The following is a list of several credits and exemptions available in Iowa:
HOMESTEAD TAX CREDIT
To qualify for the credit, the property owner must be a resident of Iowa and occupy the property on July 1 and for at least six months of every year. New applications for homestead tax credit are to be filed with the Assessor on or before July 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. This credit reduces the value on which taxes are calculated by a maximum of $4,850 (Refer to Code of Iowa, Chapter 425).
DISABLED VETERAN HOMESTEAD CREDIT
Veterans with 100% service-related disability status qualify for this credit. Veterans also qualify who have a permanent and total disability rating based on individual un-employability paid at the 100% disability rate. The veteran must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. A surviving spouse of a disabled veteran receiving DIC payments also qualifies. The surviving spouse as a beneficiary of the estate of a veteran who received the credit may continue to receive the credit as long as the spouse resides in the qualified homestead and does not remarry. Claim must be filed on or before July 1. A current Benefits Paid letter and DD214 must be included with your application (Refer to Code of Iowa, Chapter 425.15).
Application, Other Information, Questions
MILITARY SERVICE TAX EXEMPTION
Iowa residents who meet one of the following service requirements are eligible for the exemption:
- Honorable discharged veteran who served for a minimum aggregate of eighteen months.
- Honorable discharged veteran who served for fewer than eighteen months because of a service related injury.
- Honorable discharged former member of Reserve Forces or Iowa National Guard who served at least 20 years.
- Member of Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve.
- Honorable discharged former member of the Armed Forces if any portion of their term of enlistment would have occurred within the Korean Conflict but who opted to serve 5 years in the reserve forces as allowed by federal law.
- Honorably discharged veteran who served in an eligible service period (Iowa Code Chapter 35).
- WW 1 - April 6, 1917 through Nov 11, 1918
- Occupation of Germany - Nov 12, 1918 through July 11, 1923
- American Expeditionary Forces in Serbia - Nov 12, 1918 through April 30, 1920
- Second Haitian Suppression of Insurrections - 1919 through 1920
- Second Nicaragua Campaign with Marines or Navy - 1926 through 1933
- Yangtze Service with Navy and Marines - 1926 through 1927 and 1930 through 1932
- China Service with Navy and Marines - 1937 through 1939
- WW II - Dec 7, 1941 through Dec 31, 1946
- Korean - June 25, 1950 through Jan 31, 1955
- Vietnam - Feb 28, 1961 through May 7, 1975
- Lebanon on Grenada Service - Aug 24, 1982 through July 31, 1984
- Panama Service - Dec 20, 1989 through Jan 31, 1990
- Persian Gulf - Aug 2, 1990 through Still Open
FAMILY FARM TAX CREDIT
This is a tax credit on agricultural tracts of land 10 acres or more that are farmed by the owner or immediate family members (this includes brothers/sisters, sons/daughters, grandchildren, great-grandchildren, uncles/aunts, nephews/nieces). Beginning July 1, 2001, this tax credit went to a one-time signing. New applications for family farm tax credit are to be filed with the Assessor on or before November 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. Applications are taken in the Assessor's Office (Refer to Iowa Code Chapter 425A).
BUSINESS PROPERTY TAX CREDIT
This is a tax credit on valuation for qualifying commercial, industrial, and railroad classed property units. An application must be filed with the Assessor's Office on or before July 1.