This bill extends Iowa's biodiesel blended fuel tax credit for retail dealers until January 1, 2033, instead of the previous 2028 expiration. It directly affects businesses selling biodiesel-blended fuel who claim this credit on their income taxes. The key provision ensures these dealers can claim the full credit for their entire tax year - even if their tax year doesn't end on December 31 - by aligning the credit calculation with the new 2033 repeal date. This change provides continued financial support for biodiesel retailers without altering the credit's structure.
SSB 3129 establishes a tax credit program in Iowa to support beginning farmers. It allows eligible current landowners (taxpayers) to receive a tax credit when they transfer agricultural assets - via lease or sale - to qualified beginning farmers through formal written agreements. The program requires agreements to last at least two years (with renewal limits), prohibits assignment of agreements, and caps total credits at $250,000 per taxpayer over 15 years. It directly affects Iowa landowners who transfer assets to new farmers and beginning farmers who meet eligibility criteria like prior farming experience and asset ownership limits. The Iowa Finance Authority and Department of Revenue will administer the program.
HF 2661 establishes four new Iowa economic development programs targeting the game industry. It creates an interactive digital entertainment tax credit (up to 30% of qualified spending, with a 5% bonus for "made in Iowa" projects), a game studio investment matching program offering forgivable loans matching private investments dollar-for-dollar (capped at $20 million annually), and a game industry fellowship program providing $150,000-$200,000 annual grants to relocate experienced professionals for two years. The programs require qualified developers to maintain physical presence and payroll in Iowa, with all tax credits and grants limited to a $20 million annual cap. These provisions directly affect Iowa-based game developers, studios, and experienced industry professionals seeking relocation.
SF 2279 creates a tax credit for Iowa taxpayers who donate to maternity group homes, allowing them to claim a 100% credit against several state taxes (including individual, corporate, and franchise taxes) for their donations. The credit directly affects donors and qualifying maternity group homes, which are defined as community-based residences providing housing, care, and support for pregnant or postpartum women with children. Key limits include a $3.5 million annual statewide cap on total credits and a $500,000 cap per organization, with applications approved on a first-come, first-served basis within six months of donation. The credit cannot be carried forward, transferred, or used to reduce taxable income, and excess credits are forfeited.
SF 2124 expands Iowa's disabled veteran homestead tax credit to include more veterans with lower disability ratings, phased in over time. It allows eligible veterans (with permanent service-connected disability ratings of 70%+ starting July 2027, 40%+ starting July 2028, and 10%+ starting July 2029) to claim a credit equal to the greater of the standard homestead credit or a percentage of their property tax matching their disability rating. The credit applies to property taxes due for fiscal years beginning July 1, 2027, and retroactively covers claims filed since January 1, 2026. This bill directly affects disabled veterans and National Guard members meeting specific service and disability criteria who previously did not qualify under the existing 100% disability threshold.
HF 2223 creates a new residential property tax rebate program for Iowa homeowners, funded from the taxpayer relief fund, applicable to property taxes due in fiscal years 2026-2027. It modifies existing homestead tax credit rules to expand eligibility for elderly and disabled residents (ages 65+ with income under 250% of federal poverty level) and adds a new credit calculation method for homes where property value didn’t increase due to improvements. The bill also adjusts how homestead credits are calculated, covering up to $14,550 of a home’s value, and sets the effective date for most changes as July 1, 2027. These provisions directly affect Iowa homeowners, particularly seniors and low-income residents, by providing potential tax relief through modified credits and a new rebate.
HF 2017 creates a new Iowa tax credit equal to 100% of the federal work opportunity tax credit (from IRS Section 51) for individual and corporate income taxes. It applies to tax years beginning January 1, 2026, and affects Iowa employers who hire individuals facing barriers to employment, as defined by the federal program. The credit reduces tax liability but is non-refundable; any unused portion can be carried forward to offset taxes in the following year. The bill includes retroactive application starting January 1, 2026.
HF 2078 creates an opportunity tax credit of $4,000 per eligible dependent for Iowa taxpayers whose children are not enrolled in public school or receiving an educational savings account (ESA) payment. It directly affects parents or guardians of dependents who meet specific criteria, such as having attended public school for at least one semester, being eligible for kindergarten, or previously receiving an ESA payment. The credit is refundable, can be claimed on tax returns or requested as an advance payment from a newly created state fund, and requires the Department of Revenue to verify enrollment status with the Department of Education. The bill applies retroactively to tax years beginning January 1, 2026, and mandates annual reports starting in 2028 detailing claims and potential fraud.
HF 2225 creates a tax credit for Iowa residents who paid nonresident tuition at state universities and later work in the state as health care professionals, teachers, licensed veterinarians, or professional engineers. The credit equals 100% of the difference between the nonresident and resident tuition rates they paid during their studies, available within three years of graduation while employed in Iowa. Unused credit can be carried forward for up to five years to offset future income tax, but it is not refundable and does not apply to nonresidents. The bill requires the Board of Regents to publish historical tuition rates online and applies retroactively to tax years starting January 1, 2026.
This bill modifies Iowa's property tax credit system for low-income elderly and disabled residents, ensuring timely annual payments for property taxes or rent reimbursements. It streamlines the removal of abandoned mobile homes on rural property by allowing landowners or mobile home park operators to remove "valueless homes" (defined as abandoned homes with no market value) without court orders, requiring only 10 days' written notice to the county treasurer. The bill also updates tax sale rules to prevent splits or consolidations of land parcels during redemption periods or with unpaid taxes. These changes directly affect rural property owners, mobile home park operators, and low-income homeowners/renters.
