H.F. 2479 Section 1. NEW SECTION . 422.18 Public notice of tax 1 credits. 2 1. A taxpayer identified in paragraph “a” or “b” shall 3 complete and file the form described in subsection 2 with the 4 department and shall publish notice of the receipt of a tax 5 credit as provided in subsection 3. 6 a. A taxpayer that has been awarded any of the following is 7 subject to this section: 8 (1) A redevelopment tax credit allowed in section 15.293A. 9 (2) A tax credit allowed under the high quality jobs program 10 administered pursuant to sections 15.326 through 15.336. 11 (3) An investment or expenditure credit allowed under 12 the film, television, and video project promotion program 13 administered pursuant to sections 15.391 through 15.393. 14 (4) A tax credit or other form of assistance allowed under 15 the quality jobs enterprise zone program administered pursuant 16 to section 15A.9. 17 (5) An investment tax credit for investments in 18 community-based seed capital funds allowed in section 15E.43. 19 (6) A venture capital fund investment tax credit allowed in 20 section 15E.51. 21 (7) An investment tax credit for an investment in the Iowa 22 fund of funds allowed in section 15E.66. 23 (8) A tax credit or other form of assistance allowed under 24 the enterprise zones program administered pursuant to sections 25 15E.191 through 15E.197. 26 (9) An economic development region revolving fund tax 27 credit allowed in section 15E.232. A taxpayer receiving the 28 payment described in section 15E.232, subsection 2, paragraph 29 “b” , is also subject to the notice requirements of this section. 30 (10) An endow Iowa tax credit allowed in section 15E.305. 31 (11) An agricultural assets transfer tax credit allowed in 32 section 175.37. 33 (12) A historic preservation and cultural and entertainment 34 district tax credit allowed under chapter 404A. 35 -1- LSB 5872YH (6) 83 tw/sc 1/ 5

H.F. 2479 (13) A school tuition organization tax credit allowed in 1 section 422.11S. 2 (14) An assistive device tax credit allowed in section 3 422.33, subsection 9. 4 (15) A wind energy tax credit allowed under chapter 476B. 5 (16) A renewable energy tax credit allowed under chapter 6 476C. 7 b. A taxpayer that has claimed any of the following is 8 subject to this section: 9 (1) A research activities tax credit allowed in section 10 15.335, section 15A.9, section 422.10, or section 422.33, 11 subsection 5. 12 (2) An ethanol promotion tax credit allowed in section 13 422.11N. 14 (3) An E-85 gasoline promotion tax credit allowed in section 15 422.11O. 16 (4) A biodiesel blended fuel tax credit allowed in section 17 422.11P. 18 2. a. The department shall provide a standard form for 19 taxpayers to record the information to be included in the 20 notice of tax credits awarded or claimed as identified in 21 subsection 1. The form shall include the amount of the credit, 22 the program under which the credit was awarded or claimed, 23 and any other relevant information as determined by the 24 department by rule. For purposes of this subsection, “other 25 relevant information” means information that is applicable to 26 the particular policy goals of each tax credit and that is 27 necessary to evaluating the achievement of those goals. 28 b. The department shall retain the form filed by the 29 taxpayer for purposes of verifying compliance with the notice 30 requirements of this section. 31 3. a. A notice published pursuant to this section shall 32 contain all of the information required by the form described 33 in subsection 2. 34 b. The notice shall be published in at least one newspaper, 35 -2- LSB 5872YH (6) 83 tw/sc 2/ 5

