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SF 635

Biomass energy plant closure and sale business compensation process establishment

2025-2026 Regular Session Introduced by Andrew Lang

Implements a local property tax abatement for volunteer emergency responders: up to $500/year for qualifying homesteads, with a $500 lifetime cap for 10+ years of service.

Referred to Energy, Utilities, Environment, and Climate
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Bill Summary · SF 635

Summary of Senate File 635 (SF 635)

SF 635 proposes a new property tax abatement for Iowa volunteers who provide emergency services, aimed at recognizing long-term volunteers and reducing the tax burden on their primary residence (homestead).

Purpose and intent

  • Create a property tax abatement for volunteer emergency services providers to encourage continued service and alleviate housing costs for qualifying volunteers.
  • Treat the program as local-phased tax relief (abatement absorbed by local taxing authorities), not a state tax credit.

Key provisions

  • Eligibility
    • Must have served as a volunteer emergency services provider for at least 5 years.
    • Must have an annual income from service of less than $5,000.
    • Must remain in good standing with the volunteer agency (active in monthly meetings, training, and response calls).
    • Homestead must be located in the local service area of the volunteer agency.
  • Abatement amount
    • Annual property tax abatement capped at $500 per qualifying volunteer.
    • For volunteers with 10 or more years of service, a lifetime abatement up to $500 is available, so long as they reside in the local service area.
  • Scope of abatement
    • Applies to property taxes and special assessments assessed on the qualifying homestead.
    • Excludes any taxes or special assessments objected to or approved by the governing taxing authority within 30 days.
  • Application and approval process
    • Volunteers file a petition by October 31 preceding the first fiscal year for which the abatement is sought.
    • Petition must be sworn and accompanied by the signature/certification of the chief officer of the volunteer agency.
    • The county board of supervisors reviews the petition; if criteria are met, the abatement applies to all applicable taxes and assessments on the homestead.
    • Final determinations are made by December 31; abatement begins with the upcoming fiscal year.
  • Effective date
    • Takes effect upon enactment and applies to property taxes due and payable on or after July 1, 2026 (FY 2027).

Definitions and related terms

  • “Homestead” defined as in section 425.11.
  • “Volunteer emergency services provider” defined as in section 100B.14.
  • The process involves coordination with the county boards of supervisors and applicable taxing authorities.

Fiscal impact (as per the Fiscal Note)

  • Estimated statewide property tax revenue loss to local governments:
    • FY 2027: about $4.6 million
    • FY 2028–2031: rising to about $4.7–$5.1 million by FY 2031
  • Projections include:
    • About 11,502 eligible volunteers (based on assumptions: 21,970 volunteers statewide; 81.8% homeowners; 64% with ≥5 years of service).
    • Average abatement per eligible volunteer in FY 2027 around $402, increasing to about $441 by FY 2031 due to property value growth.
  • Abatement is a revenue loss to local taxing authorities (not a state credit).

Implementation timeline and actions

  • Introduction: April 22, 2025
  • Committee and fiscal note milestones in April 2025
  • Senate action: Passed Senate (yea 50, nays 0) on April 28, 2025; immediate message dated April 28, 2025
  • House companion: HF 1772
  • Next steps: Referred to Ways and Means; potential floor action and enactment following legislative process

Legislative history and related bills

  • Related companion: HF 1772 (House)
  • Primary committee: Energy, Utilities, Environment, and Climate (initially)
  • Status: Referred to Energy, Utilities, Environment, and Climate; subsequent actions show movement toward Ways and Means.

Who is affected

  • Volunteer emergency services providers meeting eligibility criteria (5+ years, <$5,000 annual service income, good standing).
  • Homestead property owners who qualify (likely a subset of volunteers who own homes in Iowa counties).
  • Local taxing authorities (cities/counties) that would experience reduced property tax revenues to fund the abatements.

This summary captures the bill’s aim to support long-serving volunteer emergency responders through a targeted property tax relief, while outlining the conditions, process, fiscal implications, and implementation steps.

Compiled from official sources — confirm details with the bill’s official record.

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