House File 293 - Introduced HOUSE FILE 293 BY JACOBY A BILL FOR An Act exempting cash tips from the individual income tax, and 1 including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1917YH (1) 91 jm/jh

H.F. 293 Section 1. Section 422.7, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 45. Subtract, to the extent included, 3 the amount of cash tips that were received and are included 4 on statements furnished to an employer as required by section 5 6053(a) of the Internal Revenue Code. 6 Sec. 2. APPLICABILITY. This Act applies to tax years 7 beginning on or after January 1, 2026. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill excludes from the individual income tax the amount 12 of cash tips received and included on statements furnished to 13 an employer as required by section 6053(a) of the Internal 14 Revenue Code. 15 The bill applies to tax years beginning on or after January 16 1, 2026. 17 -1- LSB 1917YH (1) 91 jm/jh 1/ 1