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House File 419 - IntroducedA Bill ForAn Act 1relating to the endow Iowa tax credit available against
2the individual and corporate income taxes, the franchise
3tax, the insurance premiums tax, and the moneys and
4credits tax, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15E.305, subsection 2, Code 2023, is
2amended to read as follows:
32. a. The aggregate amount of tax credits authorized
4pursuant to this section shall not exceed a total of six
5million dollars annually plus any additional amounts authorized
6pursuant to paragraph “d”.
7a. b. The maximum amount of tax credits granted to a
8taxpayer shall not exceed one hundred thousand dollars of the
9aggregate amount of tax credits authorized.
10b. c. Ten percent of the aggregate amount of tax credits
11authorized in a calendar year shall be reserved for those
12endowment gifts in amounts of thirty thousand dollars or less.
13If by September 1 of a calendar year the entire ten percent of
14the reserved tax credits is not distributed, the remaining tax
15credits shall be available to any other eligible applicants.
16d. If after a taxpayer carries forward a tax credit amount
17for five years as provided in subsection 1, and the aggregate
18amount of that tax credit claimed against taxes by the taxpayer
19under subsection 1 is less than the amount of that tax credit
20allowed the taxpayer, the difference may be authorized as tax
21credits by the authority and tax credits equal to the amount of
22the difference may be added to the annual aggregate amount of
23tax credits authorized in paragraph “a”.
24 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
252024.
26 Sec. 3. APPLICABILITY. This Act applies to tax years
27beginning on or after January 1, 2024.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the endow Iowa tax credit available
32against the individual and corporate income taxes, the
33franchise tax, the insurance premiums tax, and the moneys and
34credits tax.
35The endow Iowa tax credit is a tax credit equal to 25 percent
-1-1of a taxpayer’s endowment gift to an endow Iowa qualified
2community foundation. The tax credit is administered by the
3Iowa economic development authority (IEDA).
4Under the bill, if a taxpayer carries forward a tax credit
5amount for five years as provided in Code section 15E.305(1),
6and the aggregate amount of that tax credit claimed against
7taxes by the taxpayer is less than the amount of that tax
8credit IEDA allowed the taxpayer to claim, the difference may
9be authorized as tax credits by IEDA and tax credits equal
10to the amount of the difference may be added to the annual
11aggregate tax credit amount of $6 million.
12The bill takes effect January 1, 2024, and applies to tax
13years beginning on or after that date.
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2the individual and corporate income taxes, the franchise
3tax, the insurance premiums tax, and the moneys and
4credits tax, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15E.305, subsection 2, Code 2023, is
2amended to read as follows:
32. a. The aggregate amount of tax credits authorized
4pursuant to this section shall not exceed a total of six
5million dollars annually plus any additional amounts authorized
6pursuant to paragraph “d”.
7a. b. The maximum amount of tax credits granted to a
8taxpayer shall not exceed one hundred thousand dollars of the
9aggregate amount of tax credits authorized.
10b. c. Ten percent of the aggregate amount of tax credits
11authorized in a calendar year shall be reserved for those
12endowment gifts in amounts of thirty thousand dollars or less.
13If by September 1 of a calendar year the entire ten percent of
14the reserved tax credits is not distributed, the remaining tax
15credits shall be available to any other eligible applicants.
16d. If after a taxpayer carries forward a tax credit amount
17for five years as provided in subsection 1, and the aggregate
18amount of that tax credit claimed against taxes by the taxpayer
19under subsection 1 is less than the amount of that tax credit
20allowed the taxpayer, the difference may be authorized as tax
21credits by the authority and tax credits equal to the amount of
22the difference may be added to the annual aggregate amount of
23tax credits authorized in paragraph “a”.
24 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
252024.
26 Sec. 3. APPLICABILITY. This Act applies to tax years
27beginning on or after January 1, 2024.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the endow Iowa tax credit available
32against the individual and corporate income taxes, the
33franchise tax, the insurance premiums tax, and the moneys and
34credits tax.
35The endow Iowa tax credit is a tax credit equal to 25 percent
-1-1of a taxpayer’s endowment gift to an endow Iowa qualified
2community foundation. The tax credit is administered by the
3Iowa economic development authority (IEDA).
4Under the bill, if a taxpayer carries forward a tax credit
5amount for five years as provided in Code section 15E.305(1),
6and the aggregate amount of that tax credit claimed against
7taxes by the taxpayer is less than the amount of that tax
8credit IEDA allowed the taxpayer to claim, the difference may
9be authorized as tax credits by IEDA and tax credits equal
10to the amount of the difference may be added to the annual
11aggregate tax credit amount of $6 million.
12The bill takes effect January 1, 2024, and applies to tax
13years beginning on or after that date.
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