Budget & Taxes (Tax Incentives)

in committee · Iowa · House Mar 11, 2025

HSB 274: A bill for an act relating to tax credits awarded by the economic development authority for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.

HSB 274 creates the "Iowa Rural Development Tax Credit Program," allowing tax credits for cash investments in certified rural business growth funds. These funds must invest in qualified rural businesses (under 250 employees, not in Iowa's 12 most populous counties) and must demonstrate a positive state revenue impact exceeding the tax credits issued. Investors receive credits based on eligible capital contributions - cash investments in equity or specific debt instruments - while funds must provide revenue impact studies and job creation/retention metrics. The program requires certification by Iowa's economic development authority, with applications due starting in 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for rural business investments, providing fiscal relief to investors while requiring positive revenue impact, aligning with tax relief and fiscal responsibility indicators.95% confidence

Sub-Topics Revenue Tax Incentives

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in committee · Iowa · House Mar 11, 2025

HF 419: A bill for an act exempting from the state sales and use tax the sales price of lodging supplies sold to a lodging provider.

HF 419 exempts from Iowa's state sales and use tax the cost of specific items purchased by hotels, motels, and similar lodging providers for direct guest use. The bill covers supplies like toiletries, towels, cleaning products, bottled water, and in-room amenities (e.g., coffee cups, TV service) when these items are actually consumed or used by the guest. This exemption applies only to supplies sold to the lodging provider for guest consumption, not for general business operations. The tax exemption also extends to use tax under Iowa law, as specified in the bill's explanation. The bill defines "lodging provider" as a business offering temporary lodging and "lodging supplies" as listed items used directly by guests.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts lodging supplies from sales tax, reducing state tax revenue. Directly weakens tax base by creating a new tax exemption.85% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Iowa · House Mar 12, 2025

HSB 271: A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.

This bill creates a temporary partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) to eligible homeowners in areas affected by declared disasters. It directly affects HUD-sold homes purchased by residents receiving Iowa's homestead tax credit, located in areas where the president or governor declared a major disaster or emergency. The exemption provides a phased reduction in property taxes over four years: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth, after which the full tax applies. This policy change applies only to properties sold specifically to provide housing following a disaster.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary property tax exemption for disaster-area homeowners with homestead credit, reducing tax burden for eligible residents. Directly advances tax relief policy.90% confidence ✓ HousingSupports HousingProvides temporary property tax exemption for HUD-sold homes in disaster areas, reducing homeownership costs for eligible residents. This directly advances affordable housing by lowering financial barriers for affected homeowners.90% confidence

Sub-Topics Property Tax Tax Incentives Property Development Property Taxes

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in committee · Iowa · House Mar 12, 2025

HF 329: A bill for an act relating to the distribution of water exempt from taxation and the use of tax exemption certificates, and providing civil penalties.

HF 329 requires water utilities in Iowa to accept and retain valid exemption certificates that exempt certain water use from taxation, rather than forcing customers to seek refunds from the state. It directly affects water utilities and customers who qualify for tax exemptions on their water use. The key provision imposes civil penalties on utilities that refuse valid certificates - equal to the tax amount plus interest - which must be paid to the state general fund. The bill defines "exemption certificate" and "water utility" and mandates the Department of Revenue to adopt implementing rules. This law streamlines tax exemption access and ensures utilities comply with existing tax exemption rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnsures tax exemption compliance, directing penalties to state general fund, strengthening fiscal management and revenue collection for budget purposes.92% confidence

Sub-Topics Tax Incentives

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in committee · Iowa · House Mar 18, 2025

HSB 307: A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.

This Iowa bill (HSB 307) changes property tax rules for development lots. It ensures properties acquired for development after January 1, 2020, maintain their prior tax classification until they are improved with permanent construction, sold, or five years pass since the subdivision plat was recorded - whichever happens first. The bill defines "development" broadly to include zoning changes, clearing land, installing utilities, or construction preparation. It applies retroactively to tax assessments starting January 1, 2025, but does not require refunds for taxes paid before that date. This primarily affects developers, property assessors, and local governments managing development properties.

