Tax breaks

2020 snapshot

Exemptions, deductions and exclusions

The Department of Revenue hasn’t updated this study since 2020. These are its estimates for tax year 2020 (property tax: 2018 assessments). Iowa has since cut income tax rates to one flat rate and stopped taxing retirement income, so the income tax figures, especially, are out of date².

Every break in the study

63 breaks in property tax (local).

• Agricultural Classification Valuation$4.03B
  Property tax (local) · Partial exemption · Agriculture Support · Iowa Code 441.21(1)(e)Rather than market value, assessment of agricultural real estate is based exclusively on consideration of productivity and net earning capacity. The methods for determining productivity and earning capacity are applied uniformly among counties and classes of property.
• Residential Classification Valuation Rollback$2.49B
  Property tax (local) · Partial exemption · Consumer Benefit · Iowa Code 441.21(4)Iowa law provides for statewide limitations on annual growth in assessed property valuations. Growth limits are set at 3 percent a year (8% for utilities) with a base of the 1978 assessment year for residential and agricultural property and 1979 for other classes of property.
• Agricultural Classification Valuation Rollback$680.4M
  Property tax (local) · Partial exemption · Agriculture Support · Iowa Code 441.21(4), 441.21(5)Iowa law provides for statewide limitations on annual growth in assessed property valuations. Growth limits are set at 3 percent a year (8% for utilities) with a base of the 1978 assessment year for residential and agricultural property and 1979 for other classes of property.
• Agricultural Produce$461.6M
  Property tax (local) · Exemption · Agriculture Support · Iowa Code 427.1(11)The following classes of property shall not be taxed: Agricultural produce. Growing agricultural and horticultural crops except commercial orchards and vineyards. Eligible agricultural and horticultural crops include Christmas trees, bedding plants, berries and other nursery crops.
• Religious, Literary, and Charitable Societies' Property$356.3M
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(8)All grounds and buildings used or under construction by literary, scientific, charitable, benevolent, agricultural, and religious institutions and societies solely for their appropriate objects, not exceeding three hundred twenty acres in extent and not leased or otherwise used or under construction with a view to …
• Municipal and Military Property$210.5M
  Property tax (local) · Exemption · Government · Iowa Code 2015Government municipal and military property is exempt from property tax. Such property includes property of counties, townships, cities, school corporations, levee districts, and the Iowa National Guard.
• Commercial and Industrial Property Tax Rollback$187.7M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 441.21For property evaluations established for the assessment year beginning January 1, 2013, commercial and industrial property will be assessed at 95% of its actual value.
• Commercial and Industrial Property Tax Replacement$152.0M
  Property tax (local) · Credit · Business Incentive · Iowa Code 441.21ABeginning with the fiscal year beginning July 1, 2014, a county may make a claim to the Department of Revenue for an amount equal to the total amount of the commercial and industrial property tax replacement claims made by the taxing districts located in the county.
• Homestead Property Tax Credit$140.0M
  Property tax (local) · Budgeted credit · Consumer Benefit · Iowa Code 425Provides property tax relief to individuals that own and occupy a property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes, and occupy the property for at least six months each year are eligible to claim a credit against property tax.
• Business Property Tax Credit$125.1M
  Property tax (local) · Credit · Business Incentive · Iowa Code 426CA credit is established for property taxed as commercial property, industrial property or railway property. Property must be contiguous, be located within the same county, have the same property classification, be owned by the same person, and be operated by that person for a common use and purpose.
• Wind Energy Conversion Property$103.2M
  Property tax (local) · Partial exemption · Environmental Support · Iowa Code 427B.26A city council or county board of supervisors may provide for special valuation of wind energy conversion property. The special valuation applies to the net acquisition cost of the wind energy conversion property. The special valuation schedule is 0% for the first assessment year;
• Urban Revitalization$84.8M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 404Cities or counties may establish urban revitalization areas in order to encourage development. The city or county may thereby exempt from property tax portions of new taxable value added to qualified property located in the urban revitalization area if the new value is the result of improvements made to the property …
• Multiresidential Property Rollback$58.5M
  Property tax (local) · Partial exemption · Consumer Benefit · Iowa Code 441.21(13)(b)For valuations established for the assessment year beginning January 1, 2018, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be the greater of seventy-five percent or the percentage of actual value …
• Federal and State Property$44.9M
  Property tax (local) · Exemption · Government · Iowa Code 427.1(1)Property of the State of Iowa and the United States, with the exception of federal property subject to taxation under federal statute, is exempt from property tax. , including state university, university of science and technology, and school lands,
• High Quality Jobs Program (HQJP) Local Property Tax Exemption$42.3M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 15.332A city, county, or partnership of government entities may exempt the value added by property improvements related to new jobs created by the location or expansion of an eligible business from property tax under the High Quality Jobs Program.
