House File 2438 - Introduced HOUSE FILE 2438 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2288) (SUCCESSOR TO HSB 518) A BILL FOR An Act relating to the administration of programs by the 1 economic development authority by creating a renewable 2 chemical production tax credit program, modifying the high 3 quality jobs program, and including effective date and other 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5172HZ (1) 86 mm/sc

H.F. 2438 DIVISION I 1 HIGH QUALITY JOBS PROGRAM 2 Section 1. Section 15.119, subsection 2, paragraph a, Code 3 2016, is amended to read as follows: 4 a. (1) The high quality job creation jobs program 5 administered pursuant to sections 15.326 through 15.336 . 6 (2) In allocating tax credits pursuant to this subsection 7 for each fiscal year of the fiscal period beginning July 8 1, 2016, and ending June 30, 2021, the authority shall not 9 allocate more than one hundred five million dollars for 10 purposes of this paragraph. This subparagraph (2) is repealed 11 July 1, 2021. 12 (3) (a) In allocating tax credits pursuant to this 13 subsection for the fiscal year beginning July 1, 2021, and 14 ending June 30, 2022, the authority shall not allocate more 15 than one hundred five million dollars for purposes of this 16 paragraph if the aggregate amount of renewable chemical 17 production tax credits under section 15.319 that were awarded 18 on or after July 1, 2018, but before July 1, 2021, equals or 19 exceeds twenty-seven million dollars. 20 (b) As soon as practicable after June 30, 2021, the 21 authority shall notify the general assembly of the aggregate 22 amount of renewable chemical production tax credits awarded 23 under section 15.319 on or after July 1, 2018, but before 24 July 1, 2021, and whether or not the tax credit allocation 25 limitation described in subparagraph division (a) is 26 applicable. 27 (c) This subparagraph (3) is repealed July 1, 2022. 28 DIVISION II 29 RENEWABLE CHEMICAL PRODUCTION TAX CREDIT PROGRAM 30 Sec. 2. Section 2.48, subsection 3, Code 2016, is amended by 31 adding the following new paragraph: 32 NEW PARAGRAPH . g. In 2022, the renewable chemical 33 production tax credit program available under sections 15.315 34 through 15.322. 35 -1- LSB 5172HZ (1) 86 mm/sc 1/ 15

H.F. 2438 Sec. 3. Section 15.119, subsection 2, Code 2016, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . h. The renewable chemical production tax 3 credit program administered pursuant to sections 15.315 through 4 15.322. In allocating tax credits pursuant to this subsection, 5 the authority shall not allocate more than ten million dollars 6 for purposes of this paragraph. This paragraph is repealed 7 July 1, 2030. 8 Sec. 4. NEW SECTION . 15.315 Short title. 9 This part shall be known and may be cited as the “Renewable 10 Chemical Production Tax Credit Program” . 11 Sec. 5. NEW SECTION . 15.316 Definitions. 12 As used in this part, unless the context otherwise requires: 13 1. “Biobased content percentage” means, with respect to any 14 renewable chemical, the amount, expressed as a percentage, of 15 renewable organic material present as determined by testing 16 representative samples using the American society for testing 17 and materials standard D6866. 18 2. “Biomass feedstock” means sugar, polysaccharide, crude 19 glycerin, lignin, fat, grease, or oil derived from a plant or 20 animal, or a protein capable of being converted to a building 21 block chemical by means of a biological or chemical conversion 22 process. 23 3. “Building block chemical” means a molecule converted 24 from biomass feedstock as a first product or a secondarily 25 derived product that can be further refined into a higher-value 26 chemical, material, or consumer product. “Building block 27 chemical” includes but is not limited to high-purity glycerol, 28 oleic acid, lauric acid, methanoic or formic acid, arabonic 29 acid, erythonic acid, glyceric acid, glycolic acid, lactic 30 acid, 3-hydroxypropionate, propionic acid, malonic acid, 31 serine, succinic acid, fumaric acid, malic acid, aspartic 32 acid, 3-hydroxybutyrolactone, acetoin, threonine, itaconic 33 acid, furfural, levulinic acid, glutamic acid, xylonic acid, 34 xylaric acid, xylitol, arabitol, citric acid, aconitic acid, 35 -2- LSB 5172HZ (1) 86 mm/sc 2/ 15

