Notable Bills Effective July 1, 2016
Agriculture
House File 2269--BEEF PROMOTION/CHECKOFF CODE CHAPTER UPDATES
House File 2269 makes a number of changes to the Iowa Beef Promotion Code Chapter (181) that
includes the following: (a) it changes the name of its governing entity from “Iowa beef industry council”
(council) to “executive committee” (committee); (b) adds two new voting members who are producers
appointed by the Iowa cattlemen’s association (amended Code section 181.3); and (c) eliminates certain
IBCPA duties, including eliminating requirements to conduct instruction regarding the breeding and
raising of cattle and to engage in activities that demonstrate or promote cattle feeding and instead, the
IBCPA would be required to engage in marketing, research, and education efforts. HF 2269 was
effective upon enactment 3-3-2016
House File 2339-- WATERSHED MANAGEMENT AUTHORITY ELIGIBLE ENTITIES
House File 2339 amended the Code concerning what entities can participate as members of Watershed
Management Authorities by expanding the list of eligible entities to include a benefitted recreational
lake district or a water quality district or a combined district incorporated as a public entity and
organized pursuant code chapter 357E. HF 2339 is effective 7-1-2016
House File 2344--WRITTEN FARM TENANCY TERMINATION AGREEMENTS
House File 2344 modifies prior Code provisions dealing with what is required to terminate an agreement
for the lease of land for agricultural/farm purposes to going forward require that any agreement to
terminate such leases be in writing. This legislation was inspired by a recent legal case in Iowa ‘Auen vs.
Auen’ in which the Iowa Court of Appeals ruled on a contested case of whether a disputed oral
agreement to terminate a farm land rental met existing law notice of termination agreement which the
Court ruled it did. HF 2344 is effective 7-1-2016
House File 2356--TANDEM TOWED DELIVERY OF NONPROPELLED IMPLEMENTS HUSBANDRY
House File 2356 modified prior Code provisions that previously prohibited the movement and delivery of
more than one implement of husbandry by a power unit to farmers to allow the delivery of non-selfpropelled implements of husbandry if they can be towed in tandem from manufacturer to retail,
manufacturer to farm, or retail to farm. HF 2356 is effective 7-1-2016
House File 2464-- ENVIRONMENTAL PROTECTION CHARGE 6-MONTH EXTENSION; FUTURE REPEAL OF
STATUTORY ALLOCATION FUND DISBURSEMENTS TO UST AND RFIF
House File 2464 proposes to: (a) delays the Code specified repeal of the Environmental Protection
Charge (the EPC also referred to as the diminution tax of 1-cent per gallon taxed largely from petroleum
marketers) by six months that is now scheduled to occur on June 30, 2016 to with enactment of this bill
to occur on December 31, 2016; (b) repeal on December 31, 2016 both existing Code provisions
concerning Statutory Allocation fund quarterly disbursement of $3.5-million ($14-million per year) to
the underground storage and the quarterly disbursement of $750,000 to the Renewable Fuels
Infrastructure fund (RFIF) for a cumulative transfer of $3-million per year; and (c) amends existing
provision concerning the RFIF Statutory Allocation fund quarterly disbursements still in effect until 1231-2016 with language that double the amount of the first two quarterly transfers of FY 2017 RFIF
Statutory Allocation from $750,000 per quarter to $1.5-million per quarter so that the total FY 2017
Statutory Allocation transfer to RFIF will be the same amount ($3-million) as it has previously gotten
each year through four quarterly disbursements. Division I (repeal of statutory allocations for UST and
RFIF)is effective 12-31-2016 and Division II (Delay of repeal of Environmental Protection Charge to 12-312016) is effective upon enactment
Senate File 2309--BIOFUELS TAX CREDITS EXTENSIONS
Senate File 2309 proposes to extend the expiration date of four biofuel tax programs from January 1,
2018, to January 1, 2025, including three retail motor fuel business income tax credits and one biodiesel
production sales and use tax refund. The bill further proposes to reconfigure the create a designated
tax credit rate for the sale of biodiesel blended fuel in the following ways; (a) ends the current 4.5-cents
per gallon for B5 and higher blend on December 31, 2017; (b) creates a new 5.5-cent per gallon tax
credit for biodiesel classified as B-11 or higher starting on January 1, 2018, and (c) creates a new 3.5cents per gallon tax credit for biodiesel fuel-blends of B5 to less than B11 for the year beginning with
January 1, 2018. SF 2309 additionally includes new language in existing Code 422.11P that provides a
1% variance waiver that will apply in circumstance of when B11 is inadvertently mixed with an
insufficient amount of fuel grade biodiesel. SF 2309 is effective 7-1-2016 with the exceptions of Division
IV (repeal of biodiesel production refund) which 1-1-2025 and Division V (repeal of E-85 and E-15
promotion tax credits) which is 1-1-2021.
