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House File 641 - IntroducedA Bill ForAn Act 1relating to the economic development authority,
2including certain tax credit programs, the Iowa wine, beer,
3and spirits promotion board, and the beer and liquor control
4fund, and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2TAX CREDITS
3 Section 1. Section 15.119, subsection 2, paragraph h, Code
42023, is amended to read as follows:
5h. The renewable chemical production tax credit program
6administered pursuant to sections 15.315 through 15.322. In
7allocating tax credits pursuant to this subsection for the
8fiscal year beginning July 1, 2021, and for each fiscal year
9thereafter beginning before July 1, 2037, the authority shall
10not allocate more than five million dollars for purposes of
11this paragraph. This paragraph is repealed July 1, 2030 2039.
12 Sec. 2. Section 15.316, subsection 3, Code 2023, is amended
13to read as follows:
143. “Building block chemical” means a molecule converted
15from biomass feedstock as a first product or a secondarily
16derived product that can be further refined into a higher-value
17chemical, material, or consumer product. “Building block
18chemical” includes but is not limited to high-purity glycerol,
19oleic acid, lauric acid, methanoic or formic acid, arabonic
20acid, erythonic acid, glyceric acid, glycolic acid, lactic
21acid, 3-hydroxypropionate, propionic acid, malonic acid,
22serine, succinic acid, fumaric acid, malic acid, aspartic
23acid, 3-hydroxybutyrolactone, acetoin, threonine, itaconic
24acid, furfural, levulinic acid, glutamic acid, xylonic acid,
25xylaric acid, xylitol, arabitol, citric acid, aconitic acid,
265-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid,
27sorbitol, gallic acid, ferulic acid, butyric acid, nonfuel
28butanol, nonfuel ethanol, or such additional molecules as may
29be included by the authority by rule after consultation with
30appropriate experts from Iowa state university, including
31but not limited to the Iowa state university center for
32biorenewable chemicals.
33 Sec. 3. Section 15.318, subsection 1, Code 2023, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. f. All complete applications submitted
-1-1by eligible businesses shall be reviewed and scored on a
2competitive basis by the authority pursuant to rules adopted
3by the authority.
4 Sec. 4. Section 15.318, subsection 2, paragraphs c and d,
5Code 2023, are amended to read as follows:
6c. An eligible business shall fulfill all the requirements
7of the program and the agreement before receiving the authority
8issues the business a tax credit certificate or entering enters
9 into a subsequent agreement with the business under this
10section. The authority may decline to enter into a subsequent
11agreement with the business under this section or to issue a
12tax credit if an agreement is not successfully fulfilled.
13d. Upon establishing that all requirements of the program
14and the agreement have been fulfilled, the authority shall
15issue a tax credit and related tax credit certificate to the
16eligible business stating the amount of renewable chemical
17production tax credit the eligible business may claim.
18 Sec. 5. Section 15.318, subsection 3, paragraphs a, d, and
19e, Code 2023, are amended to read as follows:
20a. The maximum amount of tax credit that the authority may
21be issued issue under section 15.319 to an eligible business
22for the production of renewable chemicals in a calendar year
23shall not exceed the following:
24(1) In the case of an eligible business that has been in
25operation in the state for five years or less at the time of
26application, is one million dollars.
27(2) In the case of an eligible business that has been in
28operation in the state for more than five years at the time of
29application, five hundred thousand dollars.
30d. An The authority shall not issue an eligible business
31shall not receive more than five tax credits credit
32certificates under the program.
33e. The authority shall issue tax credits under the program
34on a first-come, first-served basis until the maximum amount of
35tax credits allocated pursuant to section 15.119, subsection
-2-12, paragraph “h”, is reached. The authority shall maintain a
2list of successful applicants under the program, so that if the
3maximum aggregate amount of tax credits is reached in a given
4fiscal year, eligible businesses that successfully applied
5but for which tax credits were not issued shall be placed on
6a wait list in the order the eligible businesses applied and
7shall be given priority for receiving tax credits in succeeding
8fiscal years. Placement on a wait list pursuant to this
9paragraph shall not constitute a promise binding the state.
10The availability of a tax credit and issuance of a tax credit
11certificate pursuant to this subsection in a future fiscal year
12is contingent upon the availability of tax credits in that
13particular fiscal year. In each fiscal year beginning on or
14after July 1, 2023, and ending on or before June 30, 2036, the
15authority may award an amount of tax credits under the program
16not to exceed the maximum aggregate amount allocated in section
1715.119, subsection 2, paragraph “h”.
