Iowa 2023-2024 Regular Session

Iowa House Bill HF2504

Introduced
2/14/24  
Introduced
2/14/24  

Caption

A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an attorney, and including retroactive applicability provisions.(See HF 2679.)

Impact

This bill potentially increases access to legal representation for low-income individuals by incentivizing attorneys to take on pro bono work. By offering a tax deduction for income from such cases, HF2504 aims to alleviate some of the financial burdens faced by attorneys who help indigent clients. This change could promote a greater number of lawyers to engage in indigent defense, fostering a more equitable legal system where individuals are not denied representation due to financial constraints.

Summary

House File 2504 (HF2504) proposes amendments to the state tax code to provide a tax deduction related to income derived from the representation of indigent clients by attorneys. The bill specifically targets law firms consisting of two or more attorneys who have not contracted under certain sections of state law. Notably, the bill allows partners and shareholders within these firms to deduct a defined amount for each case of indigent representation, retroactively applying to tax years starting January 1, 2024.

Contention

However, the introduction of HF2504 may spark debate regarding the sustainability of such tax deductions and their implications on the overall tax revenue. Critics may voice concerns over whether this provision could lead to budgetary constraints or affect funding allocated for other essential services within the state. Moreover, there could be discussions about the definition of indigent representation and how effectively it is implemented, along with monitoring compliance with the newly defined tax regulations.

Companion Bills

IA HF2679

Similar To A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions. (Formerly HF 2504.)

Previously Filed As

IA HF2679

A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions. (Formerly HF 2504.)

IA HF30

A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions.

IA SF552

A bill for an act relating to individual and corporate income taxes, the insurance premium tax, and including the contingent repeal of the individual income tax, and including retroactive applicability and effective date provisions.(Formerly SSB 1126.)

IA HF2638

A bill for an act excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions.(Formerly HF 2105.)

IA HF2105

A bill for an act excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions.(See HF 2638.)

IA HF292

A bill for an act creating a private instruction organization tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

IA HSB720

A bill for an act relating to state taxation by modifying future individual income tax rates, creating processes for reducing the individual income tax rate to zero, reducing future contingent corporate income tax rates, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SSB3141

A bill for an act relating to state taxation by modifying future individual income tax rates, creating processes for reducing the individual income tax rate to zero, reducing future contingent corporate income tax rates, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SF2398

A bill for an act relating to state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions.(Formerly SSB 3038.)

IA HSB683

A bill for an act relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and including retroactive applicability provisions.(See HF 2650.)

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