ISAA
Credits and Exemptions

Iowa law provides for a number of credits and 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.

Use the <Control> F search function to find the desired credit/exemption


Barn Exemption (Hempstead)

Image result for icon for formsBarn Preservation - Sign up deadline: February 1   
 After being approved the exemption will continue until it no longer qualifies.The barn must have been constructed prior to 1937 and be used for the storage of farm products or feed or for the housing of farm
animals or farm equipment. The exemption is only for value added due to improvements or remodeling.

Business property Image result for icon for formsBusiness Property Tax Credit   Sign up deadline: July 1 
Each commercial or industrial parcel owner can receive the credit. After being approved, the credit will continue until until any ownership change occurs. If adjoining parcels are owned by the same person, more information will be needed to determine how many credits will be allowed. This credit was created to reduce the tax on beginning amounts of business property value to the same rate as residential property.


Cattle Facility Image result for icon for formsCattle Facilities Exemption Sign up deadline: February 1 of the first year value is added. This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. The exemption is applied to value added by new construction or remodeling. This is a partial exemption for a period of five years: First year exemption is 75%, second year 60%, third year 45%, fourth year 30%,
and the 5th year 15%. One application covers all years for that project.

Data center Image result for icon for formsData Center Business Property Tax Exemption  Sign up deadline: February 1 
Property (other than land and buildings) that is utilized by data center businesses will qualify for this exemption. Typically this would be computers and equipment, cooling systems and towers, temperature control infrastructure, and power infrastructure, transformers, batteries, and power distribution which are necessary for the maintenance and operation of the web search portal site.

    
Disabled Vet Image result for icon for formsDisabled Veteran Homestead Tax Credit  Sign up deadline: July 1 
The veteran must have a permanent and total disability rating (service-connected) or individual unemployability rating that is compensated at the 100% disability rate (as certified by the United States department of veterans’ affairs). A surviving spouse or child who receives dependency and indemnity compensation (DIC) is also eligible to receive this credit. The credit will continue until the owner moves or sells the property.


Family Farm
Image result for icon for formsFamily Farm Tax Credit Sign up deadline: November 1 
The owners of farmland who are actively engaged in farming more than half of the tract or who leased/rent the land to a spouse, parent, grandparent, child, or grandchild will qualify for this credit. The minimum size is 10 acres, which includes all connecting parcels.  



Forest Cover
Image result for icon for formsForest Cover Exemption Sign up deadline: February 1. 
This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. Forest Cover includes land that is predominantly wooded. Unlike forest reserves, it can have any type of trees and shrubs. This exemption must be reapplied for each year.


Forest Reserve Image result for icon for formsForest Reserve Sign up deadline: February 1 - Forest Reverse must contain at least 200 growing trees per acre with a minimum size of 2 acres. If buildings are present, 1 acre will be removed from the exemption. No livestock is allowed on the property, nor can the area be leased for hunting. If the area is leased or pastured, up to five years of recapture tax will be made unless the property has been owned by the same family for 10 years or more. After the application has been accepted, the area shall receive the tax exemption without having to refile. If sold, the buyer does not have to refile as the exemption will continue on to the new owner.

Apple tree Image result for icon for forms Fruit Tree Reservation Exemption Sign up deadline: February 1.
 
 
 
 
 
 
 
 
 
 
The Fruit Tree exemption lasts for 8 years and is for tracts containing 1 to 10 acres with 40 apple trees or 70 other fruit trees per acre. There can be no economic gain made on these acres until the exemption has expired. After the application has been accepted, the area shall receive the tax exemption without having to refile. If sold, the buyer does not have to refile as the exemption will continue on to the new owner.


IMAGE NEEDED Image result for icon for formsGeothermal Heating and Cooling ExemptionSign up deadline: February 1 
The exemption is for the assessed value added due to a geothermal installation. The geothermal system must have been installed after July 1, 2012.  Unlike other exemptions, it doesn't have to be applied for in the year it was first added. The exemption runs for 10 years after it is applied for.

  

courthouse

Government owned property (Public school/City/County/State/Federal)  All federally owned properties are completely exempt from taxation. State owned property is also exempt, except in a few rare instances. City/County/Public school property is taxable only when it is being held for a profit. In those instances, the assessor makes the profit-held areas taxable and the remaining areas continue to be exempt from taxation. No form needs to be filed for the exemption.



