The proposed bill seeks to amend Iowa's economic development programs by introducing several new initiatives while eliminating some existing ones. Notable new programs include the Business Incentives for Growth Program, Seed Investor Tax Credit Program, Iowa Film Production Incentive Program, Research and Development Tax Credit Program, and Sustainable Aviation Fuel Production Tax Credit Program. Concurrently, the bill proposes the repeal of the High Quality Jobs Program and the Investments in Qualifying Businesses Tax Credit. Additionally, it raises the aggregate tax credit limit for business development programs from seventy million dollars to one hundred ten million dollars, with a provision for a potential twenty percent excess in certain cases. The bill also establishes new provisions for the allocation and reallocation of tax credits, as well as reporting requirements for the Iowa Economic Development Authority.

Furthermore, the bill outlines specific criteria for businesses to qualify for tax incentives, including community approval and comprehensive employee benefits. It mandates that businesses enter into agreements with the authority, which will include compliance requirements and penalties for non-compliance. The legislation also introduces property tax exemptions for eligible businesses and financial assistance provisions, while ensuring that existing agreements made before December 31, 2025, remain valid. The effective date for many of the bill's provisions is set for December 31, 2025, with immediate implementation for certain sections deemed urgent. Overall, the bill aims to enhance Iowa's economic development landscape by promoting job creation and ensuring accountability in the use of tax credits.

Statutes affected:
Introduced: 15.119, 15E.191, 15.293A, 15.293B, 15.318, 15.355, 2.48, 8G.3, 15.106B, 15.106A, 15.330, 15.329, 15.319, 15.354, 15.499, 15.326, 476.42, 15H.5, 159A.6B, 266.19, 422.10, 422.11F, 422.33, 422.60, 427B.17, 432.12C, 455B.104, 533.329, 15E.25, 15E.52, 15E.65, 422.12, 15.517, 403.19A, 237A.31, 422.12O, 432.12O, 421.60, 15E.303, 15E.304, 15E.305, 15E.311, 432.12D, 15E.301, 15.522, 15.520, 15.530, 15.495, 15E.231, 15.511