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Increase in disabled veteran homestead credit clears Iowa House committee

Senate File 2352 expands the individuals eligible for the disabled veterans homestead tax credit (a property tax credit for 100 percent of amount levied).

Currently, there is a disabled veteran tax credit under Iowa Code 425.15. That code section provides a property tax credit on the homestead of an eligible veteran (who received special adaptive housing because of a service-connected disability) equal to the entire amount of property tax levied.

Senate File 2352 modifies the qualifications for this total property tax credit by adding the following as qualified recipients:

• All veterans with a service-connected disability rating of 100 percent

• Former members of the national guard of any state who otherwise meets the service requirements for Iowa National Guard members service-connected disability rating of 100 percent

• Surviving spouses or children who are receiving dependency and indemnity compensation for a spouse or parent who died in action or dies because of a service connected injury

Senate File 2352 also strikes the maximum income limitation qualification for the credit (was at $35,000). Senate File 2352 applies to applications for the disabled veteran credit filed on or after the effective date of the bill (effective upon enactment). The bill is expected to have a fiscal impact of $3.607 million in FY 2016. The bill will now move to the House floor for further consideration.

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