Historic Preservation Image result for icon for formsHistoric Property Rehabilitation Exemption Sign up deadline: February 1    The exempted value is from new construction or for rehabilitation of historic property. The application must contain an approved application for certified substantial rehabilitation from the state historic preservation officer. The exemption schedule: Years 1 through 4 after exemption is approved = total exemption of value added. Year 5 exemption = 75% of value added.  Year 6  exemption = 50% of value added. Year 7 exemption = 25% of value added. If the property is sold, the exemption will continue without refiling.


Homestead Credit Image result for icon for forms    Homestead Tax Credit Sign up deadline: July 1
This credit is calculated by taking the levy rate times 4,850 in taxable value. The property owner must live in the property for 6 months or longer each year, and must be a resident of Iowa. The credit will continue without further signing as long as it continues to qualify or until is is sold. Family Farm Corporations is the only corporation entity that may also qualify. People signing up will also be required to certify that a smoke detector has been, or will be installed in the home.

Impoundment Image result for icon for formsImpoundment Exemption Sign up deadline: February 1 
The impoundment structure and underlying land are eligible for tax exempt status if: It is located outside any incorporated city, it has a storage capacity of at least 18 acre-feet of water and is used for agricultural purposes. The first year application must be accompanied by a water storage permit from the DNR and a copy of the impoundment plans. The exemption must be reapplied for each year.



IMAGE NEEDED Image result for icon for formsIndustrial Property Tax Exemption Sign up deadline: February 1 of the first year value is added. This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. The exemption is applied to value added by new construction or remodeling. This is a partial exemption for a period of five years: First year exemption is 75%, second year 60%, third year 45%, fourth year 30%, and the 5th year 15%. One application covers all years for that project. 


Storm Shelter
Image result for icon for formsManufactured/Mobile Home Park Storm Shelter  Sign up deadline: February 1
If the storm shelter is used exclusively as a storm shelter, the structure is fully exempt. If the storm shelter is used for any other purpose other than a storm shelter, the structure is 50% exempt and 50% taxable.



Methane gas
Image result for icon for formsMethane Gas Conversion Exemption Sign up deadline: February 1 
Property used in the used in processes to decompose waste and convert the waste to gas qualifies for property tax exemption. Also included is property used to collect gases produced as a by-product of waste decomposition and property used to convert the gas to energy. None of this exemption is intended to exempt land or buildings.



Military Credit Image result for icon for formsMilitary Exemption Sign up deadline: July 1 
Military personnel must be honorably discharged from active duty and served a minimum of 18 months, or at least one day during specific wars or conflicts, or if they served less than 18 months but were honorably discharged because of service related injuries.  Currently they can claim tax exempt property of $1852 in property valuation. An unmarried widow of a qualified veteran also qualifies for the exemption. The exemption continues until the property is sold or no longer qualifies. People signing up will also be required to certify that a smoke detector has been, or will be installed in the home.

Native Prairie
Image result for icon for formsNative Prairie Exemption Sign up deadline: February 1
Any size tracts can be signed up for native prairie, and has to be land that has never been cultivated, is unimproved, and is natural or restored grasslands wherein at least 50% of the plant canopy is a mixture of grass and forb species which were found originally on Iowa’s prairie lands.  The application must be accompanied by a certificate from the Iowa Department of Natural Resources stating the property is qualified.

 

One room Schoolhouse
Image result for icon for formsOne-Room School House Preservation Sign up deadline: February 1
Any increase in assessed value added to preserve the integrity, and internal and external features of the structure is exempt from taxation. It cannot be used for dwelling purposes. After it is filed, the exemption will continue without further applications.



Open Prairie
Image result for icon for formsOpen Prairie Exemption  Sign up deadline: February 1 
Areas with a permanent grass cover qualify for this exemption. The minimum size tract is two acres, and it must not used for pasture land. It should be protected from mowing except for weed control, so as to provide areas for nesting, winter cover and feeding areas for wildlife. This exemption needs to be signed up for annually.This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption.


Pollution Control Image result for icon for formsPollution Control Exemption  Sign up deadline: February 1 
Buildings and structures (or parts of them) which are used to control or abate air/water pollution are eligible for tax exemption. First year applications for pollution control property tax exemptions are to be submitted to the Iowa DNR for certification. A copy of the application for tax exemption and one of the certificates received from the DNR must be filed with the assessor by February 1. The exemption continues without further signup as long as it continues to qualify.


