Bill Text: IA HF36 | 2021-2022 | 89th General Assembly | Introduced

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Bill Title: A bill for an act providing for the future repeal of certain tax credits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-01-12 - Introduced, referred to Ways and Means. H.J. 54. [HF36 Detail]

Download: Iowa-2021-HF36-Introduced.html

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House File 36 - Introduced
HOUSE FILE 36
BY HUNTER
A BILL FOR
An Act providing for the future repeal of certain tax credits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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H.F. 36
DIVISION I
FUTURE REPEAL OF EXISTING TAX CREDITS
Section 1. NEW SECTION . 15.293C Future repeal.
Sections 15.293A and 15.293B are repealed on January 1,
2027.
Sec. 2. Section 15.322, Code 2021, is amended to read as
follows:
15.322 Future repeal.
Section 15.315 , 15.316 , 15.317 , 15.318 , 15.319 , 15.320 ,
15.321 , and this section , are repealed July 1, 2030 January 1,
2027 .
Sec. 3. NEW SECTION . 15.337 Future repeal.
Sections 15.331A, 15.331C, 15.333, 15.333A, and 15.335, are
repealed January 1, 2027.
Sec. 4. Section 15A.7, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 5. This section is repealed on January 1,
2027.
Sec. 5. NEW SECTION . 15E.47 Future repeal.
Sections 15E.41, 15E.42, 15E.43, 15E.44, 15E.46, and this
section are repealed January 1, 2027.
Sec. 6. Section 15E.52, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 14. This section is repealed on January 1,
2027.
Sec. 7. Section 16.81, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 9. This section is repealed on January 1,
2027.
Sec. 8. Section 260E.5, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 7. This section is repealed on January 1,
2027.
Sec. 9. Section 260G.4A, Code 2021, is amended by adding the
following new subsection:
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H.F. 36
NEW SUBSECTION . 7. This section is repealed on January 1,
2027.
Sec. 10. Section 403.19A, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION . 4. This section is repealed on January 1,
2027.
Sec. 11. Section 422.10, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 7. This section is repealed on January 1,
2027.
Sec. 12. Section 422.10B, Code 2021, is amended to read as
follows:
422.10B Renewable chemical production tax credit.
The taxes imposed under this subchapter , less the credits
allowed under section 422.12 , shall be reduced by a renewable
chemical production tax credit allowed under section 15.319 .
This section is repealed January 1, 2033 2027 .
Sec. 13. Section 422.11L, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION . 7. This section is repealed on January 1,
2027.
Sec. 14. Section 422.11S, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION . 10. This section is repealed on January 1,
2027.
Sec. 15. Section 422.11W, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION . 5. This section is repealed on January 1,
2027.
Sec. 16. Section 422.33, subsection 5, Code 2021, is amended
by adding the following new paragraph:
NEW PARAGRAPH . j. This subsection is repealed on January
1, 2027.
Sec. 17. Section 422.33, subsection 9, Code 2021, is amended
by adding the following new paragraph:
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H.F. 36
NEW PARAGRAPH . d. This subsection is repealed on January
1, 2027.
Sec. 18. Section 422.33, subsection 25, Code 2021, is
amended by adding the following new paragraph:
NEW PARAGRAPH . d. This subsection is repealed on January
1, 2027.
Sec. 19. NEW SECTION . 476B.11 Future repeal.
This chapter is repealed effective January 1, 2027.
Sec. 20. NEW SECTION . 476C.8 Future repeal.
This chapter is repealed effective January 1, 2027.
Sec. 21. PRESERVATION OF EXISTING RIGHTS.
1. This division of this Act is not intended to and shall
not limit, modify, or otherwise adversely affect any amount
of tax credit issued, awarded, or allowed prior to January 1,
2027, nor shall it limit, modify, or otherwise adversely affect
a taxpayer’s right to claim or redeem a tax credit issued,
awarded, or allowed prior to January 1, 2027, including but not
limited to any tax credit carryforward amount.
2. The repeal of a provision of law pursuant to this
division of this Act shall not constitute grounds for
rescission or modification of agreements entered into under
those provisions of law, if any. Any agreement entered into
prior to January 1, 2027, under a provision of law repealed
in this division of this Act, shall remain in effect until
it expires under its own terms, and shall be governed by the
applicable provisions of law as they existed immediately prior
to January 1, 2027.
Sec. 22. CORRESPONDING AMENDMENTS LEGISLATION. Additional
legislation is required to fully implement this division of
this Act. The director of the department of revenue shall, in
compliance with section 2.16, prepare draft legislation for
submission to the legislative services agency, as necessary, to
implement the repeal of the tax credits under this division of
