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Amendments

Amendment H-8495

Pending

Filed May 3, 2026 in the House by

What it changes

  1. By striking page 1, line 5, through page 57, line 19, and inserting: ““DIVISION I COUNTY PROPERTY TAXES AND BUDGETS Section
  2. Section 331.423, subsection 1, paragraph b, subparagraph (1), Code 2026, is amended to read as follows: (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028 2027 , subject to subparagraph (3), the greater of three dollars and fifty cents per thousand dollars of assessed value used to calculate taxes for general county services for the budget year and the adjusted general county basic levy rate, as adjusted under subparagraph (2), if applicable. Sec. ___. Section 331.423, subsection 1, paragraph c, Code 2026, is amended to read as follows: c. For each fiscal year beginning on or after July 1, 2028, three dollars and fifty cents per thousand dollars of assessed value. For fiscal years beginning on or after July 1, 2027, but before July 1, 2030, a levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by the remainder of the total assessed value used to calculate such taxes for the budget year minus value attributable to new valuation. Sec. ___. Section 331.423, subsection 1, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . d. For each fiscal year beginning on or after July 1, 2030, the lesser of: (1) A levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by -1- S 5210.4563.S (2) 91 mb 1/ 82 the remainder of the total assessed value used to calculate such taxes for the budget year minus value attributable to new valuation. (2) Three dollars and fifty cents per thousand dollars of assessed value. Sec. ___. Section 331.423, subsection 2, paragraph b, subparagraph (1), Code 2026, is amended to read as follows: (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028 2027 , subject to subparagraph (3), the greater of three dollars and ninety-five cents per thousand dollars of assessed value used to calculate taxes for rural county services for the budget year and the adjusted rural county basic levy rate, as adjusted under subparagraph (2), if applicable. Sec. ___. Section 331.423, subsection 2, paragraph c, Code 2026, is amended to read as follows: c. For each fiscal year beginning on or after July 1, 2028, three dollars and ninety-five cents per thousand dollars of assessed value. For fiscal years beginning on or after July 1, 2027, but before July 1, 2030, a levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by the remainder of the total assessed value used to calculate such taxes for the budget year minus value attributable to new valuation. Sec. ___. Section 331.423, subsection 2, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . d. For each fiscal year beginning on or after July 1, 2030, the lesser of: (1) A levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by the remainder of the total assessed value used to calculate -2- S 5210.4563.S (2) 91 mb 2/ 82 such taxes for the budget year minus value attributable to new valuation. (2) Three dollars and ninety-five cents per thousand dollars of assessed value. Sec. ___. Section 331.423, subsection 3, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . c. “New valuation” means the increase from the current fiscal year to the budget year in taxable valuation, as shown on the assessment roll due to the following, the amount of each as reported under section 331.510 by the county auditor to the department of management: (1) New construction. (2) Additions or improvements to existing structures that are not normal and necessary repairs under section 441.21, subsection
  3. (3) Net boundary adjustments, including annexation, severance, incorporation, consolidation, or discontinuance as those terms are defined in section 368.1. Sec. ___. Section 331.423, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION . 2A. The amount of property tax dollars calculated under this section includes those amounts budgeted and received by the county as replacement taxes under chapter 437A or 437B, if applicable. Sec. ___. EFFECTIVE DATE. This division of this Act takes effect January 1,
  4. Sec. ___. APPLICABILITY. This division of this Act applies to property taxes and budgets for fiscal years beginning on or after July 1,
