House File 2317, signed into law by Governor Kim Reynolds on March 1, 2022, creates or modifies the following individual income tax provisions. It provides one irrevocable election to exclude from state income tax the net  capital gain from the sale of stock. Excludes certain farm lease payments, certain capital gains of retired farmers, and retirement income for individuals 55 years of  age or older or disabled.The rate reduces over a three-year period then converts to a flat tax rate.

Order 2022-02 grants an extension to certain pass-through entities with a short tax year to file their 2022 Iowa Composite Return under Iowa Code section 422.16B. Pass-through entities with a short tax year beginning and ending in calendar year 2022 will have until May 1, 2023, to file their Iowa Composite Return under Iowa Code section 422.16B without incurring a late filing penalty.