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House
File
2342
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Introduced
HOUSE
FILE
2342
BY
SIECK
,
SIEGRIST
,
WILLIAMS
,
WOOD
,
C.
JOHNSON
,
GOSA
,
and
YOUNG
A
BILL
FOR
An
Act
providing
for
the
future
repeal
of
tax
credits.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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DIVISION
I
1
FUTURE
REPEAL
OF
EXISTING
TAX
CREDITS
2
Section
1.
Section
15.322,
Code
2026,
is
amended
to
read
as
3
follows:
4
15.322
Future
repeal.
5
Sections
15.315
,
15.316
,
15.317
,
15.318
,
15.319
,
15.320
,
6
15.321
,
and
this
section
,
are
repealed
July
1,
2039
January
1,
7
2032
.
8
Sec.
2.
Section
15.495,
Code
2026,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
4.
This
section
is
repealed
on
January
1,
11
2031.
12
Sec.
3.
Section
15.496,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
15
2029.
16
Sec.
4.
Section
15.507,
Code
2026,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
4.
This
section
is
repealed
on
January
1,
19
2029.
20
Sec.
5.
Section
15.508,
Code
2026,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
23
2030.
24
Sec.
6.
Section
15.524,
Code
2026,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
9.
This
section
is
repealed
January
1,
27
2031.
28
Sec.
7.
Section
15.533,
subsection
1,
Code
2026,
is
amended
29
to
read
as
follows:
30
1.
An
eligible
business
that
has
entered
into
an
agreement
31
pursuant
to
section
15.532
may
claim
a
tax
credit
in
an
amount
32
equal
to
the
product
of
twenty-five
cents
multiplied
by
the
33
number
of
gallons
of
sustainable
aviation
fuel
produced
in
34
this
state
from
feedstock.
The
sustainable
aviation
fuel
tax
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credit
shall
not
be
available
for
any
sustainable
aviation
fuel
1
produced
before
the
2026
calendar
year
or
after
the
2035
2031
2
calendar
year.
3
Sec.
8.
Section
15.535,
Code
2026,
is
amended
to
read
as
4
follows:
5
15.535
Future
repeal.
6
Sections
15.530
,
15.531
,
15.532
,
15.533
,
15.534
,
and
this
7
section
are
repealed
January
1,
2037
2031
.
8
Sec.
9.
Section
15E.27,
Code
2026,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
7.
This
section
is
repealed
January
1,
11
2032.
12
Sec.
10.
Section
15E.52,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
14.
This
section
is
repealed
on
January
1,
15
2028.
16
Sec.
11.
Section
15E.305,
Code
2026,
is
amended
by
adding
17
the
following
new
subsection:
18
NEW
SUBSECTION
.
6.
This
section
is
repealed
January
1,
19
2028.
20
Sec.
12.
Section
16.81,
Code
2026,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
7.
This
section
is
repealed
on
January
1,
23
2028.
24
Sec.
13.
Section
260E.5,
Code
2026,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
7.
This
section
is
repealed
on
January
1,
27
2028.
28
Sec.
14.
Section
260G.4A,
Code
2026,
is
amended
by
adding
29
the
following
new
subsection:
30
NEW
SUBSECTION
.
7.
This
section
is
repealed
on
January
1,
31
2032.
32
Sec.
15.
Section
260J.1,
unnumbered
paragraph
1,
Code
2026,
33
is
amended
to
read
as
follows:
34
In
order
to
promote
the
creation
of
additional
high-quality
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new
jobs
within
the
state,
an
agreement
under
section
260E.3
1
may
include
a
provision
for
a
supplemental
new
jobs
credit
from
2
withholding
from
jobs
created
under
the
agreement.
A
This
3
section
is
repealed
January
1,
2028;
however,
until
such
time
a
4
provision
in
an
agreement
for
which
a
supplemental
credit
from
5
withholding
is
included
shall
provide
for
the
following:
6
Sec.
16.
Section
403.19A,
Code
2026,
is
amended
by
adding
7
the
following
new
subsection:
8
NEW
SUBSECTION
.
