Budget & Taxes

SF 647 is a budget bill that allocates state funding to the Department for the Blind, the Department of Education, and the State Board of Regents. It provides financial resources for their day-to-day operations and program delivery. The bill includes specific conditions that determine when certain funding becomes effective. This legislation directly affects these state agencies and the educational services they provide to residents.

This bill creates two new funds managed by Iowa's Department of Insurance: the Financial Literacy and Investor Education Fund and the Financial Exploitation Prevention Fund. It directs $10 from each $40 insurance agent registration fee (paid by agents) into these funds, with additional funding sources including civil penalties and transfers from the commerce revolving fund. The funds will support public education on financial topics, prevent financial exploitation of vulnerable adults, and assist victims of such exploitation. The bill specifies how these funds can be used, including collaborative programs with community organizations, and includes confidentiality rules for exploitation investigation records.

This bill expands Iowa's homestead tax credit for disabled veterans by creating phased-in eligibility based on service-connected disability ratings. It allows veterans (and eligible National Guard members) with disability ratings of 70%+ to claim a credit equal to their disability percentage (for 2026), 40%+ (for 2027), or 10%+ (for 2028 onward), whichever is greater than the standard homestead credit amount. The credit applies to property taxes due for fiscal years beginning July 1, 2026, and retroactively covers claims filed since January 1, 2025. It specifically excludes veterans who already qualify under existing 100% disability criteria from claiming this expanded credit.