House File 527 - Introduced HOUSE FILE 527 BY BEST A BILL FOR An Act creating a home retrofitting tax credit available 1 against the individual income tax, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2048HH (3) 88 jm/jh
H.F. 527 Section 1. NEW SECTION . 422.12N Home retrofitting tax 1 credit. 2 1. For purposes of this section, unless the context 3 otherwise requires: 4 a. “Home retrofitting” means any of the following projects 5 performed on a qualified residence by a qualified person for 6 the purpose of increasing the accessibility of the qualified 7 residence: 8 (1) Constructing an entrance or exit ramp. 9 (2) Widening doorways at entrances or exits. 10 (3) Installing railings, support bars, handrails, or grab 11 bars or other such modifications to a bathroom. 12 (4) Installing handrails or grab bars in areas other than 13 the bathroom. 14 (5) Adapting a home to include a bedroom and full bathroom 15 on the main floor of the residence. 16 (6) Lowering or modifying kitchen cabinets and equipment. 17 (7) Moving or modifying electrical outlets and fixtures. 18 (8) Installing porch lifts and other forms of lifts. 19 (9) Modifying fire alarms, smoke detectors, and other 20 warning systems. 21 (10) Modifying stairways. 22 (11) Modifying hardware on doors. 23 (12) Modifying areas in front of entrance and exit doorways. 24 (13) Grading the ground to provide access to the residence. 25 (14) Installing nonslip flooring. 26 (15) Creating level flooring. 27 (16) Installing bright lighting at entrances or exits or 28 throughout the house. 29 (17) Installing assistive technologies and devices. 30 (18) Relocating laundry facilities. 31 b. “Qualified person” means a certified aging-in-place 32 specialist or a universal design certified professional. 33 c. “Qualified residence” means the same as defined in 34 section 163(h)(4)(A) of the Internal Revenue Code which is 35 -1- LSB 2048HH (3) 88 jm/jh 1/ 4
H.F. 527 owned by at least one person fifty years of age or older. 1 2. The taxes imposed under this division less the credits 2 allowed under section 422.12 shall be reduced by a home 3 retrofitting tax credit, not to exceed five thousand dollars, 4 of the actual costs of the home retrofitting project on a 5 qualified residence. 6 3. a. To claim a tax credit under subsection 2, a taxpayer 7 must include one or more tax credit certificates with the 8 taxpayer’s tax return. A tax credit certificate shall not be 9 included with a return filed for a taxable year beginning prior 10 to the tax year listed on the certificate. 11 b. The tax credit certificate shall contain the taxpayer’s 12 name, address, tax identification number, the amount of the 13 credit, and any other information required by the department. 14 c. The tax credit certificate, unless rescinded by the 15 department, shall be accepted by the department as payment for 16 taxes imposed pursuant to this division. 17 d. Any tax credit in excess of the taxpayer’s liability 18 for the tax year is not refundable but may be credited to the 19 tax liability for the following five years or until depleted, 20 whichever is earlier. 21 e. The tax credit shall not be carried back to a tax year 22 prior to the tax year in which the taxpayer first receives the 23 tax credit. 24 f. A taxpayer shall not be eligible for credits exceeding 25 thirty thousand dollars, in the aggregate, during the lifetime 26 of the taxpayer. 27 4. a. The department shall develop a system for the 28 application, review, and authorization of tax credits awarded 29 pursuant to this section and shall control the issuance of all 30 tax credit certificates. 31 b. The department shall review and preliminarily approve 32 applications that appear to meet the requirements of this 33 section, and notify the applicant of the department’s decision 34 and the estimated value of the tax credit if the project is 35 -2- LSB 2048HH (3) 88 jm/jh 2/ 4
H.F. 527 preliminarily approved. The notice shall state that receipt 1 of the tax credit is contingent on the home retrofitting 2 project complying with this section, and shall describe the 3 requirements of this section including eligible projects and 4 that the work must be performed by a qualified person. 5 5. Married taxpayers electing to file separate returns or 6 filing separately on a combined return may avail themselves 7 of the home retrofitting tax credit by allocating the home 8 retrofitting tax credit to each spouse in the proportion that 9 each spouse’s respective earned income bears to the total 10 combined earned income. 11 6. The department shall adopt rules pursuant to chapter 17A 12 to administer this chapter. 13 Sec. 2. APPLICABILITY. This Act applies to tax years 14 beginning on or after January 1, 2020. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill creates a home retrofitting tax credit against the 19 individual income tax. 20 The bill lists numerous “home retrofitting” projects that 21 qualify for the credit which relate to providing accessibility 22 to a qualifying residential home. The bill defines “qualifying 23 residence” to mean the same as defined in section 163 of the 24 Internal Revenue Code which is owned by a person 50 years of 25 age or older. The bill defines “qualified person” to mean 26 a certified aging-in-place specialist or a universal design 27 certified professional. 28 The amount of the credit shall not exceed $5,000 of the 29 actual costs of the home retrofitting project on a qualified 30 residence. 31 The bill limits the credit to $30,000, in the aggregate, 32 during the lifetime of the taxpayer. 33 A credit provided in the bill in excess of tax liability is 34 not refundable but the excess for the tax year may be credited 35 -3- LSB 2048HH (3) 88 jm/jh 3/ 4
H.F. 527 to the tax liability for the following five years or until 1 depleted, whichever occurs first. 2 The department of revenue is required to develop a system 3 for the application, review, and authorization of tax credits 4 awarded pursuant to the bill and shall control the issuance of 5 all tax credit certificates. 6 The bill applies to tax years beginning on or after January 7 1, 2020. 8 -4- LSB 2048HH (3) 88 jm/jh 4/ 4