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HOUSE
FILE
1054
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
305)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
Iowa
1
economic
development
authority
and
the
department
of
2
workforce
development,
including
tax
credit
limits,
the
3
major
economic
growth
attraction
program,
layoffs
and
4
facility
closures,
the
brownfield
redevelopment
fund,
5
and
the
Iowa
economic
emergency
fund;
creation
of
the
6
business
incentives
for
growth
program,
the
seed
investor
7
tax
credit
program,
the
Iowa
film
production
incentive
8
program,
the
research
and
development
tax
credit
program,
9
and
the
sustainable
aviation
fuel
production
tax
credit
10
program;
elimination
of
the
high
quality
jobs
program,
the
11
investments
in
qualifying
businesses
tax
credit,
employer
12
child
care
tax
credits,
assistive
device
tax
credits,
endow
13
Iowa
tax
credits,
and
research
activities
tax
credits;
and
14
including
effective
date
provisions
and
criminal
penalties.
15
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
16
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DIVISION
I
1
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
LIMITS
2
Section
1.
Section
15.119,
Code
2025,
is
amended
to
read
as
3
follows:
4
15.119
Aggregate
tax
credit
limit
for
certain
economic
5
business
development
programs.
6
1.
a.
Notwithstanding
any
provision
to
the
contrary
in
any
7
of
the
business
development
programs
listed
in
subsection
2
,
8
the
authority,
except
as
provided
in
paragraph
“b”
,
shall
not
9
authorize
for
any
one
fiscal
year
an
amount
of
tax
credits
for
10
the
programs
specified
in
subsection
2
that
is
in
excess
of
one
11
hundred
seventy
ten
million
dollars.
12
b.
(1)
The
authority
may
authorize
an
amount
of
tax
credits
13
during
a
fiscal
year
that
is
in
excess
of
the
amount
specified
14
in
paragraph
“a”
,
but
the
amount
of
such
excess
shall
not
exceed
15
twenty
percent
of
the
amount
specified
in
paragraph
“a”
,
and
16
shall
be
counted
against
the
total
amount
of
tax
credits
that
17
may
be
authorized
for
the
next
fiscal
year.
18
(2)
Any
amount
of
tax
credits
authorized
and
awarded
during
19
a
fiscal
year
for
a
program
specified
in
subsection
2
which
20
are
irrevocably
declined
by
the
awarded
business
or
revoked
21
by
the
authority
on
or
before
June
30
of
the
next
fiscal
year
22
may
be
reallocated,
authorized,
and
awarded
during
the
fiscal
23
year
in
which
the
declination
or
revocation
occurs.
Tax
24
credits
authorized
pursuant
to
this
subparagraph
shall
not
be
25
considered
for
purposes
of
subparagraph
(1).
26
2.
The
authority,
with
the
approval
of
the
board,
shall
27
adopt
by
rule
a
procedure
for
allocating
the
aggregate
tax
28
credit
limit
established
in
this
section
among
the
following
29
The
aggregate
tax
credit
limit
specified
in
subsection
1
shall
30
be
allocated
to
business
development
programs
as
follows
:
31
a.
(1)
The
high
quality
jobs
program
administered
pursuant
32
to
subchapter
II,
part
13
.
33
(2)
In
allocating
tax
credits
pursuant
to
this
subsection
34
for
the
fiscal
year
beginning
July
1,
2022,
and
for
each
fiscal
35
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year
thereafter,
the
authority
shall
not
allocate
more
than
1
sixty-eight
million
dollars
for
purposes
of
this
paragraph.
2
(3)
In
allocating
tax
credits
pursuant
to
this
subsection
,
3
the
authority
shall
prioritize
issuing
additional
research
4
activities
tax
credits
pursuant
to
section
15.335
.
5
b.
The
enterprise
zones
program
administered
pursuant
to
6
sections
15E.191
through
15E.197,
Code
2014
.
7
c.
The
assistive
device
tax
credit
program
administered
8
pursuant
to
section
422.33,
subsection
9
.
9
d.
The
tax
credits
for
investments
in
qualifying
businesses
10
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
11
pursuant
to
this
subsection
,
the
authority
shall
allocate
two
12
million
dollars
for
purposes
of
this
paragraph,
unless
the
13
authority
determines
that
the
tax
credits
awarded
will
be
less
14
than
that
amount.
15
e.
a.
(1)
The
tax
credits
for
investments
in
an
innovation
16
fund
pursuant
to
section
15E.52
chapter
15E,
subchapter
VI,
17
and
the
seed
investor
tax
credit
pursuant
to
chapter
15E,
18
subchapter
IV
.
In
allocating
tax
credits
pursuant
to
this
19
subsection
,
the
authority
shall
allocate
eight
ten
million
20
dollars
for
purposes
of
this
paragraph,
unless
the
authority
21
determines
that
the
tax
credits
awarded
will
be
less
than
that
22
amount
and
the
board
shall
determine
the
tax
credit
amount
23
allocated
to
each
program
under
this
paragraph
each
fiscal
24
year
.
25
(2)
For
the
fiscal
year
beginning
July
1,
2025,
the
26
allocation
pursuant
to
this
paragraph
shall
be
reduced
by
any
27
tax
credit
authorized
by
the
authority
prior
to
July
1,
2026,
28
for
an
investment
in
a
qualifying
business
pursuant
to
chapter
29
15E,
subchapter
V,
Code
2025.
This
subparagraph
is
repealed
30
July
1,
2026.
31
f.
The
redevelopment
tax
credit
program
for
brownfields
32
and
grayfields
administered
pursuant
to
sections
15.293A
and
33
15.293B
.
34
g.
The
workforce
housing
tax
incentives
program
administered
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pursuant
to
subchapter
II,
part
17
.
In
allocating
tax
credits
1
pursuant
to
this
subsection
,
the
authority
shall
not
allocate
2
more
than
thirty-five
million
dollars
for
purposes
of
this
3
paragraph.
Of
the
moneys
allocated
under
this
paragraph,
4
seventeen
million
five
hundred
thousand
dollars
shall
be
5
reserved
for
allocation
to
qualified
housing
projects
in
small
6
cities,
as
defined
in
section
15.352
,
that
are
registered
on
7
or
after
July
1,
2017.
8
h.
The
renewable
chemical
production
tax
credit
program
9
administered
pursuant
to
subchapter
II,
part
12
.
In
allocating
10
tax
credits
pursuant
to
this
subsection
for
the
fiscal
year
11
beginning
July
1,
2021,
and
for
each
fiscal
year
beginning
12
before
July
1,
2037,
the
authority
shall
not
allocate
more
than
13
five
million
dollars
for
purposes
of
this
paragraph.
This
14
paragraph
is
repealed
July
1,
2039.
15
3.
In
allocating
the
amount
of
tax
credits
authorized
16
pursuant
to
subsection
1
among
the
programs
specified
in
17
subsection
2
,
the
authority
shall
not
allocate
more
than
18
fifteen
million
dollars
for
purposes
of
subsection
2
,
paragraph
19
“f”
.
20
b.
The
renewable
chemical
production
tax
credit
pursuant
21
to
subchapter
II,
part
12,
and
the
sustainable
aviation
fuel
22
production
tax
credit
program
pursuant
to
subchapter
II,
part
23
36.
In
allocating
tax
credits
pursuant
to
this
subsection,
the
24
authority
shall
allocate
ten
million
dollars
for
purposes
of
25
this
paragraph,
and
the
board
shall
determine
the
tax
credit
26
amount
allocated
to
each
program
specified
in
this
paragraph
27
for
each
fiscal
year.
28
c.
The
research
and
development
tax
credit
program
pursuant
29
to
subchapter
II,
part
35.
In
allocating
tax
credits
pursuant
30
to
this
subsection,
the
authority
shall
allocate
forty
million
31
dollars
for
purposes
of
this
paragraph.
32
d.
The
business
incentives
for
growth
program
administered
33
pursuant
to
subchapter
II,
part
33.
In
allocating
tax
credits
34
pursuant
to
this
subsection
for
the
fiscal
year
beginning
July
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1,
2026,
and
for
each
fiscal
year
thereafter,
the
authority
1
shall
not
allocate
more
than
fifty
million
dollars
for
purposes
2
of
this
paragraph.
3
e.
(1)
The
high-quality
jobs
program
administered
pursuant
4
to
chapter
15,
subchapter
II,
part
13,
and
the
business
5
incentives
for
growth
program
administered
pursuant
to
chapter
6
15,
subchapter
II,
part
33.
In
allocating
tax
credits
pursuant
7
to
this
subsection,
the
authority
shall
allocate
fifty
million
8
dollars
in
the
aggregate
for
purposes
of
this
paragraph,
by
9
allocating
tax
credits
to
the
high-quality
jobs
program
prior
10
to
January
1,
2026,
and
by
allocating
the
remaining
tax
credits
11
to
the
business
incentives
for
growth
program
on
or
after
12
January
1,
2026.
13
(2)
This
paragraph
is
repealed
July
1,
2026.
14
4.
3.
The
authority
shall
submit
to
the
department
of
15
revenue
on
or
before
August
15
of
each
year
a
report
on
the
tax
16
credits
allocated
pursuant
to
this
section
and
the
tax
credits
17
awarded
under
each
of
the
programs
described
in
subsection
2
.
18
DIVISION
II
19
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
LIMITS
20
CONFORMING
CHANGES
21
Sec.
2.
Section
15.293A,
subsection
6,
Code
2025,
is
amended
22
to
read
as
follows:
23
6.
The
amount
of
tax
credits
that
may
be
awarded
by
the
24
board
shall
be
subject
to
the
limitation
in
section
15.119
25
Except
as
provided
in
section
15.293B,
subsection
6,
the
board
26
shall
not
award
in
any
one
fiscal
year
an
amount
of
tax
credits
27
that
exceeds
fifteen
million
dollars
.
28
Sec.
3.
Section
15.293B,
subsection
6,
Code
2025,
is
amended
29
to
read
as
follows:
30
6.
a.
(1)
Tax
credits
revoked
under
subsection
3
including
31
tax
credits
revoked
up
to
five
years
prior
to
July
1,
2021,
and
32
tax
credits
not
awarded
under
subsection
4
or
5
,
may
be
awarded
33
in
the
next
annual
application
period
established
in
subsection
34
1
,
paragraph
“c”
.
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(2)
Any
amount
of
tax
credits
authorized
and
awarded
during
1
a
fiscal
year
which
are
irrevocably
declined
by
the
awarded
2
investor
on
or
before
June
30
of
the
immediately
succeeding
3
fiscal
year
may
be
awarded
in
the
next
annual
application
4
period
established
in
subsection
1,
paragraph
“c”
.
5
b.
Tax
credits
awarded
pursuant
to
paragraph
“a”
shall
not
6
be
counted
against
the
limit
under
section
15.119,
subsection
3
7
15.293A,
subsection
6
.
8
Sec.
4.
Section
15.318,
subsection
3,
paragraph
e,
Code
9
2025,
is
amended
to
read
as
follows:
10
e.
In
each
fiscal
year
beginning
on
or
after
July
1,
2023
11
2025
,
and
ending
on
or
before
June
30,
2036,
the
authority
may
12
award
an
amount
of
tax
credits
under
the
program
not
to
exceed
13
the
maximum
aggregate
amount
allocated
in
determined
by
the
14
board
pursuant
to
section
15.119,
subsection
2,
paragraph
“h”
15
“b”
.
16
Sec.
5.
Section
15.354,
subsection
2,
paragraph
a,
Code
17
2025,
is
amended
to
read
as
follows:
18
a.
All
completed
applications
shall
be
reviewed
and
19
scored
on
a
competitive
basis
by
the
authority
pursuant
to
20
rules
adopted
by
the
authority.
In
scoring
applications,
the
21
authority
may
award
additional
points
for
all
of
the
following:
22
(1)
A
housing
project
located
in
a
community
where
no
23
housing
project
has
been
awarded
a
tax
incentive
under
the
24
program
in
the
immediately
preceding
three
application
periods.
25
(2)
A
housing
project
located
in
a
community
where
a
recent
26
or
planned
business
expansion,
or
a
new
business,
has
received
27
a
tax
incentive
or
financial
assistance
under
the
high-quality
28
jobs
program
administered
pursuant
to
subchapter
II,
part
13,
29
the
major
economic
growth
attraction
program
administered
30
pursuant
to
subchapter
II,
part
32,
or
the
business
incentives
31
for
growth
program
administered
pursuant
to
subchapter
II,
part
32
33.
33
Sec.
6.
Section
15.354,
subsection
4,
Code
2025,
is
amended
34
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
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following:
1
4.
Maximum
tax
incentives
amount.
2
a.
(1)
In
the
fiscal
year
beginning
July
1,
2025,
and
3
ending
June
30,
2026,
the
authority
shall
not
award
an
amount
4
of
tax
credits
in
excess
of
thirty-nine
million
five
hundred
5
thousand
dollars.
6
(2)
In
the
fiscal
year
beginning
July
1,
2026,
and
ending
7
June
30,
2027,
the
authority
shall
not
award
an
amount
of
tax
8
credits
in
excess
of
thirty-six
million
five
hundred
thousand
9
dollars.
10
(3)
In
the
fiscal
year
beginning
July
1,
2027,
and
for
each
11
fiscal
year
thereafter,
the
authority
shall
not
award
an
amount
12
of
tax
credits
in
excess
of
thirty-five
million
dollars.
13
b.
Of
the
tax
credits
allocated
under
paragraph
“a”
,
fifty
14
percent
of
the
allocation
available
in
each
fiscal
year
shall
15
be
reserved
for
allocation
to
qualified
housing
projects
in
16
small
cities.
17
c.
Notwithstanding
paragraph
“b”
,
if
the
sum
of
the
amount
18
of
tax
incentives
awarded
in
a
given
fiscal
year
for
housing
19
projects
located
in
small
cities
based
on
the
authority’s
20
review
and
scoring
of
applications
does
not
exceed
the
amount
21
reserved
for
housing
projects
located
in
small
cities
pursuant
22
to
paragraph
“b”
,
the
authority
may
award
the
remaining
amount
23
of
tax
incentives
reserved
for
housing
projects
located
in
24
small
cities
to
other
housing
projects
during
that
same
fiscal
25
year.
26
d.
Tax
credits
revoked
by
the
authority
or
irrevocably
27
declined
by
a
housing
business
before
June
30
of
the
fiscal
28
year
following
the
award
may
be
awarded
during
the
fiscal
year
29
the
revocation
or
declination
occurs.
Tax
credits
awarded
30
pursuant
to
this
paragraph
shall
not
be
counted
against
the
tax
31
credit
limit
established
in
paragraph
“a”
.
32
e.
The
maximum
aggregate
amount
of
tax
incentives
that
33
may
be
awarded
and
issued
under
section
15.355
to
a
housing
34
business
for
a
housing
project
shall
not
exceed
one
million
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dollars.
1
f.
If
a
housing
business
qualifies
for
a
higher
amount
2
of
tax
incentives
under
section
15.355
than
is
allowed
by
3
the
limitation
imposed
in
paragraph
“e”
,
the
authority
and
4
the
housing
business
may
negotiate
an
apportionment
of
the
5
reduction
in
tax
incentives
between
the
sales
tax
refund
6
provided
in
section
15.355,
subsection
2,
and
the
workforce
7
housing
investment
tax
credits
provided
in
section
15.355,
8
subsection
3,
provided
the
total
aggregate
amount
of
tax
9
incentives
after
the
apportioned
reduction
does
not
exceed
the
10
amount
in
paragraph
“e”
.
11
g.
The
authority
shall
issue
tax
incentives
under
the
12
program
on
a
first-come,
first-served
basis
until
the
maximum
13
amount
of
tax
incentives
allowed
under
paragraph
“a”
is
reached.
14
Sec.
7.
Section
15.354,
subsection
6,
paragraph
d,
Code
15
2025,
is
amended
to
read
as
follows:
16
d.
The
authority
shall
administer
tax
credit
allocations
17
for
disaster
recovery
housing
projects
separately
from
the
18
general
allocation
and
separately
from
the
allocation
reserved
19
for
small
cities
in
section
15.119,
subsection
2,
paragraph
20
“g”
.
The
authority
shall
issue
tax
incentives
under
the
21
program
for
disaster
recovery
housing
projects
on
a
first-come,
22
first-served
basis
until
the
maximum
amount
of
tax
incentives
23
allocated
under
section
15.119,
subsection
5
,
is
reached.
The
24
authority
shall
maintain
a
list
of
disaster
recovery
housing
25
projects
awarded
tax
incentives
under
the
program,
so
that
if
26
the
maximum
aggregate
amount
of
tax
incentives
allocated
for
27
disaster
recovery
housing
projects
under
the
program
is
reached
28
in
a
given
fiscal
year,
such
disaster
recovery
housing
projects
29
that
were
completed
but
for
which
tax
incentives
were
not
30
issued
shall
be
placed
on
a
wait
list
in
the
order
the
disaster
31
recovery
housing
projects
were
awarded
tax
incentives
pursuant
32
to
paragraph
“c”
,
and
shall
be
given
priority
for
receiving
33
tax
incentives
in
succeeding
fiscal
years
maximum
tax
credit
34
amounts
specified
in
section
15.354,
subsection
4,
paragraphs
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“a”
and
“b”
.
1
DIVISION
III
2
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
3
Sec.
8.
NEW
SECTION
.
15.111
Assistance
for
certain
programs
4
and
projects.
5
1.
a.
Under
the
authority
provided
in
section
15.106A,
6
there
shall
be
established
one
or
more
funds
within
the
state
7
treasury,
under
the
control
of
the
authority,
to
be
used
for
8
purposes
of
this
section.
9
b.
A
fund
established
for
purposes
of
this
section
shall
10
consist
of
any
moneys
appropriated
to
the
authority
for
11
purposes
of
this
section,
or
moneys
otherwise
accruing
to
12
the
authority
and
deposited
in
the
fund
for
purposes
of
this
13
section.
14
c.
Interest
or
earnings
on
moneys
in
a
fund
used
for
the
15
purposes
of
this
section,
and
all
repayments
or
recaptures
of
16
the
assistance
provided
under
this
section,
shall
accrue
to
17
the
authority
and
shall
be
used
for
purposes
of
this
section,
18
notwithstanding
section
12C.7.
Moneys
in
a
fund
are
not
19
subject
to
section
8.33.
20
2.
a.
The
moneys
in
a
fund
established
for
purposes
of
21
this
section,
as
described
in
subsection
1,
shall
be
allocated
22
by
the
authority
in
appropriate
amounts
to
be
used
for
the
23
following
purposes:
24
(1)
For
program
support.
For
purposes
of
this
subparagraph,
25
“program
support”
means
the
services
necessary
for
the
efficient
26
administration
of
a
program
administered
by
the
authority,
27
including
but
not
limited
to
administrative
costs,
conducting
a
28
statewide
laborshed
study
in
coordination
with
the
department
29
of
workforce
development,
outreach
to
business
and
marketing
30
programs,
the
procurement
of
technical
assistance,
and
the
31
implementation
of
information
technology.
32
(2)
For
deposit
in
the
innovation
and
commercialization
33
development
fund
created
pursuant
to
section
15.412.
34
(3)
For
providing
financial
assistance
to
businesses
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engaged
in
disaster
recovery.
For
purposes
of
this
1
subparagraph,
“business
engaged
in
disaster
recovery”
means
2
a
business
located
in
an
area
declared
a
disaster
area
by
a
3
federal
official,
that
has
sustained
physical
damage,
has
4
closed
as
a
result
of
a
natural
disaster,
and
has
a
plan
for
5
reopening
that
includes
employing
a
substantial
number
of
the
6
employees
the
business
employed
before
the
natural
disaster
7
occurred.
8
(4)
For
deposit
in
the
entrepreneur
investment
awards
9
program
fund
pursuant
to
section
15E.363.
10
(5)
For
deposit
in
a
fund
created
for
purposes
of
the
11
strategic
infrastructure
program
established
pursuant
to
12
section
15.313.
13
(6)
For
deposit
in
the
nuisance
property
remediation
fund
14
established
pursuant
to
section
15.338.
15
(7)
For
deposit
in
the
community
catalyst
building
16
remediation
fund
established
pursuant
to
section
15.231.
17
(8)
For
providing
financial
assistance
to
eligible
18
businesses
for
the
business
incentives
for
growth
program
19
pursuant
to
section
15.504.
20
b.
Each
fiscal
year,
the
authority
shall
estimate
the
21
amount
of
revenues
available
for
purposes
of
this
section
and
22
shall
develop
a
budget
appropriate
for
the
expenditure
of
the
23
revenues
available.
24
Sec.
9.
NEW
SECTION
.
15.502
Short
title.
25
This
part
shall
be
known
and
may
be
cited
as
the
“Business
26
Incentives
for
Growth
Program”
or
“BIG
Program”
.
27
Sec.
10.
NEW
SECTION
.
15.503
Definitions.
28
As
used
in
this
part,
unless
the
context
otherwise
requires:
29
1.
“Base
employment
level”
means
the
number
of
full-time
30
equivalent
positions
at
a
business,
as
established
by
the
31
authority
and
the
business
using
the
business’s
payroll
32
records,
as
of
the
date
the
business
applies
for
tax
incentives
33
under
the
program.
34
2.
“Benefits”
means
nonwage
compensation
provided
to
an
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employee.
