Des Moines homeowners have roughly 11 weeks to qualify a renovation for the city's tax abatement program, and the deadline works differently than most people expect. According to the City of Des Moines, a project must have a building permit issued and assessed value added to the property by December 31, 2026. The second condition is the one that catches people. The permit office doesn't set that value. The Polk County Assessor does, and the assessor values a property by what is physically there on January 1.
That means a basement finish permitted in mid-December, with framing yet to go up, has met one condition and missed the other. A permit marks when a project is allowed to start, and abatement eligibility turns on how much of it the assessor can count.
The two conditions, and who controls each
The city's suspension FAQ, updated October 7, 2026, puts it plainly. To qualify under the current schedules, a project must meet both requirements by December 31, 2026: "A building permit has been issued" and "The work has added assessed value to the property." Projects that miss either one are not eligible. Applications for qualifying value are due February 1, 2027.
The city also says outright that the county decides the second condition: "The County Assessor's Office determines the actual increase in value." The Polk County Assessor's own description of its work says its effective assessment date is January 1, and it assigns "a full or partial value" to new construction or improvements based on how complete they are on that date. Iowa Code §428.4 sets the same January 1 valuation date statewide.
The assessor's published guidance doesn't give a percentage-complete formula. All it confirms is that partially finished work gets partial value. So a project that's half built on January 1 likely brings some value into the 2026 cutoff, and a project that's only been permitted brings none.
What counts as value in place
The city's FAQ separates work that adds assessed value from work that doesn't.
| Work completed by Dec. 31 | City's classification |
|---|---|
| New buildings | Adds value |
| Building additions | Adds value |
| Foundations | Adds value |
| Renovations to existing structures, such as finishing a basement | Adds value |
| Grading and excavation | Does not add value |
| Other renovations | Ask the county assessor |
The grading line matters for anyone planning an addition. A dug hole and a cleared lot on December 31 add no value under the city's own examples, while a poured foundation does. In construction terms, the cutoff falls somewhere between excavation and concrete.
The city also gives a practical tip: "Ask a City inspector to inspect your work before December 31, 2026. An inspection record helps document what has been completed." A city inspection and the county's valuation are separate steps. Under Iowa Code chapter 404, the assessor physically reviews each first-year abatement application on its own. The inspection record helps document what was built and when. It doesn't set the value.
Why the cutoff landed on January 1
The council debated a later date. According to Citizen Portal's account of the September 14, 2026 meeting, the council approved a second amendment to the citywide urban revitalization plan suspending abatement effective December 31, 2026. Several members said that date could be too abrupt for projects already in design and suggested pushing it to late spring or the end of the fiscal year. Staff and legal advisors replied that a January 1 date lines up with assessor valuations and is simpler to administer. That account doesn't report a vote count.
The deadline follows the assessor's calendar because that's where the money question actually gets answered. The pressure behind the suspension comes from Iowa Senate File 2472. Business Record reported on August 25 that the law caps city property tax revenue growth at 2%. New construction is exempt from the cap, but property coming off abatement isn't treated as new construction. For Des Moines, that creates a $17 million budget shortfall. Of the city's more than $10 billion in total taxable value, $1.3 billion is under abatement and would fall under the cap as it comes back onto the rolls.
When the council first took up the idea in June, Development Services Director Cody Christensen told members, as KCCI reported:
"We see ending the tax abatement as being the only fiscally responsible option. And if we take that approach, then the question becomes how or when. I guess more importantly when."
The timing question split the council in August. Business Record reported that Council member Josh Mandelbaum suggested moving the permit deadline up to October, while Council members Joe Gatto and Mike Simonson argued against shortening it. Mandelbaum dropped the suggestion. The December 31 date held, and it's the date homeowners are working against now.
What a qualifying project still gets
Projects that meet both conditions keep the current schedules. For homes with one household unit, the city's low-density residential page lists these terms:
| Project type | Schedule |
|---|---|
| Renovation of an existing structure, citywide | 10 years, 100% |
| New accessory structure, citywide | 10 years, 100% |
| New home outside the targeted area, with added insulation and EV-charging capability | 6-year declining |
| New home outside the targeted area, without those features | 5-year declining |
| New home inside the targeted area, outside Riverpoint West, with those features | 10-year declining |
| New home inside the targeted area, outside Riverpoint West, without those features | 9-year declining |
| New home inside Riverpoint West | 6-year declining |
There are three limits on that table. First, a project has to raise the property's assessed value by at least 5%, comply with city requirements, and have permits for any work that needs them. Second, abatement covers only the added value of the improvement. The city notes that land value and school district levies aren't abated on residential property, and school levies usually make up about a third of a total tax bill. Third, "100%" applies to the improvement's added value, not the whole bill.
The 5% threshold interacts with the January 1 date. A remodel that would easily clear 5% when finished might clear far less if it's only partly done at year end.
The seller side, starting in 2027
Abatements already granted aren't affected. The city says that "Approved applications and abatement you are already receiving will continue." Iowa Code §404.7 provides that when a city repeals a revitalization ordinance, "all existing exemptions shall continue until their expiration." Under §404.5, once an exemption is granted, the assessor keeps applying it for the schedule period without the taxpayer filing again each year.
After 2026, Des Moines homes will fall into two groups that look alike in photos. One group is homes renovated or built under an abatement that still has years left on its schedule. The other is homes improved after the program closed, with no new abatement attached. On the city's 10-year renovation schedule, a remodel qualified this winter would sit in the first group well into the next decade. For a seller, that's something a listing can document. For a buyer comparing two similarly updated homes, it's a line on the tax record worth checking.
The Polk County Assessor's website links to a property search, which accepts an address, parcel or owner name, and to a separate Tax Abatement resource. Its urban revitalization pages list Des Moines plan codes and schedules and mark each one current or historical. The assessor also notes that its site is moving to a new platform, so these lookup paths may change.
The calendar from here
- Now through December: permits issued and work under way. Foundations, framing and finish work count toward value. Grading and excavation don't.
- Before December 31, 2026: the city suggests scheduling a city inspection to document completed work.
- January 1, 2027: the assessor values the property based on what's complete.
- February 1, 2027: applications are due for value added by December 31.
- After that: abatements already granted keep running on their schedules. Whether the program comes back is up to the City Council, and the city says that decision will be "heavily influenced by the State of Iowa tax code."
FAQ
My project will be half done on December 31. Can the rest of the value qualify later? Under Iowa's general chapter 404 rules, the state administrative rule allows value added in later years to count once the minimum has been assessed. The city's transition language, however, says only that projects missing the December 31 deadlines won't be eligible. It doesn't address value added after that date to a project that already qualified. That's a question for the city's Permit and Development Center at [email protected] or 515-283-4200.
Does this apply to properties in the Warren County part of Des Moines? The city program covers all properties within Des Moines, and the city lists both the Polk County and Warren County assessors as the offices that determine added value.
Is the 2% cap a cap on my tax bill? No. Iowa Public Radio reported that the 2% limit in the new law applies to growth in a city's general-fund revenue, with some exceptions. It isn't a 2% cap on any individual homeowner's bill.
If a pre-listing remodel or addition is on your Des Moines calendar this fall, the work order matters as much as the permit date. Tim Lucken REAL can help you sequence a project so the parts the assessor counts get built first, and keep a dated record of what's complete before December 31. Schedule your free Market-Ready Consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
