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Gov. Kim Reynolds signs a new Iowa income tax cut into law. What that means for you:

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Gov. Kim Reynolds signs a new Iowa income tax cut into law. What that means for you:


Iowans will pay a 3.8% flat income tax rate starting next year after Gov. Kim Reynolds signed a law Wednesday lowering the state’s rate and speeding up a series of cuts.

The law builds on a 2022 tax cut that was already set to take Iowa to a 3.9% flat income tax rate in 2026.

Iowa’s top income tax rate this year is 5.7%. Under the new law, all Iowans will pay a 3.8% income tax rate next year.

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Reynolds, a Republican, signed Senate File 2442 Wednesday afternoon in the governor’s formal office in the Iowa State Capitol.

It’s the latest in a series of tax cuts Reynolds and Republican majorities in the Iowa Legislature have passed since 2018. Those cuts have brought Iowa from a top individual income tax rate of 8.98% to next year’s 3.8% flat rate, which will apply to Iowans across the board.

“Simply put, we’ve comprehensively transformed our tax code and dramatically increased our competitiveness within a few short years,” Reynolds said. “At the same time, conservative budgeting practices have kept us living within our means and allowed us to continue making historic investments in key priorities of Iowans.”

The latest changes to Iowa’s tax code are expected to reduce state revenues by more than $1 billion over the first three years, and more than $1.3 billion through fiscal year 2030.

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Reynolds said when added together all the tax cuts she has signed into law as governor will save Iowa taxpayers $24 billion over a decade.

More: Iowa’s income tax rate is dropping to 3.8%. See how that stacks up against other states

Individual income taxes made up 46.8% of Iowa’s revenues in fiscal year 2023, the most recent year for which complete data is available.

The new law will give Iowa the sixth-lowest income tax rate in the country among states that impose an income tax. Nine states have no income tax for individuals.

Democrats have criticized the flat tax, saying most of the benefits go to the wealthiest Iowans.

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There are also around half a million Iowans who do not receive any benefit because their income is low enough that they do not pay income taxes.

Instead, House Democrats this year proposed cutting the state’s sales tax by 1 cent, which they say would disproportionately benefit lower-income Iowans.

“As opposed to the legislation we’re considering, which will be a tax cut for about two-thirds of Iowans, this will be a tax cut for 100% of Iowans,” Rep. Sami Scheetz, D-Cedar Rapids, said April 19 during debate in the Iowa House. “And as so many people in this state know, the sales tax is the most regressive form of taxation. It hits the people in the state who need help the most, the hardest.”

More: What’s in Iowa’s $8.9 billion state budget for the coming year? We break it down:

Law taps Taxpayer Relief Fund to make up shortfall if state revenues fall below spending

If state revenues drop below state spending during a fiscal year, the law says 50% of the costs will be covered using the Taxpayer Relief Fund. The other half would come from the state’s ending balance.

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That part of the law will be repealed on July 1, 2029.

The LSA analysis of the legislation says state revenues are not estimated to fall below the state’s spending levels through fiscal year 2029, meaning the relief fund would not need to be tapped.

The state ended the previous fiscal year with $2.74 billion in the Taxpayer Relief Fund. The amount is expected to rise to about $3.6 billion in July, when the fiscal year ends.

More: All-night marathon caps Iowa Legislature’s 2024 session. What’s changing: AEAs, your taxes

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What else does the tax law do?

The law also allows county boards of supervisors to eliminate their county compensation boards, which review salaries for elected officials and recommend increases.

And it makes changes to a property tax law last year that limits how much city and property tax revenue can grow. The new law tweaks how much a community’s assessed property value can grow before the government must use a portion of its excess revenue to lower property taxes.

The legislation also repeals an 1848 law requiring Lee County, the only county in Iowa with two courthouses, to maintain courthouses in both Fort Madison and Keokuk.

Reynolds signs law authorizing tax credits for large projects

Reynolds on Wednesday also signed Senate File 574, which creates a new tax credit program for large manufacturing and research projects that cost at least $1 billion.

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The new program, called the Major Economic Growth Attraction Program, applies to businesses “primarily engaged in advanced manufacturing, biosciences or research and development.” Data centers and retail businesses are not eligible for the tax credit.

Companies seeking the tax credit must demonstrate that their project will create jobs that pay benefits and meet a certain wage threshold.

The program allows the Iowa Economic Development Authority to authorize a tax credit for up to 5% of the cost of the businesses’ investment in the project. Companies cannot claim the credit until the project is in service and at least half of the jobs specified in the company’s contract have been created.

The tax credit can offset taxes paid by the company, and will be spread out over five years.

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More: Kim Reynolds signs Iowa farmland law regulating foreign ownership. Here’s what it does:

The law also authorizes businesses to claim a withholding tax credit of up to 3% of gross wages paid to employees on the qualifying project.

