The bill proposes comprehensive reforms to Iowa's economic development programs, introducing several new tax credit initiatives while eliminating multiple existing programs. 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, the aggregate tax credit limit for business development programs is increased from seventy million dollars to one hundred ten million dollars, with provisions for reallocating declined credits.

The legislation also establishes new criteria for businesses to qualify for tax incentives, emphasizing job creation and community approval while excluding data centers and retail operations. It outlines the application process, compliance requirements, and penalties for non-compliance, including the repayment of tax incentives. Furthermore, the bill introduces property tax exemptions for eligible businesses and financial assistance mechanisms, while ensuring that existing agreements and rights to tax incentives are preserved until December 31, 2025. Overall, the bill aims to stimulate economic growth in targeted sectors while maintaining oversight and accountability in the distribution of tax incentives.

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