On March 7, 2012, Governor Branstad signed House File 2150. This legislation conforms Iowa's tax laws to the Internal Revenue Code (IRC) in effect on January 1, 2012, for tax years beginning on or after January 1, 2011. It provides that all federal tax changes made by Congress in 2011 related to the calculation of adjusted gross income for individuals and federal taxable income for corporations will be allowed for Iowa income tax purposes.
NOTE: Iowa remains decoupled with federal "bonus depreciation" for the 2011 and 2012 tax years. The Iowa legislature decoupled with these provisions in legislation passed last year, Senate File 512, and no change was made in House File 2150 to the decoupling with bonus deprecation. Form IA 4562A must be completed for the 2011 and 2012 tax years to reflect the differences between federal and Iowa depreciation.