A bill for an act relating to assistance animals in residential rental housing, including damage reimbursement, refundable income tax credits, and a landlord insurance risk pool, and providing penalties and effective date provisions.

SF 2354 (Iowa) establishes three options for landlords to seek reimbursement from tenants for damage caused by assistance, emotional support, service, or therapy animals in rental housing. Landlords may use the Department of Revenue’s tax setoff program, claim a refundable income tax credit, or join a state-run insurance risk pool (optional). The bill prohibits landlords from charging deposits for service animals but allows reasonable, refundable deposits for emotional support or therapy animals (used only for damage beyond normal wear and tear). It also penalizes intentional misrepresentation of an animal as an assistance or support animal with a simple misdemeanor charge. The bill takes effect July 1, 2027.