Exemptions & Credits
Iowa law provides for a number of exemptions and credits, including Homestead Credit, Military Exemption and Business Property Tax Credit. It is the property owner’s responsibility to apply for these as provided by law.
All forms for the following exemptions and credits are available in our office or on the Department of Revenue’s web site https://tax.iowa.gov/tax-credits-and-exemptions :
AG LAND All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of 10 acres or more. The county auditor determines the amount of credit applicable to each tract of land.
No form is needed
Disabled Veteran Homestead Tax Credit (https://tax.iowa.gov/forms/application-disabled-veteran-homestead-tax-credit-54-049) The current credit is equal to 100% of the actual tax levy.
Veterans with a permanent service-connected disability rating of 100% qualify for this credit. Veterans also qualify who have a permanent and total disability rating based on individual unemployability paid at the 100% disability rate. The veteran must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. A surviving spouse of a disabled veteran receiving DIC payments also qualifies. The surviving spouse as a beneficiary of the estate of a veteran who received the credit may continue to receive the credit as long as the spouse resides in the qualified homestead and does not remarry.
The applicant needs to file an application with the Assessor on or before July 1 of the year the credit is first claimed, along with a DD214 and a current Benefits Paid letter issued within 12 months of the application date. Once the application is approved, reapplication for successive years is not required as long as the property is owned by someone who falls under one of the four categories of ‘owner’ listed in Iowa Code section 425.15, and used as a homestead by that person on July 1 of each of those successive years.
Written notification must be provided to the assessor if the circumstances change which would result in a taxpayer being ineligible for the credit, or conveyance of this property, or its discontinued use as your homestead.
Family Farm Tax Credit (https://tax.iowa.gov/forms/family-farm-tax-credit-54-023): This is a tax credit on agricultural tracts of land 10 acres or more that are farmed by the owner or designated family members (this includes spouse, parent, grandparent, great grandparent, child, grandchild, great grandchild, stepchild, brother, sister uncle, aunt, niece, nephew.) Applications are filed in the Assessor’s Office.
Claims must be filed with the assessor by November 1. Subsequent claims are not required if ownership and designated person actively engaged in farming remain the same. If the person farming changes, notice must be provided to the Assessor’s office or a penalty may be assessed to the property. If the ownership changes, the new owner must re-file for the credit and if the “designated person” changes, the owner must re-file for the credit.
Forest and Fruit Tree Reserve Tax Exemption (https://tax.iowa.gov/forms/forest-or-fruit-tree-reservation-exemption-56-067): Description: Provides an exemption for property established as a forest or fruit tree reservation. Forest Reserve: Minimum of two acres, with not less than 200 trees per acre. Fruit Tree Reserve: Not less than one nor more than 10 acres, with at least 40 apple trees or 70 other fruit trees.
Exemption: 8 years for fruit tree reservations. Neither reserve can be used for economic gain other than raising trees. Livestock is not permitted on the reservation. Must meet the criteria established by the Iowa Department of Natural Resources.
Application must be filed with assessor by February 1.
Geothermal Heating & Cooling System Exemption (https://tax.iowa.gov/forms/geothermal-heating-cooling-property-tax-exemption-54-011) Exemption for value added by any new or refitted construction or installation of a geothermal heating or cooling system on or after July 1, 2012, on property classified as residential. This is a ten (10) year exemption. Must meet the requirements contained in Iowa Code section 427.1(38) and the administrative rules in 701 IAC section 80.29.
Filing Requirements: Person claiming the exemption shall file an application with the assessor by February 1 of the first assessment year the exemption is requested.
Homestead Tax Credit (https://tax.iowa.gov/forms/homestead-tax-credit-application-54-028): Iowa residents who own and occupy their dwelling and the land it is located on may file for homestead credit. To qualify for the credit, the property owner must be a resident of Iowa for income tax purposes, have no other Homestead Tax Credit on any other property in the State of Iowa and actually live on the property on July 1st and for at least six months of every year.
If the property you were occupying as a homestead is sold, or if you cease to use the property as a homestead you are required to report this to the assessor in whose jurisdiction the property is located.
Applications must be filed by July 1st of the year the credit is claimed. Once approved, the credit remains in effect until the person moves or sells the property.
Military Tax Exemption (https://tax.iowa.gov/forms/military-service-tax-exemption-application-54-146): Discharge must be recorded in the Louisa County Recorder’s office, there is no charge to have the discharge recorded. Iowa residents who meet one of the following service requirements are eligible for the exemption: 1. Former member of the U.S. Armed Forces who performed at least 18 months of service, regardless of time period, and who were honorably discharged. 2. Honorably discharge veteran who served fewer than eighteen months because of a service related injury. 3. Current & former U.S. Reserves & Iowa National Guard Forces who served 20 years & were honorably discharged or retired under title X of the U.S. Code. 4. 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. 5. Honorably discharged veteran who served in an eligible service period for other than training purposes.
WWI (April 6, 1917 – Nov. 11, 1918)
WWII (Dec. 7, 1941 – Dec. 31, 1946)
Korea (June 25, 1950 – Jan. 31, 1955)
Vietnam (Feb. 28, 1961 – May 7, 1975)
Grenada/Lebanon (Aug. 24, 1982 – July 31, 1984)
Panama (Dec. 20, 1989 – Jan. 31, 1990)
Persian Gulf (Aug. 2, 1990 – still open)
Application must be made with the Assessor on or before July 1 of the year the exemption is first claimed. 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)
The exemption remains in effect until the property is sold or owner moves out of the state.
Pollution Control and Recycling Property Tax Exemption (https://tax.iowa.gov/forms/pollution-control-and-recycling-property-tax-exemption-54-064) Provides an exemption for certain pollution control and recycling property. Exemption is limited to market value of property used primarily for pollution control or recycling. Must be certified as eligible by the Iowa Department of Natural Resources.
Filing Requirements: Application must be filed with the assessor no later than February 1.
Urban Revitalization-Tax Abatement: Several cities in Louisa County offer tax abatements to property owners who remodel/renovate existing structures and/or construct new ones located within the city limits. Inquire at your city hall for information. The form is available from the city in which you live, depending on if they have the revitalization or abatement plan in place.
Other For more information on all credits and exemptions https://tax.iowa.gov/tax-credits-and-exemptions