H.F. 2438 5-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid, 1 sorbitol, gallic acid, ferulic acid, nonfuel butanol, nonfuel 2 ethanol, or such additional molecules as may be included by the 3 authority by rule after consultation with appropriate experts 4 from Iowa state university, including but not limited to the 5 Iowa state university center for biorenewable chemicals. 6 4. “Crude glycerin” means glycerin with a purity level below 7 ninety-five percent. 8 5. “Eligible business” means a business meeting the 9 requirements of section 15.317. 10 6. “Food additive” means a building block chemical that 11 is not primarily consumed as food but which, when combined 12 with other components, improves the taste, appearance, odor, 13 texture, or nutritional content of food. The authority, in its 14 discretion, shall determine whether or not a building block 15 chemical is primarily consumed as food. 16 7. “High-purity glycerol” means glycerol with a purity level 17 of ninety-five percent or higher. 18 8. “Pre-eligibility production threshold” means, with respect 19 to each eligible business, the number of pounds of renewable 20 chemicals produced, if any, by an eligible business during the 21 calendar year prior to the calendar year in which the business 22 first qualified as an eligible business pursuant to section 23 15.317. 24 9. “Program” means the renewable chemical production tax 25 credit program administered pursuant to this part. 26 10. “Renewable chemical” means a building block chemical 27 with a biobased content percentage of at least fifty percent. 28 “Renewable chemical” does not include a chemical sold or used 29 for the production of food, feed, or fuel. “Renewable chemical” 30 includes cellulosic ethanol, starch ethanol, or other ethanol 31 derived from biomass feedstock, fatty acid methyl esters, 32 or butanol, but only to the extent that such molecules are 33 produced and sold for uses other than food, feed, or fuel. 34 “Renewable chemical” also includes a building block chemical 35 -3- LSB 5172HZ (1) 86 mm/sc 3/ 15

H.F. 2438 that can be a food additive as long as the building block 1 chemical is not primarily consumed as food and is also sold 2 for uses other than food. “Renewable chemical” also includes 3 supplements, vitamins, nutraceuticals, and pharmaceuticals, but 4 only to the extent that such molecules do not provide caloric 5 value so as to be considered sustenance as food or feed. 6 11. “Sugar” means the organic compound glucose, fructose, 7 xylose, arabinose, lactose, sucrose, starch, cellulose, or 8 hemicellulose. 9 Sec. 6. NEW SECTION . 15.317 Eligibility requirements. 10 To be eligible to receive the renewable chemical production 11 tax credit pursuant to the program, a business shall meet all 12 of the following requirements: 13 1. The business is physically located in this state. 14 2. The business is operated for profit and under single 15 management. 16 3. The business is not an entity providing professional 17 services, health care services, or medical treatments or an 18 entity engaged primarily in retail operations. 19 4. The business organized, expanded, or located in the state 20 on or after the effective date of this division of this Act. 21 5. The business shall not be relocating or reducing 22 operations as described in section 15.329, subsection 1, 23 paragraph “b” , and as determined under the discretion of the 24 authority. 25 6. The business is in compliance with all agreements entered 26 into under this program or other programs administered by the 27 authority. 28 Sec. 7. NEW SECTION . 15.318 Eligible business application 29 and agreement —— maximum tax credits. 30 1. Application. 31 a. An eligible business that produces a renewable chemical 32 in this state from biomass feedstock during a calendar year may 33 apply to the authority for the renewable chemical production 34 tax credit provided in section 15.319. 35 -4- LSB 5172HZ (1) 86 mm/sc 4/ 15

H.F. 2438 b. The application shall be made to the authority in the 1 manner prescribed by the authority. 2 c. The application shall be made during the calendar year 3 following the calendar year in which the renewable chemicals 4 are produced. 5 d. The authority may accept applications on a continuous 6 basis or may establish, by rule, an annual application 7 deadline. 8 e. The application shall include all of the following 9 information: 10 (1) The amount of renewable chemicals produced in the state 11 from biomass feedstock by the eligible business during the 12 calendar year, measured in pounds. 13 (2) Any other information reasonably required by the 14 authority in order to establish and verify eligibility under 15 the program. 16 2. Agreement and fees. 17 a. Before being issued a tax credit under section 15.319, 18 an eligible business shall enter into an agreement with the 19 authority for the successful completion of all requirements of 20 the program. As part of the agreement, the eligible business 21 shall agree to collect and provide any information reasonably 22 required by the authority in order to allow the board to 23 fulfill its reporting obligation under section 15.320. 24 b. The compliance cost fees authorized in section 15.330, 25 subsection 12, shall apply to all agreements entered into 26 under this program and shall be collected by the authority in 27 the same manner and to the same extent as described in that 28 subsection. 29 c. An eligible business shall fulfill all the requirements 30 of the program and the agreement before receiving a tax credit 31 or entering into a subsequent agreement under this section. 32 The authority may decline to enter into a subsequent agreement 33 under this section or issue a tax credit if an agreement is not 34 successfully fulfilled. 35 -5- LSB 5172HZ (1) 86 mm/sc 5/ 15