House File 2454--FY 2017 Ag & Natural Resources Appropriations Program and Study Changes
House File 2454 is addition to providing funding for agricultural and natural resources programs also
authorizes a DNR study on the long-term viability of the state forest nursery (effective upon enactment
5-27-2016); changes where DNR livestock environmental civil penalties are deposited from the Iowa
Department of Agriculture and Land Stewardship Watershed Improvement Review Board (WIRB) to the
Iowa Nutrient Research (Center) fund for use by the center (effective upon enactment 5-27-2016); and
rescinds WIRB’s authority to consider and approve of new or expanded scope watershed improvement
projects (effective upon enactment 5-27-2016).
House File 2385--ILLEGAL TRASH DUMPING PENALTIES
House File 2385 provides for an escalating civil penalty concerning illegal trash dumping of $1,000 for
first offense, $2,000 for second offense, and $3,000 for third an additional offenses, The bill also
defines litter as the disposal of materials in an amount that is both less than 10-pounds and 15-cubic
Feet (~105 gallons volume); anything more than these amounts constitutes illegal trash dumping if it
occurs on another person property or on public property. HF 2385 is effective 7-1-2016.
Senate File 2181--DNR HOUSEHOLD HAZARDOUS MATERIAL CODE CLEAN-UP
Senate File 2181was legislation proposed by the Iowa Department of Natural Resources (DNR) to prune
the Iowa Code of Environmental Protection provisions dealing with household hazardous
materials/wastes that have expired; been replaced; superseded; or are no longer relevant or active.
Some of the provision have been superseded by subsequent state or federal legislation, other provision
have been made moot by technological innovations and the creation of regional collection centers
system within the state. SF 2181 is effective 7-1-2016.
Education
House File 2264 – OPEN ENROLLMENT FOR ATHLETICS DUE TO HARASSMENT AND BULLYING - Allows a
student who transfers schools due to being bullied to participate in athletics immediately without having
to sit out the required 90 days. * Effective upon the Governor’s signature April 7, 2016
House File 2392 – CAREER AND TECHNICAL EDUCATION (CTE) REFORM - Updates and modernizes
Iowa’s Secondary Career and Technical Education (CTE) delivery system. Provides language that would
help reduce skill shortages, enhance economic growth, and ensure all students have access to highquality, globally-competitive CTE programs. Establishes opportunities for collaboration between high
school, community college, and industry to create career pathways for students that align guidance,
programming, and work-based learning experiences for students to be successful learners and
practitioners. Division 1 focuses on holistic career guidance by establishing individual career and
academic plans that students. Division 2 revamps CTE programming, career academies, and regional
partnerships. * Division 1 was effective upon the Governor’s signature May 26, 2016
House File 2413 – EARLY LITERACY INITIATIVE CLARIFICATION - Makes terminology changes in 2012’s
Education Reform Early Literacy Initiative, changing “substantially deficient” to “persistently at risk.”
Provides clarification in the law that parental notification should be more often than once a year and
that reading proficiency at the end of 3rd grade for determining retention is not based on a single test
score.
Senate File 2196 – EARLY LITERACY IN TEACHER PREP PROGRAMS - Changes the requirements for
teacher preparation programs in terms of preparation for teaching reading strategies. Requires that
approved teacher preparation programs include preparation in reading theory and strategies,
addressing all students regardless of disability or academic success, and specifically students with
dyslexia.
Senate File 2323 - FY17 EDUCATION APPROPRIATIONS - Statewide Assessment 1-year Delay - A new
statewide assessment was supposed to be in place starting July 1, 2016, for the 2016/17 school year.
This bill delayed the implementation of the new assessment to July 1, 2017.
Senate File 2323 - FY17 EDUCATION APPROPRIATIONS - Third Grade Retention and Summer Reading
Program 1-year Delay - As part of the Early Literacy Initiative, starting for the 2016/17 school year, the
retention portion and the required summer reading program of the law were to go into effect. This bill
delayed the implementation of these two elements to the 2017/18 school year.
