House Study Bill 567 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA BILL BY CHAIRPERSON GRASSLEY) A BILL FOR An Act creating a tracking and reporting system for certain tax 1 credits awarded by the economic development authority. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5307HC (2) 84 mm/sc

H.F. _____ Section 1. Section 15.104, subsection 8, Code Supplement 1 2011, is amended by adding the following new paragraph: 2 NEW PARAGRAPH . m. The tax credit report prepared pursuant 3 to section 15.119, subsection 5. 4 Sec. 2. Section 15.119, subsection 4, Code Supplement 2011, 5 is amended to read as follows: 6 4. The authority shall submit to the department of revenue 7 on or before August 15 of each year a report on the tax credits 8 allocated pursuant to this section and the tax credits awarded 9 under each of the programs described in subsection 2 . The 10 department of revenue shall submit to the authority on or 11 before November 15 of each year a report on the tax credits 12 claimed and allowed under each program described in subsection 13 2. 14 Sec. 3. Section 15.119, Code Supplement 2011, is amended by 15 adding the following new subsection: 16 NEW SUBSECTION . 5. a. The authority, in conjunction with 17 the department of revenue, shall develop and maintain a system 18 to track all tax credits allocated, awarded, and claimed under 19 each of the programs described in subsection 2. It is the goal 20 of the tracking system to effectively track each tax credit 21 from the date it is awarded by the authority to the date it 22 is ultimately claimed by the recipient and allowed by the 23 department of revenue. The system shall track, at a minimum, 24 the following information for each tax credit awarded: 25 (1) The type of tax credit. 26 (2) The recipient of the tax credit. 27 (3) The date the tax credit was awarded by the authority, 28 and the amount awarded. 29 (4) The date the tax credit was claimed by the recipient, 30 and the amount claimed. 31 (5) The date the tax credit was allowed by the department of 32 revenue, and the amount allowed. 33 (6) The amount, if any, of the tax credit available to the 34 recipient for carryforward into future tax years and the date 35 -1- LSB 5307HC (2) 84 mm/sc 1/ 3

H.F. _____ the tax credit carryforward will expire. 1 b. If disclosure of the information in paragraph “a” , 2 subparagraph (2), would cause the authority or the department 3 of revenue to violate any state or federal law relating to 4 privacy or confidentiality, the identity of the recipient may 5 be concealed and replaced with a nondescriptive designation 6 that allows the authority and the department of revenue to 7 effectively track the tax credit. 8 c. The tracking system shall be updated at least annually, 9 and a joint report from both the authority and the department 10 of revenue containing all the information required by this 11 subsection shall be compiled each year and submitted by the 12 board to the general assembly and the governor by January 31 as 13 part of the board’s annual reporting duties in section 15.104, 14 subsection 8. 15 EXPLANATION 16 This bill requires the economic development authority, in 17 conjunction with the department of revenue, to develop and 18 maintain a system to track all tax credits awarded by the 19 economic development authority through its programs under the 20 aggregate tax credit limit cap in Code section 15.119. For 21 each tax credit awarded, the system shall track the type, 22 the recipient, the date and amount awarded by the economic 23 development authority, the date and amount claimed by the 24 recipient, the date and amount allowed by the department of 25 revenue, and the amount and expiration date of any tax credit 26 available to a recipient for carryforward into future tax 27 years. 28 The tracking system is required to be updated at least 29 annually and compiled into a report to be provided by January 30 15 of each year to the general assembly and the governor. 31 If disclosure of the tax credit recipient’s identity would 32 cause the economic development authority or the department of 33 revenue to violate any state or federal law related to privacy 34 or confidentiality, the recipient’s identity may be concealed 35 -2- LSB 5307HC (2) 84 mm/sc 2/ 3

H.F. _____ and replaced with a nondescriptive designation that allows for 1 the effective tracking of the tax credits. 2 The bill also requires the department of revenue to submit 3 to the authority on or before November 15 of each year a report 4 on the tax credits claimed and allowed pursuant to each of 5 the programs under the aggregate tax credit limit cap of the 6 economic development authority. 7 -3- LSB 5307HC (2) 84 mm/sc 3/ 3