with at least two attorneys can get a tax deduction for certain work done representing people who cannot afford lawyers. To qualify, the work must be done by an attorney who has been licensed for fewer than five years. The deduction is based on the difference between the firm's hourly rate and the state's standard hourly rate for these cases.¹

Read the official explanation

This bill provides a deduction from the individual income or corporate income tax for the amount of certain income derived from indigent representation by an eligible law firm. The bill defines “eligible law firm” to mean a law firm in this state that has two or more attorneys that practice law in the law firm for at least half of each tax year during which the law firm is engaged in an eligible case.10 (appointment of counsel by court). appointment, has been licensed to practice law for fewer than years. 7. The current hourly rate is $86 per hour for a class “A” felony, $81 per hour for a class “B” felony, and $76 per hour for all other cases. For individual income tax purposes, a taxpayer who is a partner of a partnership, a shareholder of a subchapter S corporation, or a member of a limited liability corporation may deduct the portion of the amount of the deduction calculated under the bill based on the taxpayer’s pro rata share of the profits or losses from the partnership or subchapter S corporation. The bill applies retroactively to tax years beginning on or after January 1, 2025.

Full bill text²

House subcommittee

Named February 20, 2025. On April 3, 2025 it recommended passage.

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

Amends§422.35 §422.7

How the Code works³

Lobbying

3 for · 0 against · 4 undecided · Who →

Family tree

Tried before

HF 2679Passed a chamber90th GA

91st General Assembly

HF 30Cleared committee

Earlier and later bills are matched by wording or an identical title.

Tried before

This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.

HF 2679 Providing a deduction from the individual and corporate income taxes for the amount of cer…
90th General Assembly · Passed House · nearly identical
Passed a chamber

Matched by wording or an identical title.