HF 659 creates a state-administered Iowa Housing Tax Credit Program to support affordable housing development. It allows developers of qualifying low-income housing projects to claim tax credits against certain state taxes, with a $15 million annual cap (plus carryover from previous years). The bill also establishes neighborhood renovation grants and increases tax incentives for first-time homebuyers. These provisions directly affect housing developers, low-income residents, and homebuyers by providing financial tools to build and purchase housing in Iowa.
HF 682 requires Iowa state departments to recapture tax incentives (such as credits, exemptions, or rebates) from businesses that violate state or federal child labor laws (under Iowa Code chapter 92 or the Fair Labor Standards Act). It applies to businesses receiving state tax benefits and extends to their contractors, subcontractors, or third parties working at the business's facility. Beginning July 1, 2025, if a violation occurs, the business must notify the administering department within 30 days of the appeal period ending, and the state will reclaim the tax benefits using the same process as for unpaid taxes. This bill directly affects businesses receiving state tax incentives who breach child labor protections.
HSB 274 creates the "Iowa Rural Development Tax Credit Program," allowing tax credits for cash investments in certified rural business growth funds. These funds must invest in qualified rural businesses (under 250 employees, not in Iowa's 12 most populous counties) and must demonstrate a positive state revenue impact exceeding the tax credits issued. Investors receive credits based on eligible capital contributions - cash investments in equity or specific debt instruments - while funds must provide revenue impact studies and job creation/retention metrics. The program requires certification by Iowa's economic development authority, with applications due starting in 2026.
This bill creates a temporary partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) to eligible homeowners in areas affected by declared disasters. It directly affects HUD-sold homes purchased by residents receiving Iowa's homestead tax credit, located in areas where the president or governor declared a major disaster or emergency. The exemption provides a phased reduction in property taxes over four years: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth, after which the full tax applies. This policy change applies only to properties sold specifically to provide housing following a disaster.
HF 329 requires water utilities in Iowa to accept and retain valid exemption certificates that exempt certain water use from taxation, rather than forcing customers to seek refunds from the state. It directly affects water utilities and customers who qualify for tax exemptions on their water use. The key provision imposes civil penalties on utilities that refuse valid certificates - equal to the tax amount plus interest - which must be paid to the state general fund. The bill defines "exemption certificate" and "water utility" and mandates the Department of Revenue to adopt implementing rules. This law streamlines tax exemption access and ensures utilities comply with existing tax exemption rules.
This bill modifies Iowa's tax exemption rules for forest and fruit-tree reservations. It requires landowners to maintain a homestead tax credit (under Chapter 425) annually to keep the exemption, which was not previously required. If owners lose the homestead credit or fail to maintain the reservation (e.g., for economic gain), they face recapture tax based on past exempted taxes, with limited exceptions for long-term owners. The changes apply retroactively to all exemptions for assessment years starting January 1, 2025.
HF 996 proposes to eliminate the state sales tax on services provided by parking facilities. This bill directly affects individuals and businesses who pay for parking, as they would no longer be charged sales tax on these transactions. The legislation achieves this by striking a specific paragraph in the Iowa Code related to sales tax provisions for parking facilities services. This change would reduce the overall cost of parking for consumers.
HF 1013 establishes a temporary partial property tax exemption for certain residential properties. This bill directly affects individuals who purchase homes from the U.S. Department of Housing and Urban Development (HUD) in areas declared major disaster zones. To qualify, the property must be sold by HUD specifically to provide housing after a disaster, and the new owner must occupy it as their primary residence. The exemption applies for four assessment years, starting with the first full year after the sale, decreasing from 80% of the property's actual value in the first year to 20% in the fourth year.
HF 75 provides property tax relief for surviving spouses of emergency services members (including firefighters, police officers, correctional officers, and emergency medical providers) who died while on duty. To qualify, spouses must submit a sworn petition to their county board of supervisors with proof of line-of-duty death and a certification from the deceased’s agency, while meeting specific eligibility criteria. The bill disqualifies cases involving self-inflicted death, gross negligence, intoxication, or the spouse’s substantial contribution to the death. It applies retroactively to tax years beginning January 1, 2025, and allows tax abatement for the filing year and future years if eligibility continues.
This bill allows the surviving spouse of an emergency services member (including firefighters, police officers, correctional officers, emergency medical providers, and volunteers) killed in the line of duty to request a property tax waiver for their primary residence. To qualify, the spouse must submit a sworn petition with proof of the member’s death being directly caused by a duty-related injury and certification from the member’s agency. The local board of supervisors reviews petitions, and if approved, the tax abatement applies to all eligible property taxes and special assessments for the filing year and potentially future years, subject to ongoing eligibility. The bill also applies retroactively to tax years starting January 1, 2025, and excludes cases involving suicide, intoxication, gross negligence, or the spouse’s contributing actions.
