91st General Assembly · Funnel one-pager · Monday, November 9, 2026

SF 59: Relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions

Died when the session ended · The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died.

What it does

Current law excludes from the individual income tax a retired farmer’s total net income received pursuant to a farm tenancy agreement covering real property held by the retired farmer for or more years, if the farmer materially participated in a farming business for or more years. current law, net income from a farm tenancy agreement earned by an entity taxed as a partnership for federal tax purposes, an S corporation, or a trust or estate is not eligible for the farm tenancy lease income exclusion.

Cost

See the fiscal note

The proposed deductions from the individual income tax in House File 624 are estimated to decrease net individual income tax liability and State General Fund revenue by the following amounts: • FY 2026 = $10.5 million • FY 2027 = $4.6 million • FY 2028 = $4.7 …

Senate subcommittee · named March 3, 2025

Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
Sen. Tony Bisignano (D) · tony.bisignano@legis.iowa.gov
Sen. Dawn Driscoll (R) · dawn.driscoll@legis.iowa.gov

Lobbying · 10 for, 0 against

For: Center for Rural Affairs; Iowa Cattlemen's Association; Iowa Corn Growers Association; Iowa Pork Producers Association; Iowa Select Farms, L.L.P.; Iowa Soybean Association; Iowa State Bar Association; Iowans for Tax Relief; National Federation of Independent Business (NFIB /IA); The Iowa Academy of Trust and Estate Counsel

In plain words

January 16, 2025Filed in the Senate and sent to the Ways and Means committee
January 28, 2025Senate subcommittee named: Driscoll, Bisignano and Dawson
March 3, 2025Senate subcommittee named: Dawson, Bisignano and Driscoll