18 Sec. 6. Section 15.319, subsection 1, Code 2023, is amended
19to read as follows:
201. An eligible business that has entered into an agreement
21pursuant to section 15.318 may claim a tax credit in an amount
22equal to the product of five cents multiplied by the number
23of pounds of renewable chemicals produced in this state from
24biomass feedstock by the eligible business during the calendar
25year in excess of the eligible business’s pre-eligibility
26production threshold. However, an eligible business shall
27not receive a tax credit for the production of a secondarily
28derived building block chemical if that chemical is also the
29subject of a credit at the time of production as a first
30product. The renewable chemical production tax credit shall
31not be available for any renewable chemical produced before the
322017 calendar year or after the 2026 2035 calendar year.
33 Sec. 7. Section 15.320, subsection 1, Code 2023, is amended
34to read as follows:
351. For purposes of this section, “successful tax credit
-3-1applicant” includes, with respect to each calendar year, an
2eligible business that was issued a tax credit certificate for
3production of renewable chemicals during that calendar year,
4and an eligible business that successfully applied for a tax
5credit for the production of renewable chemicals during that
6calendar year, but was not issued a tax credit and was instead
7placed on a wait list pursuant to section 15.318, subsection
83, paragraph “e”.
9 Sec. 8. Section 15.320, subsection 2, Code 2023, is amended
10by striking the subsection and inserting in lieu thereof the
11following:
122. By January 31 of each year, the board, in cooperation
13with the department of revenue, shall submit to the general
14assembly and to the governor a report describing the activities
15of the program for the most recent calendar year for which the
16tax credit application period has ended pursuant to section
1715.318, subsection 1, paragraph “d”. The report shall, at a
18minimum, include the following information:
19a. The aggregate number of pounds, and a list of each type,
20of renewable chemicals produced in Iowa by all successful
21tax credit applicants during the calendar year prior to the
22calendar year for which the successful applicants first applied
23for a tax credit under the program.
24b. The aggregate number of pounds, and a list of each type,
25of renewable chemicals produced in Iowa by all successful tax
26credit applicants during each calendar year.
27c. The number of employees located in Iowa of all successful
28tax credit applicants during the calendar year prior to the
29calendar year for which the successful applicants first applied
30for a tax credit under the program.
31d. The number of employees located in Iowa of all successful
32tax credit applicants during each calendar year.
33e. For each eligible business issued a renewable chemical
34production tax credit during each calendar year:
35(1) The identity of the eligible business.
-4- 1(2) The amount of the tax credit.
2(3) The manner in which the eligible business first
3qualified as an eligible business under section 15.317,
4subsection 4, whether by organizing, expanding, or locating in
5the state.
6f. The total amount of all renewable chemical production tax
7credits claimed during each calendar year, and the portion of
8each claim issued as a refund.
9 Sec. 9. Section 15.320, subsection 3, Code 2023, is amended
10to read as follows:
113. To protect the presumption of confidentiality
12established in section 15.318, subsection 5, the board shall
13report all information in an aggregate form to prevent,
14as much as possible, information being attributable to any
15particular eligible business, except as provided in subsection
162, paragraph “k” “e”.
17 Sec. 10. Section 15.322, Code 2023, is amended to read as
18follows:
1915.322 Future repeal.
20Section 15.315, 15.316, 15.317, 15.318, 15.319, 15.320,
2115.321, and this section, are repealed July 1, 2030 2039.
22 Sec. 11. Section 15E.52, subsection 1, paragraph c, Code
232023, is amended to read as follows:
24c. “Innovative business” means a business applying novel
25or original methods to the manufacture of a product or the
26delivery of a service. “Innovative business” includes but is
27not limited to a business engaged in the industries of advanced
28manufacturing, biosciences, and information technology, or
29educational technology.
30 Sec. 12. Section 15E.52, subsection 5, paragraph a, Code
312023, is amended to read as follows:
32a. To receive a tax credit, a taxpayer must submit an
33application to the board. The board shall issue certificates
34under this section on a first-come, first-served basis, which
35certificates may be redeemed for tax credits. The board shall
-5-1issue such certificates so that not more than the amount
2allocated for such tax credits under section 15.119, subsection
32, may be claimed. The board shall not issue a certificate
4before September 1, 2014.