  5. DIVISION ___ CITY PROPERTY TAXES AND BUDGETS Sec. ___. Section 384.1, subsection 3, paragraph c, subparagraph (1), Code 2026, is amended to read as follows: (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028 2027 , subject to subparagraph -3- S 5210.4563.S (2) 91 mb 3/ 82 (3), a city’s tax levy for the general fund, except for levies authorized in section 384.12 , shall not exceed in any tax year the greater of eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes for the budget year and the adjusted city general fund levy rate, as adjusted under subparagraph (2), if applicable. Sec. ___. Section 384.1, subsection 3, paragraph d, Code 2026, is amended to read as follows: d. For each fiscal year beginning on or after July 1, 2028, a city’s tax levy rate for the general fund, except for levies authorized in section 384.12 , shall not exceed eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes in any fiscal year. For fiscal years beginning on or after July 1, 2027, but before July 1, 2030, a city’s tax levy rate for the general fund, except for levies authorized in section 384.12, shall not exceed a levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by the remainder of the total assessed value used to calculate such taxes for the budget year minus value attributable to new valuation. Sec. ___. Section 384.1, subsection 3, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . e. For each fiscal year beginning on or after July 1, 2030, a city’s tax levy rate for the general fund, except for levies authorized in section 384.12, shall not exceed the lesser of: (1) A levy rate per one thousand dollars of assessed value equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by the remainder of the total assessed value used to calculate such taxes for the budget year minus value attributable to new valuation. -4- S 5210.4563.S (2) 91 mb 4/ 82 (2) Eight dollars and ten cents per thousand dollars of assessed value. Sec. ___. Section 384.1, subsection 4, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . c. “New valuation” means the increase from the current fiscal year to the budget year in taxable valuation, as shown on the assessment roll due to the following, the amount of each as reported under section 331.510 by the county auditor to the department of management: (1) New construction. (2) Additions or improvements to existing structures that are not normal and necessary repairs under section 441.21, subsection
  6. (3) Net boundary adjustments, including annexation, severance, incorporation, consolidation, or discontinuance as those terms are defined in section 368.1. Sec. ___. Section 384.1, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION . 3A. The amount of property tax dollars calculated under this section includes those amounts budgeted and received by the city as replacement taxes under chapter 437A or 437B, if applicable. Sec. ___. EFFECTIVE DATE. This division of this Act takes effect January 1,
  7. Sec. ___. APPLICABILITY. This division of this Act applies to property taxes and budgets for fiscal years beginning on or after July 1,
  8. DIVISION ___ RATE-LIMITED PROPERTY TAX LEVY RATES Sec. ___. Section 24.48, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION .
  9. The authority to suspend property tax levy limitations under this section shall not apply to the limitations of section 444.25. Sec. ___. Section 312.2, subsection 5, paragraph a, -5- S 5210.4563.S (2) 91 mb 5/ 82 unnumbered paragraph 1, Code 2026, is amended to read as follows: The treasurer of state, before making any allotments to counties under this section , shall reduce the allotment to a county for the secondary road fund by the amount by which the total funds that the county transferred or provided during the prior fiscal year under section 331.429, subsection 1 , paragraphs “a” , “b” , “d” , and “e” , are less than seventy-five fifty-one percent of the sum of the following: Sec. ___. NEW SECTION . 444.25 Maximum property tax levy rates —— adjustments.
  10. For purposes of this section: a. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified. b. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified. c. “Rate-limited property tax levy” includes any ad valorem property tax levy limited by law to a specific property tax levy rate for a fiscal year beginning on or after July 1, 2027, expressed in statute as a specific amount of money due other than a calculated amount, per one thousand dollars of assessed value used to calculate taxes. “Rate-limited property tax levy” also includes a levy for a county agricultural extension under section 176A.10. This paragraph shall not be construed to include the school district foundation levy under section 257.3, the county general services levy under section 331.423, subsection 1, the county rural services levy under section 331.423, subsection 2, the city general fund levy under section 384.1, the physical plant and equipment levies under section 298.2, the school district bond tax under section 298.18, any levy under chapter 28M, a levy under section 384.12, subsection 1, paragraph “b” , levied for operation and maintenance of a regional transit district, any levy under chapter 347 or 347A, and any levy under chapter
  11. In addition, “rate-limited -6- S 5210.4563.S (2) 91 mb 6/ 82 property tax levy” does not include levy rates used in the calculations under section 312.2, subsection 5, paragraph “a” .
