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New Business Property Tax Credit

An Iowa Business Property Tax Credit was signed into law this year. It creates a new property tax credit available for most properties that are classified as commercial, industrial, or railroad. The following do not qualify for the credit.

1. Section 42 housing 2. Mobile home park 3. Manufactured home communities 4. Land-leased communities 5. Assisted living facilities 6. Primarily used or intended for use for human habitation containing three or more separate dwelling units. This credit will be available for taxes first due September 2014. For the credit to apply to taxes next September, the local assessor's office must receive an application by January 15, 2014. Postmark dates are not applicable. Once filed, no further filing is required as long as the parcel or property unit satisfies the requirements of the credit or unless the property is sold, transferred, or ownership otherwise changes. A person may claim and receive one credit for each eligible parcel unless that parcel is part of a property unit that already claims a credit. A person may also claim and receive one credit for each eligible "property unit." A property unit means contiguous parcels in the same county that have the classification and are owned and operated by that person for a common use and purpose. Click here to get more information and the application for the Business Property Tax Credit on the Iowa Department of Revenue's website.

Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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