5 Sec. 13. Section 15E.52, subsection 5, paragraph b, Code
62023, is amended by striking the paragraph.
7 Sec. 14. Section 15E.52, subsection 8, Code 2023, is amended
8to read as follows:
98. The board shall not certify an innovation fund after June
1030, 2023 2028.
11 Sec. 15. Section 15E.52, subsection 10, paragraph b, Code
122023, is amended by striking the paragraph.
13 Sec. 16. Section 422.10B, Code 2023, is amended to read as
14follows:
15422.10B Renewable chemical production tax credit.
16The taxes imposed under this subchapter, less the credits
17allowed under section 422.12, shall be reduced by a renewable
18chemical production tax credit allowed under section 15.319.
19This section is repealed January 1, 2033 2041.
20 Sec. 17. Section 422.33, subsection 22, Code 2023, is
21amended to read as follows:
2222. The taxes imposed under this subchapter shall be reduced
23by a renewable chemical production tax credit allowed under
24section 15.319. This subsection is repealed January 1, 2033
25 2041.
26 Sec. 18. APPLICABILITY.
271. The following apply to all applications submitted to the
28renewable chemical production tax credit program on or after
29July 1, 2023:
30a. The section of this division of this Act amending section
3115.316, subsection 3.
32b. The section of this division of this Act amending section
3315.318, subsection 1.
34c. The section of this division of this Act amending section
3515.318, subsection 3, paragraphs “a”, “d”, and “e”.
-6- 12. The following apply to all eligible businesses placed on
2a wait list pursuant to section 15.318, subsection 3, paragraph
3“e”, on or before June 30, 2023:
4a. The portion of the section of this division of this Act
5amending section 15.318, subsection 3, paragraph “e”.
6b. The section of this division of this Act amending section
715.320, subsection 1.
83. The following applies to all applications submitted
9to the economic development authority’s board for innovation
10fund investment tax credits, administered pursuant to section
1115E.52, on or after July 1, 2023:
12The section of this division of this Act amending section
1315E.52, subsection 1, paragraph “c”.
144. The following applies to all applications submitted for
15innovation fund tax credits, administered pursuant to section
1615E.52, placed on a wait list pursuant to section 15E.52,
17subsection 5, paragraph “b”:
18The section of this division of this Act amending section
1915E.52, subsection 5, paragraph “b”.
20DIVISION II
21Iowa wine, Beer, and SPIRITS Promotion board
22 Sec. 19. Section 15E.116, Code 2023, is amended to read as
23follows:
2415E.116 Iowa wine, and beer, and spirits promotion board.
25An Iowa wine, and beer, and spirits promotion board is
26created. The board consists of three four members appointed
27by the director of the economic development authority. Each
28member shall serve a term of two years on the board. One member
29shall represent the authority, one member shall represent the
30 Iowa wine makers, and one member shall represent the Iowa beer
31makers, and one member shall represent Iowa distilleries. The
32board shall advise the authority on the best means to promote
33wine, and beer, and spirits made in Iowa.
34 Sec. 20. Section 15E.117, Code 2023, is amended to read as
35follows:
-7- 115E.117 Promotion of Iowa wine, and beer, and spirits.
21. The economic development authority shall consult with
3the Iowa wine, and beer, and spirits promotion board on the
4best means to promote wine, and beer, and spirits made in Iowa.
52. The authority has shall have the authority to contract
6with private persons for the promotion of beer, and wine, and
7spirits made in Iowa.
83. Moneys appropriated to the authority pursuant to
9sections 123.143 and 123.183, and moneys transferred to the
10authority pursuant to section 123.17, subsection 8A, may
11be used by the authority for the purposes of this section,
12including administrative expenses incurred under this section.
13 Sec. 21. Section 123.17, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 8A. After any transfers provided for
16in subsections 3, 5, 6, 7, and 8 are made, and before any
17other transfer to the general fund, the department of commerce
18shall transfer to the economic development authority from the
19beer and liquor control fund the lesser of two hundred fifty
20thousand dollars or one percent of the gross sales of native
21distilled spirits by all class “A” native distilled spirits
22license holders made by the division for the purposes of
23promoting Iowa wine, beer, and spirits.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to the economic development authority,
28including certain tax credit programs, the Iowa wine, beer, and
29spirits promotion board, and the beer and liquor control fund.