And businesses can qualify for a sales tax refund on taxes paid on electricity, water, gas and sewer utilities, property or services performed by subcontractors. The Department of Revenue will pay the refund to the business over five years.

Reynolds signed a law in April strengthening disclosure requirements for foreign ownerships of Iowa farmland and stepping up penalties for owners that fail to comply.

Senate File 574 allows the tax credits to go to a foreign business as long as the business qualifies for the program and can establish that it is not associated with a foreign adversary and is not actively engaged in farming.

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Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.





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Funeral services announced for fallen Iowa National Guard members

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Funeral services announced for fallen Iowa National Guard members


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Funeral arrangements have been announced for the two Iowa National Guard members killed earlier this month while on duty in Syria.

Staff Sgts. William Nathaniel “Nate” Howard, Edgar Brian Torres-Tovar and a civilian interpreter, Ayad Mansoor Sakat, of Michigan, were killed Dec. 13 by an attacker who targeted a convoy of American and Syrian forces before being shot dead. The Associated Press reported the gunman stormed a meeting between U.S. and Syrian security officials in Palmyra, Syria, and opened fire after clashing with Syrian guards.

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Their bodies arrived back in Iowa at 1 p.m. Dec. 24 in a private ceremony. Blue Star Mothers of America – Iowa Chapter asked supporters to line Fleur Drive from the Des Moines International Airport to Interstate 235 to welcome the soldiers home.

The soldiers’ funerals are open to the public.

When is Sgt. Nate Howard’s funeral?

Visitation and funeral services for Howard, 29, of Marshalltown, will be Saturday, Dec. 27 at the Marshalltown High School Roundhouse, 1602 S. Second Ave., with visitation beginning at 9 a.m.

Further details on funeral services is available on the Mitchell Family Funeral Home website.

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After arriving in Des Moines on Wednesday, a procession carrying Howard’s body will go through Des Moines on Fleur Drive to Interstate 235 and north to Interstate 35 to Ames. From there, the procession will head east on U.S. Highway 30 to Marshalltown then north on Center Street/Highway 14 to Iowa Avenue and on to the funeral home.

The procession will be led by the Des Moines Police Department, Iowa State Highway Patrol, Marshall County Sheriff’s Department, Meskwaki police and the Tama Police Department.

Howard is survived by his wife, Arianna Howard; his father, Brian and wife, Andrea; his mother, Misty Bunn and husband, Jeff; his brother, SSgt James Roelsgard; stepbrothers, Josh Bunn and wife, Modestie, and Travis Bunn; as well as his grandparents: William Eugene and Pat Neville, Vicki Brindle, and Martin and Ruth Roelsgard.

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When is Sgt. Edgar Torres-Tovar’s funeral?

Visitation for Torres-Tovar, 25, of Des Moines will be Sunday, Dec. 28 with funeral services and burial on Monday, Dec. 29. Final arrangements will be announced by Hamilton’s Southtown Funeral Home.

Torres-Tovar is survived by his parents, Hugo Torres and Isabel Tovar; brothers, Samuel Torres and Daniel Torres; sister, Krystal Torres and her children, Castiel and Christopher; paternal grandparents, Jose Torres and Rita Garcia; girlfriend, Yareli Duran; and numerous aunts, uncles and cousins.

Kevin Baskins covers jobs and the economy for the Des Moines Register. Reach him at kbaskins@registermedia.com.



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Iowa State football running back Carson Hansen to leave Cyclones

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Iowa State football running back Carson Hansen to leave Cyclones


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Iowa State football running back Carson Hansen announced on Dec. 23 that he “will be pursuing new opportunities with my last year of eligibility.”

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Hansen is the latest Cyclones star to indicate that he will transfer to another school in the wake of coach Matt Campbell’s departure to Penn State. Quarterback Rocco Becht and cornerbacks Jeremiah Cooper and Jontez Williams are among the other Iowa State standouts leaving Ames.

Hansen, a native of Lakeville, Minn., rushed for 952 yards on 188 carries during his junior season with the Cyclones. In three years with Iowa State, he compiled 1,771 yards and 19 touchdowns on the ground.

Hansen was the Cyclones’ leading rusher in 2024 and 2025.

“My three years here at Iowa State have been a life changing experience because of the people who make up Ames …” Hansen wrote on Twitter/X. “Thank you to the fans that shook Jack Trice every Saturday and for your belief in this football team.”

Campbell announced on Dec. 5 that he was leaving Iowa State after 10 years as the Cyclones’ head coach. He was quickly succeeded by Washington State’s Jimmy Rogers, who has a big job in front of him to replace the exodus of talent transferring out of Ames.