  12. Except as provided in subsection 3, for the fiscal year beginning July 1, 2027, and each fiscal year thereafter, each rate-limited property tax levy shall, by operation of this section and in addition to any applicable levy rate limitation imposed by another provision of law, be limited to a levy rate per one thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of one hundred two percent of the current fiscal year’s actual property tax dollars certified for such levy divided by the total assessed value used to calculate such taxes for the budget year.
  13. a. For the fiscal year beginning July 1, 2027, and each fiscal year thereafter, if the rate limited property tax levy was not imposed by the governmental entity in the immediately preceding fiscal year, such levy may for the initial year of imposition be imposed at a rate not to exceed the maximum rate for such levy authorized by law. b. If a budget year includes a voter-approved increase in the authorized rate of a voter-approved rate-limited property tax levy for which the increased rate was not approved for imposition in the current fiscal year, such rate-limited property tax levy may be imposed for that budget year at a rate not to exceed the voter-approved rate without application of subsection
  15. The amount of property tax dollars calculated under this section includes those amounts budgeted and received by the governmental entity as replacement taxes under chapter 437A or 437B, if applicable. Sec. ___. NEW SECTION . 444.26 Use of bonds and indebtedness for general operations —— prohibition.
  16. For purposes of this section: a. “General operations” means services or activities generally funded from the governmental entity’s general fund, which are necessary for the operation of the governmental -7- S 5210.4563.S (2) 91 mb 7/ 82 entity, including salaries and benefits, or which are for the health and welfare of the governmental entity’s citizens or primarily intended to benefit all residents of the governmental entity, but excluding direct and indirect capital expenditures properly allocable under the Internal Revenue Code, as defined in section 422.3, if the governmental entity were a taxpayer, capital leases, and services financed by statutory funds other than a debt service fund. b. “Governmental entity” means any unit of government or other public body or public corporation, including any intergovernmental entity, that has the power to impose or certify a property tax levy.
  17. On or after July 1, 2026, the governing body of a governmental entity shall not issue bonds or other indebtedness payable from an ad valorem property tax levy for the purpose of funding the general operations of the governmental entity or otherwise use proceeds from the sale of bonds or issuance of other indebtedness to fund general operations.
  18. The department of management, following consultation with the city finance committee and the county finance committee, may adopt rules under chapter 17A for governmental entities to implement this section. Sec. ___. EFFECTIVE DATE. The following takes effect January 1, 2027: The section of this division of this Act amending section 312.2. Sec. ___. APPLICABILITY. The following applies to fiscal years beginning on or after July 1, 2027: The section of this division of this Act amending section 312.2. DIVISION ___ FIRSTHOME IOWA ACCOUNTS Sec. ___. Section 12G.2, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION .
  19. Create strategies for coordination of -8- S 5210.4563.S (2) 91 mb 8/ 82 the program with the FirstHome Iowa program trust established in chapter 12L. Sec. ___. NEW SECTION . 12L.1 FirstHome Iowa program —— purpose and definitions.
  20. The general assembly finds that the general welfare and well-being of the state are directly related to homeownership of the citizens of the state, and that a vital and valid public purpose is served by the creation and implementation of programs which encourage and make possible the attainment of homeownership by the greatest number of citizens of the state. The general welfare of the citizens of the state will be enhanced by establishing a FirstHome Iowa program which allows citizens of the state to invest money in a public trust for future application to the payment of qualified homebuyer expenses. The creation of the means of encouragement for citizens to invest in such a program represents the carrying out of a vital and valid public purpose. In order to make available to the citizens of the state an opportunity to fund future first-time homeownership, it is necessary that a public trust be established in which moneys may be invested for future use.