• Agricultural Land Tax Credit$29.1M
  Property tax (local) · Budgeted credit · Agriculture Support · Iowa Code 426The Agricultural Land Tax 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.
• Data Center and Web Search Portal Property$22.9M
  Property tax (local) · Exemption · Business Incentive · Iowa Code 427.1(35)This exemption includes computers and equipment necessary for the maintenance and operation of a web search portal or data center business.
• Forest and Fruit-Tree Reservations$22.2M
  Property tax (local) · Exemption · Natural Resources Support · Iowa Code 427CProperty established as a forest or fruit tree reservation is exempt from property tax. Forest reserves must be at least two acres and have at least 200 trees per acre. Fruit tree reserves must be between one and ten acres and have at least 40 apple trees or 70 other fruit trees per acre.
• Nursing Facilities$17.1M
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 2015The property of nursing facilities which are exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code are exempt from property tax.
• Telecommunication Company Property$16.6M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 433.4In assessment year 2013, telecommunication companies received an exemption tied to and applied to each specified portion of the property's value. These are the percentages of exemptions for 2013 and 2014. In 2013, 20% on $0-$20M, 17.5% On $21M to $55M, 12.5% on $56M to $500M, >$500M 10%.
• Industrial Property, Research-Service Facilities, Warehouses, Distribution Centers & Cattle Facilities$15.1M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 427B.1A city council or county board of supervisors may enact an ordinance granting partial exemption from property tax of the value added to industrial real estate as a result of new construction of industrial real estate, research service facilities, warehouses, distribution centers, and cattle facilities.
• Elderly and Persons with Disabilities Rent Reimbursement$14.1M
  Property tax (local) · Budgeted credit · Consumer Benefit · Iowa Code 425.16This credit provides property tax relief to low-income elderly renters or renters with disabilities. The amount of credit is based in part upon rent paid.
• Disabled Veteran Homestead Tax Credit$12.3M
  Property tax (local) · Budgeted credit · Consumer Benefit · Iowa Code 425.15Any disabled veteran eligible for a Homestead credit who acquired the homestead property under Title 38 of the United States Code (which provides support for housing for disabled veterans) and whose household income does not exceed $35,000 may claim a credit equal to the entire amount of property tax payable on the …
• Low-Rent Housing for the Elderly and Persons with Disabilities$12.0M
  Property tax (local) · Partial exemption · Charitable Organization Support · Iowa Code 427.1(21)Property owned and operated by a nonprofit organization providing low-rent housing for persons who are elderly or with physical or mental disabilities is exempt from property tax. The exemption extends only until the original low-rent housing development mortgage on the property has been paid in full or expires.
• Pollution Control and Recycling Property$10.9M
  Property tax (local) · Partial exemption · Environmental Support · Iowa Code 427.1(19)Certain pollution control and recycling property are exempt from property tax, limited to the market value of such property. Claimants must be certified as eligible by the Iowa Department of Natural Resources.
• Family Farm Tax Credit$10.0M
  Property tax (local) · Budgeted credit · Business Incentive · Iowa Code 425AThe Family Farm Tax Credit partially offsets 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.
• Railroad Property Tax Rollback$7.2M
  Property tax (local) · Exemption · Business Incentive · Iowa Code 441.21(4), 441.21(5)For property evaluations established for the assessment year beginning January 1, 2013, railroad property will be assessed at 95% of its actual value.
• Annexation of Property by a City$7.0M
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 368.11(3)(m)City councils may provide exemption from city property taxes in annexation areas and phase in the imposition of city taxes over a maximum of ten years. Iowa Code provides a schedule whereby city councils may exempt annexation areas from 75 percent of property taxes in the first and second years after annexation.
• Elderly and Persons with Disabilities Credit$4.6M
  Property tax (local) · Budgeted credit · Consumer Benefit · Iowa Code 425.16This credit provides property tax relief to low-income elderly homeowners or homeowners with disabilities. The amount of credit is based in part upon property taxes paid.
• Military Service Exemption and Credit$1.8M
  Property tax (local) · Budgeted credit · Military/Veterans' Support · Iowa Code 426AFor World War I veterans, $2,778 of taxable value and $1,852 for other veterans is exempt from property tax. Eligible property must be owned by the veteran, spouse, or certain other relatives or a family farm corporation of which the person is a shareholder. The claimant must be a resident of Iowa.
