HF 2665 requires new single-family and two-family residential construction (after adoption) to include passive radon mitigation systems in the building code. It creates a tax credit of up to $1,000 for homeowners and renters to cover the cost of installing radon mitigation systems, applying retroactively to tax years beginning January 1, 2025. For rental properties, tenants can test for radon (with results ≥4 picocuries per liter triggering landlord action), and landlords must install mitigation systems within 90 days or face lease termination with rent refunds. The bill also appropriates $100,000 for free radon test kits available to homeowners and renters through the state health department.
This bill lowers the statewide school district foundation property tax rate from $5.44 to $4.44 per $1,000 of assessed property value, effective July 1, 2026. It also repeals Iowa’s education savings account program, which allowed families to use public funds for private school tuition. The tax rate change directly affects all Iowa school districts and adjusts tax credit calculations for agricultural landowners under existing family farm tax credit programs. The bill’s provisions apply to school budgets beginning July 1, 2026, with phased increases for reorganized school districts.
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.
SF 2301 creates Iowa's "EDGE Program" (Headquarters Expansion and Development for Growth and Employment), which offers tax incentives to eligible businesses that retain or establish corporate headquarters in the state. It directly affects businesses in advanced manufacturing, bioscience, insurance/finance, technology, or R&D - requiring them to generate over 50% of revenue outside Iowa, offer comprehensive employee benefits, and demonstrate state-level competition for their headquarters. Key mechanisms include tax credits tied to creating new corporate jobs (e.g., strategic roles at headquarters) or retaining existing ones at risk, with incentives calculated based on qualifying wage thresholds in the local area. The bill also repeals older programs like the New Jobs Tax Credit and Industrial New Jobs Training Program while establishing new funds for electric transmission planning.
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.
This bill creates the "EDGE Program" to incentivize businesses with global presence to establish or retain corporate headquarters in Iowa by offering tax credits for creating or retaining high-wage jobs. To qualify, businesses must generate over 51% of revenue outside Iowa, operate in qualifying sectors (like tech or bioscience), and provide comprehensive employee benefits. The bill repeals several existing programs, including the New Jobs Tax Credit and Major Economic Growth Attraction Program, while establishing a new fund for electric transmission system planning. It also creates a separate "Business Incentives for Growth Program Training Fund" to support workforce development.
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 2152 repeals Iowa's school tuition organization (STO) tax credit program, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to private schools. Starting July 1, 2026, new contributions to STOs will no longer qualify for this credit, and the annual credit limit for 2026 is reduced to $10 million (down from $20 million). The program is fully repealed effective July 1, 2032, ending all future use of the credit. This directly affects Iowa taxpayers and businesses that previously claimed this credit against their state income tax bills.