“Benefits”
include
medical
and
dental
insurance,
a
1
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
2
life
insurance,
vision
insurance,
and
disability
insurance.
3
3.
“Community”
means
a
city,
county,
or
entity
established
4
pursuant
to
chapter
28E.
5
4.
“Contract
completion”
means
the
date
of
completion
of
6
the
terms
of
a
contract
between
a
contractor
and
an
eligible
7
business.
8
5.
“Contractor”
means
a
person
that
has
executed
a
contract
9
with
an
eligible
business
for
the
provision
of
property,
10
materials,
or
services
for
the
construction
or
equipping
of
a
11
facility
that
is
part
of
the
eligible
business’s
project.
12
6.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
13
full-time
equivalent
positions
added
to
an
eligible
business’s
14
payroll,
at
the
location
of
the
eligible
business’s
project,
in
15
excess
of
the
eligible
business’s
base
employment
level.
16
7.
“Data
center
business”
means
the
same
as
defined
in
17
section
423.3,
subsection
95.
18
8.
“Eligible
business”
means
a
business
that
meets
the
19
requirements
of
section
15.504.
20
9.
“Full-time
equivalent
position”
means
a
non-part-time
21
position
for
the
number
of
hours
or
days
per
week
considered
22
to
be
full-time
work
for
the
kind
of
service
or
work
performed
23
for
an
employer.
Typically,
a
full-time
equivalent
position
24
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
25
including
all
paid
holidays,
vacations,
sick
time,
and
other
26
paid
leave.
27
10.
“Program”
means
the
business
incentives
for
growth
28
program.
29
11.
“Project”
means
an
activity
or
set
of
activities
30
directly
related
to
the
start-up,
location,
modernization,
or
31
expansion
of
an
eligible
business
and
proposed
in
an
eligible
32
business’s
application
to
the
program,
that
will
accomplish
the
33
goals
of
the
program.
34
12.
“Project
completion
date”
means
the
date
by
which
an
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eligible
business
that
has
been
approved
by
the
authority
to
1
participate
in
the
program
agrees
to
complete
the
terms
and
2
conditions
of
the
agreement
under
section
15.506.
3
13.
“Project
completion
period”
means
the
period
of
time
4
between
the
date
the
authority
approves
an
eligible
business
to
5
participate
in
the
program
and
the
project
completion
date.
6
14.
“Qualifying
investment”
means
a
capital
investment
7
in
real
property,
including
the
purchase
price
of
the
land
8
and
existing
buildings
and
structures,
site
preparation,
9
improvements
to
the
real
property,
building
construction,
and
10
long-term
lease
costs.
“Qualifying
investment”
also
means
11
a
capital
investment
in
depreciable
assets
for
use
in
the
12
operation
of
an
eligible
business.
13
15.
“Qualifying
wage
threshold”
means
the
mean
wage
level
14
represented
by
the
wages
within
two
standard
deviations
of
15
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
16
business
is
located,
as
calculated
by
the
authority
by
rule,
17
using
the
most
current
covered
wage
and
employment
data
18
available
from
the
department
of
workforce
development
for
the
19
laborshed
area
in
which
the
eligible
business
is
located.
20
16.
“Retained
job”
means
a
full-time
equivalent
position
21
that
is
in
existence
at
the
time
an
eligible
business
applies
22
for
the
program
that
remains
continuously
filled,
and
that
is
23
at
risk
of
elimination
if
the
proposed
project
for
which
the
24
eligible
business
is
applying
to
the
program
does
not
proceed.
25
17.
“Subcontractor”
means
a
person
that
contracts
with
26
a
contractor
for
the
provision
of
property,
materials,
or
27
services
for
the
construction
or
equipping
of
a
facility
that
28
is
part
of
an
eligible
business’s
project.
29
18.
“Tax
incentives”
means
tax
credits,
tax
refunds,
or
tax
30
exemptions
authorized
under
the
program
by
the
authority
for
an
31
eligible
business.
32
Sec.
11.
NEW
SECTION
.
15.504
Eligible
business.
33
1.
To
be
eligible
to
receive
tax
incentives
under
34
the
program,
a
business
must
meet
all
of
the
following
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requirements:
1
a.
The
community
in
which
the
proposed
project
is
located
2
must
approve
the
project
either
by
ordinance
or
resolution.
3
b.
(1)
The
business
must
be
primarily
engaged
in
advanced
4
manufacturing,
bioscience,
insurance
and
finance,
or
technology
5
and
innovation.
The
business
shall
not
be
a
data
center
6
business,
a
retail
business,
or
a
business
where
a
cover
charge
7
or
membership
requirement
restricts
certain
individuals
from
8
entering
the
business.
9
(2)
Factors
the
authority
shall
consider
to
determine
if
10
a
business
is
primarily
engaged
in
advanced
manufacturing,
11
biosciences,
insurance
and
finance,
or
technology
and
12
innovation
shall
include
but
are
not
limited
to
all
of
the
13
following:
14
(a)
The
business’s
North
American
industry
classification
15
system
code.
16
(b)
The
business’s
main
sources
of
revenue.
17
(c)
The
business’s
customer
base.
18
c.
(1)
The
business
must
not
be
solely
relocating
19
operations
from
one
area
of
the
state
to
another
area
of
20
the
state.
A
proposed
project
that
does
not
create
jobs
or
21
involve
a
substantial
amount
of
new
capital
investment
shall
22
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
23
this
subparagraph,
the
authority
shall
consider
a
letter
from
24
the
affected
local
community’s
government
officials
supporting
25
the
business’s
move
away
from
the
affected
local
community
26
in
making
a
determination
whether
the
business
is
solely
27
relocating
operations.
28
(2)
This
paragraph
shall
not
be
construed
to
prohibit
29
a
business
from
expanding
the
business’s
operations
in
a
30
community
if
the
business
has
similar
operations
in
this
state
31
that
are
not
closing
or
undergoing
a
substantial
reduction
in
32
operations.
33
d.
The
business
must
offer
comprehensive
benefits
to
each
34
full-time
equivalent
employee
employed
at
the
project.
The
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authority
may
adopt
rules
under
chapter
17A
to
determine
the
1
procedure
for
establishing
requirements
for
comprehensive
2
benefits.
3
e.
(1)
The
business
must
not
have
a
record
of
violations
of
4
the
law
or
of
rules,
including
but
not
limited
to
antitrust,
5
environmental,
trade,
or
worker
safety,
that
over
a
period
of
6
time
show
a
consistent
pattern
or
that
establish
the
business’s
7
intentional,
criminal,
or
reckless
conduct
in
violation
of
such
8
laws
or
rules.
9
(2)
If
the
authority
determines
that
the
business
has
a
10
record
of
violations
described
in
subparagraph
(1),
and
the
11
authority
finds
that
the
violations
did
not
seriously
affect
12
public
health,
public
safety,
or
the
environment,
the
business
13
may
be
eligible
to
qualify
for
the
program.
14
(3)
If
the
authority
determines
that
the
business
has
15
a
record
of
violations
described
in
subparagraph
(1),
and
16
the
authority
finds
that
there
were
mitigating
circumstances
17
related
to
the
violations,
the
business
may
be
eligible
to
18
qualify
for
the
program.
19
(4)
In
making
determinations
and
findings
under
20
subparagraphs
(2)
and
(3),
and
making
a
determination
whether
a
21
business
is
disqualified
from
the
program,
the
authority
shall
22
be
exempt
from
chapter
17A.
23
2.
In
determining
if
a
business
is
eligible
to
participate
24
in
the
program,
the
authority
shall
consider
a
variety
of
25
factors,
including
but
not
limited
to
all
of
the
following:
26
a.
The
impact
of
the
business’s
proposed
project
on
27
businesses
that
are
in
competition
with
the
business.
28
The
authority
shall
make
a
good-faith
effort
to
identify
29
existing
Iowa
businesses
in
competition
with
the
business
30
being
considered
for
the
program.
The
authority
shall
make
31
a
good-faith
effort
to
determine
the
probability
that
any
32
proposed
tax
incentives
will
displace
employees
of
the
33
competing
businesses.
34
b.
The
business’s
proposed
project’s
economic
impact
on
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the
state.
The
authority
shall
place
greater
emphasis
on
1
businesses
and
proposed
projects
that
meet
the
following
2
requirements:
3
(1)
The
business
has
a
high
proportion
of
in-state
4
suppliers.
5
(2)
The
proposed
project
will
diversify
the
state
economy.
6
(3)
The
business
has
few
in-state
competitors.
7
(4)
The
proposed
project
has
the
potential
to
create
jobs
on
8
an
ongoing
basis,
or
will
result
in
increased
skills
and
wages
9
for
employees
of
the
eligible
business.
10
(5)
The
proposed
project
has
the
potential
to
increase
11
productivity,
efficiency,
and
competitiveness
through
adoption
12
and
integration
of
smart
technologies
including
specialized
13
hardware,
software,
or
other
equipment.
14
(6)
The
proposed
project
has
the
potential
to
increase
the
15
state’s
overall
gross
domestic
product.
16
(7)
Any
other
factors
the
authority
deems
relevant
in
17
determining
the
economic
impact
of
a
proposed
project.
18
Sec.
12.
NEW
SECTION
.
15.505
Applications
——
authorization
19
of
tax
credits
and
exemptions.
20
1.
a.
Applications
for
the
program
shall
be
submitted
21
to
the
authority
in
the
form
and
manner
prescribed
by
the
22
authority
by
rule.
Each
application
must
be
accompanied
by
an
23
application
fee
in
an
amount
determined
by
the
authority
by
24
rule.
25
b.
For
a
proposed
project
that
will
result
in
elevated
26
water
consumption
by
the
business,
the
application
shall
be
27
accompanied
by
a
water
conservation
and
waste
reduction
plan,
28
and
shall
be
submitted
to
the
authority
in
the
form
and
manner
29
prescribed
by
the
authority
by
rule.
30
2.
In
determining
the
eligibility
of
a
business
to
31
participate
in
the
program,
the
authority
may
engage
outside
32
experts
to
complete
a
technical,
financial,
or
other
review
of
33
an
application
submitted
by
a
business.
34
3.
a.
The
authority
and
the
board
may
negotiate
with
an
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eligible
business
regarding
the
terms
of,
and
the
aggregate
1
value
of,
the
tax
incentives
the
eligible
business
may
receive
2
under
the
program.
The
maximum
aggregate
value
of
the
tax
3
incentives
that
any
one
eligible
business
may
receive
shall
4
not
exceed
five
percent
of
the
eligible
business’s
qualifying
5
investment,
unless
the
eligible
business’s
project
is
located
6
in
a
rural
county,
in
which
case
the
maximum
aggregate
value
7
of
tax
incentives
that
any
one
eligible
business
may
receive
8
shall
not
exceed
seven
and
one-half
percent
of
the
eligible
9
business’s
qualifying
investment.
For
purposes
of
this
10
paragraph,
“rural
county”
means
a
county
in
the
state
with
a
11
population
of
twenty
thousand
or
less
based
on
the
most
recent
12
decennial
census
released
by
the
United
States
census
bureau.
13
b.
The
board
may
authorize
any
combination
of
tax
incentives
14
available
under
the
program
for
an
eligible
business.
15
4.
The
board
shall
not
authorize
an
award
under
this
part
16
before
January
1,
2026.
17
Sec.
13.
NEW
SECTION
.
15.506
Agreement.
18
1.
An
eligible
business
that
is
approved
by
the
authority
to
19
participate
in
the
program
shall
enter
into
an
agreement
with
20
the
authority
that
specifies
the
criteria
for
the
successful
21
completion
of
all
requirements
of
the
program.
The
agreement
22
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
23
following:
24
a.
The
eligible
business
must
certify
to
the
authority
25
annually
that
the
business
is
in
compliance
with
the
agreement.
26
b.
If
the
eligible
business
fails
to
comply
with
any
27
requirements
of
the
program
or
the
agreement,
as
determined
28
by
the
authority,
the
eligible
business
may
be
required
to
29
repay
any
tax
incentives
the
authority
issued
to
the
eligible
30
business.
After
a
final
determination
by
the
authority,
the
31
authority
will
notify
the
department
of
revenue
of
any
required
32
repayment
of
a
tax
incentive,
which
shall
be
considered
a
33
tax
payment
due
and
payable
to
the
department
of
revenue
by
34
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
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to
make
the
repayment
may
be
treated
by
the
department
of
1
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
2
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
3
or
deposit
form.
A
county
shall
have
the
authority
to
take
4
action
to
recover
the
value
of
property
taxes
not
collected
as
5
a
result
of
the
exemption
provided
to
the
business
under
this
6
part.
7
c.
If
the
eligible
business
undergoes
a
layoff
or
8
permanently
closes
any
of
its
facilities
within
the
state,
the
9
eligible
business
may
be
subject
to
all
of
the
following:
10
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
11
incentives
the
authority
issued
to
the
eligible
business.
12
(2)
Repayment
of
any
tax
incentives
that
the
business
13
has
claimed,
and
payment
of
any
penalties
assessed
by
the
14
department
of
revenue.
15
d.
The
project
completion
date,
the
agreement
end
date,
16
the
base
employment
level,
any
retained
jobs,
the
number
of
17
created
jobs,
the
qualifying
wage
threshold
that
is
applicable
18
to
the
project,
the
amount
of
qualifying
investment,
the
19
maximum
aggregate
value
of
the
tax
incentives
authorized
by
the
20
board,
and
any
other
terms
and
obligations
the
authority
deems
21
necessary
or
material
to
the
determination
of
the
business’s
22
eligibility
for
the
program,
or
the
aggregate
value
of
tax
23
incentives
approved
by
the
board.
24
e.
The
eligible
business
shall
only
employ
individuals
25
legally
authorized
to
work
in
this
state.
If
the
eligible
26
business
is
found
to
knowingly
employ
individuals
who
are
27
not
legally
authorized
to
work
in
this
state,
in
addition
28
to
any
penalties
provided
by
law,
all
or
a
portion
of
any
29
tax
incentives
issued
by
the
authority
shall
be
subject
30
to
repayment
as
described
in
section
15.506,
subsection
1,
31
paragraph
“b”
.
32
f.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
33
eligible
business’s
ongoing
compliance
with
section
15.504.
34
2.
The
business
shall
satisfy
all
applicable
terms
of
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the
agreement
by
the
project
completion
date;
however,
the
1
board
may
for
good
cause
extend
the
project
completion
date
or
2
otherwise
amend
the
terms
of
the
agreement.
The
board
shall
3
not
amend
the
terms
of
the
agreement
to
allow
an
increase
in
4
the
maximum
aggregate
value
of
the
tax
incentives
authorized
by
5
the
board
under
section
15.505,
subsection
3.
6
3.
The
eligible
business
shall
comply
with
all
applicable
7
terms
of
the
agreement
until
the
agreement
end
date.
An
8
eligible
business
shall
maintain
the
business’s
base
employment
9
level
until
the
agreement
end
date.
10
4.
The
eligible
business
shall
not
assign
the
agreement
11
to
another
entity
without
the
advance
written
approval
of
the
12
board.
13
5.
The
authority
may
enforce
the
terms
of
the
agreement
as
14
necessary
and
appropriate.
15
Sec.
14.
NEW
SECTION
.
15.507
Sales
and
use
tax
refund.
16
1.
An
eligible
business
that
has
been
issued
a
tax
incentive
17
certificate
under
the
program
shall
be
entitled
to
a
refund,
18
as
negotiated
under
section
15.505,
subsection
3,
of
the
sales
19
and
use
taxes
paid
under
chapter
423
for
gas,
electricity,
20
water,
and
sewer
utility
services,
tangible
personal
property,
21
or
on
services
rendered,
furnished,
or
performed
to
or
for
22
a
contractor
or
subcontractor
and
used
in
the
fulfillment
23
of
a
written
contract
for
the
construction
or
equipping
of
24
a
facility
that
is
part
of
the
eligible
business’s
project.
25
Taxes
attributable
to
intangible
property
and
furniture
and
26
furnishings
shall
not
be
refunded.
27
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
28
business
shall
file
a
claim
with
the
department
of
revenue
as
29
follows:
30
a.
The
contractor
or
subcontractor
shall
state
under
oath,
31
on
forms
provided
by
the
department
of
revenue,
the
amount
of
32
the
sales
of
tangible
personal
property
or
services
rendered,
33
furnished,
or
performed
including
water,
sewer,
gas,
and
34
electric
utility
services
upon
which
sales
or
use
tax
has
been
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paid
during
the
period
for
which
the
refund
is
claimed,
and
1
shall
submit
the
forms
to
the
eligible
business
before
contract
2
completion.
3
b.
The
eligible
business
shall,
no
more
frequently
than
4
quarterly,
submit
an
application
to
the
department
of
revenue
5
for
a
refund
of
the
amount
of
the
sales
and
use
taxes
paid
6
pursuant
to
chapter
423
upon
any
tangible
personal
property,
or
7
services
rendered,
furnished,
or
performed,
including
water,
8
sewer,
gas,
and
electric
utility
services.
The
application
9
shall
be
submitted
in
the
form
and
manner
prescribed
by
the
10
department
of
revenue.
The
department
of
revenue
shall
audit
11
the
application
and,
if
approved,
issue
a
warrant
or
warrants
12
to
the
eligible
business
in
the
amount
of
the
sales
or
use
tax
13
which
has
been
paid
to
the
state
of
Iowa
under
subsection
1.
14
The
eligible
business’s
final
application
must
be
submitted
to
15
the
department
of
revenue
within
one
year
after
the
project
16
completion
date.
An
application
filed
by
the
eligible
business
17
in
accordance
with
this
section
shall
not
be
denied
by
reason
18
of
a
time
limitation
for
filing
a
refund
claim
set
forth
in
19
section
423.47.
20
c.
The
refund
shall
be
remitted
by
the
department
of
21
revenue
to
the
eligible
business
as
soon
as
practicable
after
22
completion
of
the
audit
pursuant
to
paragraph
“b”
.
Interest
23
shall
not
accrue
on
any
part
of
the
refund
that
has
not
yet
been
24
remitted
by
the
department
of
revenue
to
the
eligible
business.
25
3.
A
contractor
or
subcontractor
that
willfully
makes
a
26
false
report
of
tax
paid
under
this
section
is
guilty
of
an
27
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
28
tax
and
any
applicable
penalty
and
interest.
29
Sec.
15.
NEW
SECTION
.
15.508
Qualifying
investment
tax
30
credit.
31
1.
The
authority
may
authorize
a
tax
credit
for
an
eligible
32
business
pursuant
to
section
15.505,
subsection
3.
The
33
authority
shall
not
issue
a
tax
credit
certificate
to
the
34
eligible
business
until
the
eligible
business’s
project
or
a
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portion
of
the
project
has
been
placed
in
service.
An
eligible
1
business
may
claim
the
tax
credit
authorized
and
issued
by
the
2
authority.
The
tax
credit
shall
be
amortized
to
the
eligible
3
business
equally
over
five
tax
years.
The
tax
credit
shall
be
4
allowed
against
taxes
imposed
under
chapter
422,
subchapter
II,
5
III,
or
V,
and
against
the
moneys
and
credits
tax
imposed
in
6
section
533.329.
If
the
eligible
business
is
a
partnership,
S
7
corporation,
limited
liability
company,
cooperative
organized
8
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
9
purposes,
or
estate
or
trust
electing
to
have
the
income
taxed
10
directly
to
the
individual,
an
individual
may
claim
the
tax
11
credit
allowed.
The
amount
claimed
by
the
individual
shall
12
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
13
of
the
partnership,
S
corporation,
limited
liability
company,
14
cooperative
organized
under
chapter
501
and
filing
as
a
15
partnership
for
federal
tax
purposes,
or
estate
or
trust.
Any
16
tax
credit
in
excess
of
the
eligible
business’s
tax
liability
17
for
the
tax
year
may
be
refunded.
In
lieu
of
claiming
a
refund,
18
an
eligible
business
may
elect
to
have
the
overpayment
shown
19
on
the
eligible
business’s
final,
completed
return
credited
20
to
the
eligible
business’s
tax
liability
for
the
immediately
21
succeeding
tax
year.
A
tax
credit
shall
not
be
carried
back
22
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
is
23
first
claimed
by
the
eligible
business.
24
2.
If
within
five
years
of
the
date
the
authority
issues
25
an
eligible
business
a
tax
credit
under
subsection
1
the
26
eligible
business
sells,
disposes
of,
razes,
or
otherwise
27
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
28
other
structures
for
which
the
tax
credit
was
claimed
under
29
this
section,
the
tax
liability
of
the
eligible
business
for
30
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
31
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
32
rendered
unusable
shall
be
increased
by
one
of
the
following
33
amounts:
34
a.
One
hundred
percent
of
the
tax
credit
claimed
under
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this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
1
structures
for
which
the
tax
credit
was
claimed
under
this
2
section
cease
to
be
eligible
for
the
tax
credit
within
one
3
year
after
the
date
the
authority
issued
the
tax
credit
to
the
4
eligible
business.
5
b.
Eighty
percent
of
the
tax
credit
claimed
under
this
6
section
if
all
or
a
part
of
the
land,
buildings,
or
other
7
structures
for
which
the
tax
credit
was
claimed
under
this
8
section
cease
to
be
eligible
for
the
tax
credit
within
two
9
years
after
the
date
the
authority
issued
the
tax
credit
to
the
10
eligible
business.