• Libraries and Art Galleries$1.5M
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(7)The grounds and buildings of public libraries, public art galleries, and private libraries and art galleries for public use and not for private profit are exempt from property tax.
• Solar Energy Systems$1.4M
  Property tax (local) · Exemption · Environmental Support · Iowa Code 441.21(8)(b)Construction or installation of a solar energy system on agricultural, residential, commercial, or industrial property, shall not increase the taxable value of the property for five full assessment years.
• Wildlife Areas or Natural Conservation$1.4M
  Property tax (local) · Exemption · Natural Resources Support · Iowa Code 427.1(22)Wildlife areas and natural conservation areas are exempt from property tax. Such areas include recreational lakes, forest covers, rivers, streams, and open prairies as designated by the county board of supervisors.
• War Veterans' Associations$1.2M
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(5)Property of any organization composed only of military veterans of any war is exempt from property tax when the property is only used by the organization and is not used for profit.
• Geothermal System Property$800K
  Property tax (local) · Exemption · Environmental Support · Iowa Code 427.1(38)The value added by any new or refitted construction or installation of a geothermal heating or cooling system, on or after July 1, 2012, on property classified as residential is exempt. The exemption is allowed for ten consecutive years.
• Racetracks$700K
  Property tax (local) · Exemption · Business Incentive · Iowa Code 99D.14(6)Real property used in the operation of a racetrack or racetrack enclosure that is owned by a city, county, state, or charitable or nonprofit entity is exempt from property tax.
• Cemetery Associations$400K
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 2015Burial grounds, mausoleums, buildings, and equipment owned and operated by cemetery associations and used exclusively for the interment of human remains are exempt from property tax.
• Public Grounds and Cemeteries$400K
  Property tax (local) · Exemption · Government · Iowa Code 427.1(3)Public grounds including cemeteries and adjacent crematoriums are exempt from property tax. The exemption only applies if no profits are derived from the property.
• Native Prairie and Wetlands$200K
  Property tax (local) · Exemption · Natural Resources Support · Iowa Code 427.1(23)Native prairie and wetland property is exempt from property tax. To be exempt, such property cannot be used for economic gain and must be certified by the Iowa Department of Natural Resources.
• Speculative Shell Buildings$200K
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 427.1(27)A city council or county board of supervisors may enact an ordinance granting property tax exemptions for value added as a result of new construction, reconstruction, or renovation of speculative shell buildings owned by community development organizations, for-profit entities, or not-for-profit organizations.
• Historic Property Rehabilitation$100K
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 427.16Property approved by the assessor is eligible for a property tax exemption for up to four years if it meets the definition of historic property, which means any of the following: (1) property in Iowa listed on the national register of historic places; (2) an historical site as defined in section 303.2;
• American Indian Housing Authority PropertyMinimal
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(33)Property owned and operated by American Indian housing authorities is exempt from property tax. An exemption agreement must be signed by the board of supervisors or the city council.
• Armory or Military PropertyNo estimate
  Property tax (local) · Exemption · Government · Iowa Code 29A.60All personal and real property held and used for armory or military purposes is exempt from property tax. Included with Municipal and Military Property.
• Barn PreservationMinimal
  Property tax (local) · Partial exemption · Agriculture Support · Iowa Code 427.1(31)The increase in assessed value from improvements made to barns constructed prior to 1937 is exempt from property tax. The exemption for a barn continues as long as the structure is used for the storage of farm products or feed or for the housing of farm animals or farm equipment.
• Car Wash EquipmentNot estimated
  Property tax (local) · Exemption · Business Incentive · Iowa Code 427A.1(6)Car wash equipment is exempt from property tax. Such equipment includes that used in washing, waxing, drying, and vacuuming motor vehicles and point-of-sale equipment used in purchasing car wash services.
• Cogeneration Replacement Tax ClarificationNot estimated
  Property tax (local) · Partial exemption · Business Incentive · Iowa Code 437A.16AA new cogeneration facility is subject to the assessed value provisions of section 437A.16A, but the exemptions provided in 427B.17 will be reduced by an amount found by determining the ratio that is the same proportion as the ratio of the credit allowed under 437A.16A(1) to the assessable value of the entire …
• Computers and Industrial Machinery and Equipment Special ValuationNot estimated
  Property tax (local) · Exemption · Business Incentive · Iowa Code 427B.17All computers, machinery and equipment classified as industrial real estate acquired after December 31, 1993 are exempt from property tax.
