Public Safety Officer Moving Expense Tax Credit

Topics:

Tax Credits, Deductions & Exemptions Guidance
Individual Income Tax

On May 1, 2024, Governor Reynolds signed House File 2661, which creates a new Public Safety Officer Moving Expense Tax Credit (tax credit) for certain individuals who establish residency in Iowa after July 1, 2024, upon taking full-time employment as a public safety officer in Iowa.  The tax credit equals the unreimbursed moving expenses paid or incurred by the individual, not to exceed $2,000. The tax credit is refundable and applies to tax years beginning on or after January 1, 2024.  

Eligibility Requirements

To be eligible for the tax credit, you must meet all of the following requirements:

  • You become a resident of Iowa after July 1, 2024, and were not a resident of Iowa in the prior 12-month period

  • You become employed full-time in a qualifying public safety officer job in Iowa

  • You become a resident of Iowa in connection with your qualifying public safety officer job

  • You remain employed full-time in your qualifying public safety officer job when you claim the tax credit

  • You remain a resident of Iowa when you claim the tax credit

Eligible Positions

The following is a nonexclusive list of public safety officer jobs that may qualify for the tax credit:

  1. Sheriff or sheriff’s deputy
  2. City police officer
  3. Peace officer member of the Department of Public Safety
  4. Parole officer
  5. Probation officer
  6. Sworn special security officer employed by an institution of the Board of Regents
  7. Conservation officer
  8. Employee of the Department of Transportation who is designated as a peace officer
  9. Employee of an aviation authority who is designated as a peace officer
  10. Corrections officer

Eligible Expenses

Moving expenses do not qualify for the tax credit to the extent that you are reimbursed for the expense or you deduct the expense for federal income tax purposes. If you pay or incur your moving expenses before you start your full-time employment or in the same tax year your full-time employment begins, then you can claim the tax credit in the tax year that you started your full-time employment. If you pay or incur your moving expenses after the tax year you start your full-time employment, then you can claim the tax credit  in the tax year that you incur your moving expenses. 

Additional Guidance

The Department will create additional website guidance, tax forms, and administrative rules in the future to administer this tax credit. If you have questions or comments about this tax credit that you would like to see addressed in future guidance, rules, or forms, please submit a Policy Guidance Request.