H.F. 79 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 a percentage 10 of the entire amount of the tax levied on the homestead that 11 is equivalent to the owner’s permanent service-connected 12 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 due 26 and payable in the fiscal year beginning July 1, 2025, if the 27 owner of a homestead allowed a credit under this subchapter 28 does not meet the criteria of subsection 1 and is any of the 29 following, the amount of the credit allowed on the homestead 30 from the homestead credit fund shall be the greater of the 31 amount of the credit authorized under section 425.1, subsection 32 2, or a percentage of the entire amount of the tax levied 33 on the homestead that is equivalent to the owner’s permanent 34 service-connected disability rating percentage: 35 -1- LSB 1818YH (2) 90 md/jh 1/ 4

H.F. 79 (1) A veteran as defined in section 35.1 with a permanent 1 service-connected disability rating that is less than one 2 hundred percent but equal to or greater than forty percent, as 3 certified by the United States department of veterans affairs. 4 (2) A former member of the national guard of any state 5 who otherwise meets the service requirements of section 35.1, 6 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 7 permanent service-connected disability rating of less than one 8 hundred percent but equal to or greater than forty percent, as 9 certified by the United States department of veterans affairs. 10 c. For homestead credits allowed against property taxes due 11 and payable in the fiscal years beginning on or after July 1, 12 2026, if the owner of a homestead allowed a credit under this 13 subchapter does not meet the criteria of subsection 1 and is 14 any of the following, the amount of the credit allowed on the 15 homestead from the homestead credit fund shall be the greater 16 of the amount of the credit authorized under section 425.1, 17 subsection 2, or a percentage of the entire amount of the tax 18 levied on the homestead that is equivalent to the owner’s 19 permanent service-connected disability rating percentage: 20 (1) A veteran as defined in section 35.1 with a permanent 21 service-connected disability rating that is less than one 22 hundred percent but equal to or greater than ten percent, as 23 certified by the United States department of veterans affairs. 24 (2) A former member of the national guard of any state 25 who otherwise meets the service requirements of section 35.1, 26 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 27 permanent service-connected disability rating of less than one 28 hundred percent but equal to or greater than ten percent, as 29 certified by the United States department of veterans affairs. 30 Sec. 2. Section 425.15, subsection 2, paragraph a, Code 31 2023, is amended to read as follows: 32 a. For an owner described in subsection 1 , paragraph “a” , 33 “b” , or “c” , or subsection 1A, the credit allowed shall be 34 continued to the estate of an owner who is deceased or the 35 -2- LSB 1818YH (2) 90 md/jh 2/ 4

H.F. 79 surviving spouse and any child, as defined in section 234.1 , 1 who are the beneficiaries of a deceased owner, so long as the 2 surviving spouse remains unmarried. 3 Sec. 3. Section 425.15, subsection 3, Code 2023, is amended 4 to read as follows: 5 3. An owner or a beneficiary of an owner who elects to 6 secure the credit provided in this section under the conditions 7 described in subsection 1 is not eligible for any other real 8 property tax exemption provided by law for veterans of military 9 service. 10 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 11 immediate importance, takes effect upon enactment. 12 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 13 retroactively to homestead credit claims filed on or after 14 January 1, 2023, for credits allowed against property taxes due 15 and payable in fiscal years beginning on or after July 1, 2024. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 Current Code section 425.15 provides a homestead credit 20 to the owner of a homestead for the full amount of property 21 tax levied if the owner is any of the following: (1) a 22 veteran of any of the military forces of the United States 23 who acquired the homestead under specified federal programs; 24 (2) a veteran with a permanent service-connected disability 25 rating of 100 percent or a permanent and total disability 26 rating based on individual unemployability that is compensated 27 at the 100 percent disability rate; (3) a former member of 28 the national guard of any state who meets specified service 29 requirements with a permanent service-connected disability 30 rating of 100 percent or a permanent and total disability 31 rating based on individual unemployability that is compensated 32 at the 100 percent disability rate; or (4) an individual who 33 is a surviving spouse or a child and who is receiving federal 34 dependency and indemnity compensation. 35 -3- LSB 1818YH (2) 90 md/jh 3/ 4

H.F. 79 This bill creates two additional categories of disabled 1 veterans who qualify for a homestead credit under Code section 2 425.15 that are phased in over a period of years based on the 3 individual’s permanent service-connected disability rating. 4 Under the bill, if the owner of a homestead does not meet the 5 criteria under current law for a disabled veteran homestead 6 tax credit, the amount of the credit allowed on the homestead 7 is the greater of the amount of the regular homestead credit 8 (an amount equal to the actual levy on the first $4,850 of 9 actual value) or a percentage of the entire amount of the tax 10 levied on the homestead that is equivalent to the owner’s 11 service-connected disability rating percentage if the owner 12 is either of the following: (1) a veteran with a permanent 13 service-connected disability rating that is less than 100 14 percent but equal to or greater than the percentage applicable 15 to the specific year of the phase in; or (2) a former member 16 of the national guard of any state who meets specified service 17 requirements with a permanent service-connected disability 18 rating of less than 100 percent but equal to or greater than 19 the percentage applicable to the specific year of the phase in. 20 The bill takes effect upon enactment and applies 21 retroactively to homestead credit claims filed on or after 22 January 1, 2023, for credits allowed against property taxes due 23 and payable in fiscal years beginning on or after July 1, 2024. 24 -4- LSB 1818YH (2) 90 md/jh 4/ 4