11
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
12
section
if
all
or
a
part
of
the
land,
buildings,
or
other
13
structures
for
which
the
tax
credit
was
claimed
under
this
14
section
cease
to
be
eligible
for
the
tax
credit
within
three
15
years
after
the
date
the
authority
issued
the
tax
credit
to
the
16
eligible
business.
17
d.
Forty
percent
of
the
tax
credit
claimed
under
this
18
section
if
all
or
a
part
of
the
land,
buildings,
or
other
19
structures
for
which
the
tax
credit
was
claimed
under
this
20
section
cease
to
be
eligible
for
the
tax
credit
within
four
21
years
after
the
date
the
authority
issued
the
tax
credit
to
the
22
eligible
business.
23
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
24
section
if
all
or
a
part
of
the
land,
buildings,
or
other
25
structures
for
which
the
tax
credit
was
claimed
under
this
26
section
cease
to
be
eligible
for
the
tax
credit
within
five
27
years
after
the
date
the
authority
issued
the
tax
credit
to
the
28
eligible
business.
29
f.
Except
as
provided
in
section
15.119,
subsection
1,
30
paragraph
“b”
,
the
board
shall
not
authorize
for
any
one
fiscal
31
year
an
amount
of
tax
credits
pursuant
to
this
section
that
32
exceeds
the
amount
allocated
pursuant
to
section
15.119,
33
subsection
2.
34
Sec.
16.
NEW
SECTION
.
15.509
Other
incentives.
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1.
An
eligible
business
may
apply
for
and
be
eligible
to
1
receive
other
federal,
state,
and
local
incentives
in
addition
2
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
3
business
under
the
program.
4
2.
The
authority,
in
its
discretion,
may
prohibit
an
5
eligible
business
that
has
been
issued
tax
incentives
under
6
the
program
from
receiving
any
additional
tax
incentive,
tax
7
credit,
grant,
loan,
or
other
financial
assistance
under
any
8
program
administered
by
the
authority.
9
Sec.
17.
NEW
SECTION
.
15.510
Property
tax
exemption.
10
1.
If
an
eligible
business
has
been
authorized
by
the
board
11
to
receive
tax
incentives
under
the
program,
a
community
in
12
which
the
eligible
business’s
project
is
located
may
grant
the
13
eligible
business
a
property
tax
exemption
for
a
portion
of
the
14
actual
value
added
by
improvements
to
real
property
through
the
15
project.
The
community
may
allow
a
property
tax
exemption
for
16
a
period
not
to
exceed
ten
years
beginning
the
year
that
the
17
improvements
to
real
property
are
first
assessed
for
taxation.
18
2.
For
purposes
of
this
section,
“improvements”
means
new
19
construction,
and
rehabilitation
of
and
additions
to
existing
20
structures.
21
3.
A
property
tax
exemption
granted
under
subsection
1
shall
22
apply
to
all
taxing
districts,
except
for
school
districts,
in
23
which
the
real
property
is
located.
24
Sec.
18.
NEW
SECTION
.
15.511
Financial
assistance
for
25
certain
eligible
businesses.
26
1.
The
authority
may
provide
financial
assistance
to
an
27
eligible
business
pursuant
to
section
15.111,
subsection
2,
28
paragraph
“a”
,
subparagraph
(8),
if
the
authority
and
the
board
29
find
such
assistance
necessary
to
facilitate
the
project’s
30
successful
completion,
that
the
project
has
an
extensive
31
economic
impact,
or
that
financial
assistance
will
incentivize
32
an
eligible
business
to
choose
an
Iowa
location,
rather
than
an
33
out-of-state
location,
for
the
project.
34
2.
Each
eligible
business
receiving
assistance
under
this
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section
shall
enter
into
an
agreement
with
the
authority
and
1
the
agreement
shall
meet
the
requirements
of
section
15.506.
2
The
agreement
shall
specify
the
circumstances
under
which
the
3
financial
assistance
must
be
repaid
to
the
authority.
4
3.
If
the
authority
and
the
board
determine
financial
5
assistance
should
be
awarded,
the
authority
and
the
board
shall
6
determine
the
appropriate
amount
and
type
of
assistance
for
7
facilitating
the
eligible
business’s
project.
8
4.
For
purposes
of
this
section,
“financial
assistance”
9
means
assistance
provided
exclusively
from
the
funds,
rights,
10
and
assets
legally
available
to
the
authority
pursuant
to
this
11
chapter
and
includes
but
is
not
limited
to
assistance
in
the
12
form
of
grants,
loans,
forgivable
loans,
and
royalty
payments.
13
Sec.
19.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
14
to
designate
sections
15.502
through
15.511,
as
enacted
in
this
15
division
of
this
Act,
as
part
33
of
subchapter
II.
16
Sec.
20.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
17
deemed
of
immediate
importance,
takes
effect
upon
enactment.
18
DIVISION
IV
19
ELIMINATION
OF
THE
HIGH
QUALITY
JOBS
PROGRAM
20
Sec.
21.
REPEAL.
Sections
15.326,
15.327,
15.329,
15.330,
21
15.330A,
15.331A,
15.331C,
15.332,
15.333,
15.333A,
15.335,
22
15.335A,
15.335B,
15.335C,
and
15.336,
Code
2025,
are
repealed.
23
Sec.
22.
TRANSITION
PROVISIONS.
24
1.
An
agreement
entered
into
on
or
before
December
31,
2025,
25
by
a
business
and
the
economic
development
authority
pursuant
26
to
section
15.330,
Code
2025,
or
amended
pursuant
to
section
27
15.330A,
Code
2025,
shall
be
valid
and
continue
per
the
terms
28
of
the
agreement.
29
2.
On
the
effective
date
of
this
division
of
this
Act,
all
30
moneys
appropriated
by
the
general
assembly
to
the
authority
31
for
purposes
of
section
15.335B
shall
remain
available
to
32
the
authority
for
purposes
of
section
15.111,
as
enacted
by
33
this
Act.
Notwithstanding
section
8.33,
moneys
transferred
34
in
accordance
with
this
section
that
remain
unencumbered
or
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unobligated
at
the
close
of
the
fiscal
year
shall
not
revert
1
but
shall
remain
available
for
expenditure
for
the
purposes
2
designated
until
the
close
of
the
succeeding
fiscal
year.
3
Sec.
23.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
of
4
this
Act
shall
not
limit,
modify,
or
otherwise
adversely
affect
5
any
amount
of
tax
incentive
issued,
awarded,
or
allowed
before
6
December
31,
2025,
nor
shall
it
limit,
modify,
or
otherwise
7
adversely
affect
a
taxpayer’s
right
to
claim
or
redeem
a
tax
8
incentive
issued,
awarded,
or
allowed
before
December
31,
2025,
9
including
but
not
limited
to
any
tax
credit
carry
forward
10
amount.
11
Sec.
24.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
12
effect
December
31,
2025.
13
DIVISION
V
14
HIGH
QUALITY
JOBS
PROGRAM
15
CONFORMING
CHANGES
16
Sec.
25.
Section
2.48,
subsection
3,
paragraph
a,
17
subparagraph
(1),
Code
2025,
is
amended
by
striking
the
18
subparagraph.
19
Sec.
26.
Section
2.48,
subsection
3,
paragraph
a,
20
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
21
(2)
The
tax
credits
for
increasing
research
activities
22
available
under
sections
15.335,
422.10
,
and
422.33
.
23
Sec.
27.
Section
8G.3,
subsection
8,
Code
2025,
is
amended
24
to
read
as
follows:
25
8.
“Tax
exemption
or
credit”
means
an
exclusion
from
26
the
operation
or
collection
of
a
tax
imposed
in
this
state.
27
Tax
exemption
or
credit
includes
tax
credits,
exemptions,
28
deductions,
and
rebates.
“Tax
exemption
or
credit”
also
29
includes
sales
tax
refunds
if
such
refunds
are
applied
for
and
30
granted
as
a
form
of
financial
assistance,
including
but
not
31
limited
to
the
refunds
allowed
in
sections
15.331A
15.507
and
32
423.4
.
33
Sec.
28.
Section
15.106B,
subsection
5,
paragraph
b,
Code
34
2025,
is
amended
to
read
as
follows:
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b.
Fees
collected
by
the
authority
pursuant
to
this
1
subsection
shall
be
deposited
in
a
fund
within
the
state
2
treasury
created
pursuant
to
section
15.106A,
subsection
1
,
3
paragraph
“o”
,
and
are
appropriated
to
the
authority
for
the
4
purposes
set
out
in
section
15.106A,
subsection
1
,
paragraph
5
“o”
.
However,
fees
collected
by
the
authority
pursuant
to
6
section
15.330,
subsection
12,
section
15E.198,
Code
2014,
Code
7
2025,
and
section
15.354,
subsection
3
,
paragraph
“b”
,
shall
be
8
used
exclusively
for
costs
associated
with
the
administration
9
of
due
diligence
and
compliance.
10
Sec.
29.
Section
15.293B,
subsection
3,
Code
2025,
is
11
amended
to
read
as
follows:
12
3.
If
an
investor
is
awarded
a
tax
credit
pursuant
to
this
13
section
,
the
authority
and
the
investor
shall
enter
into
an
14
agreement
concerning
the
qualifying
redevelopment
project.
If
15
the
investor
fails
to
comply
with
any
of
the
requirements
of
16
the
agreement,
the
authority
may
find
the
investor
in
default
17
under
the
agreement
and
may
revoke
all
or
a
portion
of
the
tax
18
credit
award.
The
department
of
revenue,
upon
notification
by
19
the
authority
of
an
event
of
default,
shall
seek
repayment
of
20
the
value
of
any
such
tax
credit
already
claimed
in
the
same
21
manner
as
provided
in
section
15.330,
subsection
2.
After
22
a
final
determination
by
the
authority,
the
authority
shall
23
notify
the
department
of
revenue
of
any
required
repayment
or
24
recapture
of
a
tax
credit.
The
repayment
or
recapture
of
a
25
tax
credit
pursuant
to
this
subsection
shall
be
considered
a
26
tax
payment
due
and
payable
to
the
department
of
revenue
by
27
any
taxpayer
who
has
claimed
the
tax
credit,
and
the
failure
28
to
make
such
a
repayment
may
be
treated
by
the
department
of
29
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
30
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
31
deposit
form.
32
Sec.
30.
Section
15.317,
subsection
5,
Code
2025,
is
amended
33
to
read
as
follows:
34
5.
The
business
shall
not
be
relocating
or
reducing
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operations
as
described
in
section
15.329,
subsection
1
,
1
paragraph
“b”
follows
,
and
as
determined
under
the
discretion
2
of
the
authority
.
:
3
a.
The
business
shall
not
be
solely
relocating
operations
4
from
one
area
of
the
state.
A
project
that
does
not
create
new
5
jobs
or
involve
a
substantial
amount
of
new
capital
investment
6
shall
be
presumed
to
be
a
relocation.
In
determining
whether
a
7
business
is
solely
relocating
operations
for
purposes
of
this
8
paragraph,
the
authority
shall
consider
a
letter
of
support
for
9
the
move
from
the
affected
local
community.
10
b.
The
business
shall
not
be
in
the
process
of
reducing
11
operations
in
one
community
while
simultaneously
applying
for
12
the
program.
For
purposes
of
this
paragraph,
a
reduction
in
13
operations
within
twelve
months
before
or
after
an
application
14
is
submitted
to
the
authority
shall
be
presumed
to
be
a
15
reduction
in
operations
while
simultaneously
applying
for
16
assistance
under
the
program.
17
c.
This
subsection
shall
not
be
construed
to
prohibit
18
a
business
from
expanding
its
operation
in
a
community
if
19
existing
operations
of
a
similar
nature
in
this
state
are
not
20
closed
or
substantially
reduced.
21
Sec.
31.
Section
15.318,
subsection
2,
paragraph
b,
Code
22
2025,
is
amended
to
read
as
follows:
23
b.
The
compliance
Compliance
cost
fees
authorized
in
section
24
15.330,
subsection
12
,
shall
apply
to
all
agreements
entered
25
into
under
this
program
and
shall
be
collected
by
the
authority
26
in
the
same
manner
and
to
the
same
extent
as
described
in
that
27
subsection.
in
the
amount
and
manner
as
follows:
28
(1)
The
imposition
of
a
one-time
compliance
cost
fee
of
five
29
hundred
dollars
to
be
collected
by
the
authority
prior
to
the
30
issuance
of
a
tax
incentive
certificate.
31
(2)
The
imposition
of
a
compliance
cost
fee
equal
to
32
one-half
of
one
percent
of
the
value
of
tax
incentives
claimed
33
pursuant
to
an
agreement
that
has
an
aggregate
tax
incentive
34
value
of
one
hundred
thousand
dollars
or
greater.
The
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authority
shall
collect
the
fee
from
the
business
after
the
1
tax
incentive
is
claimed
by
the
business
from
the
department
2
of
revenue.
3
Sec.
32.
Section
15.318,
subsection
4,
Code
2025,
is
amended
4
to
read
as
follows:
5
4.
Termination
and
repayment.
The
failure
by
an
eligible
6
business
in
fulfilling
any
requirement
of
the
program
or
any
of
7
the
terms
and
obligations
of
an
agreement
entered
into
pursuant
8
to
this
section
may
result
in
the
reduction,
termination,
or
9
rescission
of
the
tax
credits
under
section
15.319
and
may
10
subject
the
eligible
business
to
the
repayment
or
recapture
of
11
tax
credits
claimed.
The
repayment
or
recapture
of
tax
credits
12
pursuant
to
this
subsection
shall
be
accomplished
in
the
same
13
manner
as
provided
in
section
15.330,
subsection
2.
After
14
a
final
determination
by
the
authority,
the
authority
shall
15
notify
the
department
of
revenue
of
any
required
repayment
or
16
recapture
of
a
tax
credit.
The
repayment
or
recapture
of
a
17
tax
credit
pursuant
to
this
subsection
shall
be
considered
a
18
tax
payment
due
and
payable
to
the
department
of
revenue
by
19
any
taxpayer
who
has
claimed
the
tax
credit,
and
the
failure
20
to
make
such
a
repayment
may
be
treated
by
the
department
of
21
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
22
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
23
deposit
form.
24
Sec.
33.
Section
15.354,
subsection
1,
paragraph
b,
25
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
26
(2)
A
report
that
meets
the
requirements
and
conditions
27
of
section
15.330,
subsection
9
submitted
to
the
authority
28
by
a
business
together
with
its
application
describing
all
29
violations
of
environmental
law
or
worker
safety
law
within
30
the
last
five
years
.
If,
upon
review
of
the
application,
the
31
authority
finds
that
the
business
has
a
record
of
violations
32
of
the
law,
statutes,
or
rules
that
tends
to
show
a
consistent
33
pattern,
the
authority
shall
not
provide
incentives
or
34
assistance
to
the
business
unless
the
authority
finds
either
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that
the
violations
did
not
seriously
affect
public
health,
1
public
safety,
or
the
environment,
or,
if
such
violations
2
did
seriously
affect
public
health,
public
safety,
or
the
3
environment,
that
mitigating
circumstances
were
present.
4
Sec.
34.
Section
15.354,
subsection
1,
paragraph
c,
Code
5
2025,
is
amended
to
read
as
follows:
6
c.
In
addition
to
complying
with
all
applicable
requirements
7
in
paragraph
“b”
,
a
housing
business
that
chooses
to
be
8
considered
as
an
applicant
for
tax
credits
reserved
pursuant
9
to
section
15.119,
subsection
5
,
for
disaster
recovery
housing
10
projects
shall
also
submit
a
certification
that
the
applicant’s
11
housing
project
is
located
in
a
county
that
has
been
declared
12
a
major
disaster
by
the
president
of
the
United
States
on
or
13
after
March
12,
2019,
and
is
also
a
county
in
which
individuals
14
are
eligible
for
federal
individual
assistance.
The
housing
15
business
must
also
submit
documentation
that
provides
evidence
16
that
the
qualified
housing
project
is
needed
due
to
impact
of
17
the
disaster
that
is
the
subject
of
the
presidential
major
18
disaster
declaration.
19
Sec.
35.
Section
15.354,
subsection
3,
paragraph
b,
Code
20
2025,
is
amended
to
read
as
follows:
21
b.
The
compliance
Compliance
cost
fees
imposed
in
section
22
15.330,
subsection
12
,
shall
apply
to
all
agreements
entered
23
into
under
this
program
and
shall
be
collected
by
the
authority
24
in
the
same
manner
and
to
the
same
extent
as
described
in
that
25
subsection.
in
the
amount
and
manner
as
follows:
26
(1)
The
imposition
of
a
one-time
compliance
cost
fee
of
five
27
hundred
dollars
to
be
collected
by
the
authority
prior
to
the
28
issuance
of
a
tax
incentive
certificate.
29
(2)
The
imposition
of
a
compliance
cost
fee
equal
to
30
one-half
of
one
percent
of
the
value
of
tax
incentives
31
available
pursuant
to
an
agreement
that
has
an
aggregate
tax
32
incentive
value
of
one
hundred
thousand
dollars
or
greater.
33
The
authority
shall
collect
the
fee
from
the
housing
business
34
prior
to
the
issuance
of
a
tax
incentive.
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Sec.
36.
Section
15.354,
subsection
5,
Code
2025,
is
amended
1
to
read
as
follows:
2
5.
Termination
and
repayment.
The
failure
by
a
housing
3
business
in
completing
a
housing
project
to
comply
with
any
4
requirement
of
this
program
or
any
of
the
terms
and
obligations
5
of
an
agreement
entered
into
pursuant
to
this
section
may
6
result
in
the
revocation,
reduction,
termination,
or
rescission
7
of
the
tax
incentive
award
or
the
approved
tax
incentives
8
and
may
subject
the
housing
business
to
the
repayment
or
9
recapture
of
tax
incentives
claimed
under
section
15.355.
The
10
repayment
or
recapture
of
tax
incentives
pursuant
to
this
11
section
shall
be
accomplished
in
the
same
manner
as
provided
12
in
section
15.330,
subsection
2.
After
a
final
determination
13
by
the
authority,
the
authority
shall
notify
the
department
of
14
revenue
of
any
required
repayment
or
recapture
of
a
tax
credit.
15
The
repayment
or
recapture
of
a
tax
credit
pursuant
to
this
16
subsection
shall
be
considered
a
tax
payment
due
and
payable
17
to
the
department
of
revenue
by
any
taxpayer
who
has
claimed
18
the
tax
credit,
and
the
failure
to
make
such
a
repayment
may
19
be
treated
by
the
department
of
revenue
in
the
same
manner
as
20
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
21
with
the
filing
of
a
return
or
deposit
form.
22
Sec.
37.
Section
15.355,
subsection
2,
paragraph
b,
23
subparagraph
(3),
subparagraph
division
(a),
Code
2025,
is
24
amended
to
read
as
follows:
25
(a)
The
housing
business
shall,
after
the
agreement
26
completion
date,
make
application
to
the
department
of
revenue
27
for
any
refund
of
the
amount
of
sales
and
use
taxes
paid
under
28
chapter
423
prior
to
the
completion
of
the
housing
project
that
29
were
directly
related
to
a
housing
project
and
specified
in
the
30
agreement.
The
application
shall
be
made
in
the
manner
and
31
upon
forms
to
be
provided
by
the
department
of
revenue.
The
32
department
of
revenue
shall
audit
the
claim
and,
if
approved,
33
issue
a
warrant
to
the
housing
business.
The
application
must
34
be
made
within
one
year
after
the
agreement
completion
date.
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A
claim
filed
by
the
housing
business
in
accordance
with
this
1
subsection
shall
not
be
denied
by
reason
of
a
time
limitation
2
provision
for
filing
a
refund
claim
set
forth
in
chapter
421
3
or
423
section
423.47
.
4
Sec.
38.
Section
15.499,
subsection
1,
Code
2025,
is
amended
5
to
read
as
follows:
6
1.
Except
for
the
high
quality
jobs
program
administered
7
by
the
authority
pursuant
to
sections
15.326
through
15.336
,
8
and
the
targeted
jobs
withholding
credit
pursuant
to
section
9
403.19A
,
an
eligible
business
may
apply
for
and
be
eligible
to
10
receive
other
federal,
state,
and
local
incentives
in
addition
11
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
12
business
under
the
program.
13
Sec.
39.
Section
15E.351,
subsection
1,
Code
2025,
is
14
amended
to
read
as
follows:
15
1.
The
authority
shall
establish
and
administer
a
business
16
accelerator
program
to
provide
financial
assistance
for
17
the
establishment
and
operation
of
a
business
accelerator
18
for
technology-based,
value-added
agricultural,
information
19
solutions,
alternative
and
renewable
energy
including
the
20
alternative
and
renewable
energy
sectors
listed
in
section
21
476.42,
subsection
1
,
paragraph
“a”
,
subparagraph
(1),
or
22
advanced
manufacturing
start-up
businesses
or
for
a
satellite
23
of
an
existing
business
accelerator.
The
program
shall
be
24
designed
to
foster
the
accelerated
growth
of
new
and
existing
25
businesses
through
the
provision
of
technical
assistance.
The
26
authority
may
provide
financial
assistance
under
this
section
27
from
moneys
allocated
for
financial
assistance
for
business
28
accelerators
pursuant
to
section
15.335B,
subsection
2
15.111
.
29
Sec.