4.
This
section
is
repealed
on
January
1,
9
2029.
10
Sec.
17.
NEW
SECTION
.
404A.7
Future
repeal.
11
This
chapter
is
repealed
January
1,
2030.
12
Sec.
18.
Section
422.10B,
Code
2026,
is
amended
to
read
as
13
follows:
14
422.10B
Renewable
chemical
production
tax
credit.
15
The
taxes
imposed
under
this
subchapter
,
less
the
credits
16
allowed
under
section
422.12
,
shall
be
reduced
by
a
renewable
17
chemical
production
tax
credit
allowed
under
section
15.319
.
18
This
section
is
repealed
January
1,
2041
2032
.
19
Sec.
19.
Section
422.11A,
Code
2026,
is
amended
by
adding
20
the
following
new
subsection:
21
NEW
SUBSECTION
.
4.
This
section
is
repealed
January
1,
22
2028.
23
Sec.
20.
Section
422.11L,
Code
2026,
is
amended
by
adding
24
the
following
new
subsection:
25
NEW
SUBSECTION
.
8.
This
section
is
repealed
on
January
1,
26
2029.
27
Sec.
21.
Section
422.11S,
Code
2026,
is
amended
by
adding
28
the
following
new
subsection:
29
NEW
SUBSECTION
.
10.
This
section
is
repealed
on
January
1,
30
2030.
31
Sec.
22.
Section
422.11W,
Code
2026,
is
amended
by
adding
32
the
following
new
subsection:
33
NEW
SUBSECTION
.
5.
This
section
is
repealed
on
January
1,
34
2030.
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Sec.
23.
Section
422.12,
Code
2026,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
4.
This
section
is
repealed
January
1,
3
2032.
4
Sec.
24.
Section
422.12A,
Code
2026,
is
amended
by
adding
5
the
following
new
subsection:
6
NEW
SUBSECTION
.
6.
This
section
is
repealed
January
1,
7
2028.
8
Sec.
25.
Section
422.12B,
Code
2026,
is
amended
by
adding
9
the
following
new
subsection:
10
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
11
2029.
12
Sec.
26.
Section
422.12C,
Code
2026,
is
amended
by
adding
13
the
following
new
subsection:
14
NEW
SUBSECTION
.
5.
This
section
is
repealed
January
1,
15
2030.
16
Sec.
27.
Section
422.12N,
subsection
7,
Code
2026,
is
17
amended
to
read
as
follows:
18
7.
This
section
is
repealed
January
1,
2034
2031
.
19
Sec.
28.
Section
422.12P,
Code
2026,
is
amended
by
adding
20
the
following
new
subsection:
21
NEW
SUBSECTION
.
7.
This
section
is
repealed
January
1,
22
2031.
23
Sec.
29.
Section
422.33,
subsection
25,
Code
2026,
is
24
amended
by
adding
the
following
new
paragraph:
25
NEW
PARAGRAPH
.
d.
This
subsection
is
repealed
on
January
26
1,
2030.
27
Sec.
30.
Section
425.1,
Code
2026,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
7.
This
section
is
repealed
January
1,
30
2031.
31
Sec.
31.
Section
425.16,
Code
2026,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
34
2032.
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Sec.
32.
NEW
SECTION
.
426.11
Future
repeal.
1
This
chapter
is
repealed
January
1,
2032.
2
Sec.
33.
NEW
SECTION
.
476B.11
Future
repeal.
3
This
chapter
is
repealed
effective
January
1,
2028.
4
Sec.
34.
NEW
SECTION
.
476C.8
Future
repeal.
5
This
chapter
is
repealed
effective
January
1,
2029.
6
Sec.
35.
PRESERVATION
OF
EXISTING
RIGHTS.
7
1.
This
division
of
this
Act
is
not
intended
to
and
shall
8
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
9
of
tax
credit
issued,
awarded,
or
allowed
prior
to
January
1,
10
2032,
nor
shall
it
limit,
modify,
or
otherwise
adversely
affect
11
a
taxpayer’s
right
to
claim
or
redeem
a
tax
credit
issued,
12
awarded,
or
allowed
prior
to
January
1,
2032,
including
but
not
13
limited
to
any
tax
credit
carryforward
amount.
