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) 

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) 

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

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.

Click here for Department of Revenue Credits and Exemption Forms