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STATE OF IOWA
KIM REYNOLDS
G OVERNOR
June 6, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 612, an Act relating to state and local taxation and regulations by changing
certain tax credits, cigarette and tobacco- related regulations, and certain city budget
certification deadlines, providing for penalties, and including retroactive applicability and
effective date provisions.
The above Senate File is hereby approved on this date.
Sincergly,
V
Kim keeynolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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Senate File 612
AN ACT
RELATING TO STATE AND LOCAL TAXATION AND REGULATIONS BY
CHANGING CERTAIN TAX CREDITS, CIGARETTE AND TOBACCO- RELATED
REGULATIONS, AND CERTAIN CITY BUDGET CERTIFICATION
DEADLINES, PROVIDING FOR PENALTIES, AND INCLUDING
RETROACTIVE APPLICABILITY AND EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
CIGARETTE AND TOBACCO- RELATED REGULATIONS
Section 1. Section 453A.1, subsection 27, Code 2025, is
amended to read as follows:
27. - State permit - shall mean and include all permits issued
by the department to distributors, wholcsalcrs, and rctailers
under this chapter except the permits issued to retailers
approved by cities and counties pursuant to sections 453A.13
and 453A.47A.
Senate File 612, p. 2
Sec. 2. Section 453A.6, subsection 8, paragraph a, Code
2025, is amended to read as follows:
a. Pay directly to the department, in lieu of the tax
under subsection 1, a tax equal to three and six hundredths
cents on each cigarette dispensed from such machine. Payments
made under this paragraph shall be remitted to the department
electronically.
Sec. 3. Section 453A.8, subsection 2, Code 2025, is amended
to read as follows:
2. Orders for cigarette tax stamps, including the payment
for such stamps, shall be ocnt dircct made to the department
electronically on a form to be prescribed by the director,
except as provided in subsection 6.
Sec. 4. Section 453A.13, subsection 2, paragraph a, Code
2025, is amended to read as follows:
a. The department shall issue state permits to distributors,
wholesalers, and cigarette vendors, and retailers that
make delivery sales of alternative nicotine products and
vapor products, subject to the conditions provided in this
subchapter. If an out-of-state retailer makes delivery
sales of alternative nicotine products or vapor products, an
application shall be filed with the department electronically
and a permit shall be issued for the out-of-state retailer's
principal place of business. Cities may i33uc approve retail
permits to rctailcr3 permit applications for applicants with
a place of business located within their respective limits.
County boards of supervisors may isouc approve retail permits
to rctailcr9 permit applications for applicants with a place of
business in their respective counties, outside of the corporate
limits of cities. Upon approval of a retail permit application
by a city or county, the department shall issue the permit to
the applicant on behalf of the city or county, in the manner
determined by the department. A city or county shall use the
electronic portal of the department to process retail permit
applications. A city or county that is unable to use the
electronic portal of the department may request permission from
the director to process retail applications by another method.
Sec. 5. Section 453A.13, subsection 2, paragraph c, Code
2025, is amended to read as follows:
Senate File 612, p. 3
c. A city or county Shall submit a duplic-atc of any
rmit to the department within thirty
days--ef the i3suance. The department shall submit the current
list of all retail permits issued to the department of health
and human services by the last day of each quarter of a state
fiscal year.
Sec. 6. Section 453A.13, subsection 3, paragraph a, Code
2025, is amended to read as follows:
a. All permits provided for in this subchapter shall expire
on June 30 of each year. A permit shall not be granted or
issued until the applicant has paid the fees to the department
required in this subchapter for the next period ending on June
30
permit, the fees provided for in this subchapter. The annual
state permit fee for a distributor, cigarette vendor, and
wholesaler is one hundred dollars when the permit is granted
during the months of July, August, or September. However,
whenever a state permit holder operates more than one place of
business, a duplicate state permit shall be issued for each
additional place of business on payment of five dollars for
each duplicate state permit, but refunds as provided in this
subchapter do not apply to any duplicate permit issued.