H.F. 2438 d. Upon establishing that all requirements of the program 1 and the agreement have been fulfilled, the authority shall 2 issue a tax credit and related tax credit certificate to the 3 eligible business stating the amount of renewable chemical 4 production tax credit the eligible business may claim. 5 3. Maximum tax credit amount. 6 a. The maximum amount of tax credit that may be issued under 7 section 15.319 to an eligible business for the production of 8 renewable chemicals in a calendar year shall not exceed the 9 following: 10 (1) In the case of an eligible business that has been in 11 operation in the state for five years or less at the time of 12 application, one million dollars. 13 (2) In the case of an eligible business that has been in 14 operation in the state for more than five years at the time of 15 application, five hundred thousand dollars. 16 b. An eligible business shall not receive a tax credit for 17 renewable chemicals produced before the date the business first 18 qualified as an eligible business pursuant to section 15.317. 19 c. An eligible business shall only receive a tax credit for 20 renewable chemicals produced in a calendar year to the extent 21 such production exceeds the eligible business’s pre-eligibility 22 production threshold. 23 d. An eligible business shall not receive more than five tax 24 credits under the program. 25 e. The authority shall issue tax credits under the program 26 on a first-come, first-served basis until the maximum amount of 27 tax credits allocated pursuant to section 15.119, subsection 28 2, paragraph “h” , is reached. The authority shall maintain 29 a list of successful applicants under the program, so that 30 if the maximum aggregate amount of tax credits is reached in 31 a given fiscal year, eligible businesses that successfully 32 applied but for which tax credits were not issued shall be 33 placed on a wait list in the order the eligible businesses 34 applied and shall be given priority for receiving tax credits 35 -6- LSB 5172HZ (1) 86 mm/sc 6/ 15

H.F. 2438 in succeeding fiscal years. Placement on a wait list pursuant 1 to this paragraph shall not constitute a promise binding the 2 state. The availability of a tax credit and issuance of a tax 3 credit certificate pursuant to this subsection in a future 4 fiscal year is contingent upon the availability of tax credits 5 in that particular fiscal year. 6 4. Termination and repayment. The failure by an eligible 7 business in fulfilling any requirement of the program or any of 8 the terms and obligations of an agreement entered into pursuant 9 to this section may result in the reduction, termination, 10 or recision of the tax credits under section 15.319 and may 11 subject the eligible business to the repayment or recapture of 12 tax credits claimed. The repayment or recapture of tax credits 13 pursuant to this subsection shall be accomplished in the same 14 manner as provided in section 15.330, subsection 2. 15 5. Confidentiality. 16 a. Except as provided in paragraph “b” , any information 17 or record in the possession of the authority with respect to 18 the program shall be presumed by the authority to be a trade 19 secret protected under chapter 550 or common law and shall be 20 kept confidential by the authority unless otherwise ordered by 21 a court. 22 b. The identity of a tax credit recipient and the amount 23 of the tax credit shall be considered public information under 24 chapter 22. 25 Sec. 8. NEW SECTION . 15.319 Renewable chemical production 26 tax credit. 27 1. An eligible business that has entered into an agreement 28 pursuant to section 15.318 may claim a tax credit in an amount 29 equal to the product of five cents multiplied by the number 30 of pounds of renewable chemicals produced in this state from 31 biomass feedstock by the eligible business during the calendar 32 year in excess of the eligible business’s pre-eligibility 33 production threshold. However, an eligible business shall 34 not receive a tax credit for the production of a secondarily 35 -7- LSB 5172HZ (1) 86 mm/sc 7/ 15

