Iowa SF2470 introduces a permit requirement for event-driven contracts, imposes a tax on adjusted revenues, and adjusts individual and corporate.

Iowa SF2470 mandates a permit for businesses trading event-driven contracts, which are financial derivatives tied to specific future events. The bill imposes a 20% tax on adjusted revenues from these contracts, defined as total charges and fees minus payouts. It also adjusts individual and corporate income taxes to exclude federal taxation under section 1256 of the Internal Revenue Code for event-driven contracts. The bill requires state income tax withholding on gains exceeding $600 from these contracts. Permits cost $10 million initially and $100,000 annually.

Iowa SF2470 introduces a permit requirement for event-driven contracts, imposes a tax on adjusted revenues, and adjusts individual and corporate.

Iowa SF2470 mandates a permit for businesses trading event-driven contracts, which are financial derivatives tied to specific future events. The bill imposes a 20% tax on adjusted revenues from these contracts, defined as total charges and fees minus payouts. It also adjusts individual and corporate income taxes to exclude federal taxation under section 1256 of the Internal Revenue Code for event-driven contracts. The bill requires state income tax withholding on gains exceeding $600 from these contracts. Permits cost $10 million initially and $100,000 annually.