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IA HF2525
Bill
Status
2/16/2026
Primary Sponsor
Derek Wulf
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AI Summary
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Creates a state income tax deduction for veterinarians participating in Iowa's rural veterinarian loan repayment program, allowing them to exclude loan repayment income up to $15,000 per year and $60,000 total over all tax years.
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Allows veterinarians practicing in Iowa to deduct the full amount of interest paid on qualified education loans for veterinary school attendance, beyond the federal $2,500 limit that phases out at higher income levels.
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Prohibits claiming both deductions in the same tax year—veterinarians receiving rural loan repayment program benefits cannot also claim the student loan interest deduction that year.
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Requires the Iowa Department of Revenue to adopt rules establishing the minimum number of days of veterinary practice in Iowa needed to qualify for the student loan interest deduction.
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Applies retroactively to tax years beginning on or after January 1, 2026.
Legislative Description
A bill for an act creating tax deductions against the individual income tax for veterinarians by providing a deduction for income resulting from rural veterinarian loan repayments and by allowing a deduction for the amount of interest paid on student loans for attendance at a veterinary school, and including retroactive applicability provisions.
Last Action
Introduced, referred to Ways and Means. H.J. 303.
2/16/2026