Bill Text: IA HF419 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the endow Iowa tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-02-22 - Introduced, referred to Ways and Means. H.J. 410. [HF419 Detail]
Download: Iowa-2023-HF419-Introduced.html
House
File
419
-
Introduced
HOUSE
FILE
419
BY
RINKER
A
BILL
FOR
An
Act
relating
to
the
endow
Iowa
tax
credit
available
against
1
the
individual
and
corporate
income
taxes,
the
franchise
2
tax,
the
insurance
premiums
tax,
and
the
moneys
and
3
credits
tax,
and
including
effective
date
and
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
15E.305,
subsection
2,
Code
2023,
is
1
amended
to
read
as
follows:
2
2.
a.
The
aggregate
amount
of
tax
credits
authorized
3
pursuant
to
this
section
shall
not
exceed
a
total
of
six
4
million
dollars
annually
plus
any
additional
amounts
authorized
5
pursuant
to
paragraph
“d”
.
6
a.
b.
The
maximum
amount
of
tax
credits
granted
to
a
7
taxpayer
shall
not
exceed
one
hundred
thousand
dollars
of
the
8
aggregate
amount
of
tax
credits
authorized.
9
b.
c.
Ten
percent
of
the
aggregate
amount
of
tax
credits
10
authorized
in
a
calendar
year
shall
be
reserved
for
those
11
endowment
gifts
in
amounts
of
thirty
thousand
dollars
or
less.
12
If
by
September
1
of
a
calendar
year
the
entire
ten
percent
of
13
the
reserved
tax
credits
is
not
distributed,
the
remaining
tax
14
credits
shall
be
available
to
any
other
eligible
applicants.
15
d.
If
after
a
taxpayer
carries
forward
a
tax
credit
amount
16
for
five
years
as
provided
in
subsection
1,
and
the
aggregate
17
amount
of
that
tax
credit
claimed
against
taxes
by
the
taxpayer
18
under
subsection
1
is
less
than
the
amount
of
that
tax
credit
19
allowed
the
taxpayer,
the
difference
may
be
authorized
as
tax
20
credits
by
the
authority
and
tax
credits
equal
to
the
amount
of
21
the
difference
may
be
added
to
the
annual
aggregate
amount
of
22
tax
credits
authorized
in
paragraph
“a”
.
23
Sec.
2.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
24
2024.
25
Sec.
3.
APPLICABILITY.
This
Act
applies
to
tax
years
26
beginning
on
or
after
January
1,
2024.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
the
endow
Iowa
tax
credit
available
31
against
the
individual
and
corporate
income
taxes,
the
32
franchise
tax,
the
insurance
premiums
tax,
and
the
moneys
and
33
credits
tax.
34
The
endow
Iowa
tax
credit
is
a
tax
credit
equal
to
25
percent
35
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of
a
taxpayer’s
endowment
gift
to
an
endow
Iowa
qualified
1
community
foundation.
The
tax
credit
is
administered
by
the
2
Iowa
economic
development
authority
(IEDA).
3
Under
the
bill,
if
a
taxpayer
carries
forward
a
tax
credit
4
amount
for
five
years
as
provided
in
Code
section
15E.305(1),
5
and
the
aggregate
amount
of
that
tax
credit
claimed
against
6
taxes
by
the
taxpayer
is
less
than
the
amount
of
that
tax
7
credit
IEDA
allowed
the
taxpayer
to
claim,
the
difference
may
8
be
authorized
as
tax
credits
by
IEDA
and
tax
credits
equal
9
to
the
amount
of
the
difference
may
be
added
to
the
annual
10
aggregate
tax
credit
amount
of
$6
million.
11
The
bill
takes
effect
January
1,
2024,
and
applies
to
tax
12
years
beginning
on
or
after
that
date.
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