Modifying individual income tax rates and providing tax credits for certain married persons filing a joint return, and including effective date and retroactive applicability provisions

Where it is now

Done: IntroducedFebruary 24, 2025
Stopped: SubcommitteeDied when the General Assembly ended
Next: House committeeFunnel: by February 20, 2026
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 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 modifies individual income tax rates and provides tax credits for certain married persons filing a joint return.8 percent to percent, if such married persons have or more dependents under the age of 18.8 percent to percent, if such married persons are filing jointly for the first or second time in their lifetimes. The bill also creates an additional dependent credit for married persons filing a joint return equal to the product of the number of dependents exceeding but not more than that are under the age of multiplied by $1,000.

Read the full explanation

Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following five years until depleted, whichever is earlier. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2025.

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

Iowa Code it changes

Creates§422.10C

Amends§421.27 §422.16 §422.16B §422.16C §422.5

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

Lobbying

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