H.F. 2438 derived building block chemical if that chemical is also the 1 subject of a credit at the time of production as a first 2 product. The renewable chemical production tax credit shall 3 not be available for any renewable chemical produced before the 4 2017 calendar year or after the 2026 calendar year. 5 2. The tax credit shall be allowed against taxes imposed 6 under chapter 422, division II or III. 7 3. The tax credit shall be claimed for the tax year during 8 which the eligible business was issued the tax credit. 9 4. An individual may claim a tax credit under this section 10 of a partnership, limited liability company, S corporation, 11 cooperative organized under chapter 501 and filing as a 12 partnership for federal tax purposes, estate, or trust electing 13 to have income taxed directly to the individual. The amount 14 claimed by the individual shall be based upon the pro rata 15 share of the individual’s earnings from the partnership, 16 limited liability company, S corporation, cooperative, estate, 17 or trust. 18 5. Any tax credit in excess of the tax liability is 19 refundable. In lieu of claiming a refund, the taxpayer 20 may elect to have the overpayment shown on the taxpayer’s 21 final, completed return credited to the tax liability for the 22 following tax year. 23 6. a. To claim a tax credit under this section, a taxpayer 24 shall include one or more tax credit certificates with the 25 taxpayer’s tax return. 26 b. The tax credit certificate shall contain the taxpayer’s 27 name, address, tax identification number, the amount of the 28 credit, the name of the eligible business, and any other 29 information required by the department of revenue. 30 c. The tax credit certificate, unless rescinded by the 31 authority, shall be accepted by the department of revenue as 32 payment for taxes imposed pursuant to chapter 422, divisions II 33 and III, subject to any conditions or restrictions placed by 34 the authority upon the face of the tax credit certificate and 35 -8- LSB 5172HZ (1) 86 mm/sc 8/ 15

H.F. 2438 subject to the limitations of the program. 1 d. Tax credit certificates issued pursuant to this section 2 shall not be transferred to any other person. 3 Sec. 9. NEW SECTION . 15.320 Reports to general assembly. 4 1. For purposes of this section, “successful tax credit 5 applicant” includes, with respect to each calendar year, an 6 eligible business that was issued a tax credit for production 7 of renewable chemicals during that calendar year, and an 8 eligible business that successfully applied for a tax credit 9 for the production of renewable chemicals during that calendar 10 year, but was not issued a tax credit and was instead placed on 11 a wait list pursuant to section 15.318, subsection 3, paragraph 12 “e” . 13 2. By January 31, 2019, and by the same date each year 14 thereafter, the board, in cooperation with the department of 15 revenue, shall submit to the general assembly and the governor 16 a report describing the activities of the program for the most 17 recent calendar year for which the tax credit application 18 period has ended pursuant to section 15.318, subsection 1, 19 paragraph “c” . The report shall at a minimum include the 20 following information: 21 a. The aggregate number of pounds, and a list of each type, 22 of renewable chemicals produced in Iowa by all successful 23 tax credit applicants during the calendar year prior to the 24 calendar year for which the successful applicants first applied 25 for a tax credit under the program. 26 b. The aggregate number of pounds, and a list of each type, 27 of renewable chemicals produced in Iowa by all successful tax 28 credit applicants during each calendar year. 29 c. The aggregate sales of all renewable chemicals produced 30 by all successful tax credit applicants in each calendar 31 year for which there are at least five successful tax credit 32 applicants. 33 d. The aggregate number of pounds, and a list of each 34 type, of biomass feedstock used in the production of renewable 35 -9- LSB 5172HZ (1) 86 mm/sc 9/ 15

H.F. 2438 chemicals in Iowa by all successful tax credit applicants 1 during the calendar year prior to the calendar year for which 2 the successful applicants first applied for a tax credit under 3 the program. 4 e. The aggregate number of pounds, and a list of each 5 type, of biomass feedstock used in the production of renewable 6 chemicals in Iowa by all successful tax credit applicants 7 during each calendar year. 8 f. The number of employees located in Iowa of all successful 9 tax credit applicants during the calendar year prior to the 10 calendar year for which the successful applicants first applied 11 for a tax credit under the program. 12 g. The number of employees located in Iowa of all successful 13 tax credit applicants during each calendar year. 14 h. The number and aggregate amount of tax credits issued 15 under the program for each calendar year. 16 i. The number of eligible businesses placed on the wait 17 list for each calendar year, and the total number of eligible 18 businesses remaining on the wait list at the end of that 19 calendar year. 20 j. The dollar amount of tax credit claims placed on the wait 21 list for each calendar year, and the total dollar amount of tax 22 credit claims remaining on the wait list at the end of that 23 calendar year. 24 3. To protect the presumption of confidentiality 25 established in section 15.318, subsection 5, the board shall 26 report all information in an aggregate form to prevent, as much 27 as possible, information being attributable to any particular 28 eligible business. 29 Sec. 10. NEW SECTION . 15.321 Rules. 30 The authority and the department of revenue shall each adopt 31 rules as necessary for the implementation and administration 32 of this part. 33 Sec. 11. NEW SECTION . 15.322 Future repeal. 34 Sections 15.315, 15.316, 15.317, 15.318, 15.319, 15.320, 35 -10- LSB 5172HZ (1) 86 mm/sc 10/ 15

