This bill directs the Iowa Department of Revenue to conduct a study on the feasibility of establishing a reciprocal tax agreement with the state of Wisconsin. The study is prompted by the significant number of residents from both states who are employed across the border, and aims to determine whether such an agreement would be mutually beneficial. The proposed agreement would ensure that wages earned by Iowa residents working in Wisconsin are only taxed by Iowa, and vice versa for Wisconsin residents working in Iowa. The study must be completed, and findings reported to the Iowa General Assembly by December 1, 2026.

If the study concludes that a reciprocal tax agreement is feasible, the Department of Revenue is required to draft the proposed agreement in bill form and submit it to the legislative services agency before the 2027 regular session of the Iowa General Assembly for approval. The bill emphasizes the importance of this initiative and takes effect immediately upon enactment.