HF 2482 (LSB 6171YH (1) 91)

HOUSE FILE 2482

BY  WILSON

A BILL FOR

An Act exempting from state income tax income received by a certified public accountant performing certain audits or examinations of governmental subdivisions, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 11.6, subsection 2, Code 2026, is amended to read as follows:
   2.  a.  A governmental subdivision contracting with certified public accountants shall do so in a reasonable manner on the basis of competence and qualification for the services required and for a fair and reasonable price utilizing procedures which include a written request for proposals.
   b.  Income received by a certified public accountant performing an audit or examination of a governmental subdivision pursuant to this section shall be exempt from taxation under section 422.7 or 422.33, as applicable.
    Sec. 2.  Section 422.7, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  46.  Subtract, to the extent included, income received by a certified public accountant performing an audit or examination of a governmental subdivision pursuant to section 11.6.
    Sec. 3.  Section 422.35, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  14.  Subtract, to the extent included, income received by a certified public accountant performing an audit or examination of a governmental subdivision pursuant to section 11.6.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2026, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill exempts from state income tax under Code sections 422.7 (individual) and 422.35 (corporate), as applicable, income received by a certified public accountant performing an audit or examination of a governmental subdivision under Code section 11.6.
   The bill applies retroactively to tax years beginning on or after January 1, 2026.