Bradley & Riley PC

The Iowa Business Property Tax Credit deadline is fast approaching. Business owners should complete their applications as soon as possible, to ensure they are received in hand by January 15th, 2014.

All applications received after the deadline, regardless of their postmark, will not receive the first year of the tax credit.

 

Iowa Business Property Tax Credit Breakdown

Who: Commercial, industrial, and railroad property owners. When: In Hand On January 15th, 2014. Where: Assessor with jurisdiction over the Property unit. Amount Credited: Each credit depends on the total value of all property units and the average consolidated rates in each unit. Resources: Iowa Department of Revenue | Application

CAUTION: After any change in ownership, a new Application must be filed. For example, if A and B own property as tenants in common, and A sells to X, a new Application is required from B and X.

 

The Iowa Business Property Tax Credit applies to certain commercial, industrial, and railroad properties. It was created as a component of a reform package signed into law in June, 2013 (Iowa Acts Senate File 295) which aims, among other things, to incentivize small business growth and roll back the taxable value of certain properties.

 

Ultimately, the individual credit amounts granted will depend on the value of all property units and the average consolidated rates in each unit. "Property units," for these purposes, are defined as contiguous parcels a) with the same classification b) owned by the same person and c) operated by that person for a common use and purpose.

That being said, the Legislative Services Agency estimates the maximum awarded credit this year will be close to $513 based on the $50 million amount appropriated by the Iowa legislature.  In future years the amount of credit is estimated to be as much as $1,900.

Applications must be submitted to the Assessor with jurisdiction over the Property unit.

This particular change in taxes is important for owners of non-residential property and is a step towards reducing property taxes on commercial and industrial property.

For questions regarding eligibility, assistance with applications, or other concerns regarding property taxes, please contact Dean Spina.

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