The Department of Revenue previously submitted the following proposed rules to the Iowa Legislature. The following rules have been adopted and filed.
Adopted and Filed Rules
Adopted and Filed Rules
Through 2020 Iowa Acts, House File 2641, the General Assembly added the term “computer peripheral” to an existing sales tax exemption in Iowa Code section 423.3(47) and defined that term in Iowa Code section 423.1. This rule making adds that term to the Department’s rule implementing that exemption as applicable. The Department is also taking this opportunity to clean up a few other items in and related to those rules.
This rule implements the adjustments to income for Iowa individual and corporate income and franchise taxes for interest expense deductions, which are limited for federal income tax purposes but permitted in full for Iowa purposes for tax years beginning on or after January 1, 2020. The rule also covers adjustments that may be needed due to Iowa’s changing conformity with these federal limitations for tax years 2018 and 2019. View the Department's Business Interest Expense Conformity page for additional clarification.
This rule making is intended to implement statutory changes to how fees, taxes, interest, and penalties are paid and deposited with the Department. In particular, this rule making addresses a change to Iowa Code section 422.69. That section formerly required payment of fees, taxes, interest, and penalties to the Department to be paid in the form of remittances payable to the Treasurer of State. The statute now requires that remittances be made payable to the Department. The Department is still required to transmit payments to the Treasurer of State.
2019 Iowa Acts, Senate File 282, repealed the Honey Creek Premier Destination Park Bond Program and related Iowa Code provisions. This includes an exemption from federal and state income taxes for bonds issued under that program. The Department adopted this rule making to strike a reference to Honey Creek Premier Destination Park bonds from a non-exhaustive list of exempt bonds. No changes were made to the Notice of Intended Action on this rule making.
This rule making adopts new Chapter 216 on bundled transactions to implement the adoption of language by the General Assembly in 2018 Iowa Acts, Senate File 2417, as well as the addition of “specified digital products” into the bundled transaction provision in the Iowa Code in 2020 Iowa Acts, House File 2641. No changes were made from the Notice of Intended Action on this rule filing.
This rule making implements new income tax exemptions for certain broadband grants provided to qualified service providers by providing definitions necessary to implement those exemptions.
This rule making implements the Iowa geothermal heat pump income tax credit enacted in 2019 Iowa Acts, House File 779, for geothermal& heat pumps installed on residential property in Iowa on or after January 1, 2019. This new income tax credit replaces previous geothermal-related income tax credits that were repealed by the Iowa legislature effective in 2019.
This rule making makes a number of changes to the Department's rules on the solar energy system tax credit in Iowa Code 422.11L. The rule making includes updates that reflect current law, improve clarity and readability, and provide additional guidance on the administration of certain tax credit issues, including but not limited to Iowa tax credit calculations in the case of solar installations that are subject to a federal tax credit recomputation or that are used for both residential and business purposes.
Through 2020 Iowa Acts, House File 2641, the Legislature added language to Iowa Code section 423.3(31), an exemption from sales tax for purchases by certain government entities and instrumentalities of the government, to clarify that purchases by tribal governments are exempt. This rule making amends an existing rule to implement that change and make other minor updates. No changes from the Notice of Intended Action on this rule making were made.
In 2020, the Legislature enacted a change to the definition of “barbershop” to allow for barber shops to be “readily movable” and lists “barber and beauty” among the services subject to sales tax in Iowa. This rule making amends an existing rule by removing explanation of activities included in the phrase “barber and beauty,” and instead refer to the definitions of “barbering,” “cosmetology,” and “esthetics” from the Iowa Code chapters that govern the practices of those professions.