A bill for an act relating to radon by establishing radon mitigation requirements, creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions. (Formerly HF 211.)
Summary
HF 1027 would address radon exposure in two main ways. First, it directs the state commissioner to adopt a building code requirement that new single-family and two-family homes include passive radon mitigation methods, but only for construction started after the rule is adopted. Second, it creates a new income tax credit for the purchase and installation of a radon mitigation system, capped at $1,000, for both individual and corporate income tax filers.
The tax credit applies to systems installed in buildings to reduce indoor radon concentrations and can be claimed by individuals, including through pass-through entities such as partnerships, LLCs, S corporations, estates, and trusts. The credit is nonrefundable, but unused amounts may be carried forward to the next tax year. The bill also makes both the new individual credit and the corporate credit retroactive to January 1, 2025, for tax years beginning on or after that date.
Impact
The bill would amend Iowa law by adding a new radon mitigation requirement to the state building code under chapter 103A and by creating new tax credit provisions in chapters 422.10C and 422.33 for individual and corporate income taxes. It would affect builders of new single-family and two-family homes, taxpayers who install radon mitigation systems, and the Iowa Department of Revenue and building code officials responsible for implementing the new provisions. The retroactive applicability clause could allow qualifying taxpayers to claim the credit for eligible expenses incurred earlier in 2025.
Sentiment
The bill appears to have been broadly well received, as reflected by the House vote of 92-1 in favor of passage. The strong margin suggests general support for radon reduction measures and for using both building-code standards and tax incentives to encourage mitigation. No committee transcript was provided, so the available record shows little evidence of organized opposition in the materials supplied.
Contention
The main policy questions likely concern the cost and scope of the new requirements and tax credit. Builders and housing stakeholders may be attentive to the added construction requirements for new homes, while fiscal observers may focus on the revenue impact of the tax credit and its retroactive application. Because the credit is capped at $1,000 and is nonrefundable, the bill limits state exposure, but the retroactive feature could still raise administrative and timing concerns. The near-unanimous House vote suggests any disagreement was limited or minor.
Similar To
A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)
A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)
A bill for an act relating to radon mitigation requirements and tax credits, including retroactive applicability provisions, and making appropriations.
A bill for an act creating a state work opportunity tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.
A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.(Formerly HF 962.)
A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 965.)
A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 56.)
A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.
A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.