Iowa 2025-2026 Regular Session

Iowa House Bill HF30

Introduced
1/14/25  

Caption

A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an eligible law firm, and including retroactive applicability provisions.

Impact

If enacted, HF30 would amend current Iowa tax codes to include provisions that allow eligible law firms to subtract a specified amount from their taxable income based on the legal work performed for indigent clients. This effort aims to promote the representation of disadvantaged populations in the legal system and could lead to an increase in attorneys willing to take on such cases. The bill's retroactive applicability from January 1, 2025, suggests that it is intended to provide immediate effects once these attorneys engage in eligible legal service.

Summary

House File 30 (HF30) proposes a tax deduction for individual and corporate income taxes based on the income derived from indigent representation by eligible law firms. The bill is designed to incentivize law firms to take on cases where they provide legal counsel to individuals who cannot afford to hire an attorney, ensuring that low-income individuals have access to legal representation. The deduction specifically applies to income generated from eligible cases starting from July 1, 2025, and outlines the criteria that determine what qualifies as an eligible attorney and law firm.

Contention

The potential points of contention surrounding this bill may include concerns over the definition of 'indigent' and the extent to which the deductions could financially benefit law firms. Questions may arise about whether the proposed hourly rates for deductions are sufficient to cover operational costs for law firms engaging in this kind of representation. There may also be broader discussions regarding the overall funding of public legal services and whether this bill effectively addresses the systemic issues related to access to justice for low-income individuals.

Companion Bills

No companion bills found.

Previously Filed As

IA HSB687

A bill for an act relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and including retroactive applicability provisions.

IA HF1024

A bill for an act excluding overtime pay from the individual income tax, and including applicability provisions.(Formerly HF 110.)

IA HF961

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.)

IA HF1030

A bill for an act exempting qualified tips from the individual income tax, and including applicability provisions.(Formerly HF 268.)

IA SF2292

A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.(Formerly SSB 3105; See SF 2492.)

IA HSB306

A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

IA HF1034

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.)

IA SF201

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.

IA SSB3105

A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.(See SF 2292, SF 2492.)

IA SF2492

A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions. (Formerly SF 2292, SSB 3105.) Effective date: 07/01/2026. Applicability date: 01/01/2026.

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