Sec. 7. Section 453A.13, subsection 5, unnumbered paragraph
1, Code 2025, is amended to read as follows:
Permits shall be issued only upon applications accompanied
by the fee indicated above, and by an adequate bond as provided
in section 453A.14, and upon forms furnished by the department
upon written request. Thefailufe fail to furnish sueh—€er-fRs shall
refusal i3 shown. Applications, any supporting documentation,
and the associated fees required by this section shall be
submitted to the department electronically. The forms shall
set forth all of the following:
Sec. 8. Section 453A.13, subsection 9, unnumbered paragraph
1, Code 2025, is amended to read as follows:
Each permit issued shall describe clearly the place of
business for which it is issued, shall be nonassignable,
consecutively numbered, designating the kind of permit, and
shall authorize the sale of cigarettes, alternative nicotine
Senate File 612, p. 4
products, or vapor products in this state subject to the
limitations and restrictions herein contained. The retail
permits shall be upon forms furnished by the department or on
Sec. 9. Section 453A.14, subsection 1, unnumbered paragraph
1, Code 2025, is amended to read as follows:
Re A state or manufacturer's permit shall not be issued until
the applicant files a bond, with good and sufficient surety,
to be approved by the director, which bond shall be in favor of
the state and conditioned upon the payment of taxes, damages,
fines, penalties, and costs adjudged against the permit holder
for violation of any of the provisions of this subchapter. The
bonds shall be on forms prescribed by the director and shall be
filed electronically. A bond filed under this section shall be
in one of the following amounts:
Sec. 10. Section 453A.14, subsection 2, Code 2025, is
amended to read as follows:
2. A person shall not engage in interstate business unless
the person files a
amount of not less
by this subsection
and shall be filed
bond, with good and sufficient surety in an
than one thousand dollars. A bond required
shall be on forms prescribed by the director
electronically. The amount of the bond
required of the person shall be fixed by the director, subject
to the minimum limitation provided in this section. The bond
is subject to approval by the director and shall be payable to
the state in Des Moines, Polk county, and conditioned upon the
payment of taxes, damages, fines, penalties, and costs adjudged
against the person for violation of any of the requirements of
this subchapter affecting the person, on a form prescribed by
the director.
Sec. 11. Section 453A.15, subsection 7, Code 2025, is
amended to read as follows:
7. The director may r that Any reports
required to be made under this subchapter shall be filed by
cloctronic transmission electronically.
Sec. 12. Section 453A.16, Code 2025, is amended to read as
follows:
453A.16 Manufacturer's permit.
The department may, upon application of any manufacturer,
Senate File 612, p. 5
issue without charge to the manufacturer a manufacturer's
permit. The application shall contain information as
the director shall prescribe and the application shall be
submitted to the department electronically. The holder of a
manufacturer's permit is authorized to purchase stamps from
the department, and must affix stamps to individual packages
of cigarettes outside of this state, prior to their shipment
into the state unless the cigarettes are shipped to an Iowa
permitted distributor or an Iowa permitted distributor's agent.
Sec. 13. Section 453A.17, subsection 1, Code 2025, is
amended to read as follows:
1. Every distributing agent in the state, now engaged,
or who desires to become engaged, in the business of storing
unstamped cigarettes which are received in interstate commerce
for distribution or delivery only upon order received from
without the state or to be sold outside the state, shall
file with the department electronically, an application for
a distributing agent's permit, on a form prescribed by the
director, to be f••rnishcd upon writ ttcn request. The failure
te•ir=sh shall bie — ne emeuse — rei n- th f a il ure L fil e th c - z - a - rxarc•vZ - •-re srnrc
unless an absolute refusal is shown. Said form shall set
forth the name under which such distributing agent transacts
or intends to transact such business as a distributing agent,
the principal office and place of business in Iowa to which
the permit is to apply, and if other than an individual, the
principal officers or members thereof and their addresses. The
director may require any other information in said application.
No distributing agent shall engage in such business until
such application has been filed and fee in the sum of one
hundred dollars paid for the permit and until the permit has
been obtained. Such permit shall expire on June 30 following
the date of issuance. All of the provisions of the last
two paragraphs of section 453A.14, relative to bonds, are
incorporated herein and by this reference made applicable to
distributing agents. Upon failure to furnish adequate bond
as required, the permit shall be revoked without hearing. An
application shall be filed and a permit obtained for each place
of business owned or operated by a distributing agent.
Sec. 14. Section 453A.18, Code 2025, is amended to read as
Senate File 612, p. 6
follows:
453A.18 Forms for records and reports.
