Iowa Won't Adopt Retroactive Fed. Tax Changes, Agency Says

Iowa does not conform to retroactive tax code changes made by a major federal law passed last year to help provide relief from the novel coronavirus, the state Department of Revenue said in guidance.

In guidance issued Wednesday, the department said that the state does not conform to any federal tax changes made by December's Consolidated Appropriations Act to the extent they apply to tax years beginning before Jan. 1, 2020.

The department said the state would adopt provisions related to tax relief for federal loan forgiveness, changes to depreciation for certain residential rental property, increased charitable deductions for qualified disaster relief contributions and other tax provisions for tax years beginning on and after Jan. 1, 2020.

The department also outlined the state tax effects of federal changes related to farming losses and solar energy tax credits. 

--Editing by Vincent Sherry.

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