Tuesday - 11/07/2023
The Iowa Department of Revenue has submitted a new proposed rule to the Iowa Legislature, available for public comment through November 21, 2023. See individual notice for details.
- Retirement Income Exclusion
This proposed rulemaking is intended to implement the statutory change to the retirement income exclusion from a partial to a full exclusion for qualifying taxpayers receiving distributions from qualifying plans. This proposed rulemaking identifies certain plans that do and do not qualify for the exclusion as well as defining how survivors with an insurable interest may qualify for the exclusion. It also updates what items of income are and are not required to be added back to Iowa taxable income to determine whether a taxpayer has a filing requirement, including eliminating excluded retirement income from the required add backs. Finally, this proposed rulemaking updates rules related to withholding to implement the full exclusion for retirement income described above.
The Department previously submitted the following proposed rule to the Iowa Legislature. The following rule has been adopted and filed, effective December 6, 2023.
- Capital Gain Exclusion for Elected Employee-Owned Stock in a Qualified Corporation
This rulemaking, pursuant to Part IV of Executive Order 10, implements, in part, 2022 Iowa Acts, House File 2317, and provides guidance as to how and when an employee-owner may make an election to exclude capital gain from the sale of qualifying capital stock in a qualifying corporation. The legislation allowed employee-owners of a qualified corporation to exclude the capital gain from the sale of qualifying capital stock.
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