14
2.
The
repeal
of
a
provision
of
law
pursuant
to
this
15
division
of
this
Act
shall
not
constitute
grounds
for
16
rescission
or
modification
of
agreements
entered
into
under
17
those
provisions
of
law,
if
any.
Any
agreement
entered
into
18
prior
to
January
1,
2032,
under
a
provision
of
law
repealed
19
in
this
division
of
this
Act,
shall
remain
in
effect
until
20
it
expires
under
its
own
terms,
and
shall
be
governed
by
the
21
applicable
provisions
of
law
as
they
existed
immediately
prior
22
to
January
1,
2032.
23
Sec.
36.
CORRESPONDING
AMENDMENTS
LEGISLATION.
Additional
24
legislation
is
required
to
fully
implement
this
division
of
25
this
Act.
The
director
of
the
department
of
revenue
shall,
in
26
compliance
with
section
2.16,
prepare
draft
legislation
for
27
submission
to
the
legislative
services
agency,
as
necessary,
to
28
implement
the
repeal
of
the
tax
credits
under
this
division
of
29
this
Act
and
under
other
provisions
of
law.
30
DIVISION
II
31
FUTURE
REPEAL
OF
FUTURE
TAX
CREDIT
PROGRAMS
32
Sec.
37.
NEW
SECTION
.
422.3A
Future
tax
credit
repeal.
33
1.
For
purposes
of
this
section,
“tax
credit
program”
means
34
any
provision
of
law
enacted
by
the
general
assembly
that
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provides
for
an
amount
of
money
against
the
taxes
imposed
in
1
this
chapter,
chapter
432,
or
in
section
533.329.
2
2.
Notwithstanding
any
other
provision
of
law
to
the
3
contrary,
any
tax
credit
program
enacted
by
the
general
4
assembly
that
takes
effect
on
or
after
January
1,
2027,
is
5
repealed
on
January
1
of
the
sixth
year
following
the
effective
6
date
of
the
tax
credit
program,
unless
another
provision
of
the
7
Code
provides
for
an
earlier
repeal
date.
8
3.
The
repeal
of
a
tax
credit
program
pursuant
to
subsection
9
2
is
not
intended
to
and
shall
not
limit,
modify,
or
otherwise
10
adversely
affect
any
amount
of
tax
credit
issued,
awarded,
or
11
allowed
prior
to
the
effective
date
of
the
tax
credit
program
12
repeal
pursuant
to
subsection
2,
nor
shall
it
limit,
modify,
13
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
14
redeem
a
tax
credit
issued,
awarded,
or
allowed
prior
to
the
15
effective
date
of
the
tax
credit
program
repeal
pursuant
to
16
subsection
2,
including
but
not
limited
to
any
tax
credit
17
carryforward
amount.
18
4.
The
repeal
of
a
tax
credit
program
pursuant
to
subsection
19
2
shall
not
constitute
grounds
for
rescission
or
modification
20
of
agreements
entered
into
under
the
tax
credit
program,
if
21
any.
Any
agreement
entered
into
under
a
tax
credit
program
22
prior
to
the
effective
date
of
the
repeal
of
the
tax
credit
23
program
under
subsection
2
shall
remain
in
effect
until
it
24
expires
under
its
own
terms,
and
shall
be
governed
by
the
tax
25
credit
program
as
it
existed
prior
to
its
repeal
pursuant
to
26
subsection
2.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
provides
for
the
future
repeal
of
certain
existing
31
state
income
and
property
tax
credits,
and
provides
for
the
32
future
repeal
of
tax
credits
enacted
by
the
general
assembly
33
in
the
future.
34
DIVISION
I
——
FUTURE
REPEAL
OF
EXISTING
TAX
CREDITS.
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Division
I
repeals
tax
credits
on
a
rolling
basis
over
a
1
five-year
period
beginning
January
1,
2028,
through
January
2
1,
2032.
