Senate File 2285 - Introduced SENATE FILE 2285 BY SINCLAIR A BILL FOR An Act providing a tax credit for car registration fees paid by 1 a disabled veteran available against the individual income 2 tax, and including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6065XS (3) 91 jm/jh

S.F. 2285 Section 1. NEW SECTION . 422.12R Car registration fee tax 1 credit —— disabled veteran. 2 1. As used in this section, “disabled veteran” means either 3 of the following: 4 a. A veteran as defined in section 35.1 with a permanent 5 service-connected disability rating of one hundred percent, as 6 certified by the United States department of veterans affairs, 7 or a permanent and total disability rating based on individual 8 unemployability that is compensated at the one hundred percent 9 disability rate, as certified by the United States department 10 of veterans affairs. 11 b. A former member of the national guard of any state who 12 otherwise meets the service requirements of section 35.1, 13 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 14 permanent service-connected disability rating of one hundred 15 percent, as certified by the United States department of 16 veterans affairs, or a permanent and total disability rating 17 based on individual unemployability that is compensated at the 18 one hundred percent disability rate, as certified by the United 19 States department of veterans affairs. 20 2. The taxes imposed under this subchapter, less the 21 credits allowed under section 422.12, shall be reduced by a 22 car registration fee tax credit equal to the amount of a car 23 registration fee paid by a disabled veteran under section 24 321.105 for the year, not to exceed a maximum amount of one 25 hundred dollars. 26 3. Any credit in excess of the tax liability is refundable. 27 In lieu of claiming a refund, the taxpayer may elect to have 28 the overpayment shown on the taxpayer’s final, completed return 29 credited to the tax liability for the following tax year. 30 4. The department may adopt rules pursuant to chapter 17A to 31 administer this section. 32 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 33 retroactively to January 1, 2026, for tax years beginning on 34 or after that date. 35 -1- LSB 6065XS (3) 91 jm/jh 1/ 2

S.F. 2285 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill provides a tax credit for car registration fees 4 paid by a disabled veteran with a 100 percent disability rating 5 that is available against the individual income tax. Under 6 the bill, the disabled veteran shall receive the tax credit in 7 an amount not to exceed $100 for car registration fees paid 8 under Code section 321.105 (annual registration fee) for the 9 year. The bill defines a veteran with a 100 percent disability 10 rating. 11 The tax credit is refundable. In lieu of claiming a 12 refund, the taxpayer may elect to have the overpayment shown 13 on the taxpayer’s final, completed return credited to the tax 14 liability for the following tax year. 15 The department of revenue may adopt rules pursuant to Code 16 chapter 17A to administer the bill. 17 The bill applies retroactively to tax years beginning on or 18 after January 1, 2026. 19 -2- LSB 6065XS (3) 91 jm/jh 2/ 2