Relating to deducting excess business losses for purposes of the individual income tax, and including retroactive applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 20, 2025
2. ✓
   Done: SubcommitteeFebruary 20, 2025
3. ✕
   Stopped: House committeeDied when the General Assembly ended
4. Next: Passes the House
5. Next: Senate committeeFunnel: by March 20, 2026
6. Next: Passes the Senate
7. Next: To the Governor
8. 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

Currently, section 461(l) of the Internal Revenue Code (IRC), limits excess business loss deductions for purposes of federal individual income tax calculations, but allows the taxpayer to carry forward any business loss amount disallowed due to the limitations in section 461(l) of the IRC. For the 2024 tax year, any business loss exceeding $305,000 for a single filer and $610,000 for married filers is disallowed but the excess over the threshold amounts may be carried forward. Federal net operating loss deductions carried over from a taxable year beginning prior to January 1, 2023, are disallowed for state individual income tax purposes.

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

House subcommittee

Named February 20, 2025. On March 6, 2025 it recommended passage.

• Rep. David E. Young REmail
• Rep. Craig P. Johnson REmail
• Rep. Elizabeth Wilson DEmail

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§422.7

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