A bill for an act relating to local and state government finances by modifying provisions relating to homestead property tax credits, providing a residential property tax rebate, modifying provisions relating to retirement systems, making appropriations, and including applicability provisions.

HF 2223 creates a new residential property tax rebate program for Iowa homeowners, funded from the taxpayer relief fund, applicable to property taxes due in fiscal years 2026-2027. It modifies existing homestead tax credit rules to expand eligibility for elderly and disabled residents (ages 65+ with income under 250% of federal poverty level) and adds a new credit calculation method for homes where property value didn’t increase due to improvements. The bill also adjusts how homestead credits are calculated, covering up to $14,550 of a home’s value, and sets the effective date for most changes as July 1, 2027. These provisions directly affect Iowa homeowners, particularly seniors and low-income residents, by providing potential tax relief through modified credits and a new rebate.