Administrative Rules

The amendments accomplish a variety of objectives. The rule regarding applicability and scope was amended in Item 1. Definitions are amended in Item 2 to eliminate unnecessary duplication of statute. The list of tax types now available on GovConnectIowa is updated in Item 3. Changes to the Department’s rules on taxpayer representation more clearly describe the Department’s signature requirements, to modify the Department’s procedures related to tax returns of minors, and to add clarity to the rules.

This rulemaking removes references to the “property tax division” and replaces them with “local government services division” to reflect the current name of the internal division.

This rulemaking implements statutory changes to the penalty imposed on payers of withholding who fail to file income statements with the Department. Payers of withholding will now be penalized $500 for each instance of willful failure to file an income statement with the Department. This rulemaking implements a statutory change that eliminates the requirement that payers of withholding submit an annual summary of withholding payments.

This rulemaking implements 2022 Iowa Acts, House File 2317, sections 6 and 7, which repeal the Iowa geothermal heat pump tax credit for installations occurring after December 31, 2023. This rulemaking also updates the Iowa geothermal heat pump tax credit rates from 5.2 percent to 6 percent of qualifying expenditures for installations in 2022, and from 4.4 percent to 6 percent of qualifying expenditures for installations in 2023, in response to the federal Inflation Reduction Act of 2022.

This rulemaking implements the pass-through entity composite return requirements enacted in 2021 Iowa Acts, Senate File 608, division II.

This rulemaking adds the Iowa bowling center relief fund, the Iowa charter bus relief program, the Iowa sports entertainment relief program, and the Iowa fitness center relief program, all administered by the Iowa Economic Development Authority, to the definition of “qualifying COVID-19 grant”, pursuant to a recent notification from the Authority. Iowa law and Iowa administrative rules require an eligible administering agency to notify the Director of the Department of the existence of any grant program it believes may be a qualifying COVID-19 grant program.

This rulemaking modifies the process for claiming the Farm to Food Donation Tax Credit. For tax years beginning on or after January 1, 2022, taxpayers who wish to claim the Farm to Food Donation Tax Credit will no longer be required to submit donation receipts issued by registered feeding organizations directly to the Department prior to making a tax credit claim. Further, the Department will no longer issue to taxpayers tax credit certificates that indicate the verified tax credit amount taxpayers may claim.

As part of an ongoing effort to review and revise its rules, the Department rescinds Chapters 19 and 287. There is one rule in Chapter 19 that was not replicated in Chapter 219 on construction contracts with designated exempt entities. This rulemaking provides an updated version of that rule to be located in Chapter 219. In addition, the Department is renumbering rule 701—14.3(423) to include it in Chapter 203 and is rescinding and reserving 701—Chapter 14 since it no longer has any rules.

The Iowa Property Assessment Appeal Board is making several amendments amendments to its rules. See the rulemaking for full details regarding the updates and amendments.

Iowa Code sections 441.5(7) and 441.10(3) require the Director of Revenue to maintain a register containing the names of all individuals who are eligible for appointment as assessor or deputy assessor, respectively. This rulemaking allows the Department to more efficiently maintain the register by requiring that assessors and deputy assessors provide the Department with up-to-date contact information and by allowing the Department to remove deceased assessors or deputy assessors from the register.