This bill establishes a new property tax assessment limitation specifically for commercial properties primarily used as licensed child care facilities. It allows the portion of a commercial property dedicated to child care to be assessed for tax purposes at the same rate as residential property, rather than the standard commercial rate. To qualify, facility owners must apply to their local assessor by July 1st of the assessment year, providing proof of their child care license and property details. This assessment limitation, effective for valuations beginning January 1, 2025, is also factored into state appropriations that help compensate local governments for certain assessment limitations.
HF 1020 modifies the child and dependent care tax credit available to individual income taxpayers in Iowa. The bill revises the structure of the credit by reducing the number of income thresholds from seven to four. It removes the previous maximum income threshold of $90,000, making all taxpayers eligible, with those earning $25,000 or more now able to claim 50% of the federal credit. These changes apply retroactively to tax years beginning on or after January 1, 2025.
HF 988 establishes catastrophic savings accounts for Iowa residents who own homes, effective January 1, 2026. This bill allows account holders to deduct contributions to these accounts from their state income tax, with lifetime limits tied to their homeowner's insurance premiums or the home's assessed value for self-insured individuals. Interest earned on these accounts is also tax-deductible. Funds can be withdrawn tax-free to pay deductibles for homeowner's insurance related to defined catastrophic events like floods or windstorms. However, withdrawals for non-qualified expenses are subject to state income tax and a 2.5% penalty.
HF 1021 proposes to exempt the sale of dietary supplements from sales tax in Iowa. This bill amends existing law to include dietary supplements, such as vitamins and minerals, within the category of "food and food ingredients" that are not subject to sales tax. As a result, consumers purchasing these products would no longer pay sales tax. The exemption would also apply to the state's use tax.
House File 1027 addresses radon by establishing new requirements for residential construction and offering tax incentives for mitigation systems. It mandates that new single-family and two-family homes built after the requirement's adoption must include passive methods for radon mitigation. The bill also creates a non-refundable income tax credit, up to $1,000, for individuals and corporations to help cover the cost of purchasing and installing a radon mitigation system. This tax credit applies retroactively to systems installed for tax years beginning on or after January 1, 2025.
HF 1000 establishes a veterans service organization grant program and fund under the Department of Veterans Affairs. This program provides matching funds to eligible veterans service organizations to help them employ staff. These staff members are specifically tasked with assisting veterans in filing claims. To receive a grant, organizations must demonstrate they have budgeted their own funds, and the bill initially appropriates $250,000 to the fund for the fiscal year starting July 1, 2025.
HF 872 proposes to amend the criteria for an enterprise to qualify as a "targeted small business" in Iowa. The bill directly affects small businesses that are majority-owned and operated by women, minority persons, service-disabled veterans, or persons with a disability. It increases the maximum annual gross income threshold for these businesses to qualify, raising it from less than $4 million to less than $10 million, averaged over the three preceding fiscal years. This change would allow more businesses to be recognized under the "targeted small business" designation.
HF 315 modifies the process for budget adjustments available to Iowa school districts impacted by natural disasters. Currently, school districts can receive a budget adjustment based on the difference between their current and 101% of their previous year's regular program district cost. This bill introduces an additional year of budget adjustment for districts that have already received an adjustment and were affected by a federally declared major disaster or state disaster emergency in the base year or the year prior. This additional adjustment would be equal to the amount of the district's budget adjustment from the base year.
This bill establishes rules for state income tax withholding on winnings from sports wagering in Iowa, directly affecting individuals who receive such winnings. It clarifies that all winnings from sports wagering are considered Iowa earned income and are subject to both state and federal income tax laws. The bill specifically mandates that state income tax be withheld from sports wagering winnings whenever federal income tax withholding is also required for those same winnings under federal tax law. These provisions are scheduled to take effect on January 1, 2026.
This bill modifies the types of costs that counties can pay for using their local emergency medical services (EMS) trust funds. It expands the eligible expenditures to specifically include the salaries and wages of emergency medical care providers who deliver EMS. This change would allow counties that have established these voter-approved funds to use them to cover personnel costs for their EMS staff, directly affecting both the counties and their emergency medical care providers.