Human Services
Senate File 453 – TELEPHARMACY - The bill lays out how remote pharmacist supervision will work at
telepharmacy sites. The bill permits a pharmacist to remotely supervise the activities of a certified
technician who is practicing at a Board-approved telepharmacy site. The ultimate responsibility for the
completeness and accuracy of the prescription remains with the pharmacist. The bill defines
telepharmacy as the practice of pharmacy via telecommunications as provided by the board by rule.
The bill also makes changes to the licensure of non-resident pharmacies. Effective July 1.
Senate File 2159 – PUBLIC HEALTH MODERNIZATION - Division I removes outdated language that was
passed in the Iowa Public Health Modernization Act in 2009. At that time, the Act created a voluntary
accreditation system for local public health agencies. However, the Act was never fully implemented.
The focus moved to quality improvement instead of accreditation. Therefore, the purpose of Division I
is to remove outdated code language, to eliminate one of the two councils that were established under
the code, and to retain the current fund that is being used to support quality improvement efforts in
local public health agencies across the state. Division II removes additional red tape in the Iowa Code
related to local decision making for the operation of Local Boards of Public Health. Effective July 1.
Senate File 2188 – PSYCHOLOGIST PRESCRIPTION AUTHORITY - This bill grants prescription authority to
certain licensed psychologists. However, these psychologists have special requirements and restrictions.
They are as follows: The bill requires a prescribing psychologist to have a signed collaborative practice
agreement with a physician as a condition of certification. The psychologist has to collaborate regularly
with their patient’s primary care provider to ensure that necessary medical examinations are conducted
and the psychotropic medication is appropriate for the patient’s medical condition. The only
medications to be prescribed by the prescribing psychologist are for the treatment of mental health
disorders. Prescribing psychologists cannot prescribe narcotics. The bill requires prescribing
psychologists to have two years of supervision by a physician before they can prescribe independently.
The bill requires the Board of Medicine and Board of Psychology to collaborate on the development of
rules to implement this change. Effective July 1.
Senate File 2259 – SERIOUS MENTAL ILLNESS TREATMENT - This bill relates to outpatient treatment of a
person with a serious mental impairment who fails to comply with an outpatient treatment order. If the
respondent is ordered to undergo outpatient treatment and they do not comply and their behavior is
likely to result in physical injury to themselves or others, all of the following shall occur:
1. The respondent’s mental health professional shall notify the committing judge. The just shall
enter an order directing the respondent be taken into custody by the sheriff and be taken to a
facility.
2. Once in protective custody, the respondent shall be given the choice of being treated by
medication, which can include the use of injectable antipsychotic medicine.
3. Following the notice and hearing, the court may order the respondent treated on an inpatient
basis requiring full-time custody, care, and treatment in a hospital.
The bill requires a Mental Health and Disability Services (MHDS) region to contract with mental health
professionals to provide outpatient treatment by the appropriate medication which may include
treatment by the use of injectable antipsychotic medicine. Effective July 1.
House File 2272 – SUPPORTED EMPLOYMENT RATE FIX - Supported employment assists people with
disabilities in obtaining and maintaining community-based employment. A job coach supports people to
determine their interests. Once a job is obtained, a job coach assists people to learn job responsibilities
and accommodations. Last year, the Health and Human Services Budget Conference Committee
decided to give providers a rate increase of $750,000 for a half a year. This is a 20% rate increase. There
was an error that left this stipulation out of budget Therefore, the increase was never given to
providers. The bill remedies that and makes sure the providers get an increase. Effective July 1, 2015.
Judiciary
HF 493-EMERGENCY ASSISTANCE
HF 493 prohibits cities or counties from enacting ordinances that penalize a resident who calls for
emergency assistance if the person who made the call reasonably believes it was necessary. The bill
prohibits cities or counties from adopting any ordinance that relates to the right of a resident to
summon law enforcement or other emergency assistance. Landlords and owners are also prohibited
from restricting a residents right to summon law enforcement or other emergency assistance.
HF 2271- IDENTITY THEFT
HF 2271 ensures the penalty for identity theft is consistent whether a person receives credit, property,
services or other benefits with a fraudulently used identification. The penalty for identity theft is also
increased if the benefit obtained is higher than $10,000.
HF 2278- HUMAN TRAFFICKING AND KIDNAPPING-STATUTE OF LIMITATIONS
HF 2278 extends the statute of limitations for kidnapping and human trafficking committed on a person
who is under 18, to 10 years after the person turns 18, current law is 3 years.
