Credits and Exemptions

Iowa law provides for a number of credits and exemptions. It is the property owner's responsibility to apply for these as provided by law. It is also the property owner's responsibility to report to the Assessor when they are no longer eligible for any credit or exemption they have applied for. Following is a list of several credits and exemptions available in Iowa.

Homestead Tax Credit
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To qualify for the credit, the property owner must be a resident of Iowa and occupy the property on July 1 and for at least six months of every year. A dwelling located on land owned by a Community Land Trust as defined in 42 U.S.C., Section 12773. New applications for homestead tax credit are to be filed with the Assessor on or before July 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. This credit is equal to the tax on the first $4,850 of actual value for each homestead. (Refer Iowa Code, Chapter 425) 

Disabled Veteran's Tax Credit

To qualify for the credit, the property owner must be a resident of Iowa & a veteran as defined in section 35.1. A copy of the letter from the U.S. Department of Veteran Affairs indicating applicant meets eligibility requirements must be presented. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies.  A surviving spouse who receives DIC payment is eligible, even upon remarriage.  Written notification must be provided to the assessor if circumstances change & individual no longer is eligible for the credit.  Refer to Code of Iowa, Chapter 425.15

Military Service Tax Exemption
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Iowa residents who meet one of the following service requirements are eligible for the exemption:

1. Honorably discharged veteran who served for a minimum aggregate of eighteen months.

2. Honorably discharged veteran who served fewer than eighteen months because of a service related injury.

3. Honorably discharged former member of Reserve Forces or Iowa National Guard who served at least 20 years.

4. Member of Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve.

5. Honorably discharged former member of the Armed Forces if any portion of their term of enlistment would have occurred within the Korean Conflict but who opted to serve 5 years in the reserve forces as allowed by Federal law.

6. Honorably discharged veteran who served in an eligible service period (Iowa Code Chapter 35)

Application must be made with the Assessor on or before July 1 of the year the exemption is first claimed. The military certificate of satisfactory service, order transferring to inactive status, reserve, retirement, order of separation from service or honorable discharge must be recorded in the office of the county recorder. Members of the Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve shall record the veteran's retirement points accounting statement issued by the armed forces of the United States, the state adjutant general, or the adjutant general of any other state. The exemption from taxation is $2,778 for WWI veterans and $1,852 for all other service periods. If the qualified veteran does not claim the exemption the spouse, unmarried widow(er), minor child or widowed parent may be eligible to claim the exemption. (Refer to Iowa Code Chapter 426A) 

Business Property Tax Credit

This is a tax credit on commercial, industrial & railroad properties.  Property owner may apply and claim a credit for each property unit eligible.  A property unit is defined in the law as “contiguous parcels all of which are located within the same county, with the same property tax classification, are owned by the same person, and operated by that person for a common use & purpose.” Applications for the Business Property Tax Credit are to be filed with the Assessor on or before July 1.   This credit is an annual credit & is a one-time application unless there is a change in ownership, use, or unit makeup to the property(s).   Properties classed agricultural, residential, & multi-residential are excluded.  (Refer to Code of Iowa, Chapter 426C)

Family Farm Credit

This is a tax credit on agricultural tracts of land 10 acres or more that are farmed by the owner or immediate family members (this includes brothers/sisters, sons/daughters, grandchildren, great grandchildren, uncles/aunts, nephews/nieces, cousins DO NOT qualify).  New applications for family farm tax credit are to be filed with the Assessor on or before November 1 of the year the credit is first claimed.  Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. (Refer to Code of Iowa, Chapter 425A)

Other Credits and Exemptions

Following is a list of several other credits/exemptions administered by the Assessor’s office. Filing is required on them as provided by Iowa law.

Exemption Forms 

Exemption Type

Filing Date

Filing Requirements

Code Section

Family Farm

November 1 

Filed after November 1 is for following year

425A.4
Barn & One-Room School February 1 One TIme 427.1(31) 427.1(32)
Exempt Property Religious, Literary, and Charitable*  February 1 One Time 427.1(14)

Forest Reservation 

 

February 1   One TIme 427C.3 
Fruit Tree February 1 One Time 427C.3
Historic Property

February 1

One Time 427.16
Impoundment Structure

February 1

Annual 427.1(20)
Indian Housing Authority

February 1

One Time 427.1(33)
Industrial Property Tax 

February 1

One Time 427B.4
Low Rent Housing February 1 One Time 427.1(14)
Methane Gas Conversion Property

February 1

One Time

427.1(29)
Mobile Home Park Shelter

February 1

One Time 427.(30)
Natural Conservation or Wildlife Areas

February 1

One Time

427.1(22)
Native Prairie

February 1

Annual 427.1(23)
Pollution Control

February 1

One Time

427.1(19)
Recycling February 1

One Time

427.1(19)
Speculative Shell Building February 1

One Time

427.1(27)
Urban Revitialization

February 1

One Time

404.4
Wetlands

February 1

Annual

427.1(23)
Wildlife Habitat

February 1

One Time

427.1(24)
Business Property Tax Credit

July 1

One Time

426C.3
Disabled Veteran's Tax Credit

July 1

One Time 425.15

Homestead

July 1

One Time

425.2
Military  July 1 One Time 426A.13