HF 435 (LSB 2076YH (2) 91)

HOUSE FILE 435

BY  TUREK

A BILL FOR

An Act creating a deduction available against the individual income tax for gross rent paid by a taxpayer, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  45.  a.  Subtract the gross rent paid at arm’s length by a taxpayer, for the right of occupancy of a homestead or manufactured or mobile home, including the rent for land occupied by the manufactured or mobile home not to exceed one acre.
   b.  As used in this subsection, “homestead” means a dwelling in this state rented and actually used as the primary home by the taxpayer including part of a multidwelling.
    Sec. 2.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2026.
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 deduction available against the individual income tax for gross rent paid at arm’s length by a taxpayer for the right of occupancy of a homestead or manufactured or mobile home, including the rent for land occupied by the manufactured or mobile home not to exceed one acre.
   The bill applies to tax years beginning on or after January 1, 2026.