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Iowa Supreme Court overturns doctor’s child sex abuse conviction

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Iowa Supreme Court overturns doctor’s child sex abuse conviction


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  • The Iowa Supreme Court overturned the sexual abuse conviction of a West Des Moines doctor.
  • The court ruled that allowing the child victim to testify via one-way video violated the Iowa Constitution.
  • This decision is one of several that has set Iowa apart from other states on the issue of remote testimony.

The Iowa Supreme Court has overturned the conviction of a West Des Moines doctor found guilty of sexually abusing a child, ruling that allowing the victim to testify via one-way video violated the Iowa Constitution.

The court on Tuesday, Dec. 23, reversed the conviction of Lynn Melvin Lindaman, a longtime central Iowa surgeon who practiced at the Lindaman Orthopaedics clinic in West Des Moines before he was charged in 2023 with second-degree sexual abuse. The case was remanded for a new trial.

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The decision is the latest in a string of rulings that have set Iowa apart as the only state in the country whose highest court has barred one-way video testimony in criminal trials, even in cases involving child victims. 

Those decisions already have begun reshaping prosecutions across the state and have prompted lawmakers to launch the process of amending the Iowa Constitution. The change would ultimately require voter approval.

Lindaman, now 75, was convicted after a jury trial in Polk County. Prosecutors alleged that on June 26, 2023, he committed a sex act in Ankeny against a child under the age of 10. A second count of sexual abuse was dismissed prior to trial. He was sentenced to 50 years in prison, with a mandatory minimum of 42½ years because of a prior sexual predatory offense in 1976. He also faced a separate and now-dismissed civil lawsuit from an Iowa woman who claimed he sexually assaulted her in 1975.

The Iowa Offender Search still lists Lindaman as in custody of the Iowa Medical & Classification Center.

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On appeal, Lindaman argued that his constitutional rights were violated when the district court allowed the child to testify from another room via one-way closed-circuit television, rather than from the witness stand in the courtroom.

“Today’s decision from the Iowa Supreme Court is an important win for Lynn Lindaman and a major step toward a fair result,” said Lucas Taylor, the attorney representing Lindaman. “Although the court did not rule in our favor on every issue, this ruling recognizes serious errors in the prior proceedings and gives Mr. Lindaman the chance to present his defense to a new jury.”

In a 4-3 ruling issued earlier this year in State v. White, the Iowa Supreme Court agreed with that argument, holding that one-way video testimony violates the confrontation clause of the Iowa Constitution. Writing for the majority in that case, Justice David May said that “when the accused and the witness are prevented from seeing each other, there is no face-to-face confrontation, and the Iowa Constitution is not satisfied.”

The ruling came despite U.S. Supreme Court precedent allowing such testimony and laws in many other states permitting it. Under the Iowa statute the court overturned, judges had been allowed to authorize remote testimony by minors, or witnesses with mental illnesses or disabilities, if a judge found that “trauma caused by testifying in the physical presence of the defendant … would impair the minor’s ability to communicate.”

The White decision arose from an Osceola County case, but its effects have since spread and courts across Iowa have begun hearing challenges from defendants convicted in cases where one-way video testimony was used.

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Following the ruling, Lynn Hicks, a spokesman for the Polk County Attorney’s Office, said at least five Polk County defendants convicted under similar circumstances could be entitled to new trials.

One of those defendants, Michael Dunbar, already has received a new trial. Dunbar was resentenced after the victim testified in person from the witness stand, and the court again imposed a life sentence.

Dissent fuels push to amend Iowa Constitution

The State v. White ruling has drawn sharp criticism from prosecutors and state leaders, including Iowa Attorney General Brenna Bird, who has argued the decision unnecessarily traumatizes child victims. 

Bird has proposed a constitutional amendment to allow children to testify remotely in certain cases. The measure has passed both chambers of the Legislature once and must pass again before going to voters in a statewide referendum.

“Children shouldn’t be forced to testify at arm’s length from their abusers, and many kids can’t. This opinion shows how important it is to restore protections for a child victim to testify remotely,” Bird said in a Tuesday statement to the Des Moines Register. “Our office will continue to fight for a constitutional amendment to ensure kids are protected and abusers are brought to justice. We are grateful our effort has received overwhelming bipartisan support in the Iowa Legislature.”

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Justice Thomas D. Waterman, writing in a dissent in the opinion issued Tuesday, rejected the majority’s historical interpretation of the confrontation clause.

“Thunder comes during rainstorms; it does not follow that thunder requires rain. That video testimony was not used in 1871 tells us more about technology than it does about constitutional interpretation,” Waterman wrote.

He also said there is “no historical evidence that the framers of the Iowa Constitution intended a different meaning for confrontation rights than the Sixth Amendment,” and warned that the majority was reading requirements into Iowa’s Constitution that do not exist in its text.

Nick El Hajj is a reporter at the Register. He can be reached at nelhajj@gannett.com. Follow him on X at @nick_el_hajj.

This story was updated to add new information and to correct an inaccuracy.

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