  21. As used in this chapter, unless the context otherwise requires: a. “Administrative fund” means the administrative fund established under section 12L.4. b. “Beneficiary” means the individual designated by a participation agreement to benefit from advance payments of qualified homebuyer expenses on behalf of the beneficiary. c. “First-time homebuyer” means an individual who is a resident of Iowa and who does not own, either individually or jointly, a single-family or multifamily residence, and who has not previously owned or purchased, either individually or jointly, a single-family or multifamily residence prior to the date of the qualified purchase for which the eligible home costs are paid or reimbursed from an account. -9- S 5210.4563.S (2) 91 mb 9/ 82 d. “FirstHome Iowa program trust” or “trust” means the trust created under section 12L.2. e. “FirstHome Iowa program trust account” or “account” means an account within the trust that was established for the purpose of paying or reimbursing a beneficiary’s eligible qualified homebuyer expenses in connection with a qualified purchase. f. “Individual” means a natural person. g. “Participant” means an individual, individual’s legal representative, trust, or estate that has entered into a participation agreement under this chapter, either individually or jointly with the individual’s spouse, for the advance payment of qualified homebuyer expenses on behalf of a beneficiary. h. “Participation agreement” means an agreement between a participant and the trust entered into under this chapter. i. “Program fund” means the program fund established under section 12L.4. j. “Qualified homebuyer expenses” means any of the following: (1) A down payment or closing costs for the qualified purchase of a single-family residence in Iowa that is to be the homestead, as defined in section 425.11, of the beneficiary if such beneficiary is a first-time homebuyer with respect to such purchase. (2) A cost, fee, tax, or payment incurred by, or charged or assigned to, a beneficiary as part of the purchase under subparagraph (1) and listed on the statement of receipts and disbursements for the sale, including any statement prescribed by 12 C.F.R. §1026.38, as amended. (3) Any United States veterans administration funding fee incurred by, or charged or assigned to, a beneficiary in connection with a veterans administration home loan guaranty program. k. “Qualified purchase” means the purchase of a -10- S 5210.4563.S (2) 91 mb 10/ 82 single-family residence in Iowa by the account’s beneficiary for which the account’s beneficiary will use as a homestead, as defined in section 425.11, one year or more after the date the participant first opened the account. l. “Resident” means the same as defined in section 422.4. m. “Single-family residence” means a single-family residence owned and occupied by a beneficiary as the beneficiary’s homestead within the meaning of section 425.1, including but not limited to a manufactured home, mobile home, condominium unit, or cooperative. Sec. ___. NEW SECTION . 12L.2 Creation of FirstHome Iowa program trust. A FirstHome Iowa program trust is created. The treasurer of state is the trustee of the trust, and has all powers necessary to carry out and effectuate the purposes, objectives, and provisions of this chapter pertaining to the trust, including the power to do all of the following:
  22. Make and enter into contracts necessary for the administration of the trust created under this chapter.
  23. Enter into agreements with any financial institution, the state, or any federal or other state agency, or other entity as required to implement this chapter.
  24. Carry out the duties and obligations of the trust pursuant to this chapter.
  25. Accept any grants, gifts, legislative appropriations, and other moneys from the state, any unit of federal, state, or local government, or any other person, firm, partnership, or corporation which the treasurer of state shall deposit into the administrative fund or the program fund.
  26. Carry out studies and projections so the treasurer of state may advise participants regarding present and estimated future qualified homebuyer expenses and levels of financial participation in the trust required in order to enable participants to achieve their qualifying purchase objectives.
  27. Participate in any federal, state, or local governmental -11- S 5210.4563.S (2) 91 mb 11/ 82 program for the benefit of the trust.
  28. Procure insurance against any loss in connection with the property, assets, or activities of the trust.
  29. Enter into participation agreements with participants.
  30. Make payments to or on behalf of beneficiaries for qualified homebuyer expenses pursuant to participation agreements.
  31. Make refunds to participants upon the termination of participation agreements, and partial nonqualified distributions to participants, pursuant to the provisions, limitations, and restrictions set forth in this chapter.
  32. Invest moneys from the program fund in any investments which are determined by the treasurer of state to be appropriate.
  33. Engage investment advisors, if necessary, to assist in the investment of trust assets.
  34. Contract for goods and services and engage personnel as necessary, including consultants, actuaries, managers, legal counsel, and auditors for the purpose of rendering professional, managerial, and technical assistance and advice to the treasurer of state regarding trust administration and operation.
