§ 422.63 — Amount of tax

Iowa § 422.63

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 422: INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES

Text

1. a. The franchise tax is imposed annually in an amount equal to the percent specified in
subsection 2 of the net income received or accrued during the taxable year. If the net income
of the financial institution is derived from its business carried on entirely within the state, the
tax shall be imposed on the entire net income, but if the business is carried on partly within
and partly without the state, the portion of net income reasonably attributable to the business
withinthestateshallbespecificallyallocatedorequitablyapportionedwithinandwithoutthe
state under rules of the director.
b. For purposes of apportioning income within and without the state, if an election is
made pursuant to section 422.60, subsection 1, paragraph “b”, the commercial domicile of
an investment subsidiary included on the return of the financial institution pursuant to the
election shall be that of the financial institution rather than the investment subsidiary.
2. a. For tax years beginning prior to January 1, 2023, five percent.
b. For tax years beginning on or after January 1, 2023, but before January 1, 2024, four
and seven-tenths percent.
c. For tax years beginning on or after January 1, 2024, but before January 1, 2025, four
and four-tenths percent.

d. For tax years beginning on or after January 1, 2025, but before January 1, 2026, four
and one-tenth percent.
e. For tax years beginning on or after January 1, 2026, but before January 1, 2027, three
and eight-tenths percent.
f. For tax years beginning on or after January 1, 2027, three and one-half percent.

Legislative History

[C71, 73, 75, 77, 79, 81, §422.63]