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.(Formerly HSB 716.)
Impact
If enacted, HF2685 will modify existing tax law by adding specific provisions that exempt CPA income derived from governmental audits under Iowa Code sections 422.7 and 422.35. This change is projected to have implications on state revenue while aiming to enhance the quality of audits for local and state governments. The measure is expected to positively influence the willingness of professional accountants to perform governmental audits and examinations, thereby potentially increasing accountability within governmental subdivisions.
Summary
House File 2685 aims to create a tax exemption for income received by certified public accountants (CPAs) for performing audits or examinations of governmental subdivisions. This bill is a response to the need for financial accountability and transparency in government operations, promoting the hiring of qualified accountants for auditing purposes. By exempting this income from state income tax for a defined period, the bill seeks to incentivize accountants to engage with governmental entities and ensure thorough financial evaluations.
Contention
Notable points of contention surrounding the bill may arise from concerns about state revenue implications. Critics might argue that tax exemptions for specific income types could lead to reduced funding for essential state services, particularly given that this exemption is set to last until 2029. Supporters will advocate that this bill fosters a more robust auditing environment, while opponents may raise issues about prioritizing tax exemptions for professional services over other pressing budgetary needs. Therefore, the proposed measure could face scrutiny regarding its long-term economic implications on state finances.
Related
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.(See HF 2685.)
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.
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(Formerly HF 94.)
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.
A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.(See HF 961.)
A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 56.)
A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions.(Formerly HSB 149; See HF 988.)