The department shall furnish or make available in electronic
form, without charge, to holders of the various permits, forms
in sufficicnt quantitics to enable permit holders to make the
reports required to be made under this subchapter. The permit
holders shall furnish at their own expense the books, records,
and invoices, required to be used and kept, but the books,
records, and invoices shall be in exact conformity to the forms
prescribed for that purpose by the director, and shall be kept
and used in the manner prescribed by the director. However,
the director may, by express order in certain cases, authorize
permit holders to keep their records in a manner and upon forms
other than those prescribed. The authorization may be revoked
at any time. A report, book, record, invoice, and any other
document required to be submitted to the department under this
subchapter shall be submitted electronically.
Sec. 15. Section 453A.23, subsections 1 and 2, Code 2025,
are amended to read as follows:
1. Subject to this subchapter, a retailer's permit may be
issued by the department to any dining car company, sleeping
car company, railroad or railway company. The permit shall
authorize the holder to keep for sale, and sell, cigarettes
at retail on any dining car, sleeping car, or passenger car
operated by the applicant in, through, or across the state of
Iowa, subject to all of the restrictions imposed upon retailers
under this subchapter. The application for the permit shall
be in the form and contain the information required by the
director and each application submitted under this section
shall be submitted to the department electronically. Each
permit is good throughout the state. Only one permit is
required for all cars operated in this state by the applicant,
but a duplicate of the permit shall be posted in each car
in which cigarettes are sold and no further permit shall be
required or tax levied for the privilege of selling cigarettes
in the cars. No cigarcttc3 Cigarettes shall not be sold in
the cars without having affixed thereto stamps evidencing the
payment of the tax as provided in this subchapter.
2. As a condition precedent to the issuing of a retailer's
Senate File 612, p. 7
permit for railway car, the applicant shall file with the
department a bond in favor of the state for the benefit of
all parties interested in the amount of five hundred dollars
conditioned upon the payment of all taxes, fines and penalties
and costs in this subchapter. A bond filed under this
subsection shall be on a form prescribed by the director and
shall be filed electronically.
Sec. 16. Section 453A.24, subsection 2, Code 2025, is
amended to read as follows:
2. The director may require by rule that common carriers
or the appropriate persons provide monthly reports to the
department detailing all information the department deems
necessary on shipments into and out of Iowa of cigarettes
and tobacco products as set forth in this subchapter I and
subchapter II of this chapter. The — direst
rule that the reports A report required to be submitted by the
director pursuant to this section shall be filed by clectronic
tran3mission electronically.
Sec. 17. Section 453A.28, subsection 1, paragraph a, Code
2025, is amended to read as follows:
a. ( 1) If after any audit, examination of records, or
other investigation the department finds that any person has
sold cigarettes without stamps affixed or that any person
responsible for paying the tax has not done so as required by
this subchapter, the department shall fix and determine the
amount of tax due, and shall assess the tax against the person,
together with a penalty as provided in section 421.27.
( 2) The taxpayer shall pay interest on the tax or additional
tax at the rate determined under section 421.7 counting each
fraction of a month as an entire month, computed from the date
the tax was due. If any person fails to furnish evidence
satisfactory to the director showing purchases of sufficient
stamps to stamp unstamped cigarettes purchased by the person,
the presumption shall be that the cigarettes were sold without
the proper stamps affixed. Within three years after the report
is filed or within three years after the report became due,
whichever is later, the department shall examine the report
and determine the correct amount of tax. The period for
examination and determination of the correct amount of tax is
Senate File 612, p. 8
unlimited in the case of a false or fraudulent report made
with the intent to evade tax, or in the case of a failure to
file a report, or if a person purchases or is in possession of
unstamped cigarettes.
( 3) For purposes of imposing penalties under this section
and section 421.27, a person who fails to timely file or submit
a required return, report, or other documentation upon which no
tax is shown due is subject to a penalty in the amount of fifty
dollars for each occurrence.
Sec. 18. Section 453A.28, subsection 1, Code 2025, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. For purposes of this section and section
421.27, any application, bond, fee, report, return, remittance,
or other documentation required to be submitted electronically
under this subchapter that is filed in a manner other than in
an electronic format specified by the department shall not be
considered a valid submission unless the director has permitted
submission of such application, bond, fee, report, return,
remittance, or other documentation through an alternative
method pursuant to section 453A.57.
Sec. 19. Section 453A.35, subsection 1, paragraph a, Code
2025, is amended to read as follows:
a. With the exception of revenues credited to the health
care trust fund pursuant to paragraph ' b - , the proceeds derived
from the sale of stamps and the payment of fees and penalties
provided for under this chapter, and the permit fees received
from all state permits issued by the department, shall be
credited to the general fund of the state.