Recreational Lake
Image result for icon for formsRecreational Lakes  Sign up deadline: February 1
This is a body of water which is not a river or stream, and is owned solely by a non-profit organization, and is used primarily for boating, fishing, swimming and other recreational purposes. This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption.

 


Recycle Image result for icon for formsRecycling Exemption   Sign up deadline: February 1 
Filing this form exempts structures (or parts of structures) that are used in the conversion of waste glass, waste plastic, wastepaper products, waste paperboard, or waste wood products into new raw materials or products composed primarily of recycled material. The application shall include a certificate from the DNR certifying that the primary use of the pollution-control property is to control or abate air/water pollution. No further application is needed for exemption to continue.

Charitable and Religious Exemption Image result for icon for formsReligious and Charitable Exemption  Sign up deadline: February 1
Iowa law allows religious and charitably owned property to be full exempt from taxes. In order for the property to be exempt, it must be solely used for religious or charitable purposes. Being an IRS 501(c)3 nonprofit entity does not qualify a charitable property for exemption, as there still needs to be a charitable use in addition to the non-profit status. If a portion of the property is being held or operated for a profit, the property may be considered only partly exempt and will contain both taxable and exempt portions. 

River and Streams Image result for icon for formsRivers and Streams Exemption Sign up deadline: February 1 
This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. The area must be two acres or more in size and cannot be cultivated closer than 33 feet from the ordinary high water mark. (Ordinary High water mark is the point where the stream typically overflows it’s banks.) This area must be protected from grazing of domestic livestock or any other commercial activity. Annual reapplication is required to keep this exemption in place.


 
 
 
 
 
River and Stream banks Image result for icon for formsRiver and Stream Banks Exemption  Sign up deadline: February 1 
Like the Rivers and Streams Exemption, this exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption and the area must be two acres or more in size and cannot be cultivated closer than 33 feet from the ordinary high water mark. (Ordinary High water mark is the point where the stream typically overflows it’s banks.) This area must be protected from grazing of domestic livestock or any other commercial activity. Annual reapplication is required to keep this exemption in place.

solar panel

Solar and Wind Tax Exemption
 Sign up deadline: None

Construction of solar energy or wind turbines do not increase the assessed value of the property for five years. There is no application form, as the exemption is automatically given.



IMAGE NEEDED
Image result for icon for formsSpeculative Shell Buildings Property Tax ExemptionSign up deadline: February 1 
A City Council or Board of Supervisors or Board of Supervisors can pass an ordinance allowing this type of exemption. The ordinance will specify what type of ownership (non-profit, for-profit, community development board) can qualify. After qualifying, the new building will remain exempt until it is occupied, sold or leased. 


Urban Revit - Residential
Urban Revitalization Exemption
 Sign up deadline: February 1   
A City Council or Board of Supervisors can pass an ordinance allowing this type of exemption on value added due to new construction. That ordinance will specify the areas of a city/county that qualify, as well as what types of property uses qualify. The ordinance will also specify the percentage of exemption and the time period allowed. As each city/county will set up individual exemption schedules, there is no standard application. Applications are to be filed with the city clerk/ Board of Supervisors. 


data search portal Image result for icon for formsWeb Search Portal Exemption  Sign up deadline: February 1
Property (other than land and buildings) that is utilized by data center businesses will qualify for this exemption. Typically this would be computers and equipment, cooling systems and towers, temperature control infrastructure, and power infrastructure, transformers, batteries, and power distribution which are necessary for the maintenance and operation of the web search portal site.


WETLANDS
 
 
 
 
 
 
 
 

Image result for icon for formsWetlands Exemption  Sign up deadline: February 1 
The first application must include a certificate from the Iowa DNR stating that the land is protected wetland. Unlike most other exemptions, the exempt value is determined by using the average assessed value of the land, instead of the assessment for that specific area designated as wetland. Annual signups are required to keep the exemption in place
The application must be accompanied by a certificate from the Iowa Department of Natural Resources stating the property is qualified.  



WILDLIFE HABITAT
Image result for icon for formsWildlife Habitat  Sign up deadline: February 1  
This exemption can be up to two acres in size. The tax parcel must have an assessed classification of Agricultural.  No exemption should be granted if there is any economic gain from this land. The exemption will continue without further signups until the property no longer qualifies.

 

 
 
 
 
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