House File 2665 - Introduced HOUSE FILE 2665 BY BAETH , LEVIN , WILBURN , TUREK , B. MEYER , JACOBY , CROKEN , BROWN-POWERS , RAMIREZ , GJERDE , KRESSIG , WICHTENDAHL , EHLERT , and MATSON A BILL FOR An Act relating to radon mitigation requirements and tax 1 credits, including retroactive applicability provisions, and 2 making appropriations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5736YH (6) 91 ak/ko

H.F. 2665 DIVISION I 1 RADON MITIGATION —— STATE BUILDING CODE 2 Section 1. NEW SECTION . 103A.8E Radon mitigation 3 requirements. 4 The commissioner shall adopt as part of the state building 5 code a requirement that new single-family or two-family 6 residential construction must include passive methods for the 7 mitigation of radon. The requirement shall only apply to 8 single-family or two-family residential construction commenced 9 after the adoption of the requirement. 10 DIVISION II 11 RADON MITIGATION SYSTEMS —— TAX CREDITS 12 Sec. 2. NEW SECTION . 422.10D Radon mitigation system tax 13 credit. 14 1. For purposes of this section, “radon mitigation system” 15 means a system designed to mitigate the presence of radon in 16 a building installed by a person certified in accordance with 17 chapter 136B. 18 2. The taxes imposed under this subchapter, less the credits 19 allowed under section 422.12, shall be reduced by a radon 20 mitigation system tax credit equal to the amount to purchase 21 and install a radon mitigation system, not to exceed one 22 thousand dollars. 23 3. An individual may claim the tax credit allowed a 24 partnership, limited liability company, S corporation, estate, 25 or trust electing to have the income taxed directly to the 26 individual. The amount claimed by the individual shall be 27 based upon the pro rata share of the individual’s earnings of 28 the partnership, limited liability company, S corporation, 29 estate, or trust. 30 4. Any credit in excess of the taxpayer’s tax liability 31 for the tax year is not refundable but the excess for the tax 32 year may be credited to the tax liability for the following tax 33 year. 34 Sec. 3. Section 422.33, Code 2026, is amended by adding the 35 -1- LSB 5736YH (6) 91 ak/ko 1/ 5

H.F. 2665 following new subsection: 1 NEW SUBSECTION . 11. a. The taxes imposed under this 2 subchapter shall be reduced by a radon mitigation system tax 3 credit equal to the amount to purchase and install a radon 4 mitigation system, not to exceed one thousand dollars. 5 b. The taxpayer may claim the credit pursuant to this 6 subsection according to the same requirements, conditions, and 7 limitations as provided pursuant to section 422.10D. 8 Sec. 4. RETROACTIVE APPLICABILITY. The following apply 9 retroactively to January 1, 2026, for tax years beginning on 10 or after that date: 11 1. The section of this division of this Act enacting section 12 422.10D. 13 2. The section of this division of this Act amending section 14 422.33. 15 DIVISION III 16 RADON MITIGATION —— RENTAL PROPERTIES 17 Sec. 5. Section 562A.15, Code 2026, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 5. a. For purposes of this subsection, 20 “radon mitigation system” means a system designed to mitigate 21 the presence of radon in a building installed by a person 22 certified in accordance with chapter 136B. 23 b. A tenant may conduct a radon test or hire a person 24 certified in accordance with chapter 136B to conduct a radon 25 test in the dwelling unit. If the results of the test show a 26 radon level equal to or greater than four picocuries per liter, 27 the tenant shall provide the landlord a written copy of those 28 test results. 29 c. The landlord may have a confirmatory radon test conducted 30 by a person certified in accordance with chapter 136B and, 31 if applicable, shall provide the tenant a written copy of 32 those test results. If the confirmatory test result is 33 equal to or greater than four picocuries per liter, or if the 34 landlord chooses not to have a confirmatory test conducted, the 35 -2- LSB 5736YH (6) 91 ak/ko 2/ 5

