This bill establishes a framework for the future repeal of various state tax credits in Iowa, both existing and those that may be enacted in the future. Specifically, it amends the repeal dates for certain tax credits, such as the renewable chemical production tax credit and the sustainable aviation fuel tax credit, moving their repeal dates to January 1, 2032, and January 1, 2031, respectively. Additionally, it outlines a rolling repeal schedule for numerous existing tax credits, which will take effect between January 1, 2028, and January 1, 2032. The bill ensures that the repeal of these tax credits will not impact any credits issued or awarded prior to January 1, 2032, nor will it affect taxpayers' rights to claim or redeem these credits.

Furthermore, the bill introduces a provision that any new tax credit programs enacted after January 1, 2027, will automatically be repealed five years after their effective date unless specified otherwise. This aims to streamline the tax credit landscape and provide clarity on the longevity of future tax incentives. The bill also mandates that the director of the department of revenue prepare additional legislation to fully implement these changes, ensuring that existing agreements related to tax credits remain intact until they naturally expire.

Statutes affected:
Introduced: 15.322, 15.315, 15.496, 15.507, 15.508, 15.524, 15.533, 15.532, 15.530, 15E.52, 15E.305, 16.81, 260E.5, 260G.4A, 260J.1, 260E.3, 403.19A, 422.10B, 422.12, 422.11A, 422.11L, 422.11S, 422.11W, 422.12A, 422.12B, 422.12C, 422.12N, 422.12P, 422.33, 425.1, 425.16, 2.16