Iowa House Bill HF211

Iowa 2025-2026 Regular Session

• Introduced: 2/6/25
• Refer: 2/6/25

Caption

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.)

Summary

House File 211 creates a new Iowa income tax credit for the purchase and installation of a radon mitigation system. The credit applies to both individual and corporate income taxes and is equal to the cost of the system, up to a maximum of $1,000. A radon mitigation system is defined as an installed system designed to reduce radon concentrations in the indoor air of a building. The bill allows the credit to pass through to individuals in the case of partnerships, LLCs, S corporations, estates, and trusts taxed directly to the individual. If the credit exceeds a taxpayer’s liability for the year, the unused amount is not refundable but may be carried forward to the next tax year. The bill also includes retroactive applicability, making it effective for tax years beginning on or after January 1, 2025.

Impact

HF 211 would amend Iowa’s tax code by adding a new radon mitigation system credit in both the individual income tax and corporate income tax chapters. It would create new statutory provisions in section 422.10C and add a corresponding credit under section 422.33, while also establishing rules for pass-through entities, nonrefundability, and carryforward treatment. The bill would primarily affect taxpayers who install radon reduction systems in homes or other buildings, as well as businesses and entities subject to Iowa income tax.

Sentiment

The available voting history suggests the bill was broadly supported at the committee level, with a 24-0 House Ways and Means Committee report. No committee transcript is available, but the unanimous vote indicates little or no opposition in committee. Despite that support, the bill was ultimately withdrawn, so it did not advance to enactment in the available record.

Contention

The main policy question appears to be whether the state should subsidize radon mitigation through the tax code and, if so, at what level. Potential points of contention include the $1,000 cap, the decision to make the credit nonrefundable, and the retroactive effective date to January 1, 2025. Because the bill applies to both individual and corporate taxpayers and includes pass-through treatment, any debate would likely center on who benefits most and whether the credit is an efficient public health incentive versus a tax expenditure.