After months of debate, President Donald Trump signed his “Big, Beautiful, Bill” into law on Independence Day. If Congress had failed to act, for taxpayers it would have resulted in the 2017 Tax Cuts and Jobs Act (TCJA) expiring, which would have resulted in massive tax increase that would be detrimental to the economy.
At the core of the bill is renewal of the TCJA income tax cuts and making those permanent along with the expanded standard deduction. Further, the measure will benefit businesses by making permanent full expensing and the 20% small business deduction.
The “Big, Beautiful, Bill” will have a direct impact on Iowa. Iowa’s tax code mirrors the federal tax code through “rolling conformity.” This means that, in most cases, Iowa automatically updates its tax laws when federal changes occur to definitions of income and eligibility for credits.
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