Credits & 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

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. 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 reduces the value on which taxes are calculated by a maximum of $4,850. (Refer to Code of Iowa, Chapter 425)

MILITARY TAX EXEMPTION

To qualify for the exemption, the property owner must be a resident of Iowa, have been involved in full-time active duty during a war or conflict, and have been honorably discharged. New applications must be made with the Assessor on or before July 1 of the year the exemption is first claimed. As with the Homestead Tax Credit, the exemption remains in effect until the property owner is no longer eligible. This exemption is worth the taxes calculated on $2,778 for WWI veterans and $1,852 for all others after that time. (Refer to Code of Iowa Chapter 427)

FAMILY FARM TAX 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.) Beginning July 1, 2001, this tax credit went to a one-time signing. 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. Applications are taken in the Assessor’s office. (Refer to Code of Iowa Chapter 425A)

Following is a list of credits/exemptions administered by the Assessor’s office. Filing is required on them as provided by Iowa law. Filing deadline is February 1.

Annual

  • Fruit Tree Reservations
  • Impoundment Structures
  • Native Prairies
  • Open Prairies
  • Forest Cover
  • River and Stream Banks
  • Recreational Lake
  • Disabled Veteran’s Homestead Credit

Permanent

  • Family Farm Credit
  • Homestead Credit
  • Forest Preserve
  • Pollution Control
  • Wildlife Habitat

Other

  • Wetlands
  • Urban Revitalization
  • Industrial Partial 427B