HF 2386-PARENTAL RIGHTS-SEXUAL ASSAULT
HF 2386-If the court finds clear and convincing evidence that a child was conceived as the result of
sexual abuse, and a parent is seeking to terminate the abusers rights, the courts may use that as
grounds for termination of parental rights.
SF 2288- CONFIDENTIAL JUVENILE COURT RECORDS
SF 2288 creates a rebuttable presumption that juvenile records are confidential. The bill exempts any
forcible felony from this presumption.
SF 2191- HUMAN TRAFFICKING
SF 2191 establishes an office in the Department of Public Safety to oversee and coordinate efforts to
combat human trafficking.
SF 2218- NARCAN
Senate File 2218would allow first responders to obtain a supply of opioid antagonists (such as Narcan),
to be administered in the event of a drug overdose. Narcan and other drugs like it, can delay an
overdose long enough for first responders to get the victim necessary help.
Implementation is contingent upon availability of funding
EFFECTIVE UPON ENACTMENT
HF 2279- SUPPRESSORS
HF 2279 legalizes suppressors in the state of Iowa if a person qualifies under federal law. In order to
possess a suppressor a person must:
• Be a resident of the United States
• Be legally eligible to purchase a firearm
• Pass an extensive BATFE background check.
• Pay a one-time $200 Transfer Tax fee per suppressor
• Be at least 21 to purchase a suppressor from a dealer
Local Government
House File 2267 – CIVIL SERVICE RESIDENCY REQUIREMENTS - Current law requires employees of a city
who live outside of the state at the date of their employment to become a resident of Iowa within 2
years of employment. This bill gives cities the option to adopt an ordinance allowing residents of other
states to be employed in civil service positions.
House File 2325 – SANITARY DISTRICT TRANSFERS - New Code Section 350.38A is created in order to
allow a sanitary district to enter into an agreement with another district to transfer services and
responsibility. The severance would require notice and a public hearing, followed by a vote of the board
of trustees of the district. Current law only allows for the dissolving of the district in order to create a
new district. This new section of code would allow for modification of the district’s borders without
dissolving.
House File 2353 – EMERGENCY MANAGEMENT PERSONNEL IN PARTISAN ELECTIONS - The federal
Hatch Act of 1939 prevented employees in homeland security positions from being candidates for public
office in partisan elections. When section 29C was put into Iowa Code in 1992 this provision was applied
to our law. The Hatch Act Modernization Act of 2012 limited the prohibition on state and local
employees running for elective office to employees whose salary is paid completely by federal loans or
grants. This bill essentially “conforms” to federal law by loosening the restriction in Iowa Code.
Natural Resources
House File 2357 – TURTLE HARVESTING - The bill requires the Natural Resources Commission to do a
review the status of the turtle population in the state by region. They will report their
recommendations to the General Assembly whether restrictions on noncommercial and commercial
turtle harvesting should be changed. The season shall not apply to noncommercial harvest of snapping
turtles. Effective on March 23, 2016.
HF 2283- FIREARMS ON ATVS AND SNOWMOBILES
HF 2283 allows a person with a permit to carry to carry their firearm on a snowmobile or ATV. Handguns must be
carried in a retention holster. A person, operating the snowmobile or ATV on their own land is not required to have
a permit to carry
State Government
Senate File 2301 — 529 PLANS SPONSORED BY NON-PROFITS
This bill add tax-exempt, nonprofit organizations (501(c)(3)) to the definition of “participant” for Iowa
529 plans. This would allow these organizations to both open and fund/contribute to plans for individual
beneficiaries. Effective for tax years 2016 and on.
Senate File 2306 — FACILITATING BUSINESS RAPID RESPONSE TO DISASTERS ACT
This bill creates the Facilitating Business Rapid Response to State-Declared Disaster Act. This act makes it
easier and faster for out of state workers to come into the state during times of state declared disasters
and get essential services up and running. It does this by exempting the workers and their business from
filing income tax returns, collecting and remitting sales tax, etc. Effective for tax years 2016 and on.