H.F. 2665 landlord shall have a radon mitigation system installed in the 1 dwelling unit by a person certified in accordance with chapter 2 136B. Once a radon mitigation system has been installed, the 3 landlord shall have the dwelling unit retested and the landlord 4 shall provide the tenant a written copy of those new test 5 results within ninety days from the day the tenant provided 6 notification of elevated radon levels to the landlord. 7 d. If, within the ninety-day period established in paragraph 8 “b” , the landlord fails to have a radon mitigation system 9 installed in accordance with chapter 136B after receiving 10 notice of elevated radon levels or if a radon mitigation system 11 is installed and radon test results remain equal to or greater 12 than four picocuries per liter, the tenant may terminate the 13 lease and the landlord shall return all prepaid rent and the 14 rental deposit and shall not impose any penalties against 15 the tenant. The tenant shall provide written notice to the 16 landlord of intent to terminate the lease. The termination 17 date may be effective immediately or on a later date agreed 18 to by the tenant and landlord to allow the tenant to obtain 19 alternative housing. 20 DIVISION IV 21 APPROPRIATION —— RADON TEST KITS 22 Sec. 6. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— RADON 23 TEST KITS. 24 1. There is appropriated from the general fund of the state 25 to the department of health and human services for the fiscal 26 year beginning July 1, 2026, and ending June 30, 2027, the 27 following amount, or so much thereof as is necessary, to be 28 used for the purposes designated: 29 To make radon test kits available free of charge to 30 homeowners and renters in the state: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 32 2. The department shall provide a link on the department’s 33 internet site for homeowners and renters in the state to order 34 radon test kits. 35 -3- LSB 5736YH (6) 91 ak/ko 3/ 5

H.F. 2665 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to radon mitigation requirements and tax 4 credits. 5 DIVISION I —— RADON MITIGATION —— STATE BUILDING CODE. The 6 bill requires that the state building code commissioner adopt, 7 as part of the state building code, that new single-family or 8 two-family residential construction starting after adoption of 9 the building code must include passive methods for mitigation 10 of radon. 11 DIVISION II —— RADON MITIGATION TAX CREDIT. The bill creates 12 a radon mitigation system tax credit (credit) available against 13 the individual and corporate income taxes. Under the bill, 14 the credit is equal to the amount of the cost to purchase and 15 install a radon mitigation system, not to exceed $1,000. Any 16 credit in excess of the taxpayer’s liability is not refundable 17 but may be credited to the tax liability for the following tax 18 year. The bill defines “radon mitigation system” (system) to 19 mean a system designed to mitigate the presence of radon in a 20 building installed by a person certified in accordance with 21 Code chapter 136B. The credit applies retroactively to January 22 1, 2025, for tax years beginning on or after that date. 23 DIVISION III —— RADON MITIGATION —— RENTAL PROPERTIES. The 24 bill provides that a tenant may conduct a radon test (test) 25 or hire a person certified in accordance with Code chapter 26 136B to conduct a test. The tenant shall notify the landlord 27 of a test result equal to or greater than four picocuries 28 per liter (4pCi/L), which is the United States environmental 29 protection agency’s action level for radon. The landlord may 30 have a confirmatory test conducted by a certified person and 31 must notify the tenant of those results. If a subsequent 32 test result is equal to or greater than 4pCi/L, or if the 33 landlord chooses not to have a subsequent test conducted, the 34 landlord shall have a system installed. Once a system has 35 -4- LSB 5736YH (6) 91 ak/ko 4/ 5

H.F. 2665 been installed, the rental property shall be retested and the 1 results shall be given to the tenant within 90 days. 2 The bill provides that if the landlord fails to have a 3 system installed, or if a system is installed and radon test 4 results remain equal to or greater than 4pCi/L, the tenant may 5 terminate the lease with proper written notice. Upon receipt 6 of this notice, the landlord cannot impose any penalty for 7 termination of the lease against the tenant and must return all 8 prepaid rent and the rental deposit. 9 DIVISION IV —— APPROPRIATION —— RADON TEST KITS. The bill 10 appropriates $100,000 from the general fund to the department 11 of health and human services (HHS) for the fiscal year 12 beginning July 1, 2026, and ending June 30, 2027, to make radon 13 test kits available free of charge to homeowners and renters in 14 the state. HHS is required to provide a link on its internet 15 site for homeowners and renters to order radon test kits. 16 -5- LSB 5736YH (6) 91 ak/ko 5/ 5