HF 2665 (LSB 5736YH (6) 91)

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 credits, including retroactive applicability provisions, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
RADON MITIGATION —— STATE BUILDING CODE

    Section 1.  NEW SECTION.  103A.8E  Radon mitigation requirements.
   The commissioner shall adopt as part of the state building code a requirement that new single-family or two-family residential construction must include passive methods for the mitigation of radon. The requirement shall only apply to single-family or two-family residential construction commenced after the adoption of the requirement.
DIVISION II
RADON MITIGATION SYSTEMS —— TAX CREDITS

    Sec. 2.  NEW SECTION.  422.10D  Radon mitigation system tax credit.
   1.  For purposes of this section, “radon mitigation system” means a system designed to mitigate the presence of radon in a building installed by a person certified in accordance with chapter 136B.
   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. 3.  Section 422.33, Code 2026, 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 422.10D.
    Sec. 4.  RETROACTIVE APPLICABILITY.  The following apply retroactively to January 1, 2026, for tax years beginning on or after that date:
   1.  The section of this division of this Act enacting section 422.10D.
   2.  The section of this division of this Act amending section 422.33.
DIVISION III
RADON MITIGATION —— RENTAL PROPERTIES

    Sec. 5.  Section 562A.15, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  For purposes of this subsection, “radon mitigation system” means a system designed to mitigate the presence of radon in a building installed by a person certified in accordance with chapter 136B.
   b.  A tenant may conduct a radon test or hire a person certified in accordance with chapter 136B to conduct a radon test in the dwelling unit. If the results of the test show a radon level equal to or greater than four picocuries per liter, the tenant shall provide the landlord a written copy of those test results.
   c.  The landlord may have a confirmatory radon test conducted by a person certified in accordance with chapter 136B and, if applicable, shall provide the tenant a written copy of those test results. If the confirmatory test result is equal to or greater than four picocuries per liter, or if the landlord chooses not to have a confirmatory test conducted, the landlord shall have a radon mitigation system installed in the dwelling unit by a person certified in accordance with chapter 136B. Once a radon mitigation system has been installed, the landlord shall have the dwelling unit retested and the landlord shall provide the tenant a written copy of those new test results within ninety days from the day the tenant provided notification of elevated radon levels to the landlord.
   d.  If, within the ninety-day period established in paragraph “b”, the landlord fails to have a radon mitigation system installed in accordance with chapter 136B after receiving notice of elevated radon levels or if a radon mitigation system is installed and radon test results remain equal to or greater than four picocuries per liter, the tenant may terminate the lease and the landlord shall return all prepaid rent and the rental deposit and shall not impose any penalties against the tenant. The tenant shall provide written notice to the landlord of intent to terminate the lease. The termination date may be effective immediately or on a later date agreed to by the tenant and landlord to allow the tenant to obtain alternative housing.
DIVISION IV
APPROPRIATION —— RADON TEST KITS

    Sec. 6.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— RADON TEST KITS.
   1.  There is appropriated from the general fund of the state to the department of health and human services for the fiscal year beginning July 1, 2026, and ending June 30, 2027, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   To make radon test kits available free of charge to homeowners and renters in the state:
   ...................................................................... $ 100,000

   2.  The department shall provide a link on the department’s internet site for homeowners and renters in the state to order radon test kits.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to radon mitigation requirements and tax credits.
   DIVISION I —— RADON MITIGATION —— STATE BUILDING CODE. The bill requires that the state building code commissioner adopt, as part of the state building code, that new single-family or two-family residential construction starting after adoption of the building code must include passive methods for mitigation of radon.
   DIVISION II —— RADON MITIGATION TAX CREDIT. The bill creates a radon mitigation system tax credit (credit) available against the individual and corporate income taxes. Under the bill, the credit is equal to the amount of the cost to purchase and install a 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 defines “radon mitigation system” (system) to mean a system designed to mitigate the presence of radon in a building installed by a person certified in accordance with Code chapter 136B. The credit applies retroactively to January 1, 2025, for tax years beginning on or after that date.
   DIVISION III —— RADON MITIGATION —— RENTAL PROPERTIES. The bill provides that a tenant may conduct a radon test (test) or hire a person certified in accordance with Code chapter 136B to conduct a test. The tenant shall notify the landlord of a test result equal to or greater than four picocuries per liter (4pCi/L), which is the United States environmental protection agency’s action level for radon. The landlord may have a confirmatory test conducted by a certified person and must notify the tenant of those results. If a subsequent test result is equal to or greater than 4pCi/L, or if the landlord chooses not to have a subsequent test conducted, the landlord shall have a system installed. Once a system has been installed, the rental property shall be retested and the results shall be given to the tenant within 90 days.
   The bill provides that if the landlord fails to have a system installed, or if a system is installed and radon test results remain equal to or greater than 4pCi/L, the tenant may terminate the lease with proper written notice. Upon receipt of this notice, the landlord cannot impose any penalty for termination of the lease against the tenant and must return all prepaid rent and the rental deposit.
   DIVISION IV —— APPROPRIATION —— RADON TEST KITS. The bill appropriates $100,000 from the general fund to the department of health and human services (HHS) for the fiscal year beginning July 1, 2026, and ending June 30, 2027, to make radon test kits available free of charge to homeowners and renters in the state. HHS is required to provide a link on its internet site for homeowners and renters to order radon test kits.