Iowa Business Property Tax Credit


Zach Homyk, Senior Manager

312.980.1183 | zachary.homyk@ryan.com

Zach Ellington, Senior Consultant

312.980.1149 | zachary.ellington@ryan.com

The Iowa Business Property Tax Credit pertains to all commercial, industrial, and railroad properties, with the following exceptions:

• Agricultural property
• Residential property
• Property that is valued for property tax purposes and rented or leased under Section 42 (low-income) housing
• Hotels, motels, and inns in which rooms are rented for more than 30 days at a time
• Multiresidential property

Each year, the annual tax credit pool is $125 million. The amount of credit each property will receive depends on the number of approved applications statewide, of which each assessor will have discretion to determine which properties are eligible in their jurisdictions. Once a ruling is made, if the claim is denied, the property owner will be notified with the reasons for disapproval and will be able to appeal the ruling to the District Court within 20 days of the notice mail date.

To be eligible for the Business Tax Credit, an application must be filed by the owner by or before July 1 to the respective jurisdiction in which the properties reside. By filing for 2020, this credit will be realized for the taxes payable in 2021/2022. This is a one-time filing, as long as the title and/or legal boundaries of the property remain the same. If a property is sold, it is the responsibility of the new owner to file a new claim. If a portion of a property sells, thereby changing the status of the property unit, the original owner must also refile a claim.

Click here for the one-page application to apply for the Iowa Business Property Tax Credit.