Senate File 2312 — BASEBALL FACILITIES SALES TAX REBATES
This bill changes the current sales tax rebate program for the Field of Dreams. It opens the rebate up to
a “baseball and softball complex.” A complex will qualify for the rebate if it is located in Iowa, will be
completed after July 1, 2016, and has construction costs of at least $10 million. This bill removes the
prior requirement that the owner be a for-profit entity. It also modifies the percentage-of-ownership
requirements for qualification as an owner and for the occurrence of a change of control to specific that
the percentage is calculated using equity interest or voting interest owned or controlled by Iowa
residents.
This bill provides that the rebate only applies to sales tax collected for the 10 year period beginning on
or after the project’s completion date. A project cannot receive more than $2.5 million in total rebates
and the program in its entirety is repealed when a total of $5.0 million has been rebated. Effective July 1,
2016.
Monica
HOUSE FILE 2147 – ABSENTEE VOTING FOR UNIFORMED AND OVERSEAS VOTERS
This bill addresses absentee voting by uniformed and overseas citizens by extending the time for when
one can apply for an absentee ballot. The time is extended from 90 days to 120 days before the general
election. It also changes the requirements for federal write in ballots. Under current law, a federal write
in ballot can only be accepted when a voter has applied for an absentee ballot. This bill would eliminate
the requirement for an absentee ballot application and instead allow for one’s federal write in ballot to
count as long as the person who submits it is a registered voter.
STATUS: SIGNED BY THE GOVERNOR
HOUSE FILE 2331 – ISRAEL BILL
This bill prohibits the state and state entities from investing certain public funds in and contracting with
companies that boycott Israel. If the State is investing in a company that is boycotting Israel, this bill
contains provisions detailing divestment procedures. Specifically, this bill prohibits a public fund from
acquiring publicly traded securities from a scrutinized company. If a public fund has investments in a
scrutinized company, and the company remains a scrutinized company within 18 months following the
first notice by the public fund to that company, then the public fund must divest. In addition, a public
entity shall not enter into a contract of one thousand dollars or more with a scrutinized company
included on a scrutinized company list created by a public fund to acquire or dispose of services,
supplies, information technology, or construction.
STATUS: PASSED HOUSE, PASSED SENATE
SENATE FILE 2170 – PUBLIC IMPROVEMENT PROJECTS
This bill changes the notice period timeline for public improvement projects. It also changes the
publication/posting requirements for notice to bidders and notice of hearing. The notice to bidders is
now required to be published not less than thirteen days and not more than forty-five days before the
date for filing bids. Notice to bidders must now be posted in a relevant contractor plan room service
with statewide circulation and a relevant construction lead generating service with statewide circulation
and on an internet site sponsored by either a governmental entity or a statewide association that
represents the governmental entity.
STATUS: SIGNED BY THE GOVERNOR
SENATE FILE 2242 – CITY CLERKS ABLE TO RECIEV CITY CANDIDATE FILINGS
This bill allows city clerks to receive city candidate filings. The county commissioner may designate the
city clerk of a city to receive nomination papers for elective city offices. If so designated, the city clerk
shall have all the duties of the county commissioner provided in this section. In addition, on the final
date for filing nomination papers the office of the county commissioner and the office of the city clerk
designated shall remain open until 5:00 p.m. To be sure that all nomination papers are collected in 1
location: the city clerk shall deliver the nomination papers accepted for filing to the county
commissionee no later than the day after the last day on which nomination petitions can be filed, and
not later than 12:00 noon on that day.
STATUS: SIGNED BY THE GOVERNOR
Transportation
HOUSE FILE 617 – LICENSE PLATE DECALS
This bill allows special license plate for decals. This would remove the specialty plate process and
provide for a process that would allow for organizations to apply for the specialty decal. A person shall
not display a decal on a vehicle registration plate other than a decal approved by the department.
STATUS: SIGNED BY THE GOVERNOR
HOUSE FILE 2345 – BRIDGE REPORT BY DOT AND COUNTIES
This bill requires an annual report by county engineers and the DOT on road use tax fund moneys to
replace or repair bridges that are structurally deficient. The DOT shall submit an annual report to the
legislature. This annual report shall consist of the reports from all the counties. This reporting
requirement sunsets after three years.
STATUS: SIGNED BY THE GOVERNOR
Veteran’s Affairs
House File 2266 — VETERANS BURIAL BILL
This bill relates to unclaimed, cremated remains. It states that after 180 days, funeral directors who
have cremated remains that have not been claimed by a relative can release identifying information to
the Department of Veteran Affairs. The Department of Veteran Affairs can then determine if the
deceased was a veteran (or dependent of a veteran) who might be eligible for inurnment at a veterans’
cemetery. If the Department of Veteran Affairs makes the determination that the deceased is eligible,
they are to notify the funeral director. If after 180 days from the date the funeral director is notified no
one has claimed the remains, the funeral director is to transfer the remains to an eligible veteran
organization that has made arrangements for the inurnment. Effective July 1, 2016.
