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Read. Follow. Verify.Iowa Senate Bill 652 reshapes urban renewal tax increment financing, caps property values in development zones, and alters workforce housing requirements
Last action · May 13, 2025: Withdrawn. S.J. 1001 .
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What This Bill Proposed
Senate File 652 modifies economic development and urban renewal laws by excluding specific school foundation and emergency medical service property taxes from tax increment financing, capping the total property value allowed in s over time, and adjusting housing requirements.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Municipalities
Municipalities face new caps on aggregate property values within urban renewal areas, limits on tax increment financing revenues, and modified reporting obligations.
School Districts
School district foundation property taxes are excluded from tax increment financing for certain urban renewal areas, altering tax revenue distributions.
Low and Moderate Income Families
The bill modifies definitions and housing development requirements related to low and moderate income family housing and workforce housing assistance.
Key Facts
- The definition of economic development under Code chapter 15 is expanded to include the provision of workforce housing.
- Low and moderate income family housing is defined to include housing meeting the requirements of section 15.353 for workforce housing.
- School district foundation property taxes under section 257.3 are excluded from tax increment financing revenue divisions for certain urban renewal areas taking effect on or after January 1, 2026.
- Property taxes for emergency medical services under chapter 422D are excluded from tax increment financing revenue divisions starting in fiscal years beginning on or after July 1, 2026.
Show all 9 facts
- For unlimited duration urban renewal areas, special fund revenue deposits are capped at 75 percent after 15 years, and at 60 percent beginning in the sixth year thereafter.
- For public improvement projects approved between July 1, 2025, and July 1, 2026, in cities with 20-year corporate limit properties, low and moderate income housing requirements are capped at 20 percent of project costs with a 20-year tax division limit.
- For the fiscal year beginning July 1, 2026, total property value in urban renewal areas cannot exceed 96.25 percent of a municipality's total actual value of property within its area of operation.
- The aggregate property value cap in urban renewal areas decreases by 3.75 percent each fiscal year starting July 1, 2027, until reaching 20 percent on or after July 1, 2047.
- Cities and counties must report the percentage of actual property value located in urban renewal areas to the department of management.
Frequently Asked Questions
How does this bill change property tax allocations for school districts?
Are emergency medical service taxes affected by tax increment financing changes?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Withdrawn.
Procedural history
12 actions- May 13, 2025SenateWithdrawn. S.J. 1001 .
- May 13, 2025SenateHF 1037 substituted. S.J. 1000 .
- May 13, 2025SenateFloorAmendment S-3173 filed, adopted. S.J. 1000 .
- May 12, 2025SenateAttached to HF 1037 . S.J. 969 .
- May 12, 2025Iowa LegislatureFiscal note .
- May 9, 2025Iowa LegislatureCommittee report approving bill, renumbered as SF 652 .
Show 6 earlier actions
- May 9, 2025SenateCommittee report, approving bill. S.J. 955 .
- May 9, 2025SenateIntroducedIntroduced, placed on Ways and Means calendar. S.J. 954 .
- Apr 2, 2025Iowa LegislatureSubcommittee recommends passage.
- Apr 1, 2025Iowa LegislatureSubcommittee Meeting: 04/02/2025 8:30AM Room 315.
- Mar 19, 2025Iowa LegislatureSubcommittee: Dawson, Dotzler, and Schultz.
- Mar 19, 2025Iowa LegislatureIntroducedIntroduced, referred to Ways and Means.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Gradual Phase-Down of Urban Renewal Property Value Caps
The legislation introduces a multi-decade reduction schedule that systematically lowers the allowable percentage of municipal property value inside urban renewal areas from 96.25 percent down to 20 percent by 2047.
Connected Entities
Sources
www.legis.iowa.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 80)
- Controversy65Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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