HF568 • 2026

A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: JACOBY
Last action: 2025-02-24
Official status: Introduced, referred to Ways and Means. H.J. 415 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

What This Bill Does

A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-02-24 Iowa Legislature
Introduced, referred to Ways and Means. H.J. 415 .

Official Summary Text

A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

Current Bill Text

Read the full stored bill text

House

File

568

-

Introduced

HOUSE

FILE

568

BY

JACOBY

A

BILL

FOR

An

Act

excluding

interest

income

earned

from

banks

and

credit

1

unions

from

the

calculations

of

Iowa

net

income

for

purposes

2

of

the

individual

income

tax,

and

including

effective

date

3

and

retroactive

applicability

provisions.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

5

TLSB

2728YH

(2)

91

jm/jh

H.F.

568

Section

1.

Section

422.7,

Code

2025,

is

amended

by

adding

1

the

following

new

subsection:

2

NEW

SUBSECTION

.

45.

a.

Subtract,

to

the

extent

included,

3

interest

income

received

from

a

bank

or

credit

union.

4

b.

As

used

in

this

subsection:

5

(1)

“Bank”

means

a

corporation

or

limited

liability

company

6

engaged

in

the

business

of

banking

and

organized

under

the

laws

7

of

this

state,

another

state,

or

the

United

States.

“Bank”

also

8

means

a

savings

and

loan,

savings

association,

or

savings

bank

9

organized

under

the

laws

of

another

state

or

the

United

States.

10

(2)

“Credit

union”

means

a

cooperative,

nonprofit

11

association

incorporated

under

chapter

533

or

the

federal

12

Credit

Union

Act,

12

U.S.C.

§1751

et

seq.,

and

that

is

insured

13

by

the

national

credit

union

administration

and

includes

an

14

office

of

a

credit

union.

15

Sec.

2.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

immediate

16

importance,

takes

effect

upon

enactment.

17

Sec.

3.

RETROACTIVE

APPLICABILITY.

This

Act

applies

18

retroactively

to

January

1,

2025,

for

tax

years

beginning

on

19

or

after

that

date.

20

EXPLANATION

21

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

22

the

explanation’s

substance

by

the

members

of

the

general

assembly.

23

This

bill

excludes

interest

income

received

from

banks

and

24

credit

unions

from

the

calculation

of

Iowa

net

income

for

25

purposes

of

the

individual

income

tax.

26

The

bill

defines

“bank”

and

“credit

union”.

27

The

bill

takes

effect

upon

enactment

and

applies

28

retroactively

to

tax

years

beginning

on

or

after

January

1,

29

2025.

30

-1-

LSB

2728YH

(2)

91

jm/jh

1/

1