HSB 229: Relating to deducting excess business losses for purposes of the individual income tax, and including retroactive applicability provisions

What it does

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.

House subcommittee · named February 20, 2025

• Rep. David E. Young (R) · david.young@legis.iowa.gov
• Rep. Craig P. Johnson (R) · craig.johnson@legis.iowa.gov
• Rep. Elizabeth Wilson (D) · elizabeth.wilson@legis.iowa.gov

Lobbying · 3 for, 0 against

For: Eastlake Partnership; Iowa Taxpayers Association; Quad Cities Chamber of Commerce

In plain words

1. February 20, 2025Filed in the House and sent to the Ways and Means committee
2. February 20, 2025House subcommittee named: Young, Johnson, C. and Wilson
3. March 6, 2025Subcommittee recommended passing it