Conformity with the Internal Revenue Code

Instruction Year

Conformity with the Internal Revenue Code (IRC)

For tax years beginning on or after January 1, 2020, Iowa has adopted rolling conformity, meaning the state will automatically conform with any changes made to the Internal Revenue Code (IRC), except as specified by Iowa law.

For the most part, the calculation of Iowa net income is still the same as the calculation for federal adjusted gross income (AGI). However, the calculation of Iowa net income will be different from the federal AGI calculation when it comes to certain items described later in these instructions, such as depreciation for certain assets placed in service before tax year 2021, section 179 special election deductions, and the business interest expense limitation.

Disclaimer: Please be advised that this is an informational document. It should not be relied upon or otherwise cited as precedent. This information is subject to change at any time. If a member of the public wishes to request a binding decision, he or she must file a Petition for Declaratory Order pursuant to Iowa Administrative Code rule 701—7.24.