Sec. 20. Section 453A.35, subsection 2, Code 2025, is
amended to read as follows:
2. All permit fees provided for in this chapter and
collected by the department on behalf of cities in the issuance
of permits granted by the cities shall be paid remitted by
the department to the treasurer of the city where the permit
is effective, or to anothcr city officcr as dcsignatcd by the
council, and shall be credited to the general fund of the
city. Permit fees so collected by the department on behalf of
counties shall be paw d remitted to the county treasurer of the
county where the permit is effective.
Senate File 612, p. 9
Sec. 21. Section 453A.39, subsection 2, paragraph a, Code
2025, is amended to read as follows:
a. All cigarette samples shall be shipped only to a
distributor that has a permit to stamp cigarettes or little
cigars with Iowa tax. All cigarette samples must have a
cigarette stamp. The manufacturer shipping samples under this
section shall send an affidavit to the director stating the
shipment information, including the date shipped, quantity, and
to whom the samples were shipped. The distributor receiving
the shipment shall send an affidavit to the director stating
the shipment information, including the date shipped, quantity,
and from whom the samples were shipped. These affidavits shall
be duly notarized and submitted to the director at the time of
shipment and receipt of the samples. The distributor shall
pay the tax on samples by separate remittance along with the
affidavit. The affidavit and remittance required under this
paragraph shall be submitted to the department electronically.
Sec. 22. Section 453A.40, subsection 2, Code 2025, is
amended to read as follows:
2. Persons subject to the inventory tax imposed under this
section shall take an inventory as of the close of the business
day next preceding the effective date of the increased tax rate
of those items subject to the inventory tax for the purpose of
determining the tax due. These persons shall report the tax
on forms provided by the department of revenue and remit the
tax due within thirty days of the prescribed inventory date.
The report and remittance required under this subsection shall
be submitted to the department electronically. The department
of revenue shall adopt rules as are necessary to carry out this
section.
Sec. 23. Section 453A.45, subsection 5, paragraphs b, c, and
d, Code 2025, are amended to read as follows:
b. The report shall be made on forms provided by the
director. The — direeter—may require by the A report
required under this subsection shall be filed by cicctronic
tran3mission electronically. A report required to be submitted
electronically under this subsection that is filed in a manner
other than in an electronic format specified by the department
shall not be considered a valid submission unless the director
Senate File 612, p. 10
has permitted the submission of such a report through an
alternative method pursuant to section 453A.57.
c. Common carriers transporting tobacco products into
this state shall file with the director reports of all such
shipments other than those which are delivered to public
warehouses of first destination in this state which are
licensed under the provisions of chapter 554. Such reports
shall be filed electronically with the department on or before
the tenth day of each month and shall show with respect to
deliveries made in the preceding month all of the following:
( 1) The date.
( 2) The point of origin.
( 3) The point of delivery.
( 4) The name of the consignee.
( 5) A description and the quantity of tobacco products
delivered.
( 6) Such other information as the director may require.
d. Any person who fails or refuses to transmit to the
director the required reports or whoever refuses to permit the
examination of the records by the director shall be guilty
of a serious misdemeanor. In addition, any person who fails
to timely submit a report required under this section is
subject to a penalty in the amount of fifty dollars for each
occurrence.
Sec. 24. Section 453A.46, subsection 1, paragraph a,
subparagraph ( 1), Code 2025, is amended to read as follows:
( 1) On or before the twentieth day of each calendar month
every distributor with a place of business in this state shall
file a return with the director showing for the preceding
calendar month the quantity and wholesale sales price of each
tobacco product brought, or caused to be brought, into this
state for sale; made, manufactured, or fabricated in this state
for sale in this state; and any other information the director
may require. Every licensed distributor outside this state
shall in like manner file a return with the director showing
for the preceding calendar month the quantity and wholesale
sales price of each tobacco product shipped or transported to
retailers in this state to be sold by those retailers and any
other information the director may require. Returns shall
Senate File 612, p. 11
be made upon forms furnishcd or made available in electronic
form and prescribed by the director and shall contain other
information as the director may require. Each return shall be
accompanied by a remittance for the full tax liability shown
on the return, less a discount as fixed by the director not to
exceed five percent of the tax. Within three years after the
return is filed or within three years after the return became
due, whichever is later, the department shall examine it,
determine the correct amount of tax, and assess the tax against
the taxpayer for any deficiency. The period for examination
and determination of the correct amount of tax is unlimited in
the case of a false or fraudulent return made with the intent
to evade tax, or in the case of a failure to file a return.
