HF 171 removes a $7 million annual cap on real estate transfer tax funds allocated to Iowa's Housing Trust Fund (HTF). Currently, 30% of these tax receipts must be sent to the HTF, but any amount exceeding $7 million annually is redirected to the general fund. This bill eliminates that $7 million limit, allowing all 30% of eligible tax receipts to flow directly into the HTF each year. The HTF supports affordable housing development and preservation for low-income Iowans and the Iowa Mortgage Help Initiative.
HF 60 would allow Iowa school districts impacted by federally or state-declared natural disasters to receive an additional year of budget adjustment funding. Specifically, if a disaster occurred in the base year or the year before, districts would get a second adjustment equal to the amount they received in their base year. This applies to districts already eligible for standard budget adjustments under existing law. The bill directly affects school districts in Iowa that experience qualifying natural disasters with official disaster declarations. (Note: The bill was withdrawn on March 14, 2025, and did not become law.)
House File 622 establishes the "Catastrophic Savings Account Act" in Iowa, allowing residents to create special interest-bearing savings accounts beginning January 1, 2026. The bill permits account holders to deduct contributions and interest earned from their state individual income tax, up to specific lifetime limits based on their homeowner's insurance premium or home value. Funds from these accounts can be used for "qualified catastrophic expenses," which include deductibles for homeowner's insurance policies covering events like floods or windstorms, or declared natural disasters. Withdrawals for non-qualified expenses are added back to taxable income and may incur a penalty.
HF 211 creates a new tax credit for individuals and corporations that install radon mitigation systems in buildings. The credit is equal to the cost of purchasing and installing the system, up to a maximum of $1,000, and can be applied against state individual and corporate income taxes. Any portion of the credit that exceeds a taxpayer's liability for the year is not refundable but can be carried over to the next tax year. This bill applies retroactively to tax years beginning on or after January 1, 2025.
SF 635 authorizes property tax abatements for eligible volunteer emergency services providers on their homesteads. To qualify, volunteers must have served for at least five years, earn less than $5,000 annually from their service, and be in good standing with their agency. They can petition their county board of supervisors, who will review the request and notify local taxing authorities, allowing them to object to the abatement. If approved, the abatement reduces property taxes and special assessments by 10%, up to $500 per year. Volunteers with ten or more years of service may receive this abatement for the remainder of their lives, provided their homestead remains in the service area.
SSB 1231 is an appropriations bill that allocates state general funds to various components of the education system for the fiscal year 2025-2026. It provides funding for the operations of the Department for the Blind, the Department of Education, and the State Board of Regents. Key provisions include appropriations for general administration, career and technical education, school food services, early childhood programs such as Birth to Age Three Services and Early Head Start, and statewide student assessment. The bill also directs the Department of Education to submit a report on its antibullying programming.
This bill appropriates over $220 million from the state's general fund to the judicial branch for the fiscal year beginning July 1, 2025. The funds are allocated to cover salaries for judges and court staff, jury and witness fees, and reimbursements for state public defender attorney fees. It also designates specific amounts for court-ordered services for juveniles, including school-based supervision and delinquent graduated sanctions programs. Additionally, the bill includes funding for the creation of a business court and establishes requirements for financial reporting and the operation of clerk of district court offices.
SF 170 amends a prior law related to the historic preservation tax credit for individuals and corporations. The bill extends the date for preserving existing rights for these tax credits from January 1, 2023, to July 1, 2023. This means that historic preservation tax credits issued or awarded before July 1, 2023, will not be subject to the reduced refundability changes enacted in 2022. Taxpayers holding these credits will retain their original rights to claim or redeem them, including any carryforward amounts.
SF 652 modifies Iowa's economic development programs and urban renewal laws, primarily focusing on housing initiatives. It broadens the definition of "economic development" to include workforce housing and allows urban renewal funds to be used for low and moderate-income family housing. The bill adjusts how certain property taxes, including some school district levies, are allocated in urban renewal areas. It also introduces limitations on the amount of tax revenue municipalities can retain from urban renewal areas over time and sets specific requirements for housing projects within these areas, including a minimum for low and moderate-income housing.
SSB 1240 appropriates funds from the sports wagering receipts fund for the fiscal year beginning July 1, 2025. It allocates $14 million to the Department of Education to supplement the compensation of non-salaried education support personnel in school districts. School districts must report staff information by July 1, 2025, to receive these funds, which will be distributed based on student enrollment. Additionally, the bill appropriates $8 million to the Department of Public Safety for its public safety equipment fund.