this Act and under other provisions of law.
DIVISION II
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FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS
Sec. 23. NEW SECTION . 422.3A Future tax credit repeal.
1. For purposes of this section, “tax credit program” means
any provision of law enacted by the general assembly that
provides for an amount of money against the taxes imposed in
this chapter, chapter 432, or in section 533.329.
2. Notwithstanding any other provision of law to the
contrary, any tax credit program enacted by the general
assembly that takes effect on or after January 1, 2022, is
repealed on January 1 of the sixth year following the effective
date of the tax credit program, unless another provision of the
Code provides for an earlier repeal date.
3. The repeal of a tax credit program pursuant to subsection
2 is not intended to and shall not limit, modify, or otherwise
adversely affect any amount of tax credit issued, awarded, or
allowed prior to the effective date of the tax credit program
repeal pursuant to subsection 2, nor shall it limit, modify,
or otherwise adversely affect a taxpayer’s right to claim or
redeem a tax credit issued, awarded, or allowed prior to the
effective date of the tax credit program repeal pursuant to
subsection 2, including but not limited to any tax credit
carryforward amount.
4. The repeal of a tax credit program pursuant to subsection
2 shall not constitute grounds for rescission or modification
of agreements entered into under the tax credit program, if
any. Any agreement entered into under a tax credit program
prior to the effective date of the repeal of the tax credit
program under subsection 2 shall remain in effect until it
expires under its own terms, and shall be governed by the tax
credit program as it existed prior to its repeal pursuant to
subsection 2.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill provides for the future repeal of certain existing
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H.F. 36
state income tax credits, and provides for the future repeal of
tax credits enacted by the general assembly in the future.
DIVISION I —— FUTURE REPEAL OF EXISTING TAX CREDITS.
Division I repeals on January 1, 2027, the following tax
credits that currently have no repeal date: the accelerated
career education program job tax credit; the beginning farmer
tax credit; the assistive device corporate tax credit; the
sales and use tax refund, corporate tax credit for certain
sales taxes paid by third-party developers, investment tax
credit, insurance premiums tax credit, and supplemental
research activities tax credit available under the high quality
jobs program; the redevelopment tax credits; the school tuition
organization tax credit; the solar energy system tax credit;
the innovation fund investment tax credit; the tax credit
for investments in a qualifying business; the wind energy
production tax credit; the charitable conservation contribution
tax credit; the new jobs credits from withholding available
under the Iowa industrial new job training program; the
research activities credits; the renewable energy tax credit;
and the targeted jobs withholding tax credit.
The bill amends the repeal date of the renewable chemical
production tax credit from January 1, 2033, to January 1, 2027.
The bill provides that the repeal of a tax credit shall
not affect tax credits issued, awarded, or allowed prior to
January 1, 2027, or affect a taxpayer’s ability to claim or
redeem such tax credits, including but not limited to any tax
credit carryforward amount, and further provides that the bill
shall not constitute grounds for rescission or modification
of agreements entered into for a tax credit, and that such
agreements shall remain in effect until they expire under their
own terms and shall be governed by the applicable provisions of
law as they existed immediately prior to January 1, 2027.
The bill provides that additional legislation is required to
fully implement the repeal of these tax credits and requires
the director of the department of revenue to prepare draft
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H.F. 36
legislation in compliance with Code section 2.16 for submission
to the legislative services agency to implement the repeal of
the tax credits.
DIVISION II —— FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS.
Division II provides that any tax credit program available
against the individual or corporate income tax, the franchise
tax, the insurance premiums tax, or the moneys and credits tax,
enacted by the general assembly on or after January 1, 2022,
is repealed after five years, unless another provision of law
provides for an earlier repeal date.
The bill provides that the repeal of a tax credit program
pursuant to this provision shall not affect the tax credits or
tax credit agreements entered into prior to the repeal of the
tax credit program in the same manner as described above for
the repeal of the existing tax credits.
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