The Department is excited to announce our new website, revenue.iowa.gov, is launching in one week, on July 9!
House File 352 created a voluntary election for a partnership or S corporation to be subject to Iowa tax at the entity level. The legislation applies retroactively to tax years beginning on or after January 1, 2022. This guidance describes the new elective Pass-Through Entity Tax and certain filing procedures being developed to implement the tax.
The Department is responsible for administering the new electric fuel excise tax, which goes into effect July 1, 2023. Electric vehicle charging station owners can begin registering for licenses with the Department on April 3, 2023. This guidance explains who needs to register for a license and how to do so.
The 2022 Iowa General Assembly enacted and Governor Reynolds signed Senate File 2378, a bill that made changes to Iowa’s beverage container deposit and redemption law, commonly known as the “bottle bill.” SF 2378 creates a new reimbursement for beer distributors which pay handling fees for empty beer containers to entities that collect those containers. This new reimbursement to beer distributors will be administered by the Iowa Department of Revenue.
Beginning in 2023, certain business entities will be required to file their 2022 and later Iowa income tax returns electronically. Similar requirements will take effect for 2023 Iowa Fiduciary income tax returns.
Following Governor Reynolds signature of House File 2128 on May 17, 2022, the Iowa Department of Revenue has released new guidance to explain this tax change, effective July 1, 2022, as it relates to the Iowa Fuel Tax Deduction for Blended Fuel Sales. This new deduction, added to Iowa Code section 452A.8, is intended to promote the use of biofuels by allowing a lower tax rate to be charged when the fuel is withdrawn from the terminal when it is known that the fuel is going to be blended into a biofuel with the lower tax rate after it
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.
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 24, 2020 Governor Reynolds signed into law House File 760. House File 760 added a new exemption from hotel & motel tax for certain guests staying with hospital patients. Additionally, this bill included changes for extended rentals. The Department has revised its website guidance on the taxation of hotel room rentals to reflect these changes, which went into effect on July 1, 2020.
Information regarding Iowa vehicle purchase and lease, including forms