30The bill is divided into two divisions.
31DIVISION I — TAX CREDITS. The bill extends the future
32repeal date for the renewable chemical program from July 1,
332030, to July 1, 2036. The bill also extends the availability
34of the renewable chemical program credit for any renewable
35chemical produced prior to the end of calendar year 2035,
-8-1rather than the end of calendar year 2026.
2Under the bill, serine, threonine, lysine, and nonfuel
3ethanol are removed from the definition of “building block
4chemical” for purposes of the renewable chemical program
5(chemical program). All completed applications submitted by
6eligible businesses to the chemical program must be reviewed
7and scored on a competitive basis by the authority pursuant to
8rules adopted by the authority, and $1 million is the maximum
9amount of credit that may be issued to an eligible business in
10a calendar year. Under current law, if an eligible business
11has been in operation in the state for five years or less at
12the time of application, the maximum credit is $1 million. If
13the business has been in operation more than five years, the
14maximum is $500,000. The bill eliminates the wait list the
15authority must currently maintain for the chemical program.
16Under the bill, the authority may award an amount of credits
17under the chemical program not to exceed the maximum aggregate
18amount allocated in Code section 15.119(2)(h) for each fiscal
19year beginning on or after July 1, 2023, and ending on or
20before June 30, 2036. Information regarding the chemical
21program that must be submitted to the general assembly and
22to the governor by January 31 each year is detailed in the
23bill and differs from the requirements under current law. The
24future repeal of the chemical program is extended from July 1,
252030, to July 1, 2039. The bill extends the future repeal of
26the chemical program credit allowed under Code sections 422.10B
27and 422.33 from January 1, 2033, to January 1, 2041.
28For purposes of innovation fund investment credits, the
29bill adds “educational technology” to the definition of
30“innovative business”. The bill eliminates the wait list
31for the innovation fund tax credit and extends the time the
32authority’s board may certify an innovation fund from June 30,
332023, to June 30, 2028.
34The bill makes conforming changes to Code sections
3515.318(2)(c)-(d), and 15.354(4)(a)-(f).
-9- 1The sections of this division of the bill amending Code
2sections 15.316(3), 15.318(1), 15.318(3)(a), 15.318(3)(d),
3and 15.318(3)(e) apply to all applications submitted to the
4chemical program on or after July 1, 2023. The sections of the
5division of the bill amending Code sections 15.318(3)(e) and
615.320(1) apply to all eligible businesses placed on a wait
7list for the program pursuant to Code section 15.318(3)(e) on
8or before June 30, 2023.
9The section of this division of the bill amending Code
10section 15E.52(1)(c) applies to all applications submitted
11to the authority’s board for innovation fund investment tax
12credits, administered pursuant to Code section 15E.52, on or
13after July 1, 2023. The section of this division of the bill
14amending Code section 15E.52(5)(b) applies to all applications
15submitted for innovation fund tax credits, administered
16pursuant to Code section 15E.52, placed on a wait list pursuant
17to Code section 15E.52(5)(b).
18DIVISION II — IOWA WINE, BEER, AND SPIRITS PROMOTION
19BOARD. This division of the bill modifies the Iowa wine and
20beer promotion board (promotion board) by adding spirits, and
21adds a fourth member to the promotion board to represent Iowa
22distilleries. The current promotion board has three members.
23In addition to advising the authority on the promotion of
24Iowa-made beer and wine, the bill requires the promotion board
25to advise the authority on the promotion of spirits made in
26Iowa. The authority must consult with the promotion board on
27the best means to promote spirits made in Iowa, and permits the
28authority to contract with private persons for the promotion
29of spirits made in Iowa.
30The bill requires the department of commerce, after certain
31other transfers required by current law from the beer and
32liquor control fund are made, to transfer to the authority the
33lesser of $250,000 or 1 percent of the gross sales of native
34distilled spirits by all class “A” native distilled spirits
35license holders made by the alcoholic beverages division. The
-10-1transferred moneys may be used by the authority to promote
2wine, beer, and spirits made in Iowa, and for administrative
3expenses related to such promotion.
