House File 691 - Introduced HOUSE FILE 691 BY JACOBY A BILL FOR An Act creating a residential rebate program for residential 1 owners and renters and making appropriations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2646YH (3) 91 jm/md

H.F. 691 Section 1. Section 8.57E, subsection 2, paragraph a, Code 1 2025, is amended to read as follows: 2 a. Except as otherwise provided in this section , moneys 3 in the taxpayer relief fund shall only be used pursuant to 4 appropriations or transfers made by the general assembly for 5 tax relief , or reductions in income tax rates , or rebates under 6 section 425B.1 . 7 Sec. 2. NEW SECTION . 425B.1 Residential rebate —— fund —— 8 appropriation. 9 1. As used in this section, “eligibility period” means each 10 fiscal year commencing with the fiscal year beginning July 1, 11 2025, but before the fiscal year beginning July 1, 2030. 12 2. a. A residential rebate fund is created within the 13 state treasury under the control of the department of revenue. 14 For each fiscal year in the eligibility period, there is 15 appropriated from the taxpayer relief fund under section 8.57E 16 to the department of revenue to be credited to the residential 17 rebate fund, an amount sufficient to implement this chapter for 18 the applicable fiscal year. The department of revenue shall 19 determine the annual appropriation amount. 20 b. Moneys in fund are to be used during the eligibility 21 period to provide residential rebate payments annually to 22 qualified persons as described in this section. 23 3. a. A person owning a homestead qualifies to claim 24 a residential rebate in the amount of one thousand dollars 25 for each fiscal year of the eligibility period the person 26 claimed the homestead credit under chapter 425, in the previous 27 fiscal year. Only one rebate may be claimed for a particular 28 homestead per fiscal year. 29 b. The department shall use homestead property tax credit 30 records from county treasurers to identify and pay residential 31 rebates to qualified owners under this subsection. 32 4. a. A person renting a residence qualifies to claim a 33 residential rebate in the amount of five hundred dollars if the 34 residence is the person’s primary residence. Not more than two 35 -1- LSB 2646YH (3) 91 jm/md 1/ 3

H.F. 691 rebates may be claimed for a particular rented residence per 1 fiscal year and not more than one rebate may be claimed per 2 familial household per fiscal year. 3 b. A person who wishes to qualify for the residential 4 rebate allowed under this chapter as a renter, shall obtain the 5 appropriate forms for claiming the rebate from the department 6 of revenue. The person claiming the rebate shall file a claim 7 form, including a verified statement and designation of primary 8 residence, with the department of revenue for the year for 9 which the person is claiming the rebate. The claim shall be 10 filed no later than September 1 following the fiscal year for 11 which the person is claiming the rebate. 12 5. By January 1 following each fiscal year during the 13 eligibility period, the department of revenue shall make the 14 authorized rebate payments to persons who qualify for the 15 rebate under this chapter. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill creates a residential rebate program for 20 residential owners and renters. 21 The bill creates a residential rebate fund (fund) under the 22 control of the department of revenue (DOR). For each fiscal 23 year specified in the eligibility period, there is appropriated 24 from the taxpayer relief fund to the DOR to be credited to the 25 fund, an amount sufficient to implement the bill. 26 The bill defines “eligibility period” to mean each fiscal 27 year commencing with the fiscal year beginning July 1, 2025, 28 but before the fiscal year beginning July 1, 2030. 29 The bill specifies a person owning a homestead qualifies to 30 claim a residential rebate in the amount of $1,000 for each 31 fiscal year of the eligibility period the person claimed the 32 homestead credit under Code chapter 425. Only one rebate may 33 be claimed for a particular homestead per fiscal year. 34 The bill specifies a person renting a residence qualifies 35 -2- LSB 2646YH (3) 91 jm/md 2/ 3

H.F. 691 to claim an annual residential rebate in the amount of $500 1 if the residence is the person’s primary residence during a 2 fiscal year during the eligibility period. The bill creates a 3 process for persons renting to submit the application for the 4 residential rebate. Not more than two rebates may be claimed 5 for a particular rented residence per fiscal year and not more 6 than one rebate may be claimed per familial household per 7 fiscal year. 8 By January 1 following each fiscal year during the 9 eligibility period, DOR shall make the authorized payment 10 amount of $1,000 or $500, as applicable, to persons who qualify 11 for the rebate. 12 -3- LSB 2646YH (3) 91 jm/md 3/ 3