Sec. 25. Section 453A.46, subsection 3, Code 2025, is
amended to read as follows:
3. In addition to the tax or additional tax, the taxpayer
shall also pay a penalty as provided in section 421.27 and be
subject to the civil penalties set forth in sections 421.27;
453A.31, subsection 1, paragraph " b - ; and 453A.50, subsection
3, as applicable. For purposes of imposing penalties under
this section and section 421.27, a person who fails to
timely file or submit a required return, report, or other
documentation upon which no tax is shown due is subject to a
penalty in the amount of fifty dollars for each occurrence.
Sec. 26. Section 453A.46, subsection 7, Code 2025, is
amended by striking the subsection and inserting in lieu
thereof the following:
7. A report, return, remittance, or other documentation
required to be submitted under this subchapter shall be filed
electronically. Any report, return, remittance, or other
documentation required to be submitted electronically that
is submitted in a manner other than in an electronic format
specified by the department shall not be considered a valid
submission unless the director has permitted submission of such
application, bond, fee, report, return, remittance, or other
documentation through an alternative method pursuant to section
453A.57.
Sec. 27. Section 453A.47A, subsection 6, Code 2025, is
amended to read as follows:
Senate File 612, p. 12
6. Issuance. Cities may i33uc approve retail permits to
retailers permit applications of applicants located within
their respective limits. County boards of supervisors may
i33uc approve retail permits to retailers permit applications
of applicants located in their respective counties, outside
of the corporate limits of cities.
aubmit a dupli ate of any application for a retail permit to
the department within thirty days of issuance of a permit.
Upon approval of a retail permit application by a city or
county, the department shall issue the permit to the applicant
on behalf of the city or county, in the manner determined by
the department. A city or county shall use the electronic
portal of the department to process retail permit applications.
A city or county that is unable to use the electronic portal
of the department may request permission from the director to
process retail applications by another method. The department
shall submit the current list of all retail permits issued to
the department of health and human services by the last day of
each quarter of a state fiscal year.
Sec. 28. Section 453A.47A, subsection 7, paragraph a,
unnumbered paragraph 1, Code 2025, is amended to read as
follows:
All permits provided for in this subchapter shall expire on
June 30 of each year. A permit shall not be granted or issued
until the applicant has paid the fees provided for to the
department required in this section for the next period ending
on June 30 next, t the e i t y ei eeunty q r a n t i n mire a errcrrc . T h e
fee for retail permits is as follows when the permit is granted
during the month of July, August, or September:
Sec. 29. Section 453A.47A, subsection 9, unnumbered
paragraph 1, Code 2025, is amended to read as follows:
Retail permits shall be issued only upon applications,
accompanied by the fee indicated above, made upon forms
furnished by the department upon written request. The failure
the failure to
Applications,
any supporting documentation, and the associated fees
required by this section shall be submitted to the department
electronically. The forms shall specify:
Senate File 612, p. 13
Sec. 30. Section 453A.47A, subsection 10, paragraph b, Code
2025, is amended to read as follows:
b. Every retailer shall, when requested by the department,
make additional reports as the department deems necessary and
proper and shall at the request of the department furnish full
and complete information pertaining to any transaction of the
retailer involving the purchase or sale or use of tobacco,
tobacco products, alternative nicotine products, or vapor
products. A report required to be submitted to the department
pursuant to this subsection shall be submitted electronically.
Sec. 31. Section 453A.52, Code 2025, is amended by adding
the following new subsection:
NEW SUBSECTION. 9. Any certification form, notice, and
supporting documentation and any payment required to be
submitted to the department pursuant to this section shall
be submitted to the department electronically, unless the
director has permitted submission of such information through
an alternative method pursuant to section 453A.57.
Sec. 32. Section 453A.52B, Code 2025, is amended by adding
the following new subsection:
NEW SUBSECTION. 6. Payment for any penalty imposed
pursuant to this section shall be remitted to the department
electronically, unless the director has permitted submission
of such information through an alternative method pursuant to
section 453A.57.