40.
Section
15E.362,
subsection
1,
paragraph
c,
Code
30
2025,
is
amended
to
read
as
follows:
31
c.
“Financial
assistance”
means
the
same
as
defined
in
32
section
15.327
assistance
provided
only
from
the
funds,
rights,
33
and
assets
legally
available
to
the
authority
pursuant
to
34
chapter
15
and
includes
but
is
not
limited
to
assistance
in
the
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form
of
grants,
loans,
forgivable
loans,
and
royalty
payments
.
1
Sec.
41.
Section
15H.5,
subsection
2,
Code
2025,
is
amended
2
to
read
as
follows:
3
2.
The
Iowa
summer
youth
corps
program
is
established
4
to
provide
meaningful
summer
enrichment
programming
to
Iowa
5
youth.
The
program
shall
be
administered
by
the
commission
6
using
a
competitive
grant
process
to
implement
projects
in
7
accordance
with
program
requirements.
The
commission
shall
8
adopt
administrative
rules
for
the
program,
including
but
not
9
limited
to
incentives,
grant
criteria,
and
grantee
selection
10
processes.
A
percentage
of
the
grants
shall
be
designated
by
11
the
commission
to
address
the
needs
of
economically
distressed
12
areas
as
defined
in
section
15.335C
.
13
Sec.
42.
Section
15H.5,
subsection
5,
paragraph
c,
Code
14
2025,
is
amended
to
read
as
follows:
15
c.
The
commission
shall
give
priority
consideration
to
16
approving
those
projects
that
target
communities
that
have
17
disproportionately
high
rates
of
juvenile
crime
or
low
rates
18
of
high
school
graduation
or
that
have
been
designated
as
an
19
economically
distressed
areas
as
defined
in
section
15.335C
20
area
.
21
Sec.
43.
Section
15H.5,
Code
2025,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
7.
For
purposes
of
this
section,
24
“economically
distressed
area”
means
a
county
that
meets
at
25
least
three
of
the
following
criteria:
26
a.
The
county
ranks
among
the
thirty-three
Iowa
counties
27
with
the
highest
average
monthly
unemployment
rates
for
the
28
most
recent
twelve-month
period
based
on
the
applicable
local
29
area
unemployment
statistics
produced
by
the
United
States
30
department
of
labor,
bureau
of
labor
statistics.
31
b.
The
county
ranks
among
the
thirty-three
Iowa
counties
32
with
the
highest
average
annualized
unemployment
rates
for
the
33
most
recent
five-year
period
based
on
the
applicable
local
34
area
unemployment
statistics
produced
by
the
United
States
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department
of
labor,
bureau
of
labor
statistics.
1
c.
The
county
ranks
among
the
thirty-three
Iowa
counties
2
with
the
lowest
annual
average
weekly
wages
based
on
the
most
3
recent
quarterly
census
of
employment
and
wages
published
4
by
the
United
States
department
of
labor,
bureau
of
labor
5
statistics.
6
d.
The
county
ranks
among
the
thirty-three
Iowa
counties
7
with
the
highest
family
poverty
rates
based
on
the
most
recent
8
American
community
survey
five-year
estimate
released
by
the
9
United
States
census
bureau.
10
e.
The
county
ranks
among
the
thirty-three
Iowa
counties
11
with
the
highest
percentage
population
loss.
Percentage
12
population
loss
shall
be
calculated
by
comparing
the
most
13
recent
population
estimate
produced
by
the
United
States
14
census
bureau
to
the
most
recent
decennial
census
released
15
by
the
United
States
census
bureau,
except
for
a
calendar
16
year
in
which
the
decennial
census
data
is
released,
then
the
17
percentage
population
loss
shall
be
calculated
by
comparing
the
18
population
in
the
decennial
census
released
that
calendar
year
19
to
the
population
in
the
decennial
census
released
ten
years
20
prior.
21
f.
The
county
ranks
among
the
thirty-three
Iowa
counties
22
with
the
highest
percentage
of
persons
sixty-five
years
of
age
23
or
older
based
on
the
most
recent
American
community
survey
24
five-year
estimate
released
by
the
United
States
census
bureau.
25
Sec.
44.
Section
159A.6B,
subsection
2,
Code
2025,
is
26
amended
to
read
as
follows:
27
2.
The
office
may
execute
contracts
in
order
to
provide
28
technical
support
and
outreach
services
for
purposes
of
29
assisting
and
educating
interested
persons
as
provided
in
this
30
section
.
The
office
may
also
contract
with
a
consultant
to
31
provide
part
or
all
of
these
services.
The
office
may
require
32
that
a
person
receiving
assistance
pursuant
to
this
section
33
contribute
up
to
fifty
percent
of
the
amount
required
to
34
support
the
costs
of
contracting
with
the
consultant
to
provide
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assistance
to
the
person.
The
office
shall
assist
the
person
1
in
completing
any
technical
information
required
in
order
2
to
receive
assistance
by
the
economic
development
authority
3
pursuant
to
section
15.335B.
4
Sec.
45.
Section
422.10,
subsection
5,
Code
2025,
is
amended
5
by
striking
the
subsection.
6
Sec.
46.
Section
422.11F,
subsection
2,
Code
2025,
is
7
amended
to
read
as
follows:
8
2.
The
taxes
imposed
under
this
subchapter
,
less
the
credits
9
allowed
under
section
422.12
,
shall
be
reduced
by
investment
10
tax
credits
authorized
pursuant
to
section
15.333
and
section
11
15E.193B,
subsection
6,
Code
2014
sections
15.508
and
15.496
.
12
Sec.
47.
Section
422.33,
subsection
5,
paragraph
h,
Code
13
2025,
is
amended
by
striking
the
paragraph.
14
Sec.
48.
Section
422.33,
subsection
12,
paragraph
b,
Code
15
2025,
is
amended
to
read
as
follows:
16
b.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
17
by
investment
tax
credits
authorized
pursuant
to
section
15.333
18
and
section
15E.193B,
subsection
6,
Code
2014
sections
15.508
19
and
15.496
.
20
Sec.
49.
Section
422.33,
subsection
19,
Code
2025,
is
21
amended
by
striking
the
subsection.
22
Sec.
50.
Section
422.60,
subsection
5,
paragraph
b,
Code
23
2025,
is
amended
to
read
as
follows:
24
b.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
25
by
investment
tax
credits
authorized
pursuant
to
sections
26
15.333
and
15E.193B,
subsection
6,
Code
2014
15.508
and
15.496
.
27
Sec.
51.
Section
422.60,
subsection
8,
Code
2025,
is
amended
28
by
striking
the
subsection.
29
Sec.
52.
Section
427B.17,
subsection
8,
paragraph
b,
Code
30
2025,
is
amended
to
read
as
follows:
31
b.
Any
electric
power
generating
plant
which
operated
during
32
the
preceding
assessment
year
at
a
net
capacity
factor
of
more
33
than
twenty
percent,
shall
not
receive
the
benefits
of
this
34
section
or
of
section
15.332
.
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Sec.
53.
Section
432.12C,
subsection
2,
Code
2025,
is
1
amended
to
read
as
follows:
2
2.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
3
investment
tax
credits
authorized
pursuant
to
section
15.333A
4
and
section
15E.193B,
subsection
6,
Code
2014
sections
15.508
5
and
15.496
.
6
Sec.
54.
Section
455B.104,
subsection
2,
Code
2025,
is
7
amended
by
striking
the
subsection.
8
Sec.
55.
Section
533.329,
subsection
2,
paragraph
c,
Code
9
2025,
is
amended
by
striking
the
paragraph.
10
Sec.
56.
Section
533.329,
subsection
2,
paragraph
d,
Code
11
2025,
is
amended
to
read
as
follows:
12
d.
The
moneys
and
credits
tax
imposed
under
this
section
13
shall
be
reduced
by
an
investment
tax
credit
authorized
14
pursuant
to
section
15.333
sections
15.508
and
15.496
.
15
Sec.
57.
REPEAL.
Sections
15E.231,
15E.232,
15E.233,
16
266.19,
422.11U,
and
432.12H,
Code
2025,
are
repealed.
17
Sec.
58.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
18
this
division
of
this
Act
amending
sections
422.10,
422.11F,
19
422.11U,
422.33,
422.60,
432.12C,
432.12H,
and
533.329
shall
20
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
21
tax
incentive
issued,
awarded,
or
allowed
before
December
31,
22
2025,
nor
shall
it
limit,
modify,
or
otherwise
adversely
affect
23
a
taxpayer’s
right
to
claim
or
redeem
a
tax
incentive
issued,
24
awarded,
or
allowed
before
December
31,
2025,
including
but
not
25
limited
to
any
tax
credit
carryforward
amount.
26
Sec.
59.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
27
effect
December
31,
2025.
28
DIVISION
VI
29
SEED
INVESTOR
TAX
CREDIT
PROGRAM
AND
INNOVATION
FUND
INVESTMENT
30
TAX
CREDITS
31
Sec.
60.
NEW
SECTION
.
15E.25
Purpose.
32
The
purpose
of
this
subchapter
is
to
stimulate
job
growth,
33
create
wealth,
and
accelerate
the
creation
of
new
ventures
by
34
using
investment
tax
credits
to
incentivize
the
transfer
of
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capital
from
investors
to
entrepreneurs,
particularly
during
1
early-stage
growth.
2
Sec.
61.
NEW
SECTION
.
15E.26
Definitions.
3
For
purposes
of
this
subchapter,
unless
the
context
4
otherwise
requires:
5
1.
“Affiliate”
means
a
spouse,
child,
or
sibling
of
an
6
investor
or
a
corporation,
partnership,
or
trust
in
which
an
7
investor
has
a
controlling
equity
interest
or
in
which
an
8
investor
exercises
management
control.
9
2.
“Authority”
means
the
economic
development
authority
10
created
in
section
15.105.
11
3.
“Entrepreneurial
assistance
program”
includes
the
12
entrepreneur
investment
awards
program
administered
under
13
section
15E.362,
the
receipt
of
services
from
a
service
14
provider
engaged
pursuant
to
section
15.411,
subsection
1,
or
15
the
program
administered
under
section
15.411,
subsection
2.
16
4.
“Investment”
means
a
minimum
cash
investment
of
ten
17
thousand
dollars
in
a
qualifying
business.
18
5.
“Investor”
means
a
person
making
a
cash
investment
in
19
a
qualifying
business.
“Investor”
does
not
include
a
person
20
that
holds
at
least
a
seventy
percent
ownership
interest
as
an
21
owner,
member,
or
shareholder
in
a
qualifying
business.
22
6.
“Qualifying
business”
means
a
business
meeting
the
23
criteria
defined
in
section
15E.28.
24
7.
“Rural
area”
means
a
city
that
has
a
population
of
25
fifteen
thousand
or
less
based
on
the
most
recent
decennial
26
census
released
by
the
United
States
census
bureau.
27
8.
“Urban
area”
means
a
city
that
has
a
population
of
28
greater
than
fifteen
thousand
based
on
the
most
recent
29
decennial
census
released
by
the
United
States
census
bureau.
30
Sec.
62.
NEW
SECTION
.
15E.27
Investment
tax
credits.
31
1.
a.
For
tax
years
beginning
on
or
after
January
1,
2025,
32
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
33
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
34
and
against
the
moneys
and
credits
tax
imposed
in
section
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533.329,
for
a
portion
of
a
taxpayer’s
equity
investment,
as
1
provided
in
subsection
2,
in
a
qualifying
business.
2
b.
An
individual
may
claim
a
tax
credit
under
this
section
3
of
a
partnership,
limited
liability
company,
S
corporation,
4
estate,
or
trust
electing
to
have
income
taxed
directly
to
5
the
individual.
The
amount
claimed
by
the
individual
shall
6
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
7
from
the
partnership,
limited
liability
company,
S
corporation,
8
estate,
or
trust.
9
c.
A
tax
credit
shall
be
allowed
only
for
an
investment
10
made
in
the
form
of
cash
to
purchase
equity
in
a
qualifying
11
business.
12
d.
An
affiliate
of
a
qualifying
business
or
an
affiliate
of
13
a
qualifying
business’s
principals
shall
not
be
eligible
for
a
14
tax
credit
under
this
section.
15
e.
(1)
For
a
tax
credit
claimed
against
the
taxes
imposed
16
on
any
of
the
following,
any
tax
credit
in
excess
of
the
tax
17
liability
is
refundable:
18
(a)
A
tax
credit
claimed
against
the
taxes
imposed
in
19
chapter
422,
subchapters
II,
III,
and
V.
20
(b)
A
tax
credit
claimed
against
the
taxes
imposed
in
21
chapter
432.
22
(c)
A
tax
credit
claimed
against
the
moneys
and
credits
tax
23
imposed
in
section
533.329.
24
(2)
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
25
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
26
credit.
27
f.
In
lieu
of
claiming
a
refund,
a
taxpayer
may
elect
to
28
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
29
return
credited
to
the
tax
liability
for
the
immediately
30
succeeding
tax
year.
31
2.
a.
The
amount
of
the
tax
credit
shall
equal
twenty
32
percent
of
the
taxpayer’s
equity
investment
if
the
qualifying
33
business
is
located
in
an
urban
area
at
the
time
of
the
34
investment.
The
amount
of
the
tax
credit
shall
equal
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thirty-five
percent
of
the
taxpayer’s
equity
investment
if
the
1
qualifying
business
is
located
in
a
rural
area
at
the
time
of
2
the
investment.
3
b.
(1)
The
maximum
amount
of
a
tax
credit
that
may
be
4
issued
per
fiscal
year
to
a
natural
person
and
the
person’s
5
spouse
or
dependent
shall
not
exceed
one
hundred
thousand
6
dollars
combined.
For
purposes
of
this
subparagraph,
7
“dependent”
has
the
same
meaning
as
defined
by
the
Internal
8
Revenue
Code.
9
(2)
The
maximum
amount
of
a
tax
credit
that
may
be
issued
10
per
fiscal
year
to
a
corporation
or
other
entity
shall
not
11
exceed
one
hundred
thousand
dollars.
12
(3)
An
application
received
by
the
authority
that
exceeds
13
the
maximum
amount
of
tax
credits
permitted
by
this
paragraph
14
shall
be
denied,
in
whole
or
in
part,
regardless
of
whether
the
15
investment
would
otherwise
be
eligible
to
qualify
for
a
tax
16
credit.
17
(4)
For
purposes
of
this
paragraph,
a
tax
credit
issued
18
to
a
partnership,
limited
liability
company,
S
corporation,
19
estate,
or
trust
electing
to
have
income
taxed
directly
to
20
the
individual
shall
be
deemed
to
be
issued
to
the
individual
21
owners
based
upon
the
pro
rata
share
of
the
individual’s
22
earnings
from
the
entity.
23
c.
The
maximum
amount
of
tax
credits
that
may
be
issued
24
per
fiscal
year
for
equity
investments
in
any
one
qualifying
25
business
shall
not
exceed
five
hundred
thousand
dollars.
An
26
application
received
by
the
authority
that
exceeds
the
maximum
27
amount
of
tax
credits
permitted
by
this
paragraph
shall
28
be
denied,
in
whole
or
in
part,
regardless
of
whether
the
29
investment
would
otherwise
be
eligible
to
qualify
for
a
tax
30
credit.
31
3.
An
investment
shall
be
deemed
to
have
been
made
on
the
32
same
date
as
the
date
of
acquisition
of
the
equity
interest
as
33
determined
by
the
Internal
Revenue
Code.
34
4.
The
authority
shall
not
issue
tax
credits
under
this
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section
in
excess
of
the
amount
approved
by
the
authority
for
1
any
one
fiscal
year
pursuant
to
section
15.119,
subsection
2,
2
paragraph
“a”
.
3
5.
A
tax
credit
shall
not
be
transferred
to
any
other
4
person.
5
6.
The
authority
shall
develop
a
system
for
registration
and
6
issuance
of
tax
credits
authorized
pursuant
to
this
subchapter
7
and
shall
control
distribution
of
all
tax
credit
certificates
8
to
investors
pursuant
to
this
subchapter.
The
authority
9
shall
develop
rules
for
the
qualification
and
administration
10
of
qualifying
businesses.
The
department
of
revenue
shall
11
adopt
rules
pursuant
to
chapter
17A
as
necessary
for
the
12
administration
of
this
subchapter.
13
Sec.
63.
NEW
SECTION
.
15E.28
Qualifying
businesses.
14
1.
To
determine
whether
a
business
is
a
qualifying
business,
15
a
business
shall
submit
an
application
to
the
authority
that
16
is
accompanied
by
a
nonrefundable
application
fee.
A
business
17
must
be
certified
by
the
authority
as
a
qualifying
business
in
18
order
for
an
investor’s
equity
investment
to
qualify
for
a
tax
19
credit.
20
2.
In
order
to
be
a
qualifying
business,
a
business
must
21
meet
all
of
the
following
criteria:
22
a.
The
principal
business
operations,
and
a
majority
of
23
employees,
of
the
business
are
located
in
this
state.
24
b.
The
business
has
been
in
operation
for
five
years
or
25
less.
26
c.
The
business
has
at
least
one
full-time
equivalent
27
employee.
28
d.
The
business’s
primary
operations
are
in
advanced
29
manufacturing,
bioscience,
insurance
and
finance,
and
30
technologies.
The
business
shall
not
be
primarily
engaged
in
31
retail
sales,
real
estate,
the
provision
of
health
care,
or
32
the
provision
of
services
that
require
a
professional
license.
33
In
determining
whether
a
business
is
primarily
engaged
in
34
advanced
manufacturing,
biosciences,
insurance
and
finance,
or
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technologies,
the
authority
shall
consider
the
business’s
North
1
American
industry
classification
system
code,
the
business’s
2
main
sources
of
revenue,
and
the
business’s
customer
base.
3
e.
The
business
is
an
independent
organization
that
is
4
not
part
of,
or
an
affiliate
of,
a
business
that
is
not
a
5
qualifying
business.
6
f.
The
business
shall
establish
that
its
owners,
directors,
7
officers,
and
employees
have
an
appropriate
level
of
experience
8
consistent
with
the
nature
of
the
business.
The
authority
may
9
consult
with
outside
service
providers
to
determine
whether
a
10
business
meets
the
requirement
of
this
paragraph.
A
business
11
that
has
participated
in
an
entrepreneurial
assistance
program
12
shall
be
presumed
to
meet
the
requirement
of
this
paragraph.
13
g.
The
business
shall
not
have
a
net
worth
that
exceeds
ten
14
million
dollars.
15
h.
The
business
shall
have
secured
all
of
the
following
at
16
the
time
of
application
for
tax
credits:
17
(1)
At
least
two
investors.
For
purposes
of
this
18
subparagraph,
“investor”
includes
a
person
who
executes
a
19
binding
investment
commitment
to
a
qualifying
business,
and
20
does
not
include
an
affiliate
of
a
qualifying
business
or
an
21
affiliate
of
a
qualifying
business’s
principals.
22
(2)
Total
equity
financing,
binding
investment
commitments,
23
or
some
combination
thereof,
equal
to
at
least
five
hundred
24
thousand
dollars,
from
investors.
25
3.
A
qualifying
business
shall
have
the
burden
of
proof
26
to
demonstrate
to
the
authority
its
qualifications
under
this
27
section,
and
shall
have
the
obligation
to
notify
the
authority
28
in
a
timely
manner
of
any
changes
in
the
qualifications
of
29
the
business
or
in
the
eligibility
of
investors
to
redeem
the
30
investment
tax
credits
in
any
tax
year.
The
authority
may
31
revoke
the
certification
of
a
qualifying
business
that
no
32
longer
meets
the
requirements
of
this
section.
33
4.
A
business
that
has
been
certified
by
the
authority
as
a
34
qualifying
business
shall
annually
submit
an
application
to
the
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authority
that
documents
continued
eligibility
as
a
qualifying
1
business
and
any
investments
that
may
qualify
for
a
tax
credit.
2
The
business
shall
submit
the
application
to
the
authority
3
during
an
annual
application
period
designated
by
the
authority
4
by
rule.
5
5.
Based
on
the
applications
submitted
by
qualifying
6
businesses
pursuant
to
subsection
4,
the
authority
shall
make
7
an
initial
allocation
of
tax
credits
in
the
order
in
which
8
the
applications
are
received
until
the
maximum
amount
of
tax
9
credits
determined
by
the
board
pursuant
to
section
15.119,
10
subsection
2,
is
reached.
Equity
investors
that
are
eligible
11
for
a
tax
credit
based
on
such
initial
allocation
shall
submit
12
any
additional
information
requested
by
the
authority
necessary
13
to
verify
the
eligibility
of
the
investor
and
to
issue
a
tax
14
credit
certificate.
An
equity
investor
that
does
not
submit
15
the
required
information
may
be
denied
a
tax
credit.
If
any
16
equity
investor
included
in
the
initial
allocation
is
denied
17
a
tax
credit,
the
authority
may
allocate
such
tax
credits
18
to
equity
investors
that
were
not
included
in
the
initial
19
allocation.
20
6.
Upon
receipt
of
all
required
information
from
a
21
qualifying
business
and
an
equity
investor,
the
director
of
22
the
authority
may
approve
issuance
of
a
tax
credit
certificate
23
to
be
included
with
the
equity
investor’s
tax
return.
