This bill significantly reforms Iowa's economic development programs by introducing new initiatives while eliminating several existing ones. It establishes the Business Incentives for Growth (BIG) program, which provides tax incentives to eligible businesses engaged in advanced manufacturing, bioscience, insurance and finance, or technology and innovation. The bill also introduces a Sustainable Aviation Fuel Production Tax Credit Program, allowing businesses to receive tax credits for producing sustainable aviation fuel. In addition, it creates new tax credit programs for research and development and film production, while repealing the high-quality jobs program and various tax credits related to investments in qualifying businesses, employer child care, and assistive devices. The aggregate tax credit limit for business development programs is increased to $110 million, with specific allocations for each program.

Moreover, the bill amends existing sections of the Iowa Code to clarify the allocation and awarding of tax credits, allowing the authority to authorize credits exceeding the limit under certain conditions and facilitating the reallocation of declined or revoked credits. It emphasizes compliance requirements for businesses, including the necessity of entering agreements with the authority and potential penalties for non-compliance. The bill also introduces provisions for scoring applications for housing projects, prioritizing those in communities without recent tax incentives, and establishes a fund within the state treasury for program support. Overall, the bill aims to streamline Iowa's economic development efforts, enhance targeted support for businesses, and promote sustainable growth and job creation across the state.

Statutes affected:
Introduced: 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