HF 211 (LSB 2320YH (2) 91)

HOUSE FILE 211

BY  WHEELER

A BILL FOR

An Act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.10C  Radon mitigation system tax credit.
   1.  As used in this section, “radon mitigation system” means a system designed to reduce radon concentrations in the indoor air of a building that has been installed.
   2.  The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a radon mitigation system tax credit equal to the amount to purchase and install a radon mitigation system, not to exceed one thousand dollars.
   3.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate, or trust.
   4.  Any credit in excess of the taxpayer’s tax liability for the tax year is not refundable but the excess for the tax year may be credited to the tax liability for the following tax year.
    Sec. 2.  Section 422.33, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.  a.  The taxes imposed under this subchapter shall be reduced by a radon mitigation system tax credit equal to the amount to purchase and install a radon mitigation system, not to exceed one thousand dollars.
   b.  The taxpayer may claim the credit pursuant to this subsection according to the same requirements, conditions, and limitations as provided pursuant to section 422.10C.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2025, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill creates a radon mitigation system tax credit (credit) available against the individual and corporate income taxes.
   The bill defines “radon mitigation system” to mean a system designed to reduce radon concentrations in the indoor air of a building that has been installed.
   The credit is equal to the amount of the cost to purchase and install the radon mitigation system, not to exceed $1,000. Any credit in excess of the taxpayer’s liability is not refundable but may be credited to the tax liability for the following tax year.
   The bill applies retroactively to January 1, 2025, for tax years beginning on or after that date.