The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.
If you have tax questions, search our Frequently Asked Questions.
For information on how to request tax guidance, see the Department's Tax Guidance Request page.
The exempt status of the purchase of food is not solely determined by whether the food is eligible for purchase with Food Stamps. Many products are exempt from Iowa sales tax whether or not they are purchased with Food Stamps.
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. The provisions apply to tax years beginning on or after January 1, 2023, and some of the changes are phased in over a number of years. This means that HF 2317 does not impact your tax returns due on May 2, 2022.
Several significant changes to Iowa’s corporate income tax take effect in 2021 as a result of the Iowa tax reform bill. These changes include reductions to corporate income tax rates and the elimination of both federal deductibility and the Iowa corporate income Alternative Minimum Tax. In addition, under Senate File 619, bonus depreciation will be allowed for Iowa purposes for property placed in service in tax years beginning on or after January 1, 2021.
On June 16, 2021, Governor Reynolds signed into law Senate File 619, which in part excludes from the Iowa income and franchise tax the receipt of certain qualifying COVID-19 grants issued by the Iowa Economic Development Authority, the Iowa Finance Authority, and the Iowa Department of Agriculture and Land Stewardship. This exclusion was previously only available for Iowa small business relief grants provided by the Iowa Economic Development Authority. The Department has updated guidance which describes this tax exclusion, identifies qualifying grants, and directs taxpayers on how to claim this exclusion on Iowa tax returns.
This requires any net operating loss incurred by an individual engaged in a small business or farming business in Iowa after January 20, 2020 to be carried back 3 years, unless an election was made to waive the carryback period or to use the 5-year carryback period for farmers.
This guidance is intended as a general guide. For additional details reference Iowa Administrative Code Chapter 701: Agricultural Rules. This is generally considered the primary resource for Farmers taxes.
This guidance is intended as a general guide and is often considered a primary resource for contractors taxability. For additional details reference Iowa Administrative Rules Chapter 701-219.
A general guide but not an all-inclusive discussion of Iowa sales and use tax law. Generally considered the primary guidance resource for sales & use tax.
See Iowa Tax Issues for Nonprofit Entities for nonprofit entities that qualify for exemption.
On March 19, 2020, the Director of the Department of Revenue issued Order 2020-01 granting certain filing and payment extensions pursuant to Iowa Code section 421.17(30) following the Governor’s Proclamation of Disaster Emergency in response to the recent outbreak of the COVID-19 virus. Click to view News Releases, Iowa Small Business Relief Program, tax information, and Common Questions.
On March 27, 2020, President Donald Trump signed Public Law 116-136, the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The CARES Act includes a number of federal tax changes, and several are retroactive to tax years 2018 and 2019. 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. Iowa generally conforms with these federal tax changes to the extent they affect Iowa income taxes for tax years beginning on or after January 1, 2020. This guidance focuses primarily on Iowa’s nonconformity with this federal law for tax years 2018 or 2019, but it also includes explanations of certain other provisions and their impact on Iowa income taxes for tax years beginning on or after January 1, 2020 that may be of interest to taxpayers.