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| 1 | 1 | 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 | |
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| 3 | 3 | 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 explanations 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 |