A bill for an act providing for an individual income tax credit for the purchase of firearm safety devices and including retroactive and other applicability provisions.(See HF 1034.)
Summary
HF 132 would create a new individual income tax credit for Iowa taxpayers who purchase firearm safety devices during the tax year. The credit would equal the sales price of the device, up to a maximum of $500, and could be claimed against the taxpayer’s Iowa income tax liability. If the credit exceeds the taxpayer’s liability, the unused amount would not be refunded but could be carried forward to the next tax year.
The bill defines “firearm safety device” broadly to include devices designed to prevent a firearm from being operated until the device is deactivated, as well as qualified gun safes. A qualified gun safe must be specifically manufactured for firearm storage, made of steel or a material of equal or greater strength, purchased new from a federally licensed firearms dealer or a retailer under Iowa law, and intended for the taxpayer’s personal, noncommercial use. The bill would apply prospectively to purchases made on or after its effective date and retroactively to January 1, 2025, for tax years beginning on or after that date.
Impact
The bill would amend Iowa’s income tax code by adding a new refundable? no, nonrefundable tax credit provision in chapter 422 for firearm safety device purchases. It would reduce state income tax revenue to the extent taxpayers claim the credit, while also creating a new tax incentive tied to the purchase of gun locks, trigger locks, and qualifying gun safes. The retroactive effective date could allow taxpayers to claim the credit for eligible purchases made earlier in 2025, affecting returns filed for that tax year.
Sentiment
The available legislative history suggests the bill was not controversial in committee, at least at the stage reflected by the recorded vote: the House Committee on Appropriations reported the bill 22-0. There are no transcript excerpts showing debate or opposition, and the bill was later withdrawn, which limits what can be inferred about broader floor sentiment. Overall, the committee action points to at least initial bipartisan or unanimous support, but the withdrawal indicates it did not advance to enactment.
Contention
The main policy issue is whether the state should subsidize firearm safety purchases through the tax code, balancing gun-safety incentives against concerns about tax expenditures and revenue loss. Potential points of contention include the $500 cap, the decision to make the credit nonrefundable but carryable forward, and the retroactive application to January 1, 2025. The bill’s firearm-related subject matter could also draw differing views from gun rights advocates, gun safety proponents, and fiscal conservatives, though no direct committee testimony is provided here.
Similar To
A bill for an act providing for an individual income tax credit for the purchase of firearm safety devices and including retroactive and other applicability provisions.(Formerly HF 132.)
A bill for an act providing for an individual income tax credit for the purchase of firearm safety devices and including retroactive and other applicability provisions.(Formerly HF 132.)
A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)
A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.(Formerly HF 962.)
A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.
A bill for an act creating a premarital counseling tax credit available against the individual income tax, and including retroactive applicability provisions.
A bill for an act providing a tax credit for car registration fees paid by a disabled veteran available against the individual income tax, and including retroactive applicability provisions.
A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 965.)
A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.(See HF 1020.)
A bill for an act modifying the individual income tax credit for emergency medical services personnel, and including retroactive applicability provisions.(See HF 2778.)
A bill for an act creating a state work opportunity tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.