Sec. 33. Section 453A.52D, Code 2025, is amended by adding
the following new subsection:
NEW SUBSECTION. 4. Notice to the department and any
supporting documentation required to be submitted to the
department pursuant to this section shall be submitted to the
department electronically, unless the director has permitted
submission of such information through an alternative method
pursuant to section 453A.57.
Sec. 34. NEW SECTION. 453A.57 Submitting documents —
alternative method.
A person subject to this chapter who is required to submit an
application, bond, fee, report, return, remittance, or other
documentation electronically and who is unable to do so, may
request permission from the director to make a submission using
Senate File 612, p. 14
an alternative method.
Sec. 35. Section 453D.5, subsection 1, Code 2025, is amended
to read as follows:
1. No later than twenty calendar days after the end of
each calendar quarter, and more frequently if so directed by
the director, each stamping agent and distributor shall submit
information as the director requires to facilitate compliance
with this chapter, including but not limited to a list by brand
family of the total number of cigarettes, or, in the case of
roll- your- own tobacco, the equivalent stick count, for which
the stamping agent or distributor affixed stamps during the
previous calendar quarter or otherwise paid the tax due for
the cigarettes. The stamping agent and distributor shall
maintain, and make available to the director, all invoices and
documentation of sales of all nonparticipating manufacturer
cigarettes and any other information relied upon in reporting
to the director for a period of five years. Any information
submitted pursuant to this subsection shall be submitted to
the director electronically, unless the director has permitted
submission of such information through an alternative method
pursuant to section 453A.57. Any information submitted
pursuant to this subsection that is submitted in a manner other
than in a format specified by the department shall not be
considered a valid submission. Violations of this subsection
are subject to civil penalties as established in section
453A.31, subsection 1, paragraph b - .
Sec. 36. CODE EDITOR DIRECTIVES.
1. The Code editor is directed to place new section 453A.57,
as enacted by this division of this Act, in subchapter IV
titled " Uniformed Application of Chapter - .
2. The Code editor may modify subchapter titles if necessary
and is directed to correct internal references in the Code as
necessary due to enactment of this section.
DIVISION II
CITY BUDGET CERTIFICATION DEADLINE
Sec. 37. CITY BUDGET CERTIFICATION DEADLINE — FY
2025-2026.
1. As used in this section, " qualified city - means a city
in this state having a population between twenty thousand four
Senate File 612, p. 15
hundred and twenty thousand five hundred, according to the 2020
federal decennial census.
2. a. Notwithstanding any provision of section 384.16 to
the contrary, a qualified city that failed to certify a budget
as required in section 384.16 for the fiscal year beginning
July 1, 2025, may comply with the requirements in section
384.16 by certifying the budget on or before July 1, 2025.
b. A qualified city that complies with the requirements of
paragraph " a" is not required to conduct a hearing as required
in section 384.16 or 384.18. In addition, the provisions of
section 384.19 allowing persons affected by the budget to file
a written protest with the county auditor do not apply to the
qualified city's budget for the fiscal year beginning July 1,
2025.
c. A qualified city that meets the extended certification
deadline as provided in this subsection shall be deemed to have
complied with the requirements of section 384.16 on April 30,
2025.
Sec. 38. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION III
HISTORIC PRESERVATION TAX CREDIT
Sec. 39. Section 404A.2, subsection 4, paragraph a, Code
2025, is amended to read as follows:
a. For a tax credit claimed by an eligible taxpayer or
a transferee for qualified rehabilitation projects with
agreements entered into on or after July 1, 2014, the following
percentage of any credit in excess of the taxpayer's tax
liability for the tax year may be refunded:
( 1) For the tax year beginning on or after January 1, 2023,
but before January 1, 2024, ninety-five percent.
( 2) For the tax year beginning on or after January 1, 2024,
but before January 1, 2025, ninety percent.
but befere January 1, 2026, cighty fivc perccnt.
( 4) For the tax yc-ar beginning on or aftcr January 1, 2026,
but bcforc January 1, 2027, cighty perccnt.
( 5 ) ( 3 ) For tax years beginning on or after January 1, 2027
2025, ocvcnty fivc one hundred percent.
Senate File 612, p. 16
Sec. 40. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2025, for tax years
beginning on or after that date.
AMY SINCjGP r IIR PAT GRASSLE
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 612, Ninety-first General Assembly.
Approved SPZ%WL V , 2025
W. CHARLES SMITHSON
Secr-ta y of = , e Senate
KIM - E' OLDS
Governor