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House
File
30
-
Introduced
HOUSE
FILE
30
BY
LOHSE
A
BILL
FOR
An
Act
providing
a
deduction
from
the
individual
and
corporate
1
income
taxes
for
the
amount
of
certain
income
derived
2
from
indigent
representation
by
an
eligible
law
firm,
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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30
Section
1.
Section
422.7,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
45.
a.
As
used
in
this
subsection:
3
(1)
“Eligible
attorney”
means
an
attorney
who
is
appointed
4
to
an
eligible
case
and
who,
at
the
time
of
such
appointment,
5
has
been
licensed
to
practice
law
for
fewer
than
ten
years.
6
(2)
“Eligible
case”
means
an
appointment
on
or
after
July
1,
7
2025,
by
an
Iowa
court
of
an
eligible
attorney
to
represent
a
8
person
in
a
case
pursuant
to
section
814.11
or
815.10.
9
(3)
“Eligible
law
firm”
means
a
law
firm
in
this
state
that
10
has
two
or
more
attorneys
that
practice
law
in
the
law
firm
for
11
at
least
half
of
each
tax
year
during
which
the
law
firm
is
12
engaged
in
an
eligible
case.
13
b.
(1)
An
eligible
law
firm
may
subtract,
to
the
extent
14
included,
the
aggregated
amount
equal
to
the
difference
between
15
the
total
hours
billed
by
the
eligible
attorney
in
the
eligible
16
case
multiplied
by
one
hundred
fifty
dollars
or
the
actual
17
hourly
rate
charged
by
the
eligible
law
firm
for
that
eligible
18
attorney
for
such
a
case,
whichever
is
less,
and
the
total
19
hours
billed
by
the
eligible
attorney
in
the
eligible
case
20
multiplied
by
the
hourly
rate
in
effect
for
the
eligible
case
21
in
section
815.7.
22
(2)
The
amount
of
the
deduction
allowed
pursuant
to
this
23
subsection
for
an
individual
taxpayer
of
an
eligible
law
24
firm
shall
be
calculated
using
the
same
percentage
as
the
25
taxpayer’s
pro
rata
percentage
share
of
the
profits
or
losses
26
from
the
partnership,
limited
liability
company,
or
subchapter
27
S
corporation.
28
Sec.
2.
Section
422.35,
Code
2025,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
14.
a.
As
used
in
this
subsection:
31
(1)
“Eligible
attorney”
means
an
attorney
who
is
appointed
32
to
an
eligible
case
and
who,
at
the
time
of
such
appointment,
33
has
been
licensed
to
practice
law
for
fewer
than
ten
years.
34
(2)
“Eligible
case”
means
an
appointment
on
or
after
July
1,
35
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2025,
by
an
Iowa
court
of
an
eligible
attorney
to
represent
a
1
person
in
a
case
pursuant
to
section
814.11
or
815.10.
2
(3)
“Eligible
law
firm”
means
a
law
firm
in
this
state
that
3
has
two
or
more
attorneys
that
practice
law
in
the
law
firm
for
4
at
least
half
of
each
tax
year
during
which
the
law
firm
is
5
engaged
in
an
eligible
case.
6
b.
An
eligible
law
firm
may
subtract,
to
the
extent
7
included,
the
aggregated
amount
equal
to
the
difference
between
8
the
total
hours
billed
by
the
eligible
attorney
in
the
eligible
9
case
multiplied
by
one
hundred
fifty
dollars
or
the
actual
10
hourly
rate
charged
by
the
eligible
law
firm
for
that
eligible
11
attorney
for
such
a
case,
whichever
is
less,
and
the
total
12
hours
billed
by
the
eligible
attorney
in
the
eligible
case
13
multiplied
by
the
hourly
rate
in
effect
for
the
eligible
case
14
in
section
815.7.
15
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
16
retroactively
to
January
1,
2025,
for
tax
years
beginning
on
17
or
after
that
date.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
provides
a
deduction
from
the
individual
income
or
22
corporate
income
tax
for
the
amount
of
certain
income
derived
23
from
indigent
representation
by
an
eligible
law
firm.
24
The
bill
defines
“eligible
law
firm”
to
mean
a
law
firm
in
25
this
state
that
has
two
or
more
attorneys
that
practice
law
in
26
the
law
firm
for
at
least
half
of
each
tax
year
during
which
the
27
law
firm
is
engaged
in
an
eligible
case.
28
The
bill
defines
“eligible
case”
to
mean
an
appointment
on
or
29
after
July
1,
2025,
by
an
Iowa
court
of
an
eligible
attorney
to
30
represent
a
person
in
a
case
pursuant
to
Code
section
814.11
31
(indigent’s
right
to
counsel)
or
815.10
(appointment
of
counsel
32
by
court).
33
The
bill
defines
“eligible
attorney”
to
mean
an
attorney
who
34
is
appointed
to
an
eligible
case
and
who,
at
the
time
of
such
35
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30
appointment,
has
been
licensed
to
practice
law
for
fewer
than
1
10
years.
2
The
amount
of
the
deduction
shall
equal
the
aggregated
3
amount
equal
to
the
difference
between
the
total
hours
billed
4
by
the
eligible
attorney
in
the
eligible
case
multiplied
by
5
$150
or
the
actual
hourly
rate
charged
by
the
eligible
law
firm
6
for
that
eligible
attorney
for
such
a
case,
whichever
is
less,
7
and
the
total
hours
billed
by
the
eligible
attorney
in
the
8
eligible
case
multiplied
by
the
hourly
rate
in
effect
for
the
9
eligible
case
in
Code
section
815.7.
10
The
current
hourly
rate
is
$86
per
hour
for
a
class
“A”
11
felony,
$81
per
hour
for
a
class
“B”
felony,
and
$76
per
hour
12
for
all
other
cases.
13
For
individual
income
tax
purposes,
a
taxpayer
who
is
a
14
partner
of
a
partnership,
a
shareholder
of
a
subchapter
S
15
corporation,
or
a
member
of
a
limited
liability
corporation
may
16
deduct
the
portion
of
the
amount
of
the
deduction
calculated
17
under
the
bill
based
on
the
taxpayer’s
pro
rata
share
of
18
the
profits
or
losses
from
the
partnership
or
subchapter
S
19
corporation.
20
The
bill
applies
retroactively
to
tax
years
beginning
on
or
21
after
January
1,
2025.
22
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