• Concrete Batch Plants and Hot Mix Asphalt FacilitiesNot estimated
  Property tax (local) · Exemption · Business Incentive · Iowa Code 427A.1(c)Machinery, equipment, and fixtures used in processing concrete or asphalt at a mixing facility are exempt from property tax.
• Dwelling Unit Property Owned by Community Housing Development OrganizationMinimal
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(21a)Dwelling unit properties owned by non-profit community housing development organizations are exempt from property tax. The dwelling units must be located in a city with a population of more than 110,000 which has a public housing authority that does not own or manage its own low-rent housing.
• Fairground Property Tax ExemptionNo estimate
  Property tax (local) · Exemption · Government · Iowa Code 427.1(39)Fairgrounds that are owned by a county or fair board are exempt from property tax. Included with Municipal and Military Property.
• Fire Company PropertyNo estimate
  Property tax (local) · Exemption · Government · Iowa Code 427.1(4)Publicly-owned fire company property is exempt from property tax. Such property includes buildings and grounds used exclusively for keeping fire engines and firefighting equipment. Included with Municipal and Military Property.
• Government PropertiesNo estimate
  Property tax (local) · Exemption · Government · Iowa Code 427.1(12)Government property that is entered and located, or purchased from the State of Iowa, is exempt from property tax in the year of the entry, location, or purchase. Included with Municipal and Military Property.
• Homes for SoldiersMinimal
  Property tax (local) · Exemption · Military/Veterans' Support · Iowa Code 427.1(10)The buildings and grounds of homes owned and operated by organizations of United States soldiers, sailors, or marines when used as non-profit homes for disabled veterans are exempt from property tax.
• Impoundment StructuresMinimal
  Property tax (local) · Exemption · Environmental Support · Iowa Code 427.1(20)Impoundment structures and underlying land located outside any incorporated city are exempt from property tax. To be exempt, such structures must be approved by Soil and Water Conservation District commissioners and the Iowa Department of Natural Resources.
• Methane Gas Conversion PropertyMinimal
  Property tax (local) · Exemption · Environmental Support · Iowa Code 427.1(29)Property used to collect methane gas or other gases produced as a by-product of waste decomposition and to convert the gas to energy is exempt from property tax.
• Mobile Home Park Storm ShelterMinimal
  Property tax (local) · Partial exemption · Consumer Benefit · Iowa Code 427.1(30)Storm shelters for manufactured home communities or mobile home parks are exempt from property tax. If such a structure is used exclusively as a storm shelter structure, all of the structure's assessed value is exempt from tax, otherwise it is assessed at 50 percent of its value as commercial property.
• One-Room Schoolhouse PreservationMinimal
  Property tax (local) · Partial exemption · Charitable Organization Support · Iowa Code 427.1(32)The increase in assessed value from improvements made to one-room school houses is exempt from property tax. The exemption for the school house continues as long as the structure is not used for dwelling purposes and is preserved as a one-room school house.
• Port AuthorityNot estimated
  Property tax (local) · Exemption · Business Incentive · Iowa Code 427.1(34)The property of port authorities, when devoted to public use and not held for profit, is exempt from property tax.
• Public Airport PropertyNo estimate
  Property tax (local) · Exemption · Government · Iowa Code 2015Public airports are exempt from property tax. Tax exemption estimate is included in Government Properties estimate. Included with Municipal and Military Property.
• Public Television StationMinimal
  Property tax (local) · Exemption · Government · Iowa Code 427.1(26)All public television station grounds and buildings not leased or otherwise used for profit are exempt from property tax.
• Rural Water DistributionNot estimated
  Property tax (local) · Exemption · Charitable Organization Support · Iowa Code 427.1(17)Real property of nonprofit corporations devoted to the sale and distribution of water to rural areas for public use is exempt from property tax.
• Underground Storage TanksNot estimated
  Property tax (local) · Credit · Environmental Support · Iowa Code 427B.20A city council or county board of supervisors may by ordinance grant property tax credits to small business owners for payment of underground storage cleanup costs. The credit may be for part or all of the property taxes otherwise owed.
• Wildlife HabitatMinimal
  Property tax (local) · Exemption · Natural Resources Support · Iowa Code 427.1(24)Land used to provide wildlife habitat is exempt from property tax. To be exempt, such property must be classified as agricultural real estate and be certified by the Iowa Department of Natural Resources.