Senate File 2187 — VETERAN DESIGNATION ON LICENSE PROCESS
Currently, in order to obtain a driver’s license with a “Veteran” designation a Veteran must submit a
form to the DOT that was completed by a designee of the Department of Veteran Affairs. This bill allows
a Veteran to obtain the status on their license by just presenting their DD-214 directly to the DOT.
Effective July 1, 2016.
Ways and Means
House File 2433 — INTERNAL REVENUE CODE UPDATE & CONSUMABLES
This bill updates Iowa Code references to the Internal Revenue Code to make federal income tax
revisions enacted by Congress in 2015 applicable for Iowa income tax purposes. This bill also decouples
with federal bonus depreciation provisions. The bill is for session law only—will return to operation
under 2014 IRC on January 1, 2017 (will have to couple/decouple again next year). This portion of the bill
is applicable for tax year 2015 ONLY.
This bill creates a sales tax exemption for certain supplies used in manufacturing, research and
development, data processing or storage, and recycling activities. Effective July 1, 2016.
House File 2445 — PROMOTIONAL PLAY
This bill provides that adjusted gross receipts are gross receipts minus winnings paid out. It also provides
that adjusted gross receipts do not include promo play receipts received after the date that the
commission determines that the wagering tax imposed on all licensees on promo play (in one year)
exceeds $25,820,000. (Essentially a cap on taxes collected on promotional play annually). Effective July
1, 2016.
House File 2456 — MENTAL HEALTH LEVY
Under current law, for the fiscal period beginning July 1, 2013, and ending June 30, 2017, county
revenues from property taxes levied by the county and credited to a county mental health and
disabilities services fund shall not exceed the lower of the amount of the county’s base year
expenditures for mental health and disability services or the amount equal to the product of the
statewide per capita expenditure target for the fiscal year beginning July 1, 2013 (established in Code
section 462B.3, subsection 2), multiplied by the county’s general population for the same fiscal year.
This bill amends Code section 331.424A, relating to the county levy authority for mental health and
disabilities services (MD/DS) funding to extend these provisions by one year to FY 2017-2018. This bill
also amends Code section 426B.3, relating to per capita funding, to extend that provision by one year to
FY 2017-2018. Effective July 1, 2016.
House File 2468 — TAX OMNIBUS BILL/GEOTHERMAL TAX CREDIT/ADOPTION TAX CREDIT
This bill provides for various tax administration technical changes. It also creates a geothermal tax credit
equal to 10 percent of the cost of the installation of a qualified geothermal heat pump. The credit is only
available to residential installations in Iowa that are used by the taxpayer. The tax credit is
nonrefundable but can be carried forward for up to ten years. The credit is available for installations
occurring on or after 1/1/17. This bill also provides that the credit will not be available in any year where
the federal credit is available. The federal credit is set to expire at the end of this year. That credit
provides a tax credit equal to 20 percent of the federal credit. Effective for installations occurring on or
after January 1, 2017.
This bill also increases the current adoption tax credit from $2,500 to $5,000 starting in tax year 2017
(for returns filed in April of 2018). Currently, there is an individual income tax credit for qualified
adoption expenses paid or incurred in connection with the adoption of a child (an individual under the
age of 18). The adoption qualifies for the tax credit if the adoption is completed by the Department of
Human Services, a licensed agency, or a person petitioning for an independent placement. Qualifying
expenses are expenses that are incurred by the taxpayer during the tax year, are not otherwise
reimbursed, and are connected with the adoption. These expenses can include medical and hospital
expenses of the biological mother which are incidental to the birth of the adopted child, adoption
agency and legal fees, and all other fees and costs relating to the adoption. These expenses cannot
include expenses paid or incurred in violation of state or federal law. Any credit in excess of the
taxpayer’s liability is refundable or may be carried forward one tax year.
Under Iowa law, a taxpayer may claim an itemized deduction for the amount of certain adoption
expenses that exceed 3 percent of net income. Taxpayers who claim the itemized deduction are
required to reduce that deduction by the amount of expenses used to calculate the adoption tax credit.
Effective January 1, 2017.