The
tax
24
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
25
tax
identification
number,
the
amount
of
tax
credit,
the
name
26
of
the
qualifying
business,
and
any
other
information
required
27
by
the
department
of
revenue.
The
tax
credit
certificate,
28
unless
rescinded
by
the
authority,
shall
be
accepted
by
the
29
department
of
revenue
as
payment
for
taxes
imposed
pursuant
30
to
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
31
432,
and
for
the
moneys
and
credits
tax
imposed
in
section
32
533.329,
subject
to
any
conditions
or
restrictions
placed
by
33
the
authority
upon
the
face
of
the
tax
credit
certificate
and
34
subject
to
the
limitations
of
section
15E.27.
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Sec.
64.
NEW
SECTION
.
15E.29
Confidentiality
——
reports.
1
1.
Except
as
provided
in
subsection
2,
all
information
or
2
records
in
the
possession
of
the
authority
with
respect
to
this
3
subchapter
shall
be
presumed
by
the
authority
to
be
a
trade
4
secret
protected
under
chapter
550
or
common
law,
and
shall
be
5
kept
confidential
by
the
authority
unless
otherwise
ordered
by
6
a
court.
7
2.
All
of
the
following
shall
be
considered
public
8
information
under
chapter
22:
9
a.
The
identity
of
a
qualifying
business.
10
b.
The
identity
of
an
investor
and
the
qualifying
business
11
in
which
the
investor
made
an
equity
investment.
12
c.
The
number
of
tax
credit
certificates
issued
by
the
13
authority.
14
d.
The
total
dollar
amount
of
tax
credits
issued
by
the
15
authority.
16
3.
The
authority
shall
include
as
part
of
the
annual
17
report
under
section
15.107B
a
listing
of
eligible
qualifying
18
businesses,
the
number
of
tax
credit
certificates,
and
the
19
amount
of
tax
credits
issued
by
the
authority
in
each
fiscal
20
year.
21
Sec.
65.
Section
15E.52,
subsection
5,
paragraph
a,
Code
22
2025,
is
amended
to
read
as
follows:
23
a.
To
receive
a
tax
credit,
a
taxpayer
must
submit
an
24
application
to
the
board.
The
board
shall
issue
certificates
25
under
this
section
on
a
first-come,
first-served
basis,
which
26
certificates
may
be
redeemed
for
tax
credits.
The
board
shall
27
issue
such
certificates
so
that
not
more
than
the
amount
28
allocated
for
such
tax
credits
under
section
15.119,
subsection
29
2,
paragraph
“a”
,
may
be
claimed.
The
board
shall
not
issue
a
30
certificate
before
September
1,
2014.
31
Sec.
66.
Section
15E.52,
subsection
7,
paragraph
g,
Code
32
2025,
is
amended
to
read
as
follows:
33
g.
The
fund
proposes
to
obtain
at
least
fifteen
three
34
million
dollars
in
binding
investment
commitments
and
to
invest
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a
minimum
of
fifteen
three
million
dollars
in
companies
that
1
have
a
principal
place
of
business
in
the
state.
2
Sec.
67.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
3
to
do
the
following:
4
1.
Entitle
chapter
15E,
subchapter
IV,
“Seed
Investor
Tax
5
Credit”
and
include
sections
15E.25
through
15E.29.
6
2.
Correct
internal
references
in
the
Code
and
in
enacted
7
legislation
as
necessary
due
to
the
enactment
of
this
division
8
of
this
Act.
9
DIVISION
VII
10
ELIMINATION
OF
INVESTMENTS
IN
QUALIFYING
BUSINESSES
TAX
CREDIT
11
PROGRAM
12
Sec.
68.
REPEAL.
Sections
15E.41,
15E.42,
15E.43,
15E.44,
13
and
15E.46,
Code
2025,
are
repealed.
14
Sec.
69.
TRANSITION
PROVISIONS.
A
tax
credit
issued
by
the
15
economic
development
authority
to
a
taxpayer
before
June
30,
16
2026,
for
an
investment
in
a
qualifying
business
pursuant
to
17
chapter
15E,
subchapter
V,
Code
2025,
shall
remain
valid
per
18
the
terms
under
which
the
tax
credit
was
issued
by
the
economic
19
development
authority,
and
the
provisions
of
chapter
15E,
20
subchapter
V,
Code
2025.
21
DIVISION
VIII
22
INVESTMENTS
IN
QUALIFYING
BUSINESS
TAX
CREDIT
PROGRAM
——
23
CONFORMING
CHANGES
24
Sec.
70.
Section
2.48,
subsection
3,
paragraph
d,
25
subparagraph
(1),
Code
2025,
is
amended
by
striking
the
26
subparagraph.
27
Sec.
71.
Section
15E.52,
subsection
4,
Code
2025,
is
amended
28
to
read
as
follows:
29
4.
A
taxpayer
shall
not
claim
a
tax
credit
under
this
30
section
if
the
taxpayer
is
a
venture
capital
investment
fund
31
allocation
manager
for
the
Iowa
fund
of
funds
created
in
32
section
15E.65
or
an
investor
that
receives
a
tax
credit
for
33
the
same
investment
in
a
qualifying
business
as
described
in
34
section
15E.44
or
in
a
community-based
seed
capital
fund
as
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described
in
section
15E.45
,
Code
2015
15E.28
.
1
Sec.
72.
Section
422.11F,
subsection
1,
Code
2025,
is
2
amended
to
read
as
follows:
3
1.
The
taxes
imposed
under
this
subchapter
,
less
the
credits
4
allowed
under
section
422.12
,
shall
be
reduced
by
an
investment
5
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
for
an
6
investment
in
a
qualifying
business.
7
Sec.
73.
Section
422.33,
subsection
12,
paragraph
a,
Code
8
2025,
is
amended
to
read
as
follows:
9
a.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
10
by
an
investment
tax
credit
authorized
pursuant
to
section
11
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
12
Sec.
74.
Section
422.60,
subsection
5,
paragraph
a,
Code
13
2025,
is
amended
to
read
as
follows:
14
a.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
15
by
an
investment
tax
credit
authorized
pursuant
to
section
16
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
17
Sec.
75.
Section
432.12C,
subsection
1,
Code
2025,
is
18
amended
to
read
as
follows:
19
1.
The
tax
imposed
under
this
chapter
shall
be
reduced
by
20
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
21
15E.27
for
an
investment
in
a
qualifying
business.
22
Sec.
76.
Section
533.329,
subsection
2,
paragraph
e,
Code
23
2025,
is
amended
to
read
as
follows:
24
e.
The
moneys
and
credits
tax
imposed
under
this
section
25
shall
be
reduced
by
an
investment
tax
credit
authorized
26
pursuant
to
section
15E.43
15E.27
.
27
Sec.
77.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
28
this
division
of
this
Act
amending
sections
422.11F,
422.33,
29
422.60,
432.12C,
and
533.329
shall
not
limit,
modify,
or
30
otherwise
adversely
affect
any
amount
of
investment
tax
credit
31
under
section
15E.43,
Code
2025,
that
was
issued,
awarded,
32
or
allowed
before
July
1,
2026,
and
shall
not
limit,
modify,
33
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
34
redeem
an
investment
tax
credit
under
section
15E.43,
Code
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that
was
issued,
awarded,
or
allowed
before
July
1,
1
2026,
including
but
not
limited
to
any
tax
credit
carryforward
2
amount.
3
DIVISION
IX
4
IOWA
FILM
PRODUCTION
INCENTIVE
PROGRAM
AND
FUND
5
Sec.
78.
NEW
SECTION
.
15.517
Iowa
film
production
incentive
6
program.
7
1.
As
used
in
this
section:
8
a.
“Fund”
means
the
Iowa
film
production
incentive
fund.
9
b.
“Program”
means
the
Iowa
film
production
incentive
10
program.
11
c.
“Qualified
expenditure”
means
an
allowed
expense,
as
12
determined
by
the
authority
by
rule,
that
is
incurred
by
a
13
qualified
production
facility
on
or
after
July
1,
2025,
but
14
before
July
1,
2027,
for
producing
a
qualified
production.
15
d.
“Qualified
production”
means
a
feature
film,
television
16
series,
documentary,
or
unscripted
series
that
is
rated
G,
PG,
17
PG-13,
or
R
by
the
classification
and
ratings
administration
of
18
the
motion
picture
association
of
America
or
the
TV
parental
19
guidelines
monitoring
board.
20
e.
“Qualified
production
facility”
or
“facility”
means
any
21
of
the
following:
22
(1)
A
dedicated
studio
located
in
this
state
at
which
23
qualified
productions
can
be
produced.
24
(2)
A
studio
located
in
this
state
at
which
all
25
preproduction
and
film
production
take
place
for
a
qualified
26
production
filmed
on
location
in
this
state.
27
(3)
A
company
that
has,
in
the
three
consecutive
years
28
immediately
preceding
an
application
for
a
rebate,
had
the
29
company’s
principal
place
of
business
in
this
state
and
30
produced
a
qualified
production.
31
2.
a.
The
authority
shall
establish
and
administer
an
Iowa
32
film
production
incentive
program
for
the
purpose
of
providing
33
rebates
to
qualified
production
facilities
for
qualified
34
expenditures.
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b.
The
authority
shall
establish
eligibility
criteria
for
1
the
program
by
rule.
2
(1)
The
eligibility
criteria
for
qualified
production
3
facilities
must
require
that
a
facility
have
an
agreement
4
between
the
authority
and
the
facility
that
the
phrase
“filmed
5
in
Iowa”
appears
noticeably
in
the
credits
of
the
qualified
6
production.
7
(2)
The
eligibility
criteria
for
a
qualified
production
8
must
include:
9
(a)
A
total
production
budget
of
at
least
one
million
10
dollars,
including
at
least
five
hundred
thousand
dollars
in
11
qualified
expenditures,
and
evidence
that
the
total
production
12
budget
is
fully
funded.
13
(b)
Availability
to
the
public
for
viewing
at
a
venue
where
14
admission
is
charged,
or
availability
for
purchase,
for
rental,
15
or
through
a
streaming
service
that
requires
a
subscription.
16
(3)
The
eligibility
criteria
for
qualified
expenditures
17
must
include
the
following:
18
(a)
The
requirements
for
substantiation
of
expenses
19
and
submission
of
expenses
for
industry
standard
activities
20
including
expenses
for
cast
members,
equipment,
studio
21
production
facilities,
hospitality
services,
certified
public
22
accountant
services,
per
diem
payments,
payments
to
businesses
23
located
in
this
state,
accommodations,
and
any
other
expenses
24
allowed
by
the
authority.
Qualified
expenditures
shall
not
25
include
expenses
for
entertainment,
studio
executive
airfare,
26
royalties,
and
publicity
for
the
qualified
production.
27
(b)
Documentation
that
all
qualified
expenses
were
incurred
28
following
approval
of
the
application
for
rebate
by
the
29
authority.
30
3.
An
application
for
a
rebate
under
the
program
shall
31
be
submitted
by
a
qualified
production
facility
to
the
32
authority
for
approval
in
the
form
and
manner
prescribed
by
the
33
authority.
In
determining
whether
to
approve
a
rebate,
the
34
factors
the
authority
may
consider
include
but
are
not
limited
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to
all
of
the
following:
1
a.
The
extent
to
which
the
applicant
will
participate
2
in
training,
education,
and
recruitment
programs
that
are
3
organized
in
cooperation
with
interested
Iowa
colleges
and
4
universities,
and
that
are
designed
to
promote
and
encourage
5
the
training
and
hiring
of
Iowa
residents.
6
b.
Whether
the
rebate
will
incentivize
a
qualified
7
production
facility
to
choose
an
Iowa
location
for
its
8
qualified
production
rather
than
an
out-of-state
location.
9
c.
The
likelihood
that
approval
of
the
rebate
will
result
in
10
an
overall
long-term
positive
impact
to
the
state.
11
4.
a.
If
a
qualified
production
facility’s
application
12
is
approved
by
the
authority,
the
maximum
rebate
paid
to
the
13
facility
under
the
program
shall
equal
thirty
percent
of
the
14
facility’s
documented
qualified
expenditures
excluding
any
15
sales,
use,
and
hotel
and
motel
taxes
paid.
16
b.
Prior
to
disbursement
of
the
rebate,
a
qualified
17
production
facility
shall
submit
all
of
the
following
to
the
18
authority
at
the
expense
of
the
facility:
19
(1)
An
examination
of
the
qualified
expenditures
completed
20
by
a
certified
public
accountant,
as
defined
in
section
21
542.3,
in
accordance
with
the
currently
effective
statements
22
on
standards
for
attestation
engagements
established
by
the
23
American
institute
of
certified
public
accountants.
24
(2)
A
statement
of
the
final
amount
of
qualified
25
expenditures.
26
(3)
Any
other
information
the
authority
deems
necessary
to
27
ensure
compliance
with
this
section.
28
5.
a.
An
Iowa
film
production
incentive
fund
is
created
29
in
the
state
treasury
under
the
control
of
the
authority.
The
30
fund
shall
consist
of
moneys
appropriated
to
the
authority
and
31
any
other
moneys
available
to,
obtained
by,
or
accepted
by
the
32
authority
for
placement
in
the
fund.
The
fund
shall
be
used
to
33
provide
rebates
under
the
program.
34
b.
The
cumulative
value
of
rebates
claimed
by
qualified
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production
facilities
pursuant
to
this
section
shall
not
exceed
1
ten
million
dollars.
2
c.
Notwithstanding
section
8.33,
moneys
in
the
fund
3
that
remain
unencumbered
or
unobligated
at
the
close
of
the
4
fiscal
year
shall
not
revert
but
shall
remain
available
for
5
expenditure
for
the
purposes
designated
until
the
close
of
6
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
7
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
8
to
the
fund.
9
6.
The
authority
shall
not
use
more
than
five
percent
of
10
the
moneys
in
the
fund
at
the
beginning
of
each
fiscal
year
for
11
purposes
of
administrative
costs,
technical
assistance,
and
12
other
program
support.
13
7.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
14
to
administer
this
section.
15
8.
This
section
is
repealed
July
1,
2027.
16
Sec.
79.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
17
designate
section
15.517,
as
enacted
in
this
division
of
this
18
Act,
as
part
34
of
subchapter
II.
19
DIVISION
X
20
EMPLOYER
CHILD
CARE
TAX
CREDIT
REPEAL
21
Sec.
80.
Section
237A.31,
subsection
1,
Code
2025,
is
22
amended
to
read
as
follows:
23
1.
The
taxes
imposed
under
chapter
422,
subchapter
II
or
24
III
,
the
franchise
tax
imposed
under
chapter
422,
subchapter
25
V
,
the
gross
premiums
tax
under
chapter
432
,
or
the
moneys
and
26
credits
tax
imposed
under
section
533.329
shall
be
reduced
27
by
an
employer
child
care
tax
credit
through
the
tax
year
28
beginning
on
or
after
January
1,
2025,
but
before
January
1,
29
2026,
equal
to
the
proportion
of
the
federal
employer-provided
30
child
care
tax
credit
provided
in
section
45F
of
the
Internal
31
Revenue
Code
the
taxpayer
was
eligible
for
in
the
same
tax
year
32
attributable
to
expenditures
made
in
this
state.
33
Sec.
81.
Section
237A.31,
Code
2025,
is
amended
by
adding
34
the
following
new
subsection:
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NEW
SUBSECTION
.
5.
This
section
is
repealed
January
1,
1
2031.
2
Sec.
82.
Section
422.12O,
Code
2025,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
5
2031.
6
Sec.
83.
Section
422.33,
subsection
32,
Code
2025,
is
7
amended
to
read
as
follows:
8
32.
a.
The
taxes
imposed
under
this
subchapter
shall
be
9
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
10
to
section
237A.31
.
11
b.
This
subsection
is
repealed
January
1,
2031.
12
Sec.
84.
Section
422.60,
subsection
15,
Code
2025,
is
13
amended
to
read
as
follows:
14
15.
a.
The
taxes
imposed
under
this
subchapter
shall
be
15
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
16
to
section
237A.31
.
17
b.
This
subsection
is
repealed
January
1,
2031.
18
Sec.
85.
Section
432.12O,
Code
2025,
is
amended
to
read
as
19
follows:
20
432.12O
Employer
child
care
tax
credit.
21
1.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
22
an
employer
child
care
tax
credit
allowed
pursuant
to
section
23
237A.31
.
24
2.
This
section
is
repealed
January
1,
2031.
25
Sec.
86.
Section
533.329,
subsection
2,
paragraph
m,
Code
26
2025,
is
amended
to
read
as
follows:
27
m.
(1)
The
moneys
and
credits
tax
imposed
under
this
28
section
shall
be
reduced
by
an
employer
child
care
tax
credit
29
allowed
pursuant
to
section
237A.31
.
30
(2)
This
paragraph
is
repealed
January
1,
2031.
31
DIVISION
XI
32
ASSISTIVE
DEVICE
TAX
CREDIT
REPEAL
33
Sec.
87.
Section
2.48,
subsection
3,
paragraph
e,
34
subparagraph
(5),
Code
2025,
is
amended
to
read
as
follows:
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(5)
(a)
The
assistive
device
corporate
tax
credit
under
1
section
422.33
.
2
(b)
This
subparagraph
is
repealed
January
1,
2031.
3
Sec.
88.
Section
422.33,
subsection
9,
paragraph
a,
4
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
5
(1)
The
taxes
imposed
under
this
subchapter
shall
be
6
reduced
by
an
assistive
device
tax
credit
through
the
tax
year
7
beginning
on
or
after
January
1,
2024,
but
before
January
1,
8
2025
.
A
small
business
purchasing,
renting,
or
modifying
9
an
assistive
device
or
making
workplace
modifications
for
10
an
individual
with
a
disability
who
is
employed
or
will
11
be
employed
by
the
small
business
is
eligible,
subject
to
12
availability
of
credits,
to
receive
this
assistive
device
13
tax
credit
which
is
equal
to
fifty
percent
of
the
first
five
14
thousand
dollars
paid
during
the
tax
year
for
the
purchase,
15
rental,
or
modification
of
the
assistive
device
or
for
making
16
the
workplace
modifications.
The
following
percentage
of
any
17
credit
in
excess
of
the
tax
liability
shall
be
refunded
with
18
interest
in
accordance
with
section
421.60,
subsection
2
,
19
paragraph
“e”
,
as
follows:
20
(a)
For
the
tax
year
beginning
on
or
after
January
1,
2023,
21
but
before
January
1,
2024,
ninety-five
percent.
22
(b)
For
the
tax
year
beginning
on
or
after
January
1,
2024,
23
but
before
January
1,
2025,
ninety
percent.
24
(c)
For
the
tax
year
beginning
on
or
after
January
1,
2025,
25
but
before
January
1,
2026,
eighty-five
percent.
26
(d)
For
the
tax
year
beginning
on
or
after
January
1,
2026,
27
but
before
January
1,
2027,
eighty
percent.
28
(e)
For
tax
years
beginning
on
or
after
January
1,
2027,
29
seventy-five
percent.
30
Sec.
89.
Section
422.33,
subsection
9,
Code
2025,
is
amended
31
by
adding
the
following
new
paragraph:
32
NEW
PARAGRAPH
.
d.
This
subsection
is
repealed
January
1,
33
2031.
34
Sec.
90.
RETROACTIVE
APPLICABILITY.
This
division
of
this
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Act
applies
retroactively
to
January
1,
2025,
for
tax
years
1
beginning
on
or
after
that
date.
2
DIVISION
XII
3
ENDOW
IOWA
TAX
CREDIT
4
Sec.
91.
Section
15E.303,
subsections
1,
2,
and
6,
Code
5
2025,
are
amended
by
striking
the
subsections.
6
Sec.
92.
Section
15E.305,
subsection
2,
unnumbered
7
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
8
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
9
this
section
shall
not
exceed
a
total
of
six
three
million
five
10
hundred
thousand
dollars
annually.
11
Sec.
93.
Section
15E.305,
subsection
2,
paragraph
a,
Code
12
2025,
is
amended
to
read
as
follows:
13
a.
The
maximum
amount
of
tax
credits
granted
to
a
taxpayer
14
shall
not
exceed
one
hundred
fifty
thousand
dollars.
15
Sec.
94.
Section
15E.305,
Code
2025,
is
amended
by
adding
16
the
following
new
subsection:
17
NEW
SUBSECTION
.
3A.
In
addition
to
the
other
eligibility
18
requirements
for
receiving
a
tax
credit
under
this
section,
to
19
be
eligible
to
receive
a
tax
credit
pursuant
to
this
section
20
all
of
the
following
must
apply:
21
a.
The
endow
Iowa
qualified
community
foundation
and
22
permanent
endowment
fund
do
not
contain
the
name
of
a
23
corporation
or
other
business
entity.
24
b.
The
endow
Iowa
qualified
community
foundation
submitted
25
a
report
to
the
general
assembly
by
January
31
detailing
the
26
specific
grants
provided
during
the
calendar
year
preceding
the
27
applicable
tax
year.
28
c.
The
community
foundation
that
administers
a
permanent
29
endowment
fund
for
which
a
taxpayer
requests
a
tax
credit
has
30
provided
any
information
requested
by
the
authority
to
verify
31
whether
a
contribution
to
the
permanent
endowment
fund
is
32
eligible
for
the
tax
credit.
33
Sec.
95.
Section
15E.311,
subsection
4,
paragraph
c,
Code
34
2025,
is
amended
to
read
as
follows:
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c.
