A bill for an act relating to the disabled veteran homestead tax credit and including effective date and retroactive applicability provisions.

SF 2124 expands Iowa's disabled veteran homestead tax credit to include more veterans with lower disability ratings, phased in over time. It allows eligible veterans (with permanent service-connected disability ratings of 70%+ starting July 2027, 40%+ starting July 2028, and 10%+ starting July 2029) to claim a credit equal to the greater of the standard homestead credit or a percentage of their property tax matching their disability rating. The credit applies to property taxes due for fiscal years beginning July 1, 2027, and retroactively covers claims filed since January 1, 2026. This bill directly affects disabled veterans and National Guard members meeting specific service and disability criteria who previously did not qualify under the existing 100% disability threshold.