422.12P  Public safety officer moving expense — tax credit.
  1.  For purposes of this section, unless the context otherwise requires:
  a.  “Moving expense” means an unreimbursed expense for moving household goods and personal effects from the former residence of the new resident to this state including travel expenses for meals and lodging.
  b.  “New resident” means an individual who becomes a resident of Iowa, after July 1, 2024, upon taking full-time employment as a public safety officer in this state, who remains a resident of and employed full-time as a public safety officer in this state when claiming the credit, and who has not been a resident of this state at any time during the previous twelve-month period prior to establishing residency in this state.
  c.  “Public safety officer” means a peace officer as defined in section 801.4 or a correctional officer.
  2.  The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a public safety officer moving expense tax credit equal to the amount of moving expense incurred by the new resident in connection with taking full-time employment as a public safety officer in this state, not to exceed a maximum amount of two thousand dollars per move.
  3.  Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year.
  4.  The credit under this section with respect to any moving expense shall be allowed during a tax year as follows:
  a.  For any moving expense paid or incurred prior to or during the tax year in which the new resident is employed full-time in the state, the tax year in which the full-time employment begins.
  b.  For any qualified moving expense paid or incurred after the tax year in which the full-time employment begins, the tax year in which the moving expense is paid or incurred.
  5.  A new resident is not eligible for the credit pursuant to this section to the extent the moving expenses were deducted for federal tax purposes.
  6.  The department of revenue shall adopt rules to administer this section.
2024 Acts, ch 1127, §6, 7
Referred to in §422.16
Section applies retroactively to January 1, 2024, for tax years beginning on or after that date; 2024 Acts, ch 1127, §7
NEW section