HF 1027 (LSB 2320HV (2) 91)

HOUSE FILE 1027

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 211)

(As Amended and Passed by the House 2025-04-23)

A BILL FOR

An Act relating to radon by establishing radon mitigation requirements, creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  103A.8E  Radon mitigation requirements.
   The commissioner shall adopt as part of the state building code a requirement that new single-family or two-family residential construction must include passive methods for the mitigation of radon. The requirement shall only apply to single-family or two-family residential construction commenced after the adoption of the requirement.
    Sec. 2.  NEW SECTION.  422.10C  Radon mitigation system tax credit.
   1.  As used in this section, “radon mitigation system” means a system designed to reduce radon concentrations in the indoor air of a building that has been installed.
   2.  The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a radon mitigation system tax credit equal to the amount to purchase and install a radon mitigation system, not to exceed one thousand dollars.
   3.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate, or trust.
   4.  Any credit in excess of the taxpayer’s tax liability for the tax year is not refundable but the excess for the tax year may be credited to the tax liability for the following tax year.
    Sec. 3.  Section 422.33, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.  a.  The taxes imposed under this subchapter shall be reduced by a radon mitigation system tax credit equal to the amount to purchase and install a radon mitigation system, not to exceed one thousand dollars.
   b.  The taxpayer may claim the credit pursuant to this subsection according to the same requirements, conditions, and limitations as provided pursuant to section 422.10C.
    Sec. 4.  RETROACTIVE APPLICABILITY.  The following apply retroactively to January 1, 2025, for tax years beginning on or after that date:
   1.  The section of this Act enacting section 422.10C.
   2.  The section of this Act amending section 422.33.