The bill proposes comprehensive reforms to Iowa's economic development programs, introducing several new tax credit initiatives while eliminating 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 revises the aggregate tax credit limit for business development programs, increasing it from seventy million dollars to ten million dollars, with provisions for a potential twenty percent excess in tax credits for a fiscal year.

The bill 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, including fees and conservation plans for projects with increased water consumption, and mandates agreements with the authority to ensure compliance. Furthermore, the bill introduces property tax exemptions for eligible businesses and financial assistance provisions, while also updating compliance and repayment procedures for tax incentives. The effective date for many of these changes is set for December 31, 2025, ensuring that existing tax incentives remain unaffected for credits issued before that date. Overall, the bill aims to stimulate job growth and innovation in Iowa through targeted tax incentives and streamlined processes.

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