House File 865 passed the Iowa House this week with bipartisan support and simplifies the process for some property owners to receive the Business Property Tax Credit without interruption.
The Business Property Tax Credit was part of the overall 2013 property tax reform bill that was enacted by the Iowa Legislature and signed by Governor Branstad. This credit is available for certain commercial, industrial and railroad properties. The credit is applicable to individual parcels as well as “property units.” One credit is available for each qualified parcel or property unit. The amount of the credit for a property owner depends on how many people apply for the credit. The credit is given out of a fund that is capped at $125.0 million annually.
House File 865 eliminates the need to refile for the tax credit when a portion of a parcel that gets the credit is sold or transferred. The bill strikes the provision in Code section 426C.3 that required a property owner to refile for the credit when a portion of a parcel or property unit was sold, transferred, or ownership otherwise changes. Instead it will just happen automatically. This way there will be no lapse in credit. The bill takes effect upon enactment and now moves to the Senate for further consideration.