DES MOINES (AP) — Iowa is still analyzing the full impact of the federal tax overhaul law on state revenues, but some provisions are expected to create a windfall.
The Iowa Department of Revenue provided preliminary data Friday showing the state expects to collect about $16 million more in individual income taxes for the current budget year because of changes to how residents will deduct federal taxes. That’s estimated to increase to about $106 million in the budget year that goes into effect next summer and by $138 million the following budget year.
A department spokeswoman cautioned other aspects of the $1.5 trillion law, like changes to property tax deductions, could reduce state revenue.
Republicans with majorities in the Iowa Legislature want to change the state tax code this year, including through cuts. Details have not been shared publicly.