Iowa 2025-2026 Regular Session

Iowa House Bill HF659

Introduced
2/28/25  

Caption

A bill for an act relating to housing in the state by establishing an Iowa housing tax credit program, establishing a neighborhood renovation grant program, and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

Impact

In addition to the housing tax credit, HF659 also increases deductions for first-time homebuyer savings accounts to make home purchasing more accessible for Iowa residents. For married couples filing jointly, the contribution limit is raised to $10,000, while other account holders will have a limit of $5,000. These annual deduction limits are indexed to inflation, ensuring that they adapt over time to economic changes. This adjustment will likely encourage more individuals to save specifically for purchasing their first home, potentially leading to increased homeownership rates in the state.

Summary

House File 659 (HF659) introduces significant initiatives aimed at enhancing housing accessibility and affordability within Iowa. It establishes an Iowa housing tax credit program designed to incentivize the development of low-income housing projects. The program allows individuals and entities to claim tax credits against their individual and corporate income taxes, with specific guidelines to ensure that the tax credits facilitate the financial feasibility of qualifying developments. The bill stipulates that the Iowa Finance Authority will oversee the application and approval processes for tax credits, reinforcing the state's commitment to affordable housing.

Conclusion

HF659 reflects a multifaceted approach to addressing housing issues in Iowa, blending tax incentives with grant programs to promote both homeownership and neighborhood improvements. As legislative discussions progress, stakeholders will likely scrutinize the bill to ensure that it meets the state's needs while considering potential limitations on accessibility for certain populations within the community.

Contention

Moreover, the bill establishes a Neighborhood Renovation Grant Program, which allocates $50 million for eligible homeowners to fund exterior renovations and repairs. The grants can cover a wide range of improvements, including roofing, siding, and energy efficiency upgrades, with a maximum grant amount of $20,000. There may be some contention regarding the qualifying income limits set for homeowners, as the bill caps eligibility at $109,000, which could exclude certain middle-income households from benefiting from the program. Critics might argue that the income threshold could limit access for many residents who still face affordability challenges in home renovations and improvements.

Companion Bills

No companion bills found.

Previously Filed As

IA HF2745

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, urban renewal areas, establishing a program for certain first-time homebuyers, establishing a local government efficiency grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 596.)

IA HSB563

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, the election of certain county officers, urban renewal areas and urban revitalization areas, establishing a rent reimbursement program, establishing a program for certain first-time homebuyers, establishing a local government shared-services grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SSB3034

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, the election of certain county officers, urban renewal areas and urban revitalization areas, establishing a rent reimbursement program, establishing a program for certain first-time homebuyers, establishing a local government shared-services grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SF2326

A bill for an act modifying first-time homebuyers savings accounts, and including retroactive applicability provisions.

IA SF357

A bill for an act establishing a neighborhood housing revitalization assistance program within the Iowa finance authority.

IA HB06876

An Act Establishing First-time Homebuyer Savings Accounts And A Related Tax Deduction And Credit.

IA SF2472

A bill for an act relating to state and local government taxes, fees, financial authority, and budgets, by modifying property assessment provisions, divisions of revenue, and funding from the secure an advanced vision for education fund, establishing a program for first-time homebuyers, modifying and making appropriations, and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 3001.) Effective date: 05/18/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2026, 07/01/2026, 01/01/2027, 07/01/2027, 07/01/2028.

IA HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

IA SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

IA SF657

A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.

Similar Bills

No similar bills found.