Bills › 91st General Assembly
Excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions
Sponsored by Rep. David Jacoby (D)
Topics:TaxesIncome taxes
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 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 People who pay Iowa income tax would no longer have to pay state tax on the interest they earn from banks and credit unions. This change would apply to tax years starting on or after January 1, 2025.1
Read the official explanation
This bill excludes interest income received from banks and credit unions from the calculation of Iowa net income for purposes of the individual income tax. The bill defines “bank” and “credit union”. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2025.