This bill amends Iowa's tax code to exempt income received by certified public accountants (CPAs) for performing audits or examinations of governmental subdivisions from state income tax. Specifically, it adds new provisions to Code sections 422.7 and 422.35, allowing CPAs to subtract this income from their taxable income. Additionally, it requires that governmental subdivisions contract with CPAs based on their competence and qualifications, ensuring a fair and reasonable price through a written request for proposals.

The bill also includes a retroactive applicability provision, meaning that the tax exemption will apply to tax years beginning on or after January 1, 2026. This change aims to provide financial relief to CPAs engaged in auditing governmental entities, thereby encouraging transparency and accountability in public financial management.

Statutes affected:
Introduced: 11.6, 422.7, 422.35