House File 976 proposes a comprehensive overhaul of various tax provisions in Iowa, impacting personal income, property, sales and use, motor fuel, and inheritance taxes. A significant amendment to Section 421.19 allows the Department of Revenue to share state tax information with law enforcement in cases of tax evasion. The bill also introduces Section 556.19, expanding the exceptions for disclosing confidential tax information. Additionally, it mandates the Department of Revenue to publish annual reports on tax operations while eliminating previous reporting requirements. Other key changes include adjustments to property tax claims, the treatment of building materials for sales tax, and new provisions for partnerships and pass-through entities.

The bill further modifies excise tax regulations for biodiesel blended fuel, inheritance tax treatments for educational and ABLE savings plans, and establishes civil penalties for late report filings. It clarifies compliance requirements for estates of decedents and introduces new regulations for web search portal and data center businesses, including sales tax exemptions for electricity and backup power generation fuel. The effective dates for these provisions vary, with some taking immediate effect and others applying retroactively or to future tax years. Overall, House File 976 aims to streamline tax processes and clarify obligations related to excise and inheritance taxes, while also enhancing compliance and reporting standards.

Statutes affected:
Introduced: 421.19, 422.20, 8G.4, 422.75, 421.60, 445.60, 422.7, 422.25C, 422.25, 423.36, 452A.3, 452A.33, 452A.15, 452A.41, 452A.44, 12D.9, 450.4, 321.47, 321.20, 331.756, 421.27, 422.14, 496C.14, 524.805, 541A.2, 633.21, 633.31, 450.22, 633.356, 633.361, 633.365, 633.399, 633.477, 633.479, 633.481, 654.16, 450.24, 422.16, 2.48, 476.46A, 423.3, 423.4, 423.43, 423.5
Enrolled: 421.19, 422.20, 8G.4, 422.75, 421.60, 445.60, 422.7, 422.25C, 422.25, 423.36, 452A.3, 452A.33, 452A.15, 452A.41, 452A.44, 12D.9, 450.4, 321.47, 321.20, 331.756, 421.27, 422.14, 496C.14, 524.805, 541A.2, 633.21, 633.31, 450.22, 633.356, 633.361, 633.365, 633.399, 633.477, 633.479, 633.481, 654.16, 450.24, 422.16, 2.48, 476.46A, 423.3, 423.4, 423.43, 423.5