HF 691 (LSB 2646YH (3) 91)

HOUSE FILE 691

BY  JACOBY

A BILL FOR

An Act creating a residential rebate program for residential owners and renters and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.57E, subsection 2, paragraph a, Code 2025, is amended to read as follows:
   a.  Except as otherwise provided in this section, moneys in the taxpayer relief fund shall only be used pursuant to appropriations or transfers made by the general assembly for tax relief, or reductions in income tax rates, or rebates under section 425B.1. 
    Sec. 2.  NEW SECTION.  425B.1  Residential rebate —— fund —— appropriation.
   1.  As used in this section, “eligibility period” means each fiscal year commencing with the fiscal year beginning July 1, 2025, but before the fiscal year beginning July 1, 2030.
   2.  a.  A residential rebate fund is created within the state treasury under the control of the department of revenue. For each fiscal year in the eligibility period, there is appropriated from the taxpayer relief fund under section 8.57E to the department of revenue to be credited to the residential rebate fund, an amount sufficient to implement this chapter for the applicable fiscal year. The department of revenue shall determine the annual appropriation amount.
   b.  Moneys in fund are to be used during the eligibility period to provide residential rebate payments annually to qualified persons as described in this section.
   3.  a.  A person owning a homestead qualifies to claim a residential rebate in the amount of one thousand dollars for each fiscal year of the eligibility period the person claimed the homestead credit under chapter 425, in the previous fiscal year. Only one rebate may be claimed for a particular homestead per fiscal year.
   b.  The department shall use homestead property tax credit records from county treasurers to identify and pay residential rebates to qualified owners under this subsection.
   4.  a.  A person renting a residence qualifies to claim a residential rebate in the amount of five hundred dollars if the residence is the person’s primary residence. Not more than two rebates may be claimed for a particular rented residence per fiscal year and not more than one rebate may be claimed per familial household per fiscal year.
   b.  A person who wishes to qualify for the residential rebate allowed under this chapter as a renter, shall obtain the appropriate forms for claiming the rebate from the department of revenue. The person claiming the rebate shall file a claim form, including a verified statement and designation of primary residence, with the department of revenue for the year for which the person is claiming the rebate. The claim shall be filed no later than September 1 following the fiscal year for which the person is claiming the rebate. 
   5.  By January 1 following each fiscal year during the eligibility period, the department of revenue shall make the authorized rebate payments to persons who qualify for the rebate under this chapter.
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 residential rebate program for residential owners and renters.
   The bill creates a residential rebate fund (fund) under the control of the department of revenue (DOR). For each fiscal year specified in the eligibility period, there is appropriated from the taxpayer relief fund to the DOR to be credited to the fund, an amount sufficient to implement the bill.
   The bill defines “eligibility period” to mean each fiscal year commencing with the fiscal year beginning July 1, 2025, but before the fiscal year beginning July 1, 2030.
   The bill specifies a person owning a homestead qualifies to claim a residential rebate in the amount of $1,000 for each fiscal year of the eligibility period the person claimed the homestead credit under Code chapter 425. Only one rebate may be claimed for a particular homestead per fiscal year.
   The bill specifies a person renting a residence qualifies to claim an annual residential rebate in the amount of $500 if the residence is the person’s primary residence during a fiscal year during the eligibility period. The bill creates a process for persons renting to submit the application for the residential rebate. Not more than two rebates may be claimed for a particular rented residence per fiscal year and not more than one rebate may be claimed per familial household per fiscal year.
   By January 1 following each fiscal year during the eligibility period, DOR shall make the authorized payment amount of $1,000 or $500, as applicable, to persons who qualify for the rebate.