H.F. 2479 as defined in section 618.3, which is published in the county 1 or other political subdivision in which the taxpayer is 2 located. If no newspaper is published in the county or other 3 political subdivision, the notice shall be published in at 4 least one newspaper of general circulation in the county or 5 other political subdivision. If the taxpayer is a business 6 without a physical situs in the state, the notice shall be 7 published in at least one newspaper of substantial circulation 8 in the state. 9 4. a. A taxpayer required to publish notice of a tax credit 10 listed under subsection 1, paragraph “a” , shall do so prior 11 to either claiming or transferring the tax credit and shall 12 provide proof of such publication upon either claiming or 13 transferring the tax credit. The department shall not accept a 14 tax credit certificate from a taxpayer subject to subsection 1, 15 paragraph “a” , if notice has not been published or if the notice 16 was deficient. 17 b. A transferee is not subject to subsection 1. 18 5. A taxpayer required to publish notice of a tax credit 19 listed under subsection 1, paragraph “b” , shall do so within 20 thirty days of claiming the tax credit and shall provide proof 21 of such publication to the department within that time. A 22 taxpayer who does not publish notice within thirty days is 23 subject to disallowance of the amount of tax credit claimed. 24 6. The department shall adopt rules for the administration 25 of this section. 26 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 27 retroactively to January 1, 2010, for tax years beginning on 28 or after that date. 29 EXPLANATION 30 This bill requires the recipients of certain tax credits to 31 publish notice of such receipt in at least one local newspaper. 32 The bill requires a form to be filed with the department of 33 revenue and notice to be published both for tax credits awarded 34 by state agencies and for tax credits claimed on a tax return, 35 -3- LSB 5872YH (6) 83 tw/sc 3/ 5

H.F. 2479 but treats the timing of such publications differently. 1 In the case of tax credits awarded by various state 2 agencies, the taxpayer must publish the notice before claiming 3 or transferring the tax credit certificate. A taxpayer 4 cannot claim the tax credit until notice has been published. 5 Transferees are not subject to the notice publication 6 requirements. 7 In the case of tax credits that are not awarded, taxpayers 8 claiming them on their returns must publish notice of having 9 done so within 30 days of claiming the credit. Taxpayers 10 who do not publish notice within that time are subject to 11 disallowance of the claimed credit amount. 12 The bill requires the department of revenue to prescribe a 13 standard form for each tax credit containing the information 14 that must be included in the notice. Every notice must include 15 the amount of the tax credit and the program under which it was 16 awarded or claimed. In addition, the department is directed to 17 determine other relevant information for each particular tax 18 credit. 19 The following tax credits are subject to the notice 20 publication requirements: 21 1. A redevelopment tax credit allowed in Code section 22 15.293A. 23 2. A tax credit allowed under the high quality jobs program 24 administered pursuant to Code sections 15.326 through 15.336. 25 3. An investment or expenditure credit allowed under 26 the film, television, and video project promotion program 27 administered pursuant to Code sections 15.391 through 15.393. 28 4. A tax credit or other form of assistance allowed under 29 the quality jobs enterprise zone program administered pursuant 30 to Code section 15A.9. 31 5. An investment tax credit for investments in 32 community-based seed capital funds allowed in Code section 33 15E.43. 34 6. A venture capital fund investment tax credit allowed in 35 -4- LSB 5872YH (6) 83 tw/sc 4/ 5

H.F. 2479 Code section 15E.51. 1 7. An investment tax credit for an investment in the Iowa 2 fund of funds allowed in Code section 15E.66. 3 8. A tax credit or other form of assistance allowed under 4 the enterprise zones program administered pursuant to Code 5 sections 15E.191 through 15E.197. 6 9. An economic development region revolving fund tax 7 credit allowed in Code section 15E.232. A taxpayer receiving 8 the payment described in Code section 15E.232, subsection 2, 9 paragraph “b”, is subject to the notice requirements of this 10 Code section. 11 10. An endow Iowa tax credit allowed in Code section 12 15E.305. 13 11. An agricultural assets transfer tax credit allowed in 14 Code section 175.37. 15 12. A historic preservation and cultural and entertainment 16 district tax credit allowed under Code chapter 404A. 17 13. An assistive device tax credit allowed in Code section 18 422.33, subsection 9. 19 14. Wind and renewable energy tax credits allowed under Code 20 chapters 476B and 476C. 21 15. A school tuition organization tax credit allowed in Code 22 section 422.11S. 23 16. A research activities tax credit allowed in Code section 24 15.335, Code section 15A.9, Code section 422.10, or Code 25 section 422.33, subsection 5. 26 17. An ethanol promotion tax credit allowed in Code section 27 422.11N. 28 18. An E-85 gasoline promotion tax credit allowed in Code 29 section 422.11O. 30 19. A biodiesel blended fuel tax credit in Code section 31 422.11P. 32 The bill applies retroactively to tax years beginning on or 33 after January 1, 2010. 34 -5- LSB 5872YH (6) 83 tw/sc 5/ 5