The Iowa Code provides for a property tax credit for certain qualifying commercial, industrial and railroad properties.  The credit is granted per “property unit” with property units consisting of contiguous parcels of the same classification that are owned by the same person and operated for a common use and purpose.

If the property tax credit has already been claimed, it will continue  to apply to the property unit for successive years so long as the property unit continues to satisfy the requirements of the credit.  However, if the property unit is sold or transferred, the new owner must refile in order to claim the credit.

The current deadline for applying for the Iowa Business Property Tax Credit is March 15, 2016 for the 2015 assessment year.  The credit will apply to the property taxes on the assessed value payable in September 2016 and March 2017.  Note, however, a recent change to Iowa law is moving the deadline for filing for future taxes to July 1 of the current year of assessment.  Applications for the 2016 assessment year (with property taxes payable in September 2017 and March 2018) will have a filing deadline of July 1, 2016.

The actual amount of the credit varies from year to year and depends in part upon the total value of all property units statewide and the average consolidated tax rates for each individual property unit.  The form for applying for the Business Property Tax Credit can be found here.  Applicants should also check with the assessor in the jurisdiction over the property for any additional filing requirements.

If you have questions about the Iowa Business Property Tax Credit, feel free to contact Angie J. Schneiderman at 712-252-0020 or email Angie at [email protected].