The bill significantly reforms Iowa's economic development programs by introducing new tax credit initiatives while repealing several existing programs. It establishes the Business Incentives for Growth (BIG) program, which will provide targeted tax incentives to eligible businesses in sectors such as advanced manufacturing and technology, with a total cap of $110 million annually for various business development programs. The bill also introduces a Sustainable Aviation Fuel Production Tax Credit Program, allowing businesses producing sustainable aviation fuel to claim a tax credit of 25 cents per gallon, with a maximum of $1 million in credits per business per year. Additionally, it repeals the High Quality Jobs Program and the Investments in Qualifying Businesses Tax Credit Program, while modifying the Endow Iowa tax credit and introducing a research and development tax credit program.

Moreover, the bill outlines specific eligibility criteria for businesses seeking these new tax incentives, including community approval for projects and requirements for job creation. It includes provisions for the repayment of tax credits if businesses fail to meet program requirements and allows for sales and use tax refunds to be issued quarterly for eligible businesses. The legislation aims to streamline Iowa's economic development efforts, enhance job creation, and ensure accountability in the management of tax credit allocations, with effective dates set for various provisions starting January 1, 2025.

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