Iowa Veteran Benefits

Military retired pay, that is included in federal gross income, is exempt from Iowa income tax.

DIC is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty, or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.

SBP, RCSBP and RSFPP annuities are not taxed in Iowa. Iowa Administrative Code, Rule 701-302.80

Military student loan repayments included in federal adjusted gross income are exempt from Iowa income tax for active and reserve component service members who are serving in an active duty status.

National Guard service members called to federal or state active duty, or U.S. Armed Forces Reserve service members called to federal active duty can make a withdrawal from a qualified retirement account that is not subject to Iowa income tax or state tax penalty. Federal Taxes will still apply.

All tax is forgiven if a service member who was married at the time of death and a joint return or a married filing separate return was filed for the year prior to death.

The Iowa Military Property Tax exemption reduces a Veteran's assessed home value for property taxes. Who is eligible for Iowa Military Property Tax Exemption? To be eligible for the Iowa Military Property Tax Exemption the applicant must be an Iowa resident and meet one of the following requirements

Iowa offers a 100% property tax credit for homesteads owned by eligible Veterans and the surviving spouse of an eligible Veteran.

INGSS provides annual awards to Iowa National Guard Service members who attend eligible Iowa colleges and universities. The INGSS may be combined with other federally funded programs such as Federal Student Aid, Federal Tuition Assistance, and GI Bill programs.

The Iowa Operation Recognition Program will issue an honorary high school diploma to eligible Veterans who did not complete high school (in Iowa) due to enlisting in the U.S. Armed Forces. Honorary diplomas may be issued posthumously.

The Branstad-Reynolds Scholarship fund provides post-secondary educational scholarships for children of service members who died while serving on active duty in the U.S. Armed Forces after September 11, 2001.

UI provides short term financial benefits for those who are unemployed through no fault of their own. UI is paid entirely by employers who are covered by the Iowa Employment Security Law. To be eligible for UI benefits the claimant must meet the following requirements:

Active duty service members, honorably discharged Veterans, and disabled Veterans who have a 100% total and permanent service-connected disability rating from the VA are exempt from certain driver's license fees :

The Iowa Veterans Trust Fund provides financial assistance to Veterans and their families.

The Iowa Injured Veterans Grant Program provides up to $10,000 in financial assistance to injured service members or discharged Veterans so family members may be with them during their recovery.

Resident service members serving on active duty in the U.S. Armed Forces on leave from a duty station located outside Iowa, are authorized to hunt or fish without a license.

Resident Veterans who have been awarded a service-connected disability rating by the VA can receive a lifetime hunting or fishing license for $7. Who is eligible for an Iowa Lifetime Hunting and Fishing License? To qualify, the Veteran must have served on active duty in the U.S.

Resident Veterans who received an honorable discharge from service in the U.S. Armed Forces are eligible for a $7 annual hunting and fishing license.

Iowa Resident Veterans who have a 100% total and permanent, service-connected disability rating from the VA, or declared individually unemployable and paid at the 100% rate are eligible for a $65 lifetime trout license.

Non-temporary state employees who are service members serving in a reserve component of the U.S. Armed Forces, who are ordered to duty, are eligible for paid leave for 30 workdays each calendar year.

Iowa Workforce Development through the IowaWORKS Centers offer services that connect Veterans, service members separating from the U.S. Armed Forces and eligible family members with resources and career opportunities.

Iowa Workforce Development has partnered with the Department of Defense (DoD) to offer the SkillBridge program that offers internships for service members separating from the U.S. Armed Forces.

Iowa offers Veteran hiring preference when hiring for state employment including state departments, county governments, city governments, and school districts. Veterans will have five percentage points added to passing examinations for hiring.

Iowa private employers are authorized by law to implement a hiring and promotion preference for Veterans and eligible spouses.

Ten points are added to the passing examination score or rating of spouses, surviving spouses, or mothers of Veterans. Both a mother and a spouse (including surviving spouse) may be entitled to preference based on the same Veteran's service if they both meet the requirements.

Health and pension plan coverage for service members are provided by USERRA. Individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102% of the full premium.

The Iowa Hilton Honors Military Program helps make the career transition from service in the U.S. Armed Forces to civilian employment easier for current and former service members. The Hilton Honors Military Program provides hotel accommodation for required employment related travel. This includes:

The VA provides valuable life insurance benefits to Veterans, active and reserve component service members and their families to provide financial security given the extraordinary risks involved in military Service. The VA provides the following life insurance benefit programs:

The Iowa Veterans Cemetery located 10 miles west of Des Moines, near Van Meter, offers a dignified final resting place for Veterans and their eligible family members.

The VA National Cemetery Administration maintains three national cemeteries in Iowa. Please see the local location listing for the nearest cemetery.

Honorably discharged Veterans may request a Veteran designation on their Iowa driver's license or non-operator ID card. Who is eligible for a Veteran Designation on Iowa Driver's Licenses and ID Cards? To be eligible, Veterans must have served on active duty in the U.S.

Active duty service members serving in the U.S. Armed Forces who cannot return to Iowa to renew their driver's license in person and do not meet eligibility requirements to renew online , can receive an extension that is valid until six months after separation from active duty service.

A disabled Veteran who received a specially adapted vehicle from the U.S. Government is eligible for the Iowa Disabled Veteran license plate.

Iowa offers CDL testing exemptions to resident service members and former service members (separated from the U.S. Armed Forces within the past year) based on their military training and experience.

The VA has numerous resources and locations throughout the state available to assist Veterans and family members. To find a VA location in Iowa enter Iowa in the location field and choose the facility type you are searching for from the drop down menu at the "Learn more…" link below.