Tax Credits & Exemptions

Credits & Exemptions

Iowa law provides for several 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.

The Homestead Credit, Homestead Exemptions & Military Exemptions may also be applied for online, click the following link: Bremer County Assessor’s Beacon Website

Homestead Tax Credit Application click Here
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 a person fails to file it is deemed they have waived credit for the year.  Refer to Code of Iowa, Chapter 425

Homestead Exemption Application click here

This is in addition to the homestead tax credit. To qualify for the homestead exemption, the property owner must be a resident of Iowa & occupy the property on July 1 and for at least 6 months of every year and who are 65 years of age or older on or before January 1 of assessment year.  New applications for homestead tax exemption 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 a person fails to file it is deemed they have waived credit for the year.  Refer to Code of Iowa, (not yet added to Chapter 425)

Additional information for the Homestead Tax Exemption for Claimants 65 Years of Age

Disabled Veteran Homestead Tax Credit Application click here
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 the applicant meets eligibility requirements must be presented. The DD214 must be recorded in the Bremer County Recorder's Office.  The DD214 is the Certificate of Release or Discharge from Active Duty.

Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. Surviving spouses are eligible if they receive DIC (Dependency and Indemnity Compensation) payments even upon remarriage. 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 application click here
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).    The DD214 is the Certificate of Release or Discharge from Active Duty.

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

Two Tier Assessment Limitations-formerly BPTC
May 2022 House File 2552 was signed repealing the Business Property Tax Credit (BPTC).  In lieu of the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past.

Legislatures appropriated $125 million into the fund for fiscal year beginning July 1, 2023 statewide. If total for all claims is more than appropriated amounts, claims will be prorated.

Property units with qualifying classification will qualify for the credit (Commercial, Industrial, Railroad). Properties classified as agricultural and residential are excluded which includes: apartments, assisted living facilities, mobile home parks, manufactured home communities, and land-leased communities.

 

Click here for definition of property unit: Property unit is defined 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.”
Unit is defined in IOWA CODE 426C.1


Beginning with Assessment year 2022 applications are NO LONGER required to receive the first $150,000 of assessed value at the residential assessment limitations rate.

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 1of 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

Iowa Ag Land Credit
This credit was established to partially offset the school tax burden borne by agricultural real estate. Current law allows a credit for any general school fund tax in excess of $5.40 per $1,000 of assessed value. All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of 10 acres or more. Land owners are not required to file a claim. The County Auditor determines the amount of credit applicable to each tract of land. Refer to Code of Iowa, Chapter 426

List of Credits & Exemptions (click here)

 Index of forms– Department of Revenue