To qualify for the credit, the property owner must be a resident of Iowa (pay Iowa income tax) and occupy the property on July 1 and for at least six months of every year. New applications for homestead tax credit are to be filed in person with the Assessor on or before July 1 of the year the credit if first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies.
The Homestead Credit is calculated by dividing the homestead credit value by 1,000 and multiplying by the Consolidated Tax Levy Rate. That amount may then be reduced by the county to the same amount at which the State of Iowa has approved funding. (Refer to Code of Iowa, Chapter 425)