SF 402 (LSB 2413XS (3) 91)

SENATE FILE 402

BY  SIRES

A BILL FOR

An Act relating to the deduction of nursing facility expenses for purposes of the individual income tax, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  45.  a.  As used in this subsection, “nursing facility” means a nursing facility licensed under chapter 135C.
   b.  Subtract, to the extent included, the amount of expenses paid to a nursing facility by the taxpayer for health-related care and services.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2025, 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 allows an individual income taxpayer to deduct the amount of expense paid to a nursing facility under Code chapter 135C to the extent not otherwise deducted for federal income tax purposes. The bill applies retroactively to tax years beginning on or after January 1, 2025.