House File 435 - Introduced HOUSE FILE 435 BY TUREK A BILL FOR An Act creating a deduction available against the individual 1 income tax for gross rent paid by a taxpayer, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2076YH (2) 91 jm/jh

H.F. 435 Section 1. Section 422.7, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 45. a. Subtract the gross rent paid at 3 arm’s length by a taxpayer, for the right of occupancy of a 4 homestead or manufactured or mobile home, including the rent 5 for land occupied by the manufactured or mobile home not to 6 exceed one acre. 7 b. As used in this subsection, “homestead” means a dwelling 8 in this state rented and actually used as the primary home by 9 the taxpayer including part of a multidwelling. 10 Sec. 2. APPLICABILITY. This Act applies to tax years 11 beginning on or after January 1, 2026. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill creates a deduction available against the 16 individual income tax for gross rent paid at arm’s length 17 by a taxpayer for the right of occupancy of a homestead or 18 manufactured or mobile home, including the rent for land 19 occupied by the manufactured or mobile home not to exceed one 20 acre. 21 The bill applies to tax years beginning on or after January 22 1, 2026. 23 -1- LSB 2076YH (2) 91 jm/jh 1/ 1