The Iowa legislature recently enacted the Business Property Tax Credit. The credit will allow commercial-property owners to cut down on the property taxes in 2013 that will be payable in the fall of 2014 or the spring of 2015. This credit will apply to certain commercial, industrial, and railroad properties. It will not apply to properties such as agricultural property, residential property, property that is rented or leased under low-income housing, mobile home parks, nursing homes, or manufactured home communities.

The credit is designed to help small businesses in Iowa, but large businesses can take advantage of the credit up to a certain amount as well. The Iowa Legislature saw high commercial property taxes as a factor that decreases business growth and new job creation. Their hope is that by giving businesses this credit, it will also give local economies a boost. The Legislature estimates that the credit will about $523.

You must apply for the Iowa Business Property Tax Credit by January 15, 2014. Check out www.iowa.gov/tax/locgov/13PTReform.html to apply for the credit. You can also find more information here: http://www.iowa.gov/tax/locgov/BPTCInstructions.pdf. If you have questions about how the credit will affect your business or how you should apply for this credit, contact Arenson Law Group, PC at 319-363-8199 today, and will be happy to discuss the new credit with you.

Written by James H. Arenson

Last Updated : November 13, 2013