Business Tax Changes Have Arrived
January 2, 2020
As we move into 2020, it’s important to note significant changes to Iowa’s tax code that will affect the business community. The following will take effect in tax year 2020:
- Section 179 cap fully couples with federal cap—then annually indexed to inflation ($1 million/$2.5 million). This matches the limits allowed for in the 2017 Tax Cuts and Jobs Act
- Coupling with federal repeal of like-kind exchanges (1031) for all but real property
- “Rolling” federal conformity to the Internal Revenue Code begins
All of this is due to the Iowa Legislature approving and the governor signing SF 2417 in 2018, which implements a series of consequential modifications to the tax code. You can view the Iowa Department of Revenue’s guidance page for more information.