Tax Credits

Credits & Exemptions

Iowa law provides for a number of credits & 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 & exemptions available in Iowa.  Credits & Exemptions may be applied for in the Bremer County Assessor’s Office.

 Homestead & Business Property Tax Credit & Military Exemption may also be applied for online @ Bremer County Assessor’s

Applications can also be found @ Iowa Department of Revenue

 Homestead Credit

To qualify for the credit, the property owner must be a resident of Iowa & occupy the property on July 1 and for at least 6 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.   If person fails to file it is deemed they have waived credit for the year.  Refer to Code of Iowa, Chapter 425

Disable Veteran Homestead 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. Surviving spouses are eligible if receive DIC & do not remarry. 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 Tax Exemption

To qualify for the credit, 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 (DD214 must be recorded in Bremer County Recorder’s office).  New applications must be made with the Assessor on or before July 1 of the year the exemption is first claimed.  Surviving spouses remain eligible for the exemption as long as do not remarry.  The exemption remains in effect until the property owner is no longer eligible.   Refer to Code of Iowa,  Chapter 427 

Buiness 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.” New applications for the Business Property Tax Credit are to be filed with the Assessor on or before March 15.   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 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, 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

 

Links to Additional Information for Credits & Exemptions

Credits & Exemptions - Iowa State Association of Assessors (ISAA) 

 

Index of forms– Department of Revenue