Iowa SCRA Benefits: A 6% Cap for Guard on State Duty (Code 29A.99)

If the governor puts you on state active duty in Iowa for 30 days or more, Iowa Code § 29A.99 caps the interest on your pre-service debts at 6% until you are released. That is Iowa’s own law, not the federal SCRA, and it reaches the orders the federal act skips. It sits in subchapter VI of the Military Code, titled “Iowa National Guard Civil Relief,” sections 29A.90 through 29A.105. Every section on this page was read in the Iowa Code 2026 on the Iowa Legislature’s site, and the tax rules on the Iowa Department of Revenue’s site, on November 8, 2026. An earlier version of this page said Iowa had no state rate cap. That was wrong, and it is corrected here.

Who Iowa’s civil relief act covers

Section 29A.90 defines “military service” as full-time National Guard duty or state active duty for at least 30 consecutive days, starting on or after April 12, 2012. The two duty types come from § 29A.1. State active duty is duty the governor orders under § 29A.8 (floods, storms, civil disorder, homeland defense) and pays for with state funds. National Guard duty is duty under Title 32 of the U.S. Code, such as 32 U.S.C. §§ 502 to 505, paid for with federal funds.

Section 29A.91 then draws the line. The subchapter does not apply to duty under Title 10 orders. On Title 10 you use the federal SCRA instead, and the federal act reaches the Guard on Title 32 only for orders of more than 30 consecutive days under 32 U.S.C. § 502(f) for a national emergency declared by the President (50 U.S.C. § 3911(2), read on GovInfo November 8, 2026). Iowa’s act fills the space in between: a governor’s call-up, or Title 32 duty that is not a presidential emergency, if it runs 30 days straight. Shorter orders get the job protections further down, not the money protections. If you are working out which law covers which set of orders, the Guard and Reserve coverage guide maps the federal side.

Under § 29A.100, your spouse, children, and anyone who depends on you for support can claim the lease, eviction, contract, mortgage, and payment relief in §§ 29A.101 through 29A.105 by applying to a court.

What subchapter VI gives you

Section 29A.95 adds a credit protection: asking for or getting a stay, postponement, or suspension of a payment under this subchapter cannot be the reason a lender denies you credit, changes your terms, or makes an adverse credit report.

The 6% cap, as Iowa wrote it

Section 29A.99 covers a debt you took on before the duty began, alone or jointly with your spouse. During the duty it cannot bear interest above 6% a year. Interest above that line is forgiven, and your periodic payment must drop by the forgiven amount. “Interest” includes service charges, renewal charges, and fees, except bona fide insurance.

To trigger it, give the creditor written notice and a copy of your orders, plus any orders extending them, no later than 180 days after release. Once the creditor has them, it must apply the cap from the date you were called. Only a court can let the creditor charge more, and only on a finding that your duty did not materially affect your ability to pay.

A worked example: an $8,000 card balance at 24% runs about $160 a month in interest. At 6% it is about $40, so the cap saves you about $120 for each month of state duty. The letter generator builds the request and the refund calculator checks the lender’s math. The federal version, for Title 10 orders, works the same way on paper and is explained in the rate cap guide.

Leases: Iowa’s car-lease trigger is half the federal one

Section 29A.101A covers a lease of a home, office, business, or farm signed before you entered service, or signed while in service if you then get orders for a permanent change of station or a deployment of at least 90 days. It also covers a vehicle lease when your orders run at least 90 days. The federal SCRA requires orders of 180 days or more for a vehicle lease (50 U.S.C. § 3955(b)(2), read on GovInfo November 8, 2026).

The procedure:

1. Deliver written notice and a copy of your orders to the landlord or lessor, or its agent. Hand delivery, a private carrier, or mail with return receipt requested all count. Your notice also ends your dependents’ obligations under the lease.
2. For a vehicle, return it within 15 days of the notice. The lease ends the day you hand it back, with no early termination charge. You still owe past-due amounts, title and registration fees, and reasonable excess wear and mileage.
3. For a home on monthly rent, the lease ends 30 days after the next rent due date. On any other lease, it ends on the last day of the month after the month you gave notice. The termination calculator gives you the date.
4. Rent paid in advance for time after that date must be refunded within 30 days.

A landlord who knowingly holds your deposit or belongings, or blocks you from moving them out, to collect rent for time after the lease ends commits a simple misdemeanor under § 29A.101A(8). The federal side of breaking a lease is in the lease termination guide.