“Eligible
county
recipient”
means
an
endow
Iowa
qualified
1
community
foundation
or
community
affiliate
organization,
as
2
defined
in
section
15E.303
,
that
is
selected
,
in
accordance
3
with
the
procedures
described
in
section
15E.304
,
to
receive
4
moneys
from
an
account
created
in
this
section
for
a
particular
5
county.
To
be
selected
as
an
eligible
county
recipient,
a
6
community
affiliate
organization
shall
establish
a
county
7
affiliate
fund
to
receive
moneys
as
provided
by
this
section
.
8
Sec.
96.
Section
15E.311,
subsection
6,
Code
2025,
is
9
amended
by
striking
the
subsection.
10
Sec.
97.
REPEAL.
Sections
15E.301,
15E.302,
and
15E.304,
11
Code
2025,
are
repealed.
12
Sec.
98.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
13
effect
January
1,
2026.
14
Sec.
99.
APPLICABILITY.
This
division
of
this
Act
applies
15
to
tax
years
beginning
on
or
after
January
1,
2026.
16
DIVISION
XIII
17
RESEARCH
ACTIVITIES
TAX
CREDIT
REPEAL
18
Sec.
100.
Section
422.10,
subsection
1,
unnumbered
19
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
20
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
21
a
state
tax
credit
for
increasing
research
activities
in
this
22
state
through
the
tax
year
beginning
on
or
after
January
1,
23
2025,
but
before
January
1,
2026
.
24
Sec.
101.
Section
422.10,
subsection
1,
paragraph
b,
25
subparagraph
(3),
subparagraph
division
(d),
subparagraph
26
subdivision
(iv),
Code
2025,
is
amended
by
striking
the
27
subparagraph
subdivision.
28
Sec.
102.
Section
422.10,
subsection
1,
paragraph
b,
29
subparagraph
(3),
subparagraph
division
(e),
Code
2025,
is
30
amended
to
read
as
follows:
31
(e)
For
tax
years
beginning
on
or
after
January
1,
32
2027
2026
,
amounts
paid
for
supplies
as
defined
in
section
33
41(b)(2)(C)
of
the
Internal
Revenue
Code
shall
not
be
qualified
34
research
expenses
in
this
state.
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Sec.
103.
Section
422.10,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
7.
This
section
is
repealed
January
1,
3
2027.
4
Sec.
104.
Section
422.33,
subsection
5,
paragraph
a,
5
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
6
follows:
7
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
8
a
state
tax
credit
through
the
tax
year
beginning
on
or
after
9
January
1,
2025,
but
before
January
1,
2026,
for
increasing
10
research
activities
in
this
state
equal
to
the
sum
of
the
11
following:
12
Sec.
105.
Section
422.33,
subsection
5,
paragraph
b,
13
subparagraph
(2),
subparagraph
division
(d),
subparagraph
14
subdivision
(iv),
Code
2025,
is
amended
by
striking
the
15
subparagraph
subdivision.
16
Sec.
106.
Section
422.33,
subsection
5,
paragraph
b,
17
subparagraph
(2),
subparagraph
division
(e),
Code
2025,
is
18
amended
to
read
as
follows:
19
(e)
For
tax
years
beginning
on
or
after
January
1,
20
2027
2026
,
amounts
paid
for
supplies
as
defined
in
section
21
41(b)(2)(C)
of
the
Internal
Revenue
Code
shall
not
be
qualified
22
research
expenses
in
this
state.
23
Sec.
107.
Section
422.33,
subsection
5,
Code
2025,
is
24
amended
by
adding
the
following
new
paragraph:
25
NEW
PARAGRAPH
.
j.
This
subsection
is
repealed
January
1,
26
2027.
27
DIVISION
XIV
28
RESEARCH
AND
DEVELOPMENT
TAX
CREDIT
PROGRAM
29
Sec.
108.
NEW
SECTION
.
15.520
Short
title.
30
This
part
shall
be
known
and
may
be
cited
as
the
“Research
31
and
Development
Tax
Credit
Program”
.
32
Sec.
109.
NEW
SECTION
.
15.521
Definitions.
33
As
used
in
this
part,
unless
the
context
otherwise
requires:
34
1.
“Eligible
expenditures”
means
qualified
research
expenses
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under
section
41
of
the
Internal
Revenue
Code,
to
the
extent
1
the
expenditures
occurred
in
this
state.
2
2.
“Qualified
business”
means
a
business
certified
by
the
3
authority
as
eligible
to
claim
the
research
and
development
tax
4
credit.
5
3.
“Qualified
research
and
development”
means
a
systematic
6
activity
that
combines
basic
and
applied
research
in
an
attempt
7
to
discover
solutions
to
new
or
existing
problems,
or
to
8
create
or
update
goods
and
services.
“Qualified
research
and
9
development”
includes
a
set
of
innovative
activities
undertaken
10
by
an
eligible
business
in
developing
new
services
or
products,
11
and
in
improving
existing
ones.
12
Sec.
110.
NEW
SECTION
.
15.522
Eligible
businesses
and
13
sectors.
14
1.
The
tax
credit
available
pursuant
to
this
part
shall
be
15
available
only
to
a
business
primarily
engaged
in
any
of
the
16
following:
17
a.
Advanced
manufacturing.
18
b.
Bioscience.
19
c.
Insurance
and
finance.
20
d.
Technology
and
innovation.
21
2.
For
a
business
described
in
subsection
1,
the
sectors
22
available
for
the
credit
may
include
the
following:
23
a.
Second-generation
food
innovation.
24
b.
Food
ingredients
and
supplements.
25
c.
Crop
protection.
26
d.
Hybrid
seed
technologies.
27
e.
Diagnostic
analytics
and
immunotherapies.
28
f.
Chip
technologies
and
microelectronics.
29
g.
Medical
equipment
and
supplies.
30
h.
Software
and
technology.
31
i.
Aerospace.
32
j.
Pharmaceuticals.
33
k.
Consumer
products.
34
l.
Any
additional
sectors
included
by
the
authority
by
rule.
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Sec.
111.
NEW
SECTION
.
15.523
Application,
certification,
1
and
agreement.
2
1.
A
business
shall
submit
a
preapplication
to
the
authority
3
to
determine
whether
the
business
is
primarily
engaged
4
in
an
eligible
sector
identified
in
section
15.522
and
is
5
actively
engaged
in
qualified
research
and
development.
The
6
determination
made
by
the
authority
shall
be
based
on
factors
7
including
but
not
limited
to
the
North
American
industry
8
classification
code
and
sources
of
revenue.
The
authority
may
9
request
any
additional
documentation
or
conduct
site
visits
10
to
verify
the
requirements
of
the
program
are
met
upon
the
11
submission
of
the
preapplication.
12
2.
The
authority
must
certify
a
business
as
a
qualified
13
business
for
the
business
to
claim
a
research
and
development
14
tax
credit.
A
qualified
business
that
continues
to
meet
the
15
requirements
of
the
program
and
the
agreement
entered
pursuant
16
to
subsection
3
may
remain
certified
for
up
to
five
years.
A
17
business
may
reapply
for
certification
in
additional
five-year
18
increments.
A
business
that
does
not
demonstrate
an
increase
19
in
eligible
expenditures
may
be
denied
recertification
by
20
the
authority.
A
business
that
is
denied
certification
or
21
recertification
may
reapply.
The
authority
may
specify
the
22
length
of
time
after
the
denial
when
the
business
is
eligible
23
to
reapply.
24
3.
An
eligible
business
must
enter
into
an
agreement
with
25
the
authority
for
successful
completion
of
all
requirements
of
26
the
program.
27
4.
Each
year
after
certification
as
a
qualified
business,
28
the
qualified
business
shall
submit
an
application
to
the
29
authority
for
a
tax
credit
based
on
the
amount
of
eligible
30
expenditures
that
were
included
in
Section
F
of
Internal
31
Revenue
Form
6765
that
was
submitted
with
the
qualified
32
business’s
most
recently
filed
and
accepted
federal
tax
return.
33
The
application
shall
include
a
verification
of
eligible
34
expenditures
by
procedures
prescribed
by
the
authority
by
rule.
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The
qualified
business
shall
engage
an
independent
certified
1
public
accountant
authorized
to
practice
in
this
state
to
2
conduct
the
verification.
A
qualified
business
shall
submit
3
the
application
to
the
authority
by
January
31
following
the
4
most
recently
filed
and
accepted
federal
tax
return
for
a
tax
5
year
in
which
the
business
is
determined
to
be
a
qualified
6
business.
7
5.
Each
fiscal
year,
the
authority
will
approve
tax
credit
8
awards
by
apportioning
the
amount
of
tax
credits
available
9
pursuant
to
section
15.119
on
a
pro
rata
basis,
based
on
10
the
total
amount
of
eligible
expenditures
incurred
by
all
11
qualified
businesses
that
are
awarded
a
tax
credit.
Up
to
12
five
percent
of
the
amount
of
tax
credits
available
pursuant
13
to
section
15.119
may
be
awarded
as
additional
tax
credits
to
14
qualified
businesses
that
demonstrate
an
increase
in
eligible
15
expenditures.
16
6.
If
the
qualified
business
fails
to
comply
with
any
17
requirements
of
the
program
or
the
agreement
entered
pursuant
18
to
subsection
3
as
determined
by
the
authority,
the
qualified
19
business
may
have
its
certification
as
a
qualified
business
20
revoked
or
be
required
to
repay
any
tax
credit
the
authority
21
issued
to
the
qualified
business.
After
a
final
determination,
22
the
authority
will
notify
the
department
of
revenue
of
any
23
required
repayment
of
a
tax
credit.
Such
repayment
shall
be
24
considered
a
tax
payment
due
and
payable
to
the
department
of
25
revenue
by
any
taxpayer
that
claimed
the
tax
incentive,
and
the
26
failure
to
make
the
repayment
may
be
treated
by
the
department
27
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
28
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
29
deposit
form.
30
7.
A
qualified
business
that
claims
a
research
activities
31
credit
pursuant
to
section
422.10
or
422.33,
Code
2025,
32
shall
not
claim
a
research
and
development
tax
credit
awarded
33
pursuant
to
this
part
on
the
same
tax
return.
34
Sec.
112.
NEW
SECTION
.
15.524
Research
and
development
tax
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credit.
1
1.
For
tax
years
beginning
on
or
after
January
1,
2026,
a
2
research
and
development
tax
credit
is
available
to
a
qualified
3
business
that
is
approved
for
the
tax
credit
by
the
authority.
4
2.
Upon
submission
of
the
documentation
required
pursuant
5
to
section
15.523,
subsection
4,
and
verification
of
eligible
6
expenditures
by
the
authority,
the
authority
may
issue
a
tax
7
credit
certificate
to
a
qualified
business
indicating
the
8
amount
available
to
be
claimed.
The
authority
may
approve
a
9
tax
credit
in
an
amount
up
to
three
and
one-half
percent
of
10
the
amount
of
the
qualified
business’s
eligible
expenditures.
11
The
tax
credit
shall
be
claimed
in
the
tax
year
immediately
12
following
the
tax
year
during
which
the
eligible
expenditures
13
were
incurred.
14
3.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
15
shall
include
one
or
more
tax
credit
certificates
with
the
16
taxpayer’s
tax
return.
The
tax
credit
certificate
must
contain
17
the
taxpayer’s
name,
address,
tax
identification
number,
the
18
amount
of
the
credit,
the
name
of
the
qualified
business,
and
19
any
other
information
required
by
the
department
of
revenue.
20
The
tax
credit
certificate,
unless
rescinded
by
the
authority,
21
shall
be
accepted
by
the
department
of
revenue
as
payment
for
22
taxes
imposed
pursuant
to
chapter
422,
subchapters
II
and
23
III,
subject
to
any
conditions
or
restrictions
placed
by
the
24
authority
upon
the
face
of
the
tax
credit
certificate
and
25
subject
to
the
limitations
of
the
program.
26
4.
Any
tax
credit
in
excess
of
the
business’s
tax
liability
27
is
refundable.
In
lieu
of
claiming
a
refund,
the
taxpayer
28
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
29
final,
completed
return
credited
to
the
tax
liability
for
the
30
following
tax
year.
31
5.
Tax
credit
certificates
issued
pursuant
to
this
section
32
are
not
transferable.
33
6.
If
the
business
is
a
partnership,
S
corporation,
limited
34
liability
company,
estate,
or
trust
electing
to
have
the
income
35
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taxed
directly
to
the
individual,
an
individual
may
claim
the
1
tax
credit
allowed.
The
amount
claimed
by
the
individual
shall
2
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
3
of
the
partnership,
S
corporation,
limited
liability
company,
4
or
estate
or
trust.
5
7.
The
maximum
amount
of
tax
credits
the
authority
may
issue
6
under
this
section
each
fiscal
year
shall
not
exceed
the
amount
7
specified
in
section
15.119.
8
8.
A
qualified
business
that
was
approved
to
receive
a
9
research
activities
credit
pursuant
to
section
15.335,
Code
10
2025,
prior
to
January
1,
2026,
shall
not
claim
such
tax
credit
11
and
a
research
and
development
tax
credit
pursuant
to
this
part
12
on
the
same
tax
return.
13
Sec.
113.
NEW
SECTION
.
15.525
Reporting
requirements.
14
1.
A
qualified
business
shall
report
annually
to
the
15
authority
all
of
the
following:
16
a.
The
total
amount
of
investment
made
in
research
and
17
development.
18
b.
The
qualified
location
in
this
state
where
the
research
19
and
development
occurred.
20
c.
The
number
of
jobs
created,
wages
paid,
and
employee
21
residence
locations.
22
2.
The
authority
shall
include
as
part
of
the
annual
report
23
under
section
15.107B
an
annual
report
of
the
activities
24
conducted
pursuant
to
this
part.
25
3.
The
authority
shall
report
all
information
in
an
26
aggregate
form
to
prevent,
as
much
as
possible,
information
27
being
attributable
to
any
particular
qualified
business.
28
Sec.
114.
NEW
SECTION
.
15.526
Confidentiality.
29
1.
Except
as
provided
in
subsection
2,
all
information
or
30
records
in
the
possession
of
the
authority
with
respect
to
this
31
part
shall
be
presumed
by
the
authority
to
be
a
trade
secret
32
protected
under
chapter
550
or
common
law,
and
shall
be
kept
33
confidential
by
the
authority
unless
otherwise
ordered
by
the
34
court.
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2.
The
identity
of
a
tax
credit
recipient
and
the
amount
1
of
the
tax
credit
shall
be
considered
public
information
under
2
chapter
22.
3
Sec.
115.
NEW
SECTION
.
422.12Q
Research
and
development
4
tax
credit.
5
The
taxes
imposed
under
this
subchapter,
less
the
credits
6
allowed
under
section
422.12,
shall
be
reduced
by
a
research
7
and
development
tax
credit
allowed
pursuant
to
section
15.524.
8
Sec.
116.
Section
422.33,
Code
2025,
is
amended
by
adding
9
the
following
new
subsection:
10
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
11
shall
be
reduced
by
the
research
and
development
tax
credit
12
allowed
pursuant
to
section
15.524.
13
Sec.
117.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
14
designate
sections
15.520
through
15.526,
as
enacted
in
this
15
division
of
this
Act,
as
part
35
of
subchapter
II.
16
Sec.
118.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
17
deemed
of
immediate
importance,
takes
effect
upon
enactment.
18
DIVISION
XV
19
SUSTAINABLE
AVIATION
FUEL
PRODUCTION
TAX
CREDIT
20
Sec.
119.
NEW
SECTION
.
15.530
Short
title.
21
This
part
shall
be
known
and
may
be
cited
as
the
“Sustainable
22
Aviation
Fuel
Production
Tax
Credit
Program”
.
23
Sec.
120.
NEW
SECTION
.
15.531
Definitions.
24
As
used
in
this
part,
unless
the
context
otherwise
requires:
25
1.
“Aviation
gasoline”
means
the
same
as
defined
in
section
26
452A.2.
27
2.
“Eligible
taxpayer”
means
a
business
engaged
in
28
manufacturing
sustainable
aviation
fuel
from
feedstock.
29
3.
“Feedstock”
means
any
organic
matter
processed
or
refined
30
in
the
state
suitable
for
sustainable
aviation
fuel
production
31
without
further
enhancement.
“Feedstock”
includes
ethanol,
corn
32
oil,
soybean
oil,
animal
fats,
used
cooking
oil,
and
algae.
33
4.
“Jet
fuel”
means
blends
of
hydrocarbons
derived
from
34
crude
petroleum,
natural
gasoline,
and
synthetic
hydrocarbons,
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intended
for
use
in
aviation
turbine
engines,
and
that
meet
1
the
specifications
in
ASTM
(American
society
for
testing
and
2
materials)
specification
D1655-12.
3
5.
“Sustainable
aviation
fuel”
means
the
portion
of
a
liquid
4
fuel
meeting
the
requirements
of
ASTM
D7566
or
the
Fischer
5
Tropsch
provisions
of
ASTM
D1655,
Annex
A1,
derived
from
6
feedstock
not
including
palm
fatty
acid
distillates
and
that
7
achieves
at
least
a
fifty
percent
life
cycle
greenhouse
gas
8
emissions
reduction
as
determined
by
any
of
the
following:
9
a.
The
fuel
production
pathway
achieves
at
least
a
fifty
10
percent
life
cycle
greenhouse
gas
emission
reduction
in
11
comparison
with
petroleum-based
aviation
gasoline,
aviation
12
turbine
fuel,
and
jet
fuel
utilizing
the
most
recent
version
13
of
the
GREET
(Argonne
national
laboratory’s
greenhouse
gases,
14
regulated
emissions,
and
energy
use
in
technologies)
model
that
15
accounts
for
reduced
emissions
throughout
the
fuel
production
16
process.
17
b.
The
fuel
production
pathway
achieves
at
least
a
fifty
18
percent
reduction
in
comparison
with
petroleum-based
aviation
19
gasoline,
aviation
turbine
fuel,
and
jet
fuel
utilizing
the
20
most
recent
version
of
the
default
life
cycle
emission
value
or
21
actual
core
life
cycle
emissions
value
under
the
most
recent
22
carbon
offsetting
and
reduction
scheme
for
international
23
aviation
methodology
for
sustainable
aviation
fuels
adopted
by
24
the
international
civil
aviation
organization.
25
Sec.
121.
NEW
SECTION
.
15.532
Eligible
business
application
26
and
agreement.
27
1.
a.
An
eligible
business
that
produces
a
sustainable
28
aviation
fuel
in
this
state
from
feedstock
during
a
calendar
29
year
may
apply
to
the
authority
for
the
sustainable
aviation
30
fuel
tax
credit
provided
in
section
15.533.
31
b.
The
application
must
be
made
to
the
authority
in
the
32
manner
prescribed
by
the
authority.
33
c.
The
application
must
be
made
during
the
calendar
year
34
following
the
calendar
year
in
which
the
sustainable
aviation
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fuel
is
produced.
1
d.
The
authority
may
accept
applications
on
a
continuous
2
basis
or
may
establish,
by
rule,
an
annual
application
3
deadline.
4
e.
The
application
must
include
all
of
the
following
5
information:
6
(1)
The
amount
of
sustainable
aviation
fuel
produced
in
7
the
state
from
feedstock
by
the
eligible
business
during
the
8
calendar
year,
measured
in
gallons.
9
(2)
The
types
and
sources
of
feedstock
used
to
produce
10
sustainable
aviation
fuel,
documented
in
sufficient
detail
to
11
allow
the
authority
to
verify
that
such
feedstock
was
processed
12
or
refined
in
the
state.
13
(3)
Any
other
information
reasonably
required
by
the
14
authority
in
order
to
establish
and
verify
eligibility
under
15
the
program.
16
f.
The
authority
shall
review
and
score
all
complete
17
applications
submitted
by
eligible
businesses
on
a
competitive
18
basis
pursuant
to
rules
adopted
by
the
authority.
19
2.
a.
Before
being
issued
a
tax
credit
under
section
20
15.533,
an
eligible
business
must
enter
into
an
agreement
with
21
the
authority
for
the
successful
completion
of
all
requirements
22
of
the
program.
As
part
of
the
agreement,
the
eligible
23
business
shall
agree
to
collect
and
provide
any
information
24
reasonably
required
by
the
authority
in
order
to
allow
the
25
board
to
fulfill
its
reporting
obligation
under
section
15.534.
26
b.
An
eligible
business
shall
fulfill
all
the
requirements
27
of
the
program
and
the
agreement
before
the
authority
issues
28
the
business
a
tax
credit
certificate
or
enters
into
a
29
subsequent
agreement
with
the
business
under
this
section.
The
30
authority
may
decline
to
enter
into
a
subsequent
agreement
with
31
the
business
under
this
section
if
a
prior
agreement
is
not
32
successfully
fulfilled.
33
c.
Upon
establishing
that
all
requirements
of
the
program
34
and
the
agreement
have
been
fulfilled,
the
authority
shall
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issue
a
tax
credit
certificate
to
the
eligible
business
stating
1
the
amount
of
sustainable
fuel
tax
credit
the
eligible
business
2
may
claim.
3
3.
