HF 1008 creates a legal framework for Iowa municipalities to establish "land redevelopment trusts" aimed at addressing blighted, abandoned, or dilapidated properties. These trusts, created by city ordinance or county resolution, can acquire, rehabilitate, and manage such properties to revitalize neighborhoods and boost tax revenue. The bill defines key terms like "blighted" (unsafe, deteriorated properties) and outlines that trusts must be governed by local boards composed of officials or employees, serving without pay. This enables communities to proactively restore non-productive properties into productive uses, such as affordable housing or commercial spaces, without mandating specific actions.
HF 1033 designates rural water districts, organized under specific state chapters, as exempt entities for sales and use tax purposes. This change allows these districts to apply for refunds on sales and use tax paid for building materials, supplies, equipment, and services from contractors under written agreements. The bill specifically makes construction services provided to these districts exempt from sales tax, which differs from existing law. It also removes a current, more limited sales tax exemption for building materials to prevent duplicate provisions.
HF 1034 creates a new individual income tax credit in Iowa for taxpayers who purchase firearm safety devices. The credit is equal to the sales price of the device, up to a maximum of $500. Eligible devices include those designed to prevent a firearm from being operated without deactivation, or a new, personal-use "qualified gun safe" made of steel or similar strong material. Any unused credit can be carried over to the following tax year, and the bill applies retroactively to purchases made on or after January 1, 2025.
HF 1026 updates the adoption tax credit available against individual income tax for taxpayers in Iowa. The bill increases the maximum credit for qualified adoption expenses from $5,000 to $20,000 per adoption. It also specifies that any credit amount exceeding a taxpayer's liability is refundable. This act takes effect upon enactment and applies retroactively to adoptions finalized on or after January 1, 2024, for tax years beginning on or after that date.
SF 297 sets new rules for contracts state agencies in Iowa must use when buying goods or services. It bans 19 specific contract terms that could unfairly burden the state, such as clauses requiring the state to cover a vendor’s legal costs, using foreign law, hiding payment terms, or forcing arbitration. The bill also requires all contracts to follow Iowa law and be litigated in Iowa courts. These rules apply to all state agency contracts signed or renewed after the bill takes effect, directly affecting how state agencies negotiate and manage vendor agreements.
HF 1013 establishes a temporary partial property tax exemption for certain residential properties. This bill directly affects individuals who purchase homes from the U.S. Department of Housing and Urban Development (HUD) in areas declared major disaster zones. To qualify, the property must be sold by HUD specifically to provide housing after a disaster, and the new owner must occupy it as their primary residence. The exemption applies for four assessment years, starting with the first full year after the sale, decreasing from 80% of the property's actual value in the first year to 20% in the fourth year.
SF 604 modifies how units of cigarettes and tobacco products are measured for state regulation and taxation purposes. This bill directly affects businesses involved in the sale of these products and the government agencies responsible for their oversight and tax collection. It changes the specific criteria or definitions used to determine the volume of sales for these products.
This bill modifies how criminal case fines collected within a county are distributed, reducing the percentages allocated to the state court administrator and county treasurer. It establishes a new "victim restitution fund" in the state treasury, which will receive 7% of these collected fines. The fund is dedicated to providing restitution for crime victims, covering "pecuniary damages" and restitution for the death of a victim, as defined by existing law. Monies in this fund will remain available for expenditure year-to-year and will not revert at the close of a fiscal year.
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.