  35. Establish, impose, and collect administrative fees and charges in connection with transactions of the trust for deposit in the administrative fund and provide for reasonable service charges.
  36. Administer the funds of the trust.
  37. Adopt rules pursuant to chapter 17A for the administration of the trust. Sec. ___. NEW SECTION . 12L.3 Participation agreements for trust. The trust may enter into participation agreements with participants on behalf of beneficiaries pursuant to the following terms and agreements:
  38. Each participation agreement may require a participant -12- S 5210.4563.S (2) 91 mb 12/ 82 to agree to invest a specific amount of money in the trust for a specific period of time for the benefit of a specific beneficiary. A participant shall not be required to make an annual contribution on behalf of a beneficiary. The maximum contribution that may be deducted for Iowa income tax purposes shall be the amount contributed by the participant during the applicable tax year, not to exceed five thousand five hundred dollars per beneficiary per year adjusted annually to reflect increases in the consumer price index.
  39. The execution of a participation agreement by the trust shall not guarantee in any way that qualified homebuyer expenses will be equal to projections and estimates provided by the trust or that the beneficiary named in any participation agreement will qualify for a mortgage, home loan, or other forms of credit for a qualified purchase.
  40. a. A beneficiary under a participation agreement may be changed as permitted under rules adopted by the treasurer of state upon written request of the participant as long as the substitute beneficiary is eligible for participation. b. Participation agreements may otherwise be freely amended throughout their terms in order to enable participants to increase or decrease the level of participation, change the designation of beneficiaries, and carry out similar matters as authorized by rule.
  41. Each participation agreement shall provide that the participation agreement may be canceled upon the terms and conditions, and upon payment of applicable fees and costs set forth and contained in the rules adopted by the treasurer of state.
  42. A participant may designate a successor in accordance with rules adopted by the treasurer of state. The designated successor shall succeed to the ownership of the account in the event of the death of the participant. In the event a participant dies and has not designated a successor to the account, the following criteria shall apply: -13- S 5210.4563.S (2) 91 mb 13/ 82 a. The beneficiary of the account, if eighteen years of age or older, shall become the owner of the account as well as remain the beneficiary upon filing the appropriate forms in accordance with rules adopted by the treasurer of state. b. If the beneficiary of the account is under the age of eighteen, account ownership shall be transferred to the first surviving parent or other legal guardian of the beneficiary to file the appropriate forms in accordance with rules adopted by the treasurer of state. Sec. ___. NEW SECTION . 12L.4 FirstHome Iowa program and administrative funds —— investment and payments.
  43. a. The treasurer of state shall segregate moneys received by the trust into two funds: the FirstHome Iowa program fund and the administrative fund to be used for administration of the program. b. All moneys paid by participants in connection with participation agreements shall be deposited as received into separate accounts within the program fund. c. Contributions to the trust made by participants may only be made in the form of cash. d. A participant or beneficiary may, directly or indirectly, direct the investment of any contributions to the trust or any earnings thereon no more than four times in a calendar year.
  44. Moneys accrued by participants in the program fund of the trust may be used for payments to or on behalf of a beneficiary for qualified homebuyer expenses. Sec. ___. NEW SECTION . 12L.5 Cancellation of agreements. A participant may cancel a participation agreement at will. Upon cancellation of a participation agreement, a participant shall be entitled to the return of the participant’s account balance. Sec. ___. NEW SECTION . 12L.6 Ownership of payments and investment income —— transfer of ownership rights.
  45. a. A participant retains ownership of all payments made under a participation agreement up to the date of -14- S 5210.4563.S (2) 91 mb 14/ 82 utilization for payment of qualified homebuyer expenses for the beneficiary. b. All income derived from the investment of the payments made by the participant shall be considered to be held in trust for the benefit of the beneficiary.
  46. In the event the FirstHome Iowa program is terminated prior to payment of qualified homebuyer expenses for the beneficiary, the participant is entitled to a refund of the participant’s account balance.
