From Senator Rich Taylor

Written by Theresa Rose on May 27, 2016

VETERANS BENEFITS ENCOURAGE HOME OWNERSHIP

July 1 is the deadline to apply for the disabled veteran homestead tax credit and military exemption. Once claimed, filing for these benefits in subsequent years isn’t necessary as long as the property owner remains eligible for the tax breaks.

 

A homestead property tax credit is available to all residents who own and occupy their Iowa home. Veterans also get a Military Exemption, which further reduces the taxable value of their Iowa home.

 

Disabled veterans qualify for an additional homestead tax exemption if they have a permanent and total service-connected disability. Veterans with a permanent and total disability rating, based on individual unemployability paid at the 100 percent disability rate, also can apply. The credit is extended to surviving spouses or children in some circumstances.

 

These tax benefits encourage homeownership, along with the Military Home Ownership Assistance Program. Since 2005, the Program has provided eligible service members and veterans with a $5,000 grant toward a down payment and closing costs on a qualifying home purchase.

 

The Department of Veterans Affairs reviews each application to determine a veteran’s eligibility. To be considered eligible, the service member must have served a cumulative 90 days on active duty after September 11, 2001, or have suffered an injury that precluded completion of that service while on federal active duty. Surviving spouses also are eligible.

 

Learn more about the Military Home Ownership Assistance Program at www.iowafinanceauthority.gov. For more on tax benefits for veterans and service members, go to www.tax.iowa.gov.

 

 

 

Additional information

This is a legislative update from Senator Rich Taylor, representing Henry and Lee counties and portions of Washington and Jefferson counties. For newsletters, photos and further information, go to www.senate.iowa.gov/senator/taylor.

 

To contact Senator Taylor during session, call the Senate Switchboard at 515-281-3371. Otherwise he can be reached at home at 319-931-1568. E-mail him at rich.taylor@legis.iowa.gov.

 

Senator Taylor is chair of the Local Government Committee. He also serves on the Economic Growth, Human Resources, Judiciary, and Justice Systems Budget committees.