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IA SF657

IA SF657
A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.


summary

Introduced
05/12/2025
In Committee
Crossed Over
05/13/2025
Passed
06/06/2025
Dead
Signed/Enacted/Adopted
06/06/2025

Introduced Session

91st General Assembly

Bill Summary

An Act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions.

AI Summary

This bill introduces significant changes to Iowa's economic development and tax credit programs, focusing on restructuring and consolidating various tax incentive initiatives. The bill creates a new Business Incentives for Growth (BIG) Program to replace the existing High Quality Jobs Program, establishes a new Seed Investor Tax Credit Program, creates a Sustainable Aviation Fuel Production Tax Credit Program, and introduces a new Research and Development Tax Credit Program. Key provisions include reducing the aggregate tax credit limit from $170 million to $110 million, eliminating several existing tax credit programs, and implementing new eligibility criteria for businesses seeking tax incentives. The bill also modifies existing programs like the Endow Iowa Tax Credit and the E-15 Promotion Tax Credit, and introduces provisions for handling mass layoffs and business closures. The changes are designed to streamline economic development efforts, focus on high-growth sectors like advanced manufacturing and technology, and provide more targeted support for emerging industries while reducing overall tax credit expenditures. The bill includes various effective dates and transition provisions, with most changes taking effect between 2025 and 2026, and some programs being phased out or modified during this period.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Ways & Means (Senate)

Last Action

Explanations of votes. H.J. 1224. (on 06/27/2025)

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