The proposed bill establishes the Iowa Rural Development Tax Credit Program, designed to encourage capital contributions to certified rural business growth funds for investment in qualified businesses. It introduces new definitions for key terms such as "affiliate," "authority," "credit-eligible capital contribution," and "qualified business." The bill outlines the application process for rural business growth funds, including documentation requirements, revenue impact assessments, and caps on eligible investment authority and credit-eligible capital contributions, with the authority set to begin accepting applications on January 7, 2026, on a first-come, first-served basis.

Furthermore, the bill details the issuance of tax credit certificates to investors based on their contributions, along with guidelines for claiming these credits, including restrictions on transferability and the process for revocation and recapture if investment requirements are not met. It mandates annual reporting from growth funds, including financial statements and job creation metrics, and specifies that tax credits are non-refundable and cannot be transferred. The authority is required to notify growth funds of any issues before revoking credits and must allow a 90-day period for resolution. The bill aims to promote economic development in rural areas while ensuring accountability and compliance with the program's requirements.

Statutes affected:
Introduced: 15.512, 15.513