House, Senate committees advance proposal lowering income tax • Iowa …

As lawmakers aim to end the 2024 legislative session, one major policy priority named by both Gov. Kim Reynolds and Republican legislative leaders had yet to reach floor debate: income tax cuts.

While members of the Republican trifecta all said they were committed to speeding up the 2022 individual income tax reductions, Reynolds and GOP lawmakers had advanced differing proposals on how to approach earlier in the session. But on Thursday, Republican legislators said they have reached a compromise — Senate File 2442 and its House companion, House File 2705.

These bills, passed through their respective chambers’ Ways and Means subcommittee and committee meetings Thursday, would lower Iowa’s individual income tax to a 3.8% flat tax rate beginning in 2025 — lower than the 3.9% flat income tax by 2026 that was approved in the 2022 legislation.