Governor Kim Reynolds of Iowa signed a bill on Wednesday that was high on her list of priorities during her Condition of the State address.
With effect from January 1, 2025, Senate File 2442 eliminates individual income tax brackets and establishes a flat rate of 3.8%.
Reynolds hinted at potential future modifications to the state’s income tax law by saying, “As far as we’ve come, I’m also confident that we are not done yet. You know after all, I think Iowa’s approach to taxes is defined by a sense of responsibility to the people of Iowa. They deserve a government that constantly exercises the discipline and the restraint to live within its means, as well as the humility to collect only what it needs, while returning the rest to them.”
Concerns about the law have been raised by county and city officials, who note that the new tax cap system based on community growth makes it challenging to estimate tax revenue for future years.
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Reynolds also signed SF 574, which modifies the certified site and high-quality jobs programs and examines economic growth attraction initiatives.
On Wednesday morning, House File 2668 was signed into law. The governor claimed that the modifications to biomarker testing will enable Iowans to get the best care possible while facing cancer.
Additionally, House File 2489, which increases insurance coverage for follow-up breast cancer tests, was the last bill she officially signed.
On the governor’s website, you can see the complete list of measures that were signed into law on Wednesday.
