Bill
Bill > SF2285
IA SF2285
IA SF2285A bill for an act providing a tax credit for car registration fees paid by a disabled veteran available against the individual income tax, and including retroactive applicability provisions.
summary
Introduced
02/11/2026
02/11/2026
In Committee
02/11/2026
02/11/2026
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill provides a tax credit for car registration fees paid by a disabled veteran with a 100 percent disability rating that is available against the individual income tax. Under the bill, the disabled veteran shall receive the tax credit in an amount not to exceed $100 for car registration fees paid under Code section 321.105 (annual registration fee) for the year. The bill defines a veteran with a 100 percent disability rating. The tax credit is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year. The department of revenue may adopt rules pursuant to Code chapter 17A to administer the bill. The bill applies retroactively to tax years beginning on or after January 1, 2026.
AI Summary
This bill establishes a new tax credit for disabled veterans, allowing them to receive a credit against their individual income tax for car registration fees they have paid. A "disabled veteran" is defined as someone with a permanent service-connected disability rating of 100 percent, as certified by the U.S. Department of Veterans Affairs, or a similar rating based on individual unemployability. The credit is capped at $100 per year and applies to fees paid under Code section 321.105, which covers annual car registration. Importantly, this tax credit is refundable, meaning if the credit amount exceeds the veteran's tax liability, they can receive the difference as a refund, or they can choose to apply it to their tax bill for the following year. The bill also includes provisions for the Department of Revenue to create rules for administering this credit and makes it retroactive to tax years beginning on or after January 1, 2026.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Subcommittee: Dawson, Bisignano, and Gruenhagen. S.J. 295. (on 02/16/2026)
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=SF2285 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF2285.html |
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