This bill amends Iowa's tax code by adding a new subsection that excludes interest income earned from banks and credit unions from the calculations of Iowa net income for individual income tax purposes. Specifically, it defines "bank" and "credit union" to clarify the entities from which this interest income is excluded.

The bill 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 not taxing interest income from these financial institutions.

Statutes affected:
Introduced: 422.7