Senate File 402 - Introduced SENATE FILE 402 BY SIRES A BILL FOR An Act relating to the deduction of nursing facility expenses 1 for purposes of the individual income tax, and including 2 retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2413XS (3) 91 jm/jh

S.F. 402 Section 1. Section 422.7, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 45. a. As used in this subsection, 3 “nursing facility” means a nursing facility licensed under 4 chapter 135C. 5 b. Subtract, to the extent included, the amount of expenses 6 paid to a nursing facility by the taxpayer for health-related 7 care and services. 8 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2025, for tax years beginning on 10 or after that date. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill allows an individual income taxpayer to deduct the 15 amount of expense paid to a nursing facility under Code chapter 16 135C to the extent not otherwise deducted for federal income 17 tax purposes. The bill applies retroactively to tax years 18 beginning on or after January 1, 2025. 19 -1- LSB 2413XS (3) 91 jm/jh 1/ 1