H.F. 163 Section 1. Section 425.15, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 1A. a. For homestead credits allowed 3 against property taxes due and payable in the fiscal year 4 beginning July 1, 2024, if the owner of a homestead allowed 5 a credit under this subchapter does not meet the criteria 6 of subsection 1 and is any of the following, the amount 7 of the credit allowed on the homestead from the homestead 8 credit fund shall be the greater of the amount of the credit 9 authorized under section 425.1, subsection 2, or an amount 10 equal to a percentage of the entire amount of the tax levied 11 on the homestead that is equivalent to the owner’s permanent 12 service-connected disability rating percentage: 13 (1) A veteran as defined in section 35.1 with a permanent 14 service-connected disability rating that is less than one 15 hundred percent but equal to or greater than seventy percent, 16 as certified by the United States department of veterans 17 affairs. 18 (2) A former member of the national guard of any state 19 who otherwise meets the service requirements of section 35.1, 20 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 21 permanent service-connected disability rating of less than one 22 hundred percent but equal to or greater than seventy percent, 23 as certified by the United States department of veterans 24 affairs. 25 b. For homestead credits allowed against property taxes 26 due and payable in the fiscal year beginning July 1, 2025, 27 if the owner of a homestead allowed a credit under this 28 subchapter does not meet the criteria of subsection 1 and is 29 any of the following, the amount of the credit allowed on the 30 homestead from the homestead credit fund shall be the greater 31 of the amount of the credit authorized under section 425.1, 32 subsection 2, or an amount equal to a percentage of the entire 33 amount of the tax levied on the homestead that is equivalent 34 to the owner’s permanent service-connected disability rating 35 -1- LSB 1056HV (1) 90 md/jh 1/ 4

H.F. 163 percentage: 1 (1) A veteran as defined in section 35.1 with a permanent 2 service-connected disability rating that is less than one 3 hundred percent but equal to or greater than forty percent, as 4 certified by the United States department of veterans affairs. 5 (2) A former member of the national guard of any state 6 who otherwise meets the service requirements of section 35.1, 7 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 8 permanent service-connected disability rating of less than one 9 hundred percent but equal to or greater than forty percent, as 10 certified by the United States department of veterans affairs. 11 c. For homestead credits allowed against property taxes due 12 and payable in the fiscal years beginning on or after July 1, 13 2026, if the owner of a homestead allowed a credit under this 14 subchapter does not meet the criteria of subsection 1 and is 15 any of the following, the amount of the credit allowed on the 16 homestead from the homestead credit fund shall be the greater 17 of the amount of the credit authorized under section 425.1, 18 subsection 2, or an amount equal to a percentage of the entire 19 amount of the tax levied on the homestead that is equivalent 20 to the owner’s permanent service-connected disability rating 21 percentage: 22 (1) A veteran as defined in section 35.1 with a permanent 23 service-connected disability rating that is less than one 24 hundred percent but equal to or greater than ten percent, as 25 certified by the United States department of veterans affairs. 26 (2) A former member of the national guard of any state 27 who otherwise meets the service requirements of section 35.1, 28 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 29 permanent service-connected disability rating of less than one 30 hundred percent but equal to or greater than ten percent, as 31 certified by the United States department of veterans affairs. 32 Sec. 2. Section 425.15, subsection 2, paragraph a, Code 33 2023, is amended to read as follows: 34 a. For an owner described in subsection 1 , paragraph “a” , 35 -2- LSB 1056HV (1) 90 md/jh 2/ 4

H.F. 163 “b” , or “c” , or subsection 1A, the credit allowed shall be 1 continued to the estate of an owner who is deceased or the 2 surviving spouse and any child, as defined in section 234.1 , 3 who are the beneficiaries of a deceased owner, so long as the 4 surviving spouse remains unmarried. 5 Sec. 3. Section 425.15, subsection 3, Code 2023, is amended 6 to read as follows: 7 3. An owner or a beneficiary of an owner who elects to 8 secure the credit provided in this section under the conditions 9 described in subsection 1 is not eligible for any other real 10 property tax exemption provided by law for veterans of military 11 service. 12 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 13 immediate importance, takes effect upon enactment. 14 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 15 retroactively to homestead credit claims filed on or after 16 January 1, 2023, for credits allowed against property taxes due 17 and payable in fiscal years beginning on or after July 1, 2024. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 Current Code section 425.15 provides a homestead credit 22 to the owner of a homestead for the full amount of property 23 tax levied if the owner is any of the following: (1) a 24 veteran of any of the military forces of the United States 25 who acquired the homestead under specified federal programs; 26 (2) a veteran with a permanent service-connected disability 27 rating of 100 percent or a permanent and total disability 28 rating based on individual unemployability that is compensated 29 at the 100 percent disability rate; (3) a former member of 30 the national guard of any state who meets specified service 31 requirements with a permanent service-connected disability 32 rating of 100 percent or a permanent and total disability 33 rating based on individual unemployability that is compensated 34 at the 100 percent disability rate; or (4) an individual who 35 -3- LSB 1056HV (1) 90 md/jh 3/ 4

H.F. 163 is a surviving spouse or a child and who is receiving federal 1 dependency and indemnity compensation. 2 This bill creates two additional categories of disabled 3 veterans who qualify for a homestead credit under Code section 4 425.15 that are phased in over a period of years based on the 5 individual’s permanent service-connected disability rating. 6 Under the bill, if the owner of a homestead does not meet the 7 criteria under current law for a disabled veteran homestead 8 tax credit, the amount of the credit allowed on the homestead 9 is the greater of the amount of the regular homestead credit 10 (an amount equal to the actual levy on the first $4,850 11 of actual value) or an amount equal to a percentage of the 12 entire amount of the tax levied on the homestead that is 13 equivalent to the owner’s service-connected disability rating 14 percentage if the owner is either of the following: (1) a 15 veteran with a permanent service-connected disability rating 16 that is less than 100 percent but equal to or greater than 17 the percentage applicable to the specific year of the phase 18 in; or (2) a former member of the national guard of any state 19 who meets specified service requirements with a permanent 20 service-connected disability rating of less than 100 percent 21 but equal to or greater than the percentage applicable to the 22 specific year of the phase in. 23 The bill takes effect upon enactment and applies 24 retroactively to homestead credit claims filed on or after 25 January 1, 2023, for credits allowed against property taxes due 26 and payable in fiscal years beginning on or after July 1, 2024. 27 -4- LSB 1056HV (1) 90 md/jh 4/ 4