On December 27, 2020, President Donald Trump signed Public Law 116-260, the Consolidated Appropriations Act, 2021. This federal law includes a number of federal tax changes, some with retroactive effect.
Iowa generally conforms with the federal tax changes to the extent they affect Iowa income taxes for tax years beginning on or after January 1, 2020, except as described below or as otherwise specified by Iowa law.
Iowa has not conformed with any of these federal tax changes to the extent they apply to a tax year beginning prior to January 1, 2020, except as described below.
This guidance focuses primarily on Iowa’s nonconformity with this federal law for tax years beginning prior to January 1, 2020. Not all provisions of the Consolidated Appropriations Act, 2021 are covered by this guidance. Changes in this federal law that affect prior-year federal income tax payments may affect the computation of the federal income tax deduction or refund for Iowa tax purposes for those years, and are outside the scope of this guidance.