HF 2028 (LSB 5576YH (1) 90)

HOUSE FILE 2028

BY  STONE

A BILL FOR

An Act relating to homestead tax credits for certain persons sixty-five years of age or older.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.1, subsection 2, Code 2024, is amended to read as follows:
   2.  a.  The Except as provided in paragraph “b”, the homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state in an amount equal to the actual levy on the first four thousand eight hundred fifty dollars of actual value for each homestead.
   b.  (1)  For the assessment year beginning January 1, 2025, and each succeeding assessment year, an owner that has attained the age of sixty-five years by January 1 of the assessment year shall be given a credit against the tax on the owner’s eligible homestead in an amount equal to the actual levy on the first one hundred thousand dollars of actual value for the homestead if the owner’s household income is forty thousand dollars or less if the owner is unmarried or the owner’s household income is eighty thousand dollars or less if the owner is married.
   (2)  For the purposes of this paragraph, “income” means the same as defined in section 425.17.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides a homestead tax credit in an amount equal to the actual levy on the first $100,000 of actual value on an owner’s eligible homestead if the owner is 65 years of age or older and either has less than $40,000 of household income if the owner is unmarried or $80,000 of household income if the owner is married.
   The bill defines “income” for the purposes of the homestead tax credit offered to persons 65 years of age or older.