Business Property Tax Credit: Information for Taxpayers
What is the Business Property Tax Credit?
The Business Property Tax Credit is part of the overall 2013 property tax reform bill that was enacted
by the Iowa Legislature and signed by Governor Branstad. The credit is applied toward property tax
due on the 2013 property assessment and payable in the fall of 2014 and the spring of 2015.
What Property is Eligible for the Credit?
This credit is available for certain commercial, industrial and railroad properties. The credit is
applicable to individual parcels as well as “property units.” One credit is available for each qualified
parcel or property unit.
What is a Property Unit?
A property unit is a new concept specific to the credit. The law defines a property unit as contiguous
parcels of the same classification that are owned by the same person, located in the same county, and
operated by that person for a common use and purpose.
What is a Contiguous Parcel?
Contiguous parcels are:
• Parcels that share a common boundary;
• Parcels within the same building or structure, regardless of whether or not they share a
common boundary; or
• Permanent improvements to the land that are situated upon one or more parcels of land that
are assessed and taxed separately from the permanent improvements if the parcels of land
upon which the permanent improvements are situated share a common boundary. A more
common way to describe this situation is permanent improvements upon leased land.
What Property is NOT Eligible for the Credit?
The following types of property are not eligible for the Business Property Tax Credit:
• Agricultural property
• Residential property
• Property that is rented or leased under Section 42 (low income) housing
• Hotels, motels, and inns in which rooms are rented for more than 30 days at a time
• Mobile home parks