H.F. 2438 15.321, and this section, are repealed July 1, 2030. 1 Sec. 12. NEW SECTION . 422.10A Renewable chemical production 2 tax credit. 3 The taxes imposed under this division, less the credits 4 allowed under section 422.12, shall be reduced by a renewable 5 chemical production tax credit allowed under section 15.319. 6 This section is repealed January 1, 2033. 7 Sec. 13. Section 422.33, Code 2016, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 22. The taxes imposed under this division 10 shall be reduced by a renewable chemical production tax credit 11 allowed under section 15.319. This subsection is repealed 12 January 1, 2033. 13 Sec. 14. TAX CREDIT CLAIMS. Renewable chemical production 14 tax credits issued pursuant to the renewable chemical 15 production tax credit program enacted in this division of this 16 Act shall not be issued by the economic development authority 17 prior to July 1, 2018, and shall not be claimed by a taxpayer 18 prior to September 1, 2018. 19 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 Sec. 16. APPLICABILITY. This division of this Act applies 23 to renewable chemicals produced in the state from biomass 24 feedstock on or after January 1, 2017. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to the administration of programs by 29 the economic development authority (EDA) by modifying the 30 high quality jobs program and creating a renewable chemical 31 production tax credit program. 32 DIVISION I —— HIGH QUALITY JOBS PROGRAM. Division I limits 33 for a period of five or six fiscal years the amount of tax 34 credits that may be allocated to the high quality jobs program, 35 -11- LSB 5172HZ (1) 86 mm/sc 11/ 15

H.F. 2438 which under current law is subject to EDA’s maximum aggregate 1 tax credit cap of $170 million per fiscal year in Code section 2 15.119. The bill provides that for each of the five fiscal 3 years beginning on July 1, 2016, and ending on June 30, 2021, 4 the authority shall not allocate more than $105 million of 5 that $170 million cap to the high quality jobs program. This 6 provision is repealed July 1, 2021. 7 If the aggregate amount of renewable chemical production 8 tax credits awarded by EDA for the fiscal period beginning on 9 July 1, 2018, and ending June 30, 2021, equals or exceeds $27 10 million, then an additional year of high quality jobs program 11 tax credit allocation limitation occurs and for the fiscal 12 year beginning July 1, 2021, and ending June 30, 2022, the 13 authority shall not allocate more than $105 million of its $170 14 million cap to the high quality jobs program. This provision 15 is repealed July 1, 2022. 16 DIVISION II —— RENEWABLE CHEMICAL PRODUCTION TAX CREDIT. 17 Division II creates a renewable chemical production tax credit 18 program (program) that will be administered by the EDA and that 19 will provide tax credits to eligible businesses that produce 20 renewable chemicals in Iowa from biomass feedstock. “Renewable 21 chemical”, “biomass feedstock”, and other related terms are 22 defined in the division. 23 In order to qualify for the tax credit, a business must 24 meet several requirements. First, the business must be 25 physically located in Iowa and operated for profit under 26 single management. Second, the business must not be an 27 entity providing professional services, health care services, 28 or medical treatments, or be engaged primarily in retail 29 operations. Third, the business must have organized, expanded, 30 or located in Iowa on or after the effective date of the 31 division. Fourth, the business must not be, in the discretion 32 of the EDA, ineligible under certain provisions relating to the 33 relocation or reduction of business operations within Iowa. 34 Fifth, the business must be in compliance with all agreements 35 -12- LSB 5172HZ (1) 86 mm/sc 12/ 15

