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Bill > HF435
IA HF435
IA HF435A bill for an act creating a deduction available against the individual income tax for gross rent paid by a taxpayer, and including applicability provisions.
summary
Introduced
02/17/2025
02/17/2025
In Committee
02/17/2025
02/17/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill creates a deduction available against the individual income tax for gross rent paid at arm’s length by a taxpayer for the right of occupancy of a homestead or manufactured or mobile home, including the rent for land occupied by the manufactured or mobile home not to exceed one acre. The bill applies to tax years beginning on or after January 1, 2026.
AI Summary
This bill creates a new tax deduction for individual income tax in Iowa that allows taxpayers to subtract gross rent paid for their primary home, including rent for the land under a manufactured or mobile home (up to one acre). Specifically, taxpayers can deduct rent paid "at arm's length" (meaning at a fair market rate, without special relationships between the renter and landlord) for a dwelling that serves as their primary residence. The bill defines "homestead" as a dwelling in Iowa that is rented and actually used as the taxpayer's primary home, which can include part of a multi-dwelling structure. The tax deduction will become applicable for tax years beginning on or after January 1, 2026, giving taxpayers a potential new method to reduce their state income tax liability by accounting for housing rental expenses.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced, referred to Ways and Means. H.J. 337. (on 02/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF435 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF435.html |
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