This bill amends Iowa's tax code by adding a new subsection to Section 422.7, which allows individuals to subtract interest income earned from banks and credit unions when calculating their Iowa net income for individual income tax purposes. The bill provides definitions for "bank" and "credit union," clarifying that a bank includes various types of financial institutions organized under state or federal laws, while a credit union is defined as a nonprofit cooperative association that is federally insured.

The legislation is designed to take effect immediately upon enactment and has retroactive applicability, meaning it will apply to tax years beginning on or after January 1, 2025. This change aims to provide tax relief to individuals by excluding certain interest income from taxable income calculations.

Statutes affected:
Introduced: 422.7