Iowa § 239B.7 - 239B.7 Income and resource exemptions, deductions, and disregards.

§ 239B.7. 239B.7 Income and resource exemptions, deductions, and disregards.

In determining a family’s income and resources for purposes of the family’s initial and continuing eligibility for assistance and for determining grant amounts, the provisions of this section shall apply to the family and individual family members. 1. Work expense deduction. If an individual’s earned income is considered by the department, the individual shall be allowed a work expense deduction equal to twenty percent of the earned income. The work expense deduction is intended to include all work-related expenses other than child care. These expenses shall include but are not limited to all of the following: taxes, transportation, meals, uniforms, and other work-related expenses. 2. Work-and-earn incentive. If an individual’s earned income is considered by the department, the individual shall be allowed a work-and-earn incentive. The incentive shall be equal to fifty-eight percent of the amount of earned income remaining after all other deductions are applied. The department shall disregard the incentive amount when considering the earned income available to the individual. The incentive shall not have a time limit. The work-and-earn incentive shall not be withdrawn as a penalty for failure to comply with family investment program requirements. 3. Income consideration. If an individual has timely reported an absence of income to the department, consideration of the individual’s income shall cease beginning in the first month the income is absent. 4. Interest income. Interest income shall be disregarded. 5. Individual development account deposits. The department shall disregard as income any moneys an individual deposits in an individual development account established pursuant to chapter 541A. 6. Motor vehicle disregard. The department shall disregard the value of one motor vehicle. The countable equity value of any additional motor vehicle shall apply to the resource limitation established in subsection 7. 7. Resource limitation. a. The resource limitation for an applicant family for the family investment program shall be two thousand dollars. b. The resource limitation for a participant family shall be five thousand dollars. c. The department shall disregard not more than ten thousand dollars of a self-employed individual’s tools of the trade or capital assets in considering the individual’s resources. 8. Individual development account earnings and balance. The department shall disregard any earnings and the balance of an individual development account established pursuant to chapter 541A in considering an individual’s resources. 97 Acts, ch 41, §8, 34 – 36; 99 Acts, ch 192, §33, 34; 2004 Acts, ch 1043, §1, 12; 2007 Acts, ch 124, §3, 4, 6 Referred to in §239B.2 Thu Dec 11 19:13:17 2025 Iowa Code 2026, Section 239B.7 (21, 0)