New laws for 2015

DES MOINES - No longer will Iowa seniors pay state taxes on their Social Security income.

For eight years the state gradually has been phasing out its tax on Social Security benefits. Starting in 2015, the tax is eliminated.

Iowa seniors will see the effect when they file their taxes for 2014.

It is one of a handful of key measures and new laws that go into effect on Jan. 1.

The state Social Security income tax phaseout was signed into law in 2006 as part of a $118 million tax cut. It was negotiated by then-Gov. Tom Vilsack and a split-control Legislature.

'We have a responsibility to our seniors to ensure that they can live out their years with dignity and in economic security,” Vilsack said when the bill was signed into law. 'By signing this legislation, we take further steps to continue our work on behalf of older Iowans and improve their independence and quality of life.”

Starting the ensuing year, the portion of Social Security income subject to state taxes gradually decreased until it hit zero in the 2014 tax year.

State Rep. Tom Sands, R-Wapello, said at the eight-year phaseout seemed like a long time.

'But here it is now,” Sands said. 'It was absolutely the right thing to do because Iowa should not be taxing seniors for their Social Security income.”

State officials and supporters of the legislation said at the time it was passed that the elimination of the state Social Security income tax could save Iowa seniors between $200 and $700 per year, and could affect roughly 140,000 households.

Other key measures set to go into effect Jan. 1:

Property tax credit - The landmark commercial and industrial property tax credit passed in 2013 doubles in 2015, and commercial property owners will be taxed on 90 percent of the property value, a 5 percent reduction from the previous year.

Child care and adoption tax credits - The state tweaked its child care tax credit to provide families with more access to the program. Iowa House Democrats estimate the expansion will return more than $2.5 million to families with child care expenses.

The state also created a $2,500 tax credit to help families with the cost of adopting a child.

Human trafficking penalties - The state in 2014 strengthened its laws on human trafficking.

One portion of the expansive legislation was the creation of a $1,000 fine for those found guilty of human trafficking - the trading of individuals, often for forced labor or sexual slavery. All fines collected are to be placed in a fund that will benefit programs that provide services to trafficking victims.

Preventing identity theft and protecting credit rating - Parents for guardians of incapacitated individuals may request a security freeze on the credit ratings of the individuals under their care. The new law was established to help prevent identity theft and credit score abuse.

The freeze prevents a credit reporting agency from releasing credit report data without consent.