Topics ✗ Budget & TaxesOpposes Budget & TaxesMaintains lower tax classifications for development properties, providing a tax break that reduces potential revenue, weakening tax system.90% confidence ✓ HousingSupports HousingMaintains lower property taxes during development phase, incentivizing housing construction without explicit affordability measures.85% confidence

Sub-Topics Property Tax Tax Incentives Property Development Property Taxes Zoning

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in committee · Iowa · Senate Mar 19, 2025

SF 17: A bill for an act modifying provisions governing the taxation of forest reservations and fruit-tree reservations, and including effective date and retroactive applicability provisions.

This bill modifies Iowa's tax exemption rules for forest and fruit-tree reservations. It requires landowners to maintain a homestead tax credit (under Chapter 425) annually to keep the exemption, which was not previously required. If owners lose the homestead credit or fail to maintain the reservation (e.g., for economic gain), they face recapture tax based on past exempted taxes, with limited exceptions for long-term owners. The changes apply retroactively to all exemptions for assessment years starting January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires annual homestead credit maintenance to retain tax exemptions, imposing recapture tax for noncompliance - closes loophole and ensures fiscal accountability.90% confidence

Sub-Topics Tax Incentives

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passed · Iowa · House Apr 24, 2025

HF 996: A bill for an act providing a sales tax exemption for the furnishing of parking facilities services.

HF 996 proposes to eliminate the state sales tax on services provided by parking facilities. This bill directly affects individuals and businesses who pay for parking, as they would no longer be charged sales tax on these transactions. The legislation achieves this by striking a specific paragraph in the Iowa Code related to sales tax provisions for parking facilities services. This change would reduce the overall cost of parking for consumers.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates sales tax on parking services, providing direct tax relief to consumers and reducing government revenue from this source.90% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · Iowa · House May 13, 2025

HF 1013: A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary property tax exemption for qualifying disaster-area homebuyers, reducing tax burden on residents in affected areas.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Iowa · House Feb 5, 2025

HF 75: A bill for an act authorizing the abatement of property taxes owed on property owned by the surviving spouse of an emergency services member killed in the line of duty, and including effective date and retroactive applicability provisions.

HF 75 provides property tax relief for surviving spouses of emergency services members (including firefighters, police officers, correctional officers, and emergency medical providers) who died while on duty. To qualify, spouses must submit a sworn petition to their county board of supervisors with proof of line-of-duty death and a certification from the deceased’s agency, while meeting specific eligibility criteria. The bill disqualifies cases involving self-inflicted death, gross negligence, intoxication, or the spouse’s substantial contribution to the death. It applies retroactively to tax years beginning January 1, 2025, and allows tax abatement for the filing year and future years if eligibility continues.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax abatement for surviving spouses of line-of-duty-deceased emergency personnel, reducing their tax burden per bill's tax relief intent.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Iowa · Senate Jan 20, 2026

SF 609: A bill for an act authorizing the abatement of property taxes owed on property owned by the surviving spouse of an emergency services member killed in the line of duty, and including effective date and retroactive applicability provisions.

This bill allows the surviving spouse of an emergency services member (including firefighters, police officers, correctional officers, emergency medical providers, and volunteers) killed in the line of duty to request a property tax waiver for their primary residence. To qualify, the spouse must submit a sworn petition with proof of the member’s death being directly caused by a duty-related injury and certification from the member’s agency. The local board of supervisors reviews petitions, and if approved, the tax abatement applies to all eligible property taxes and special assessments for the filing year and potentially future years, subject to ongoing eligibility. The bill also applies retroactively to tax years starting January 1, 2025, and excludes cases involving suicide, intoxication, gross negligence, or the spouse’s contributing actions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax abatement for surviving spouses of fallen emergency workers, directly offering tax relief aligning with support indicators for vulnerable groups.95% confidence

Sub-Topics Tax Incentives

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