Relating to radon mitigation requirements and tax credits, including retroactive applicability provisions, and making appropriations

Under the bill, the credit is equal to the amount of the cost to purchase and install a radon mitigation system, not to exceed $1,000. Any credit in excess of the taxpayer’s liability is not refundable but may be credited to the tax liability for the following tax year. The bill defines “radon mitigation system” (system) to mean a system designed to mitigate the presence of radon in a building installed by a person certified in accordance with Code chapter 136B. The credit applies retroactively to January 1, 2025, for tax years beginning on or after that date. DIVISION III —— RADON MITIGATION —— RENTAL PROPERTIES. The bill provides that a tenant may conduct a radon test (test) or hire a person certified in accordance with Code chapter 136B to conduct a test. The tenant shall notify the landlord of a test result equal to or greater than four picocuries per liter (4pCi/L), which is the United States environmental protection agency’s action level for radon. The landlord may have a confirmatory test conducted by a certified person and must notify the tenant of those results. If a subsequent test result is equal to or greater than 4pCi/L, or if the landlord chooses not to have a subsequent test conducted, the landlord shall have a system installed. Once a system has been installed, the rental property shall be retested and the results shall be given to the tenant within days. The bill provides that if the landlord fails to have a system installed, or if a system is installed and radon test results remain equal to or greater than 4pCi/L, the tenant may terminate the lease with proper written notice. Upon receipt of this notice, the landlord cannot impose any penalty for termination of the lease against the tenant and must return all prepaid rent and the rental deposit. DIVISION IV —— APPROPRIATION —— RADON TEST KITS. The bill appropriates $100,000 from the general fund to the department of health and human services (HHS) for the fiscal year beginning July 1, 2026, and ending June 30, 2027, to make radon test kits available free of charge to homeowners and renters in the state. HHS is required to provide a link on its internet site for homeowners and renters to order radon test kits.