The
failure
by
an
eligible
business
in
fulfilling
any
4
requirement
of
the
program
or
any
of
the
terms
and
obligations
5
of
an
agreement
entered
into
pursuant
to
this
section
may
6
result
in
the
reduction,
termination,
or
rescission
of
the
7
tax
credits
under
section
15.533
and
may
subject
the
eligible
8
business
to
the
repayment
or
recapture
of
tax
credits
claimed.
9
After
a
final
determination,
the
authority
will
notify
the
10
department
of
revenue
of
any
required
repayment
of
a
tax
11
credit.
Such
repayment
shall
be
considered
a
tax
payment
due
12
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
13
claimed
the
tax
credit,
and
the
failure
to
make
the
repayment
14
may
be
treated
by
the
department
of
revenue
in
the
same
manner
15
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
16
due,
with
the
filing
of
a
return
or
deposit
form.
17
4.
a.
Except
as
provided
in
paragraph
“b”
,
any
information
18
or
record
in
the
possession
of
the
authority
with
respect
to
19
the
program
shall
be
presumed
by
the
authority
to
be
a
trade
20
secret
protected
under
chapter
550
or
common
law
and
shall
be
21
kept
confidential
by
the
authority
unless
otherwise
ordered
by
22
a
court.
23
b.
The
identity
of
a
tax
credit
recipient
and
the
amount
24
of
the
tax
credit
shall
be
considered
public
information
under
25
chapter
22.
26
Sec.
122.
NEW
SECTION
.
15.533
Sustainable
aviation
fuel
27
tax
credit.
28
1.
An
eligible
business
that
has
entered
into
an
agreement
29
pursuant
to
section
15.532
may
claim
a
tax
credit
in
an
amount
30
equal
to
the
product
of
twenty-five
cents
multiplied
by
the
31
number
of
gallons
of
sustainable
aviation
fuel
produced
in
32
this
state
from
feedstock.
The
sustainable
aviation
fuel
tax
33
credit
shall
not
be
available
for
any
sustainable
aviation
34
fuel
produced
before
the
2026
calendar
year
or
after
the
2035
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calendar
year.
1
2.
The
tax
credit
shall
be
allowed
against
taxes
imposed
2
under
chapter
422,
subchapter
II
or
III.
3
3.
The
tax
credit
shall
be
claimed
for
the
tax
year
during
4
which
the
eligible
business
was
issued
the
tax
credit.
5
4.
An
individual
may
claim
a
tax
credit
under
this
section
6
of
a
partnership,
limited
liability
company,
S
corporation,
7
cooperative
organized
under
chapter
501
and
filing
as
a
8
partnership
for
federal
tax
purposes,
estate,
or
trust
electing
9
to
have
income
taxed
directly
to
the
individual.
The
amount
10
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
11
share
of
the
individual’s
earnings
from
the
partnership,
12
limited
liability
company,
S
corporation,
cooperative,
estate,
13
or
trust.
14
5.
Any
tax
credit
in
excess
of
the
tax
liability
is
15
refundable.
In
lieu
of
claiming
a
refund,
the
taxpayer
16
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
17
final,
completed
return
credited
to
the
tax
liability
for
the
18
following
tax
year.
19
6.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
20
shall
include
one
or
more
tax
credit
certificates
with
the
21
taxpayer’s
tax
return.
22
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
23
name,
address,
tax
identification
number,
the
amount
of
the
24
credit,
the
name
of
the
eligible
business,
and
any
other
25
information
required
by
the
department
of
revenue.
26
c.
The
tax
credit
certificate,
unless
rescinded
by
the
27
authority,
shall
be
accepted
by
the
department
of
revenue
as
28
payment
for
taxes
imposed
pursuant
to
chapter
422,
subchapters
29
II
and
III,
subject
to
any
conditions
or
restrictions
placed
by
30
the
authority
upon
the
face
of
the
tax
credit
certificate
and
31
subject
to
the
limitations
of
the
program.
32
d.
Tax
credit
certificates
issued
pursuant
to
this
section
33
are
not
transferable.
34
7.
a.
The
maximum
amount
of
tax
credits
the
authority
may
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issue
each
fiscal
year
pursuant
to
this
section
shall
be
as
1
provided
in
section
15.119.
2
b.
(1)
The
maximum
amount
of
tax
credits
that
the
authority
3
may
issue
to
an
eligible
business
for
the
production
of
4
sustainable
aviation
fuel
in
a
calendar
year
shall
not
exceed
5
one
million
dollars.
6
(2)
The
authority
shall
not
issue
more
than
five
tax
credit
7
certificates
to
an
eligible
business
for
the
production
of
8
sustainable
aviation
fuel
under
the
program.
9
Sec.
123.
NEW
SECTION
.
15.534
Reports
to
general
assembly.
10
1.
For
purposes
of
this
section,
“successful
tax
credit
11
applicant”
includes,
with
respect
to
each
fiscal
year,
an
12
eligible
business
that
was
issued
a
tax
credit
certificate
for
13
production
of
sustainable
aviation
fuel
during
that
fiscal
14
year.
15
2.
The
annual
report
under
section
15.107B
shall
include
16
a
report,
developed
in
cooperation
with
the
department
of
17
revenue,
describing
the
activities
of
the
program
for
the
18
previous
fiscal
year.
The
report
shall,
at
a
minimum,
include
19
all
of
the
following
information:
20
a.
The
aggregate
number
of
gallons
of
sustainable
aviation
21
fuel
produced
for
which
successful
tax
credit
applicants
22
received
a
tax
credit
in
the
previous
calendar
year.
23
b.
For
each
eligible
business
issued
a
sustainable
aviation
24
fuel
tax
credit
during
each
calendar
year:
25
(1)
The
identity
of
the
eligible
business.
26
(2)
The
amount
of
the
tax
credit.
27
c.
The
total
amount
of
all
sustainable
aviation
fuel
tax
28
credits
claimed
during
each
calendar
year,
and
the
portion
of
29
the
claims
issued
as
a
refund.
30
3.
To
protect
the
presumption
of
confidentiality
31
established
pursuant
to
section
15.532,
the
board
shall
report
32
all
information
in
an
aggregate
form
to
prevent,
as
much
as
33
possible,
information
being
attributable
to
any
particular
34
eligible
business,
except
as
provided
in
subsection
2.
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Sec.
124.
NEW
SECTION
.
15.535
Future
repeal.
1
Sections
15.530,
15.531,
15.532,
15.533,
15.534,
and
this
2
section
are
repealed
January
1,
2037.
3
Sec.
125.
NEW
SECTION
.
422.10C
Sustainable
aviation
fuel
4
tax
credit.
5
The
taxes
imposed
under
this
subchapter,
less
the
credits
6
allowed
under
section
422.12,
shall
be
reduced
by
a
sustainable
7
aviation
fuel
tax
credit
allowed
under
section
15.533.
This
8
section
is
repealed
January
1,
2037.
9
Sec.
126.
Section
422.33,
Code
2025,
is
amended
by
adding
10
the
following
new
subsection:
11
NEW
SUBSECTION
.
23.
The
taxes
imposed
under
this
subchapter
12
shall
be
reduced
by
a
sustainable
aviation
fuel
tax
credit
13
allowed
under
section
15.533.
This
subsection
is
repealed
14
January
1,
2037.
15
Sec.
127.
TAX
CREDIT
CLAIMS.
Sustainable
aviation
fuel
tax
16
credits
issued
pursuant
to
the
sustainable
aviation
tax
credit
17
program
enacted
in
this
division
of
this
Act
shall
not
be
18
issued
by
the
economic
development
authority
prior
to
July
1,
19
2026,
and
shall
not
be
claimed
by
a
taxpayer
prior
to
September
20
1,
2026.
21
Sec.
128.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
22
designate
sections
15.530
through
15.535,
as
enacted
in
this
23
division
of
this
Act,
as
part
36
of
subchapter
II.
24
Sec.
129.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
130.
RETROACTIVE
APPLICABILITY.
This
division
of
this
27
Act
applies
retroactively
to
January
1,
2025,
for
tax
years
28
beginning
on
or
after
that
date.
29
DIVISION
XVI
30
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM
31
Sec.
131.
Section
15.494,
subsection
1,
paragraph
b,
Code
32
2025,
is
amended
to
read
as
follows:
33
b.
If
the
eligible
business
fails
to
comply
with
any
34
requirements
of
the
program
or
the
agreement
as
determined
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by
the
authority
,
the
eligible
business
may
be
required
to
1
repay
any
tax
incentives
the
authority
issued
to
the
eligible
2
business.
A
After
a
final
determination,
the
authority
shall
3
notify
the
department
of
revenue
of
any
required
repayment
of
4
a
tax
incentive
shall
.
Any
repayment
shall
be
considered
a
5
tax
payment
due
and
payable
to
the
department
of
revenue
by
6
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
7
to
make
the
repayment
may
be
treated
by
the
department
of
8
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
9
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
10
deposit
form.
In
addition,
the
county
shall
have
the
authority
11
to
take
action
to
recover
the
value
of
property
taxes
not
12
collected
as
a
result
of
the
exemption
provided
to
the
business
13
under
this
part.
14
Sec.
132.
Section
15.495,
subsection
2,
Code
2025,
is
15
amended
to
read
as
follows:
16
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
17
business
shall
file
a
claim
with
the
department
of
revenue
as
18
follows:
19
a.
The
contractor
or
subcontractor
shall
state
under
oath,
20
on
forms
provided
by
the
department
of
revenue,
the
amount
of
21
the
sales
of
tangible
personal
property
or
services
rendered,
22
furnished,
or
performed
including
water,
sewer,
gas,
and
23
electric
utility
services
upon
which
sales
or
use
tax
has
24
been
paid
prior
to
contract
completion
during
the
period
for
25
which
the
refund
is
claimed
,
and
shall
submit
the
forms
to
the
26
eligible
business
before
contract
completion.
27
b.
The
eligible
business
shall
inform
the
department
of
28
revenue
in
writing
of
contract
completion.
The
eligible
29
business
shall,
after
contract
completion
no
more
frequently
30
than
quarterly
,
submit
an
application
to
the
department
31
of
revenue
for
a
refund
of
the
amount
of
the
sales
and
use
32
taxes
paid
pursuant
to
chapter
423
upon
any
tangible
personal
33
property,
or
services
rendered,
furnished,
or
performed,
34
including
water,
sewer,
gas,
and
electric
utility
services.
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The
application
shall
be
submitted
in
the
form
and
manner
1
prescribed
by
the
department
of
revenue.
The
department
of
2
revenue
shall
audit
the
application
and,
if
approved,
issue
3
a
warrant
or
warrants
to
the
eligible
business
in
the
amount
4
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
5
Iowa
under
subsection
1
.
The
eligible
business’s
application
6
must
be
submitted
to
the
department
of
revenue
within
one
year
7
after
the
project
completion
date.
An
application
filed
by
the
8
eligible
business
in
accordance
with
this
section
shall
not
be
9
denied
by
reason
of
a
time
limitation
for
filing
a
refund
claim
10
set
forth
in
chapter
421
or
423
section
423.47
.
11
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
12
to
the
eligible
business
equally
over
five
tax
years
as
soon
as
13
practicable
after
completion
of
an
audit
pursuant
to
paragraph
14
“b”
.
Interest
shall
not
accrue
on
any
part
of
the
refund
that
15
has
not
yet
been
remitted
by
the
department
of
revenue
to
the
16
eligible
business.
17
DIVISION
XVII
18
MASS
LAYOFFS
AND
BUSINESS
CLOSURES
19
Sec.
133.
NEW
SECTION
.
15.112
Mass
layoffs
and
business
20
closures.
21
If
an
entity
that
is
awarded
a
tax
incentive
or
other
22
financial
assistance
under
any
of
the
programs
administered
by
23
the
authority
experiences
a
business
closure
or
a
mass
layoff
24
for
which
notice
is
required
under
chapter
84C,
the
authority
25
may
reduce
or
eliminate
some
or
all
of
the
financial
assistance
26
awarded
by
the
authority
to
the
entity.
27
DIVISION
XVIII
28
CONFORMING
CHANGES
29
Sec.
134.
Section
8.55,
subsection
3,
paragraph
f,
30
subparagraph
(2),
subparagraph
division
(a),
as
enacted
by
2025
31
Iowa
Acts,
Senate
File
619,
section
82,
is
amended
to
read
as
32
follows:
33
(a)
Disaster
aid
provided
to
businesses
engaged
in
disaster
34
recovery
as
described
in
chapter
15,
subchapter
II,
part
13
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section
15.111
,
and
housing
businesses
engaged
in
disaster
1
recovery
housing
projects
as
defined
in
section
15.354,
2
subsection
6.
3
Sec.
135.
2025
Iowa
Acts,
House
File
975,
section
10,
if
4
enacted,
is
amended
to
read
as
follows:
5
SEC.
10.
TRANSFER
OF
MONEYS.
On
the
effective
date
of
this
6
division
of
this
Act,
any
unencumbered
or
unobligated
moneys
7
remaining
in
the
brownfield
redevelopment
fund
created
in
8
section
15.293
are
transferred
to
a
fund
or
funds
established
9
pursuant
to
section
15.335B
15.111
,
subsection
1,
paragraph
10
“a”,
as
determined
by
the
economic
development
authority.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
state
tax
credits
and
tax
incentive
15
programs.
16
DIVISION
I
——
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
17
LIMITS.
Under
the
bill,
the
authority
shall
not
authorize
for
18
any
one
fiscal
year
an
aggregate
amount
of
tax
credits
for
19
business
development
programs
in
excess
of
$110
million
for
20
allocation
among
the
business
programs
as
follows:
(1)
for
21
tax
credits
for
investments
in
an
innovation
fund
and
the
seed
22
investor
tax
credit
the
authority
shall
allocate
a
total
of
23
$10
million,
except
that
for
the
fiscal
year
beginning
July
24
1,
2025,
the
allocation
shall
be
reduced
by
any
tax
credit
25
authorized
by
the
authority
prior
to
July
1,
2026,
for
an
26
investment
in
a
qualifying
business;
(2)
for
the
renewable
27
chemical
production
tax
credit
and
the
sustainable
aviation
28
fuel
production
tax
credit
the
authority
shall
allocate
a
29
total
of
$10
million;
(3)
for
the
research
and
development
tax
30
credit
the
authority
shall
allocate
$40
million;
(4)
for
the
31
business
incentives
for
growth
program
for
the
fiscal
year
32
beginning
July
1,
2026,
and
for
each
fiscal
year
thereafter,
33
the
authority
shall
not
allocate
more
than
$50
million;
and
(5)
34
for
the
high-quality
jobs
program
prior
to
January
1,
2026,
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and
for
the
business
incentives
for
growth
program
on
or
after
1
January
1,
2026,
the
authority
shall
allocate
$50
million
in
2
the
aggregate.
3
DIVISION
II
——
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
4
LIMITS
——
CONFORMING
CHANGES.
The
bill
makes
conforming
5
changes
to
Code
sections
15.293A(6),
15.293B(6),
15.318(3)(e),
6
15.354(2)(a),
15.354(4),
and
15.354(6)(d).
7
DIVISION
III
——
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM.
The
8
bill
creates
a
business
incentives
for
growth
program
(BIG
9
program),
effective
January
1,
2026,
to
provide
tax
incentives
10
to
eligible
businesses.
The
qualifications
for
an
eligible
11
business
are
provided
in
the
bill.
Applications
for
the
BIG
12
program
shall
be
submitted
to
the
authority.
For
a
proposed
13
project
that
will
result
in
elevated
water
consumption
by
14
the
business,
the
application
must
be
accompanied
by
a
water
15
conservation
and
waste
reduction
plan.
16
The
terms
of,
and
aggregate
value
of,
a
tax
incentive
may
17
be
negotiated
between
an
eligible
business
and
the
authority,
18
but
the
aggregate
value
of
the
tax
incentives
that
any
one
19
eligible
business
may
receive
shall
not
exceed
5
percent
of
the
20
eligible
business’s
qualifying
investment,
unless
the
eligible
21
business’s
project
is
located
in
a
rural
county,
in
which
case
22
the
maximum
aggregate
value
of
the
tax
incentives
that
any
one
23
eligible
business
may
receive
shall
not
exceed
7.5
percent
of
24
the
eligible
business’s
qualifying
investment.
The
board
may
25
authorize
any
combination
of
tax
incentives
available
for
an
26
eligible
business.
27
An
eligible
business
that
is
approved
by
the
authority
to
28
participate
in
the
BIG
program
shall
enter
into
an
agreement
29
with
the
authority
specifying
the
criteria
for
successful
30
completion
of
the
program
requirements.
The
requirements
for
31
the
program
agreement
are
detailed
in
the
bill.
32
An
eligible
business
issued
a
tax
incentive
under
the
BIG
33
program
shall
be
entitled
to
a
refund
of
certain
sales
and
use
34
taxes,
after
filing
a
claim
with
the
department
of
revenue
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as
detailed
in
the
bill.
A
contractor
or
subcontractor
that
1
willfully
makes
a
false
report
of
taxes
paid
is
guilty
of
an
2
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
3
tax
and
any
applicable
penalty
and
interest.
4
An
eligible
business
may
not
receive
a
tax
credit
5
certificate
under
Code
section
15.505(3)
until
the
eligible
6
business’s
project,
or
a
portion
of
the
project,
has
been
7
placed
in
service.
An
eligible
business
may
claim
the
tax
8
credit
authorized
and
issued
by
the
authority.
The
tax
credit
9
shall
be
amortized
to
the
eligible
business
over
five
tax
10
years.
If
within
five
years
of
the
date
the
authority
issues
11
an
eligible
business
a
tax
credit,
the
eligible
business
sells,
12
disposes
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
13
of
the
land,
buildings,
or
other
structures
for
which
the
tax
14
credit
was
claimed,
the
tax
liability
of
the
eligible
business
15
for
that
year
shall
be
increased
by
the
amounts
detailed
in
the
16
bill.
17
An
eligible
business
may
apply
for
and
be
eligible
to
receive
18
other
tax
incentives;
however,
the
authority
may
prohibit
an
19
eligible
business
that
has
been
issued
tax
incentives
under
the
20
BIG
program
from
receiving
any
additional
tax
incentive,
tax
21
credit,
grant,
loan,
or
other
financial
assistance
under
any
22
program
administered
by
the
authority.
23
If
an
eligible
business
has
been
authorized
by
the
board
24
to
receive
tax
incentives
under
the
program,
a
community
in
25
which
an
eligible
business’s
project
is
located
may
grant
the
26
eligible
business
a
property
tax
exemption
for
a
portion
of
the
27
actual
value
added
by
improvements
to
real
property
through
the
28
project
for
a
period
not
to
exceed
10
years
beginning
the
year
29
that
the
improvements
to
real
property
are
first
assessed
for
30
taxation.
31
The
bill
authorizes
the
establishment
of
one
or
more
funds
32
within
the
state
treasury,
under
the
control
of
the
authority,
33
to
be
used
for
assistance
for
certain
programs
and
projects
as
34
detailed
in
the
bill.
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This
division
of
the
bill
takes
effect
upon
enactment.
1
DIVISION
IV
——
ELIMINATION
OF
THE
HIGH
QUALITY
JOBS
PROGRAM.
2
The
bill
repeals
the
high
quality
jobs
program
on
June
30,
3
2026,
and
provides
for
fulfillment
of
agreements
entered
into
4
under
the
program
on
or
before
December
31,
2025.
5
The
sections
of
the
bill
creating
the
business
incentives
6
for
growth
program
take
effect
on
December
31,
2025.
7
DIVISION
V
——
HIGH
QUALITY
JOBS
PROGRAM
——
CONFORMING
8
CHANGES.
The
bill
makes
conforming
changes
to
Code
sections
9
2.48(3)(a)(1),
2.48(3)(a)(2),
8G.3(8),
15.106B(5)(b),
10
15.293B(3),
15.317(5),
15.318(2)(b),
15.318(4),
11
15.354(1)(b)(2),
15.354(1)(c),
15.354(3)(b),
15.354(5),
12
15.355(2)(b)(3)(a),
15.499(1),
15E.351(1),
15E.362(1)(c),
13
15H.5,
159A.6B(2),
422.10(5),
422.11F(2),
422.33(5)(h),
14
422.33(12)(b),
422.33(19),
422.60(5)(b),
422.60(8),
15
427B.17(8)(b),
432.12C(2),
455B.104(2),
and
533.329(2)(c)
and
16
(d).
17
The
bill
repeals
Code
sections
15E.231,
15E.232,
15E.233,
18
266.19,
422.11U,
and
432.12H.
19
This
division
of
the
bill
takes
effect
December
31,
2025.
20
DIVISION
VI
——
SEED
INVESTOR
TAX
CREDIT
PROGRAM
AND
21
INNOVATION
FUND
INVESTMENT
TAX
CREDITS.
The
bill
creates
the
22
seed
investor
tax
credit
program
(seed
program)
for
the
purpose
23
of
stimulating
job
growth,
creating
wealth,
and
accelerating
24
the
creation
of
new
ventures.
25
The
bill
allows
a
tax
credit
for
a
portion
of
a
taxpayer’s
26
equity
investment
in
a
qualifying
business
as
provided
in
the
27
bill.
The
amount
of
the
tax
credit
shall
equal
20
percent
of
28
the
taxpayer’s
equity
investment
if
the
qualifying
business
29
is
located
in
an
urban
area,
or
35
percent
if
the
qualifying
30
business
is
located
in
a
rural
area.
