IA SF2285

Creates a refundable individual income tax credit for car registration fees paid by disabled veterans with a 100% permanent service-connected disability rating certified by the U.S. Department of Veterans Affairs.

Maximum credit amount is $100 per year for registration fees paid under Iowa Code section 321.105.

Eligible veterans include those meeting the definition in section 35.1 and former National Guard members from any state who meet specified service requirements.

Taxpayers may choose to receive the credit as a refund or apply any excess credit to the following tax year's liability.

Applies retroactively to tax years beginning on or after January 1, 2026.