Iowa HF568 excludes interest income from banks and credit unions from Iowa net income calculations for individual income tax purposes.

Iowa HF568 modifies the state's individual income tax by excluding interest income earned from banks and credit unions from the calculation of net income. The bill defines "bank" as a corporation or limited liability company engaged in banking, and "credit union" as a cooperative, nonprofit association insured by the national credit union administration. The changes take effect immediately upon enactment and apply retroactively to tax years beginning on or after January 1, 2025.

Iowa HF568 excludes interest income from banks and credit unions from Iowa net income calculations for individual income tax purposes.

Iowa HF568 modifies the state's individual income tax by excluding interest income earned from banks and credit unions from the calculation of net income. The bill defines "bank" as a corporation or limited liability company engaged in banking, and "credit union" as a cooperative, nonprofit association insured by the national credit union administration. The changes take effect immediately upon enactment and apply retroactively to tax years beginning on or after January 1, 2025.