A bill for an act relating to property tax exemptions by changing the homestead tax exemption to a credit for owners attaining sixty-five years of age and increasing the military service tax exemption, and including effective date and retroactive applicability provisions.

This Iowa bill (SF 29) changes property tax benefits for specific groups. It replaces the existing homestead exemption for homeowners aged 65+ with a credit equal to $6,500 in actual property taxes paid, available to those with household incomes under 250% of the federal poverty level. It also increases military veterans' property tax exemption to a credit equivalent to $4,000 (based on actual tax rates), applying to honorably discharged veterans. Both changes take effect retroactively for assessment years beginning January 1, 2025. The bill directly affects elderly homeowners and veterans who meet income or service criteria.