The
bill
repeals
the
following
tax
credits
that
3
currently
have
no
repeal
date:
the
accelerated
career
4
education
program
job
tax
credit;
the
beginning
farmer
tax
5
credit;
the
sales
and
use
tax
refunds
under
the
major
economic
6
growth
attraction
program
(MEGA
program)
and
the
business
7
incentives
for
growth
program
(BIG
program);
the
investment
8
tax
credit;
the
school
tuition
organization
tax
credit;
the
9
solar
energy
system
tax
credit;
the
innovation
fund
investment
10
tax
credit;
the
qualifying
investment
tax
credits
under
the
11
MEGA
program
and
the
BIG
program;
the
wind
energy
production
12
tax
credit;
the
charitable
conservation
contribution
tax
13
credit;
the
new
jobs
credits
from
withholding
available
under
14
the
Iowa
industrial
new
job
training
program;
the
research
15
and
development
tax
credit;
the
renewable
energy
tax
credit;
16
the
targeted
jobs
withholding
tax
credit;
the
endow
Iowa
tax
17
credit;
the
historic
preservation
tax
credit;
the
new
jobs
18
tax
credit;
the
emergency
personnel
and
tuition
textbook
tax
19
credits;
the
adoption
tax
credit;
the
earned
income
tax
credit;
20
the
child
and
dependent
care
or
early
childhood
development
tax
21
credit;
the
geothermal
heat
pump
tax
credit;
the
public
safety
22
officer
moving
expense
tax
credit;
the
homestead
tax
credit;
23
the
elderly
and
disabled
property
tax
credit
or
reimbursement;
24
and
the
agricultural
land
credit.
25
The
bill
amends
the
repeal
date
of
the
renewable
chemical
26
production
tax
credit
from
January
1,
2039,
to
January
1,
2032,
27
and
of
the
sustainable
aviation
fuel
tax
credit
from
January
1,
28
2037,
to
January
1,
2031.
29
The
bill
provides
that
the
repeal
of
a
tax
credit
shall
30
not
affect
tax
credits
issued,
awarded,
or
allowed
prior
to
31
January
1,
2032,
or
affect
a
taxpayer’s
ability
to
claim
or
32
redeem
such
tax
credits,
including
but
not
limited
to
any
tax
33
credit
carryforward
amount,
and
further
provides
that
the
bill
34
shall
not
constitute
grounds
for
rescission
or
modification
35
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of
agreements
entered
into
for
a
tax
credit,
and
that
such
1
agreements
shall
remain
in
effect
until
they
expire
under
their
2
own
terms
and
shall
be
governed
by
the
applicable
provisions
of
3
law
as
they
existed
immediately
prior
to
January
1,
2032.
4
The
bill
provides
that
additional
legislation
is
required
to
5
fully
implement
the
repeal
of
these
tax
credits
and
requires
6
the
director
of
the
department
of
revenue
to
prepare
draft
7
legislation
in
compliance
with
Code
section
2.16
for
submission
8
to
the
legislative
services
agency
to
implement
the
repeal
of
9
the
tax
credits.
10
DIVISION
II
——
FUTURE
REPEAL
OF
FUTURE
TAX
CREDIT
PROGRAMS.
11
Division
II
provides
that
any
tax
credit
program
available
12
against
the
individual
or
corporate
income
tax,
the
franchise
13
tax,
the
insurance
premiums
tax,
or
the
moneys
and
credits
tax,
14
enacted
by
the
general
assembly
on
or
after
January
1,
2027,
15
is
repealed
after
five
years,
unless
another
provision
of
law
16
provides
for
an
earlier
repeal
date.
17
The
bill
provides
that
the
repeal
of
a
tax
credit
program
18
pursuant
to
this
provision
shall
not
affect
the
tax
credits
or
19
tax
credit
agreements
entered
into
prior
to
the
repeal
of
the
20
tax
credit
program
in
the
same
manner
as
described
above
for
21
the
repeal
of
the
existing
tax
credits.
22
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