A bill for an act providing a tax credit for car registration fees paid by a disabled veteran available against the individual income tax, and including retroactive applicability provisions.

SF 2285 creates a tax credit for Iowa disabled veterans with a 100% service-connected disability rating (verified by the U.S. Department of Veterans Affairs). It allows these veterans to claim a credit against their individual income tax equal to their annual car registration fee (capped at $100), which is refundable if it exceeds their tax liability. Veterans can choose to receive the refund directly or apply the excess to their next year’s tax bill. The credit applies retroactively to tax years beginning January 1, 2026, and is administered by the Iowa Department of Revenue. This bill directly affects eligible disabled veterans who pay car registration fees under Iowa law.