HF 565 establishes a partial property tax exemption for certain residential properties. This exemption applies to homes purchased from the U.S. Department of Housing and Urban Development (HUD) by owners who qualify for the homestead tax credit. To be eligible, the sale must be made to provide housing in an area declared a major disaster or disaster emergency. The exemption lasts for four assessment years, starting at 80% of the property's actual value in the first year and decreasing by 20% each subsequent year.
This bill updates Iowa's economic development programs, primarily affecting businesses and developers seeking tax credits for property redevelopment. It revises the brownfield, grayfield, and redevelopment tax credit processes by requiring applications to be reviewed by a council and board, setting a 30-month completion deadline for projects, and mandating audits by licensed accountants. The bill also repeals outdated sections of community attraction, tourism, and Vision Iowa programs while applying changes retroactively to past projects. Additionally, it modifies historic preservation tax credit rules to exclude single-family homes unless multiple units are created. These changes streamline application reviews and clarify eligibility for state-funded redevelopment incentives.
SSB 1209 expands an existing sales tax exemption for telecommunications companies. Currently, these companies are exempt from sales tax on central office or transmission equipment *primarily* used for providing telecommunications services. The bill removes the word "primarily" from the statute. This change means that all purchases of such equipment used in furnishing telecommunications services on a commercial basis will be exempt from sales tax. This affects various entities, including local exchange carriers, cable television operators, long distance companies, and commercial mobile radio service providers.
SSB 1106 amends Iowa's economic development programs, primarily streamlining tax credit administration and application processes. It modifies the brownfield/redevelopment tax credit program to require projects to complete within 30 months (down from 36), establish competitive scoring criteria for applications (including financial need and feasibility), and mandate audits by certified accountants for credit claims. The bill also updates the Vision Iowa and community tourism programs by adding review committees for applications, repealing outdated sections, and applying changes retroactively to existing projects. These changes affect developers, local governments, and tourism entities seeking state financial assistance under these specific programs.
HSB 305 updates Iowa's economic development programs overseen by the Iowa Economic Development Authority. It sets an aggregate tax credit limit of $170 million for certain programs, allowing for a 20% overage that counts against the next fiscal year's limit. The bill creates new programs, including those for business incentives, seed investors, film production, research and development, and sustainable aviation fuel. Simultaneously, it eliminates several existing tax credit programs, such as the High Quality Jobs program and various specific tax credits for employer child care and assistive devices. These changes directly affect businesses, investors, and the state's economic development initiatives.
HF 975 amends multiple economic development and community programs in Iowa, affecting local governments, businesses, and residents participating in initiatives like brownfield redevelopment, historic preservation, tourism marketing, and homelessness services. It modifies tax credit programs for brownfields, grayfields, and historic preservation, adjusts funding for tourism and community attraction, and updates the Iowa Reinvestment Act. The bill also clarifies applicability and retroactive provisions for these programs. Signed into law by the Governor on June 6, 2025, it updates existing frameworks rather than creating new programs.
HSB 126 expands Iowa's sales tax exemption to cover all purchases of central office or transmission equipment used by telecommunications companies in their commercial services, removing the prior requirement that such equipment be "primarily" used for telecom. This change directly affects local phone companies, cable operators, municipal utilities, cooperatives, and mobile service providers (like those under 47 C.F.R. §20.3) that sell telecom services. The key mechanism eliminates the word "primarily" from the exemption language, making all qualifying equipment purchases tax-free. The bill also extends this exemption to use tax, as specified in Iowa Code section 423.6.
This bill expands Iowa's sales tax exemption to cover all central office and transmission equipment purchased for telecommunications services, removing the previous requirement that such equipment be "primarily" used for those services. It directly affects telecom providers including local carriers, cable operators, municipal utilities, cooperatives, and companies offering commercial communication services. The key change simplifies the exemption by making all qualifying equipment purchases tax-free, rather than requiring a "primarily" use test. This applies to both sales tax (under Code section 423.3) and use tax (under section 423.5) for businesses operating in the telecommunications sector.
This bill exempts the sales price of parking facility services from state sales tax in Iowa. It directly affects businesses that operate parking facilities, such as garages, lots, or parking management services. The bill achieves this by amending the Iowa Code to remove an existing tax provision that previously applied to these services. The change simplifies the tax treatment for parking providers without altering other tax rules.
HSB 226 designates rural water districts, organized under specific state chapters, as exempt entities for sales and use tax purposes. This allows these districts to apply for refunds of sales and use tax paid on building materials, supplies, equipment, and services provided by contractors for written contracts. A key change is that construction services furnished to the water district also become exempt from sales tax. To avoid overlapping provisions, the bill removes a current sales tax exemption that applies only to building materials sold to rural water districts.
