The bill proposes comprehensive reforms to Iowa's economic development programs, introducing several new tax credit initiatives while eliminating multiple existing ones. Key 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. In contrast, the bill repeals the High Quality Jobs Program, Investments in Qualifying Businesses Tax Credit, Employer Child Care Tax Credits, Assistive Device Tax Credits, Endow Iowa Tax Credits, and Research Activities Tax Credits. Additionally, it raises the aggregate tax credit limit for business development programs from $70 million to $110 million, allowing for greater flexibility in the allocation of tax credits.

The legislation also establishes a framework for property tax exemptions and financial assistance for eligible businesses, enabling communities to grant property tax exemptions for up to ten years on improvements made for qualifying projects. It emphasizes the importance of community approval for projects and outlines the application process for tax incentives, including compliance requirements for businesses. The bill includes provisions for the potential revocation of tax credits for non-compliance and mandates that repayments be treated as tax payments due to the Department of Revenue. Overall, the bill aims to enhance Iowa's economic development landscape by streamlining existing programs and providing targeted support to businesses while ensuring accountability and adherence to legal standards.

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