The
maximum
amount
31
of
a
tax
credit
that
may
be
issued
per
calendar
year
to
a
32
person
and
the
person’s
spouse
or
dependent,
and
the
maximum
33
amount
of
a
tax
credit
that
may
be
issued
per
calendar
year
34
to
a
corporation
or
other
entity,
shall
not
exceed
$100,000
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combined,
as
detailed
in
the
bill.
1
The
maximum
amount
of
a
tax
credit
that
may
be
issued
per
2
calendar
year
for
equity
investments
in
any
one
qualifying
3
business
shall
not
exceed
$500,000.
An
application
received
by
4
the
authority
that
exceeds
the
maximum
amount
of
permissible
5
tax
credits
shall
be
denied,
in
whole
or
in
part,
regardless
of
6
whether
the
investment
would
otherwise
be
eligible
to
qualify
7
for
a
tax
credit.
8
The
department
of
revenue
shall
adopt
rules
for
the
9
administration
of
the
seed
program.
10
For
an
equity
investment
to
qualify
for
a
tax
credit,
the
11
business
in
which
the
investment
is
made
must
be
a
qualified
12
business
as
described
in
the
bill.
13
All
information
or
records
in
the
possession
of
the
14
authority
with
respect
to
the
seed
program
shall
be
a
trade
15
secret
and
kept
confidential
by
the
authority
unless
otherwise
16
ordered
by
a
court,
or
unless
considered
public
information.
17
The
authority
shall
submit
the
annual
report
to
the
governor
18
and
the
general
assembly
on
the
activities
conducted
pursuant
19
to
the
seed
program
including
a
listing
of
eligible
qualifying
20
businesses
and
the
number
of
tax
credit
certificates
and
the
21
amount
of
tax
credits
issued
by
the
authority.
22
The
bill
requires
that,
as
part
of
the
innovation
fund
23
investment
tax
credit
program,
an
innovation
fund
submit
an
24
application
for
certification
to
the
board.
The
board
shall
25
approve
the
application
and
certify
the
innovation
fund
if,
in
26
addition
to
the
criteria
under
current
law,
the
fund
proposes
27
to
obtain
at
least
$3
million
in
binding
investment
commitments
28
and
to
invest
a
minimum
of
$3
million
in
companies
that
have
a
29
principal
place
of
business
in
the
state.
30
DIVISION
VII
——
ELIMINATION
OF
INVESTMENTS
IN
QUALIFYING
31
BUSINESS
TAX
CREDIT
PROGRAM.
The
bill
repeals
the
investments
32
in
qualifying
businesses
tax
credit
program
on
June
30,
2026,
33
and
provides
for
the
validity
of
tax
credits
issued
under
the
34
program
before
June
30,
2025.
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DIVISION
VIII
——
INVESTMENTS
IN
QUALIFYING
BUSINESS
1
TAX
CREDIT
PROGRAM
——
CONFORMING
CHANGES.
The
bill
makes
2
conforming
changes
to
Code
sections
2.48(3)(d)(1),
15E.52(4),
3
422.11F(1),
422.33(12)(a),
422.60(5)(a),
432.12C(1),
and
4
533.329(2).
5
DIVISION
IX
——
IOWA
FILM
PRODUCTION
INCENTIVE
PROGRAM
AND
6
FUND.
The
bill
establishes
the
Iowa
film
production
incentive
7
program
and
fund
within
the
authority.
8
The
bill
requires
the
authority
to
administer
the
Iowa
9
film
production
incentive
program
(film
program)
for
the
10
purpose
of
providing
rebates
to
qualified
production
facilities
11
for
qualified
expenditures
incurred
to
produce
a
qualified
12
production.
“Qualified
production”
and
“qualified
production
13
facility”
are
defined
in
the
bill.
14
The
bill
requires
the
authority
to
establish
eligibility
15
criteria
by
rule.
16
The
criteria
for
qualified
production
facilities
must
17
require
that
a
facility
have
an
agreement
between
the
authority
18
and
the
facility
that
the
phrase
“filmed
in
Iowa”
appears
19
noticeably
in
the
credits
of
the
qualified
production.
20
The
criteria
for
a
qualified
production
must
include
a
total
21
production
budget
of
at
least
$1
million,
including
at
least
22
$500,000
in
qualified
expenditures
and
evidence
that
the
total
23
production
budget
is
fully
funded,
and
the
qualified
production
24
must
be
made
available
to
the
public
for
viewing
at
a
venue
25
where
admission
is
charged,
or
availability
for
purchase,
26
for
rental,
or
through
a
streaming
service
that
requires
a
27
subscription.
28
The
criteria
for
qualified
expenditures
must
include
29
expenses
for
industry
standard
activities
for
cast
members,
30
equipment,
studio
production
facilities,
hospitality
services,
31
certified
public
accountant
services,
per
diem
payments,
32
payments
to
businesses
located
in
this
state,
accommodations,
33
and
any
other
expenses
allowed
by
the
authority.
Qualified
34
expenditures
do
not
include
expenses
for
entertainment,
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studio
executive
airfare,
royalties,
and
publicity
for
the
1
qualified
production.
The
criteria
for
qualified
expenditures
2
must
include
documentation
that
all
qualified
expenses
were
3
incurred
following
approval
of
the
application
for
rebate
by
4
the
authority.
5
Prior
to
disbursement
of
the
rebate,
the
facility
must
6
comply
with
additional
requirements
as
detailed
in
the
bill.
7
An
application
for
a
rebate
under
the
program
shall
be
8
submitted
by
a
qualified
production
facility
to
the
authority
9
for
approval
as
prescribed
by
the
authority.
In
determining
10
whether
to
approve
a
rebate,
the
authority
shall
consider
the
11
factors
detailed
in
the
bill.
12
The
bill
provides
that,
if
a
qualified
production
facility’s
13
application
is
approved
by
the
authority,
the
maximum
rebate
14
paid
to
the
facility
shall
equal
30
percent
of
the
facility’s
15
documented
qualified
expenditures
excluding
any
sales,
use,
and
16
hotel
and
motel
taxes
paid.
17
The
bill
creates
an
Iowa
film
production
incentive
fund
in
18
the
state
treasury
under
the
control
of
the
authority.
19
The
cumulative
value
of
rebates
claimed
pursuant
to
the
bill
20
shall
not
exceed
$10
million
per
fiscal
year.
21
The
bill
applies
to
qualified
expenditures
incurred
between
22
July
1,
2025
and
July
1,
2027.
The
program
is
repealed
on
July
23
1,
2027.
24
DIVISION
X
——
EMPLOYER
CHILD
CARE
TAX
CREDIT
REPEAL.
The
25
bill
repeals
the
employer
child
care
tax
credit
commencing
26
with
tax
years
beginning
on
or
after
January
1,
2026.
The
27
credit
is
equal
to
the
employer-provided
child
care
tax
credit
28
provided
in
section
45F
of
the
Internal
Revenue
Code,
and
is
29
available
against
the
individual
and
corporate
income
taxes,
30
the
franchise
tax,
the
insurance
premiums
tax,
and
the
moneys
31
and
credits
tax.
32
The
bill
repeals
the
tax
credit
from
the
Code
on
January
1,
33
2031,
due
to
the
taxpayer’s
ability
to
carry
forward
the
credit
34
for
up
to
five
years.
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DIVISION
XI
——
ASSISTIVE
DEVICE
TAX
CREDIT
REPEAL.
The
bill
1
repeals
the
assistive
device
refundable
tax
credit
available
2
against
the
corporate
income
tax
commencing
with
tax
years
3
beginning
on
or
after
January
1,
2025.
The
tax
credit
was
4
equal
to
50
percent
of
the
first
$5,000
used
to
purchase
an
5
assistive
device.
6
The
bill
repeals
the
tax
credit
from
the
Code
on
January
7
1,
2027,
due
to
the
ability
of
the
taxpayer
to
credit
any
8
overpayment
in
tax
liability
in
the
following
tax
year.
9
DIVISION
XII
——
ENDOW
IOWA
TAX
CREDIT
MODIFICATIONS.
The
10
bill
modifies
the
endow
Iowa
tax
credit
by
reducing
the
11
aggregate
amount
of
the
tax
credit
authorized
from
$6
million
12
to
$3.5
million
annually.
The
bill
reduces
the
maximum
amount
13
of
tax
credits
that
may
be
granted
to
a
taxpayer
from
$100,000
14
to
$50,000.
The
bill
also
places
additional
requirements
15
upon
endow
Iowa
qualified
community
foundations
in
order
for
16
a
taxpayer
to
receive
a
tax
credit
for
a
gift
provided
to
the
17
foundation.
The
division
takes
effect
January
1,
2026,
and
18
applies
to
tax
years
beginning
on
or
after
that
date.
19
DIVISION
XIII
——
RESEARCH
ACTIVITIES
TAX
CREDIT
REPEAL.
The
20
bill
repeals
the
research
activities
tax
credit
commencing
with
21
tax
years
beginning
on
or
after
January
1,
2026.
The
bill
22
creates
a
new
research
and
development
tax
credit
in
another
23
division
of
the
bill.
The
research
activities
tax
credit
is
24
a
refundable
tax
credit
for
qualifying
taxpayers
conducting
25
research
for
manufacturing,
life
sciences,
agriscience,
26
software
engineering,
or
aviation
and
aerospace
industry.
The
27
tax
credit
is
available
against
the
individual
and
corporate
28
income
taxes.
29
The
bill
repeals
the
tax
credit
from
the
Code
on
January
30
1,
2027,
due
to
the
ability
of
the
taxpayer
to
credit
any
31
overpayment
in
tax
liability
in
the
following
tax
year.
32
DIVISION
XIV
——
RESEARCH
AND
DEVELOPMENT
TAX
CREDIT
PROGRAM.
33
The
bill
creates
a
research
and
development
tax
credit
program
34
to
be
administered
by
the
authority.
The
bill
provides
a
tax
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credit
to
eligible
businesses
that
incur
qualified
research
1
expenses
as
defined
under
section
41
of
the
Internal
Revenue
2
Code
to
the
extent
such
expenses
were
incurred
in
the
state.
3
The
tax
credit
is
available
against
the
individual
and
4
corporate
income
taxes
for
tax
years
beginning
on
or
after
5
January
1,
2026.
6
The
bill
makes
the
credit
available
to
businesses
primarily
7
engaged
in
advanced
manufacturing,
bioscience,
insurance
and
8
finance,
and
technology
innovation.
The
bill
further
limits
9
the
credit
to
the
following
sectors
of
those
businesses:
10
second-generation
food
innovation,
food
ingredients
and
11
supplements,
crop
protection,
hybrid
seed
technologies,
12
diagnostic
analytics
and
immunotherapies,
chip
technologies
13
and
microelectronics,
medical
equipment
and
supplies,
software
14
technology,
aerospace,
pharmaceuticals,
consumer
products,
and
15
any
additional
sectors
included
by
the
authority
by
rule.
16
A
business
is
required
to
submit
a
preapplication
for
the
17
credit
to
the
authority
to
determine
whether
the
business
is
18
primarily
engaged
in
an
eligible
sector
described
in
the
bill
19
and
is
actively
engaged
in
qualified
research
and
development.
20
The
determination
by
the
authority
shall
be
based
on
factors
21
including
but
not
limited
to
the
North
American
industry
22
classification
code
and
sources
of
revenue,
and
may
include
23
site
visits
by
the
authority.
24
A
business
must
be
certified
by
the
authority
to
be
eligible
25
for
the
credit.
A
business
becomes
a
qualified
business
26
if
it
has
been
certified
by
the
authority,
and
a
qualified
27
business
that
continues
to
meet
the
requirements
of
the
28
program
may
remain
certified
for
up
to
five
years.
A
qualified
29
business
may
reapply
for
certification
in
additional
five-year
30
increments.
A
business
that
does
not
demonstrate
an
increase
31
in
eligible
expenditures
may
be
denied
recertification
by
the
32
authority,
but
may
reapply.
33
Each
year
after
becoming
a
qualified
business
during
the
34
five-year
period,
the
bill
requires
the
qualified
business
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to
submit
an
application
to
the
authority
for
the
tax
credit
1
based
on
the
amount
of
eligible
expenditures
that
were
based
2
upon
the
amount
of
eligible
expenditures
that
were
included
3
on
the
business’s
most
recently
filed
and
accepted
federal
4
tax
return.
The
bill
requires
the
eligible
expenditures
to
5
be
verified
by
a
certified
public
accountant
authorized
to
6
practice
in
this
state.
Each
fiscal
year,
the
authority
shall
7
approve
tax
credit
awards
by
apportioning
the
amount
of
tax
8
credits
available
pursuant
to
Code
section
15.119,
as
amended
9
by
the
bill,
on
a
pro
rata
basis,
based
on
the
total
amount
of
10
eligible
expenditures
incurred
by
all
qualified
businesses
that
11
are
awarded
a
tax
credit.
Up
to
5
percent
of
the
amount
of
12
tax
credits
available
pursuant
to
Code
section
15.119
may
be
13
awarded
as
additional
tax
credits
to
qualified
businesses
that
14
demonstrate
an
increase
in
eligible
expenditures.
15
If
the
qualified
business
fails
to
comply
with
any
16
requirements
of
the
program
or
any
agreement
entered
into,
the
17
qualified
business
may
have
its
certification
as
a
qualified
18
business
revoked
or
be
required
to
repay
any
tax
credit
the
19
authority
issued
to
the
qualified
business.
20
The
authority
may
approve
a
tax
credit
in
the
form
of
a
tax
21
credit
certificate
issued
to
the
qualified
business
up
to
an
22
amount
equal
to
3.5
percent
of
the
amount
of
the
qualified
23
business’s
eligible
expenditures.
The
tax
credit
must
be
24
claimed
for
the
tax
year
in
the
tax
year
immediately
following
25
the
tax
year
the
expenditures
were
incurred.
26
Any
tax
credit
in
excess
of
the
qualified
business’s
tax
27
liability
is
refundable.
In
lieu
of
claiming
a
refund,
28
the
taxpayer
may
elect
to
have
the
overpayment
shown
on
29
the
taxpayer’s
final,
completed
return
credited
to
the
tax
30
liability
for
the
following
tax
year.
31
The
research
and
development
tax
credit
certificates
issued
32
pursuant
to
this
division
are
not
transferable.
33
The
maximum
amount
of
research
and
development
tax
credits
34
the
authority
may
issue
each
fiscal
year
shall
not
exceed
$40
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million.
1
The
bill
prohibits
a
qualified
business
from
receiving
the
2
supplemental
research
activities
credit
under
Code
section
3
15.335
that
is
approved
prior
to
January
1,
2026,
from
claiming
4
the
new
research
and
development
tax
credit
created
in
the
5
bill.
6
The
bill
requires
a
qualified
business
claiming
the
credit
7
to
annually
report
to
the
authority
the
following:
the
total
8
amount
of
investment
made
in
research
and
development;
the
9
location
in
this
state
where
the
research
and
development
10
occurred;
and
the
number
of
jobs
created,
wages
paid,
and
11
employee
residence
locations.
12
The
division
takes
effect
upon
enactment.
13
DIVISION
XV
——
SUSTAINABLE
AVIATION
FUEL
PRODUCTION
TAX
14
CREDIT.
The
bill
creates
a
sustainable
aviation
fuel
tax
15
credit
program.
16
The
bill
defines
“sustainable
aviation
fuel”
(SAF)
to
mean
17
the
portion
of
a
liquid
fuel
meeting
the
requirements
of
ASTM
18
D7566
or
the
Fischer
Tropsch
provisions
of
ASTM
D1655,
Annex
19
A1,
derived
from
feedstock
not
including
palm
fatty
acid
20
distillates
and
that
achieves
at
least
a
50
percent
life
cycle
21
greenhouse
gas
emissions
reduction
as
further
defined
in
the
22
bill.
23
The
bill
defines
“feedstock”
to
mean
any
organic
matter
24
processed
or
refined
in
the
state
suitable
for
sustainable
25
aviation
fuel
production
without
further
enhancement.
26
“Feedstock”
includes
but
is
not
limited
to
ethanol,
corn
oil,
27
soybean
oil,
animal
fats,
used
cooking
oil,
and
algae.
28
The
bill
defines
“eligible
business”
to
mean
a
business
29
engaged
in
the
manufacturing
of
SAF
from
feedstock.
30
An
eligible
business
that
produces
SAF
in
this
state
during
31
a
calendar
year
may
apply
to
the
authority
for
the
tax
credit
32
for
the
SAF
produced
during
the
2026
calendar
year
through
the
33
2035
calendar
year.
34
The
bill
requires
an
eligible
business
that
produces
SAF
to
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apply
to
the
authority
for
the
credit
in
the
manner
prescribed
1
by
the
authority,
and
in
the
calendar
year
following
the
2
calendar
year
in
which
the
SAF
is
produced.
The
bill
requires
3
the
application
to
include
the
amount
of
SAF
produced
in
the
4
state
from
feedstock
by
the
eligible
business
during
the
5
calendar
year,
measured
in
gallons,
the
types
and
sources
of
6
feedstock
used
to
produce
sustainable
aviation
fuel,
and
any
7
other
information
required
by
the
authority.
Each
application
8
shall
be
reviewed
and
scored
on
a
competitive
basis
by
the
9
authority
pursuant
to
rules
adopted
by
the
authority.
10
Before
being
issued
a
tax
credit,
the
bill
requires
an
11
eligible
business
to
enter
into
an
agreement
with
the
authority
12
for
the
successful
completion
of
all
requirements
of
the
13
program.
As
part
of
the
agreement,
the
eligible
business
14
must
agree
to
collect
and
provide
any
information
reasonably
15
required
by
the
authority
in
order
to
allow
the
economic
16
development
authority
board
to
fulfill
its
reporting
obligation
17
under
new
Code
section
15.514.
18
If
all
of
the
requirements
of
the
program
and
the
agreement
19
have
been
fulfilled,
the
bill
requires
the
authority
to
issue
a
20
tax
credit
certificate
to
the
eligible
business
in
an
amount
21
equal
to
the
product
of
25
cents
multiplied
by
the
number
of
22
gallons
of
SAF
produced
in
this
state.
23
The
SAF
tax
credit
is
refundable.
In
lieu
of
claiming
a
24
refund,
the
eligible
business
may
elect
to
have
the
overpayment
25
shown
on
the
taxpayer’s
final,
completed
return
credited
to
the
26
tax
liability
for
the
following
tax
year.
27
The
SAF
tax
credit
certificates
issued
pursuant
to
this
28
division
are
not
transferable.
29
The
maximum
amount
of
SAF
tax
credits
combined
with
the
30
chemical
production
tax
credit
shall
not
exceed
$10
million
31
in
a
fiscal
year.
The
bill
specifies
the
maximum
amount
of
32
tax
credits
issued
to
an
eligible
business
shall
not
exceed
$1
33
million
in
a
calendar
year.
An
eligible
business
also
shall
34
not
be
issued
more
than
five
tax
credit
certificates
under
the
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program.
1
If
an
eligible
business
fails
to
fulfill
any
requirement
2
of
the
program,
any
tax
credit
is
subject
to
reduction,
3
termination,
rescission,
or
recapture
by
the
authority.
4
The
bill
requires
the
economic
development
board
and
5
the
department
of
revenue
to
annually
submit
to
the
general
6
assembly
and
to
the
governor,
or
provide
to
the
authority
for
7
inclusion
in
the
authority’s
annual
report
under
Code
section
8
15.511,
a
report
describing
the
activities
of
the
program
9
for
the
most
recent
calendar
year
for
which
the
tax
credit
10
application
period
has
ended.
11
The
division
takes
effect
upon
enactment
and
applies
12
retroactively
to
tax
years
beginning
on
or
after
January
1,
13
2025.
14
The
SAF
production
tax
credit
is
repealed
January
1,
2037.
15
DIVISION
XVI
——
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM.
16
If
an
eligible
business
fails
to
comply
with
a
requirement
of
17
the
major
economic
growth
attraction
program,
as
determined
by
18
the
authority,
the
eligible
business
may
be
required
to
repay
19
any
tax
incentive
issued
to
the
eligible
business,
including
20
any
property
taxes
that
were
previously
exempted.
21
The
bill
permits
an
eligible
business
that
is
entitled
to
a
22
sales
and
use
tax
refund
pursuant
to
the
major
economic
growth
23
attraction
program
to
receive
the
sales
and
tax
refund
on
a
24
quarterly
basis
rather
than
annually
over
a
five-year
period.
25
The
bill
also
specifies
that
if
an
eligible
business
does
not
26
comply
with
the
requirements
of
the
program,
a
county
may
take
27
action
to
recover
the
value
of
the
property
taxes
not
collected
28
as
a
result
of
the
exemption
provided
to
the
eligible
business.
29
DIVISION
XVII
——
MASS
LAYOFFS
AND
BUSINESS
CLOSURES.
If
30
an
entity
is
awarded
a
tax
incentive,
the
bill
allows
the
31
authority
to
reduce
or
eliminate
any
tax
incentive
award
if
the
32
entity
awarded
the
tax
incentive
experiences
a
closure
or
mass
33
layoff.
34
DIVISION
XVIII
——
CONFORMING
CHANGES.
The
bill
makes
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conforming
changes
relating
to
Senate
File
619
as
enacted
1
during
this
session
of
the
general
assembly
and
to
House
File
2
975
if
enacted
during
this
session
of
the
general
assembly.
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