H.F. 2438 entered into under the program or other programs administered 1 by the EDA. 2 An eligible business seeking a tax credit is required to 3 submit an application to the EDA containing various information 4 during the calendar year following the calendar year in which 5 the renewable chemicals are produced. The EDA may accept 6 applications on a continuous basis or may establish an annual 7 application deadline. 8 Before being issued a tax credit, an eligible business 9 is required to enter into an agreement with the EDA for the 10 successful completion of all requirements of the program. The 11 EDA is authorized to impose two compliance cost fees under the 12 program. The first fee equals $500 per agreement. The second 13 fee equals 0.5 percent of the value of the tax credit claimed 14 pursuant to the agreement if the agreement has an aggregate tax 15 credit value of $100,000 or greater. 16 An eligible business that fails to comply with the 17 requirements of the program or the terms of an agreement with 18 the EDA may have its tax credits reduced, terminated, or 19 rescinded, and may be subject to the repayment or recapture of 20 claimed tax credits. 21 The tax credit equals the product of $.05 multiplied by the 22 number of pounds of renewable chemicals produced in Iowa from 23 biomass feedstock by the eligible business during the calendar 24 year in excess of the eligible business’s pre-eligibility 25 production threshold. “Pre-eligibility production threshold” 26 is defined in the bill. Renewable chemicals produced by 27 an eligible business either prior to calendar year 2017 or 28 prior to the date the business first qualifies as an eligible 29 business, or after calendar year 2026, shall not qualify for 30 the tax credit. 31 The tax credit shall be claimed for the tax year during which 32 the eligible business was issued the tax credit. However, tax 33 credits shall not be issued by EDA prior to July 1, 2018, or 34 claimed by the taxpayer prior to September 1, 2018. The tax 35 -13- LSB 5172HZ (1) 86 mm/sc 13/ 15

H.F. 2438 credit may be claimed against the individual income tax and the 1 corporate income tax. The credit is refundable or may, at the 2 election of the taxpayer, be carried forward for up to one tax 3 year. The tax credit shall not be transferred to any person. 4 The division provides that the program is subject to EDA’s 5 maximum aggregate tax credit cap of $170 million per fiscal 6 year in Code section 15.119, and not more than $10 million 7 per fiscal year may be issued by the EDA under the program. 8 In addition, the maximum amount of tax credit that may be 9 issued to an eligible business for the production of renewable 10 chemicals in a calendar year shall not exceed $1 million or 11 $500,000, depending on whether the eligible business has been 12 operating in Iowa at the time of application for five or fewer 13 years, or more than five years, respectively. An eligible 14 business shall not receive more than five tax credits under 15 the program. The EDA is required to issue tax credits on a 16 first-come, first-served basis until the maximum amount of 17 $10 million per fiscal year is reached. If the amount of 18 tax credits exceeds this amount in a fiscal year, the EDA 19 is required to establish a wait list and give priority in 20 subsequent years to the eligible businesses on the wait list. 21 The division provides for the confidentiality of certain 22 information under the program. The identity of a tax credit 23 recipient and the amount of the tax credit shall be considered 24 public information under Code chapter 22 (examination of public 25 records), but any other information or record in the possession 26 of the EDA with respect to the program shall be presumed by 27 the EDA to be a trade secret protected under Code chapter 550 28 or common law and shall be kept confidential by the EDA unless 29 otherwise ordered by a court. 30 The division requires EDA to submit to the general assembly 31 and the governor an annual report describing the activities of 32 the program for each calendar year and including information 33 specified in the division. Information is required to be 34 reported in an aggregate form to protect the presumption 35 -14- LSB 5172HZ (1) 86 mm/sc 14/ 15

H.F. 2438 of confidentiality and to prevent, as much as possible, 1 information being attributable to any particular eligible 2 business. The report for the first calendar year the tax 3 credit is available under the program (2017) is due by January 4 31, 2019, and reports covering subsequent calendar years are 5 due by the same date each year thereafter. Eligible businesses 6 are required, as part of their agreement with EDA, to collect 7 and provide any information reasonably required by EDA in order 8 to fulfill this reporting requirement. 9 The division adds the program to the list of tax expenditures 10 to be reviewed by the legislative tax expenditure committee in 11 calendar year 2022. 12 The tax credit program is repealed July 1, 2030. References 13 to the renewable chemical production tax credit in provisions 14 of the Code relating to the individual and corporate income tax 15 are repealed January 1, 2033. 16 The division takes effect upon enactment and applies to 17 renewable chemicals produced in Iowa from biomass feedstock on 18 or after January 1, 2017. 19 -15- LSB 5172HZ (1) 86 mm/sc 15/ 15