Read the full stored bill text
Senate
File
2285
-
Introduced
SENATE
FILE
2285
BY
SINCLAIR
A
BILL
FOR
An
Act
providing
a
tax
credit
for
car
registration
fees
paid
by
1
a
disabled
veteran
available
against
the
individual
income
2
tax,
and
including
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2285
Section
1.
NEW
SECTION
.
422.12R
Car
registration
fee
tax
1
credit
——
disabled
veteran.
2
1.
As
used
in
this
section,
“disabled
veteran”
means
either
3
of
the
following:
4
a.
A
veteran
as
defined
in
section
35.1
with
a
permanent
5
service-connected
disability
rating
of
one
hundred
percent,
as
6
certified
by
the
United
States
department
of
veterans
affairs,
7
or
a
permanent
and
total
disability
rating
based
on
individual
8
unemployability
that
is
compensated
at
the
one
hundred
percent
9
disability
rate,
as
certified
by
the
United
States
department
10
of
veterans
affairs.
11
b.
A
former
member
of
the
national
guard
of
any
state
who
12
otherwise
meets
the
service
requirements
of
section
35.1,
13
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
14
permanent
service-connected
disability
rating
of
one
hundred
15
percent,
as
certified
by
the
United
States
department
of
16
veterans
affairs,
or
a
permanent
and
total
disability
rating
17
based
on
individual
unemployability
that
is
compensated
at
the
18
one
hundred
percent
disability
rate,
as
certified
by
the
United
19
States
department
of
veterans
affairs.
20
2.
The
taxes
imposed
under
this
subchapter,
less
the
21
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
22
car
registration
fee
tax
credit
equal
to
the
amount
of
a
car
23
registration
fee
paid
by
a
disabled
veteran
under
section
24
321.105
for
the
year,
not
to
exceed
a
maximum
amount
of
one
25
hundred
dollars.
26
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
27
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
28
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
29
credited
to
the
tax
liability
for
the
following
tax
year.
30
4.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
31
administer
this
section.
32
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
33
retroactively
to
January
1,
2026,
for
tax
years
beginning
on
34
or
after
that
date.
35
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2285
EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
provides
a
tax
credit
for
car
registration
fees
4
paid
by
a
disabled
veteran
with
a
100
percent
disability
rating
5
that
is
available
against
the
individual
income
tax.
Under
6
the
bill,
the
disabled
veteran
shall
receive
the
tax
credit
in
7
an
amount
not
to
exceed
$100
for
car
registration
fees
paid
8
under
Code
section
321.105
(annual
registration
fee)
for
the
9
year.
The
bill
defines
a
veteran
with
a
100
percent
disability
10
rating.
11
The
tax
credit
is
refundable.
In
lieu
of
claiming
a
12
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
13
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
14
liability
for
the
following
tax
year.
15
The
department
of
revenue
may
adopt
rules
pursuant
to
Code
16
chapter
17A
to
administer
the
bill.
17
The
bill
applies
retroactively
to
tax
years
beginning
on
or
18
after
January
1,
2026.
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