Eviction, repossession, and foreclosure: a court comes first

Eviction. Under § 29A.101, while you are on qualifying duty, a landlord may not end your family’s lease for unpaid rent on a home renting for under $1,200 a month. A court can still allow an eviction under Iowa Code chapter 646 or 648, and in any possession case it may stay the case for up to three months unless your ability to pay is not materially affected. The eviction protection guide covers the federal rule.

Repossession. Under § 29A.102, if you signed an installment contract to buy or lease property, including a car, before your duty, the creditor cannot end the contract or take the property for a missed payment during your duty without a court order. Knowingly repossessing without one is a serious misdemeanor. The installment contract guide has the federal parallel.

Foreclosure. Section 29A.103 gives the same court-order rule for a mortgage, if you can show four things: the debt is secured by a mortgage or similar security, it started before your duty, you owned the property before your duty, and you still own it.

Court cases. On a written request, the court must stay a case against you under § 29A.93 unless your duty did not materially affect you, and a stay can last for your duty plus 30 days (§ 29A.97). A default judgment entered during duty or within 30 days after can be set aside under § 29A.92 if you apply within 30 days after the duty ends and show a real defense. The default judgment guide explains what “prejudiced by service” means in practice.

Your civilian job: §§ 29A.43 and 29A.28

Section 29A.43 bars any employer from firing you for Guard or Reserve membership or keeping you from duty. If you are ordered to state active duty, Title 32 duty, or federal active duty, you get a leave of absence from private employment unless the job is temporary. When you come back with proof that you finished the duty and are still qualified, the employer must restore you to your old position or one of like seniority, status, and pay. The time away counts as leave and cannot reduce your vacation, sick leave, or bonus. The section also protects Guard and Reserve members from other states who work in Iowa. A violation is a simple misdemeanor, and the attorney general or the county attorney prosecutes it.

If you work for the state, a county, a city, or a school, § 29A.28 adds pay: no loss of pay for the first 30 days of the leave, and the right to return to the position and classification you would have held had your service not been interrupted, including its location. Temporary employees hired for six months or less are not covered.

Iowa income tax on military pay

The Iowa Department of Revenue’s expanded instructions (read November 8, 2026) say an Iowa resident on active duty, as defined in 10 U.S.C. § 101(d)(1), can exclude pay received from the federal government for that service. Report it on IA 1040, line 1a, then subtract it on Schedule 1, line 6, and give your payer an IA W-4 claiming exemption from withholding. Keep your orders: the department says it may ask for them.

The department adds a warning for full-time Guard members: Title 32 duty is not active duty for this exclusion, so that pay stays taxable. The exclusion is also written for pay from the federal government, so it does not reach state-paid state active duty.

Three more Iowa rules worth knowing:

• Nonresidents stationed in Iowa. Military pay is not Iowa-source income. You file only if your Iowa-source income from other work is $1,000 or more and your total income passes the filing threshold.
• Spouses. Under the federal spouse residency rules, the department lets a nonresident spouse exclude Iowa wages. Check the box on the IA W-4, name your state of residence, and attach a copy of your military spouse ID. The tax provisions guide covers the election.
• Called up and cashing out. If a Guard or Reserve member called to Guard duty or federal active duty takes money out of a qualified retirement account, Iowa does not tax the withdrawal or charge a state penalty (rule 701-302.58).

Iowa also exempts military retirement pay, which has its own Iowa retirement tax page. The state record panel below lists Iowa’s legal assistance offices, court decisions, and vehicle tax rules.

On Iowa state orders of 30 days or more

1. Check your orders: state active duty or Title 32 duty of 30 consecutive days or more puts you under Iowa Code §§ 29A.90 to 29A.105. Title 10 orders go to the federal SCRA instead.
2. Send each pre-service lender a written § 29A.99 request with your orders. You have until 180 days after release, and the 6% cap runs from your call-up date. Use the letter generator.
3. Leasing a car and holding orders of 90 days or more: send § 29A.101A notice with orders and return the car within 15 days.
4. Served with court papers or a repossession notice: write to the court for a stay under § 29A.93 and cite §§ 29A.102 or 29A.103. Mark the date 30 days after release as your deadline to reopen any default.
5. Tell your employer in writing that § 29A.43 protects your job, and keep proof of completed duty for your return.
6. At tax time, subtract federal active-duty pay on Schedule 1, line 6, and keep your orders on file.

The law behind this: Iowa Code § 29A.99

Maximum rate of interest: 6% on pre-service debt during state active duty or full-time Guard duty of 30 or more consecutive days: read the statute.