  47. Any amounts which may be paid to any person or persons pursuant to the FirstHome Iowa program trust but which are not listed in this section are owned by the trust.
  48. A participant may transfer ownership rights to another participant or may transfer funds to another account under the trust. The transfer shall be made and the property distributed in accordance with rules adopted by the treasurer of state or with the terms of the participation agreement.
  49. A participant shall not be entitled to utilize any interest in the trust as security for a loan. Sec. ___. NEW SECTION . 12L.7 Annual audited financial report to governor and general assembly.
  50. a. The treasurer of state shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the trust by November 1 to the governor and the general assembly. b. The annual audit shall be made either by the auditor of state or by an independent certified public accountant designated by the auditor of state and shall include direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.
  51. The annual audit shall be supplemented by all of the following information prepared by the treasurer of state: a. Any related studies or evaluations prepared in the preceding year. -15- S 5210.4563.S (2) 91 mb 15/ 82 b. A summary of the benefits provided by the trust including the number of participants and beneficiaries in the trust. c. Any other information which is relevant in order to make a full, fair, and effective disclosure of the operations of the trust. Sec. ___. NEW SECTION . 12L.8 Tax considerations. State income tax treatment of the FirstHome Iowa program trust shall be as provided in section 422.7, subsections 46 and
  52. Sec. ___. NEW SECTION . 12L.9 Property rights to assets in trust.
  53. The assets of the trust shall at all times be preserved, invested, and expended solely and only for the purposes of the trust and shall be held in trust for the participants and beneficiaries.
  54. No property rights in the trust shall exist in favor of the state.
  55. The assets of the trust shall not be transferred or used by the state for any purposes other than the purposes of the trust. Sec. ___. NEW SECTION . 12L.10 Construction. This chapter shall be construed liberally in order to effectuate its purpose. Sec. ___. Section 232D.503, subsection 6, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . g. A FirstHome Iowa program trust account established for the minor pursuant to chapter 12L. Sec. ___. Section 422.7, Code 2026, is amended by adding the following new subsections: NEW SUBSECTION .
  56. a. Subtract the contribution that may be deducted for Iowa income tax purposes as a participant in the FirstHome Iowa program trust pursuant to section 12L.3, subsection
  57. For purposes of this paragraph, a participant who makes a contribution on or before the date prescribed in section 422.21 for making and filing an individual income tax -16- S 5210.4563.S (2) 91 mb 16/ 82 return, excluding extensions, or the date for making and filing an individual income tax return determined by the director pursuant to an order issued under section 421.17, subsection 30, may elect to be deemed to have made the contribution on the last day of the preceding calendar year. The director, after consultation with the treasurer of state, shall prescribe by rule the manner and method by which a participant may make an election authorized by the preceding sentence. b. Add the amount resulting from the cancellation of a participation agreement refunded to the taxpayer as a participant in the FirstHome Iowa program trust to the extent previously deducted as a contribution to the trust. c. Add, to the extent previously deducted as a contribution to the trust, the amount resulting from a withdrawal or transfer made by the taxpayer from the FirstHome Iowa program trust for purposes other than the payment of qualified homebuyer expenses. NEW SUBSECTION .
  58. Subtract, to the extent included, income from interest and earnings received from the FirstHome Iowa program trust created in chapter 12L. Sec. ___. Section 541B.4, Code 2026, is amended by adding the following new subsections: NEW SUBSECTION .
  59. Withdrawal for deposit into FirstHome Iowa program trust account. First-time homebuyer account balances under this chapter may be withdrawn without penalty or taxation in this state if such withdrawal is deposited in an account within the FirstHome Iowa program trust under chapter 12L within thirty days of the withdrawal. The treasurer of state may by rule provide for the direct transfer of moneys within an account under this chapter to a FirstHome Iowa program trust account and such transfer shall not be subject to penalty or taxation in this state. NEW SUBSECTION .
  60. No new accounts. New accounts shall not be established under this chapter on or after July 1,

Shortened here; the full amendment is in the official document.

Official amendment (PDF) · In the Bill Book