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IA HSB687

SB

Status

Introduced

2/5/2026

Primary Sponsor

Ways and Means

Click for details

Origin

House of Representatives

91st General Assembly

AI Summary

  • Licensed medical cannabidiol manufacturers and dispensaries in Iowa can deduct business expenses from individual and corporate income taxes, bypassing federal Internal Revenue Code Section 280E restrictions that currently prohibit such deductions.

  • Deductions only apply to entities licensed under Iowa Code chapter 124E operating within the scope of their license.

  • Expenses incurred in violation of Code section 124.401 (prohibited acts) or not otherwise authorized by law remain ineligible for deduction.

  • Provisions apply retroactively to tax years beginning on or after January 1, 2026.

Legislative Description

A bill for an act relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and including retroactive applicability provisions.

Last Action

Subcommittee recommends passage.

3/10/2026

Committee Referrals

Ways and Means2/5/2026

Full Bill Text

No bill text available