The bill amends various sections of the Iowa Code to enhance state taxation and finance, particularly focusing on tax credits and incentive programs for businesses. It changes the terminology from "economic" to "business" development programs and establishes a new aggregate tax credit limit of $110 million for certain business development initiatives, with the possibility of exceeding this limit by up to 20% in a fiscal year. The bill also introduces provisions for reallocating declined or revoked tax credits within the same fiscal year. Additionally, it creates new funds within the state treasury to support various tax credit programs, prioritizes housing projects in small cities, and establishes a waitlist for projects that do not receive tax incentives due to funding limits.

Furthermore, the bill establishes the Business Incentives for Growth Program (BIG Program) to support eligible businesses in advanced manufacturing, bioscience, insurance and finance, or technology and innovation. It outlines criteria for tax incentives, including community project approval and comprehensive employee benefits, while prohibiting businesses that are merely relocating within the state. The bill also introduces a sales and use tax refund mechanism, a qualifying investment tax credit, and provisions for disaster recovery housing projects. It includes new tax credits for child care and research and development activities, a Sustainable Aviation Fuel Production Tax Credit Program, and modifies existing tax laws to streamline refund processes and enhance compliance measures. Overall, the legislation aims to bolster economic development and support recovery efforts in disaster-affected regions while ensuring accountability and effective management 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
Reprinted: 15.119, 15E.191, 15.293A, 15.293B, 15.318, 15.354, 15.355, 2.48, 8G.3, 15.106B, 15.106A, 15.330, 15.329, 15.319, 15.499, 15.326, 476.42, 15H.5, 159A.6B, 422.10, 422.11F, 422.12, 422.33, 15E.193B, 422.60, 427B.17, 432.12C, 533.329, 15.508, 15E.25, 15E.52, 15E.65, 15.517, 422.12O, 432.12O, 421.60, 15E.303, 15E.305, 15E.311, 15E.301, 15.522, 15.520, 15.530, 15.495, 8.55, 15.293, 423.1, 452A.33, 452A.15, 422.11O, 422.11Y