-11-ko/jh
2including certain tax credit programs, the Iowa wine, beer,
3and spirits promotion board, and the beer and liquor control
4fund, and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2TAX CREDITS
3 Section 1. Section 15.119, subsection 2, paragraph h, Code
42023, is amended to read as follows:
5h. The renewable chemical production tax credit program
6administered pursuant to sections 15.315 through 15.322. In
7allocating tax credits pursuant to this subsection for the
8fiscal year beginning July 1, 2021, and for each fiscal year
9thereafter beginning before July 1, 2037, the authority shall
10not allocate more than five million dollars for purposes of
11this paragraph. This paragraph is repealed July 1, 2030 2039.
12 Sec. 2. Section 15.316, subsection 3, Code 2023, is amended
13to read as follows:
143. “Building block chemical” means a molecule converted
15from biomass feedstock as a first product or a secondarily
16derived product that can be further refined into a higher-value
17chemical, material, or consumer product. “Building block
18chemical” includes but is not limited to high-purity glycerol,
19oleic acid, lauric acid, methanoic or formic acid, arabonic
20acid, erythonic acid, glyceric acid, glycolic acid, lactic
21acid, 3-hydroxypropionate, propionic acid, malonic acid,
22serine, succinic acid, fumaric acid, malic acid, aspartic
23acid, 3-hydroxybutyrolactone, acetoin, threonine, itaconic
24acid, furfural, levulinic acid, glutamic acid, xylonic acid,
25xylaric acid, xylitol, arabitol, citric acid, aconitic acid,
265-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid,
27sorbitol, gallic acid, ferulic acid, butyric acid, nonfuel
28butanol, nonfuel ethanol, or such additional molecules as may
29be included by the authority by rule after consultation with
30appropriate experts from Iowa state university, including
31but not limited to the Iowa state university center for
32biorenewable chemicals.
33 Sec. 3. Section 15.318, subsection 1, Code 2023, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. f. All complete applications submitted
-1-1by eligible businesses shall be reviewed and scored on a
2competitive basis by the authority pursuant to rules adopted
3by the authority.
4 Sec. 4. Section 15.318, subsection 2, paragraphs c and d,
5Code 2023, are amended to read as follows:
6c. An eligible business shall fulfill all the requirements
7of the program and the agreement before receiving the authority
8issues the business a tax credit certificate or entering enters
9 into a subsequent agreement with the business under this
10section. The authority may decline to enter into a subsequent
11agreement with the business under this section or to issue a
12tax credit if an agreement is not successfully fulfilled.
13d. Upon establishing that all requirements of the program
14and the agreement have been fulfilled, the authority shall
15issue a tax credit and related tax credit certificate to the
16eligible business stating the amount of renewable chemical
17production tax credit the eligible business may claim.
18 Sec. 5. Section 15.318, subsection 3, paragraphs a, d, and
19e, Code 2023, are amended to read as follows:
20a. The maximum amount of tax credit that the authority may
21be issued issue under section 15.319 to an eligible business
22for the production of renewable chemicals in a calendar year
23shall not exceed the following:
24(1) In the case of an eligible business that has been in
25operation in the state for five years or less at the time of
26application, is one million dollars.
27(2) In the case of an eligible business that has been in
28operation in the state for more than five years at the time of
29application, five hundred thousand dollars.
30d. An The authority shall not issue an eligible business
31shall not receive more than five tax credits credit
32certificates under the program.
33e. The authority shall issue tax credits under the program
34on a first-come, first-served basis until the maximum amount of
35tax credits allocated pursuant to section 15.119, subsection
-2-12, paragraph “h”, is reached. The authority shall maintain a
2list of successful applicants under the program, so that if the
3maximum aggregate amount of tax credits is reached in a given
4fiscal year, eligible businesses that successfully applied
5but for which tax credits were not issued shall be placed on
6a wait list in the order the eligible businesses applied and
7shall be given priority for receiving tax credits in succeeding
8fiscal years. Placement on a wait list pursuant to this
9paragraph shall not constitute a promise binding the state.
10The availability of a tax credit and issuance of a tax credit
11certificate pursuant to this subsection in a future fiscal year
12is contingent upon the availability of tax credits in that
13particular fiscal year. In each fiscal year beginning on or
14after July 1, 2023, and ending on or before June 30, 2036, the
15authority may award an amount of tax credits under the program
16not to exceed the maximum aggregate amount allocated in section
1715.119, subsection 2, paragraph “h”.
18 Sec. 6. Section 15.319, subsection 1, Code 2023, is amended
19to read as follows:
201. An eligible business that has entered into an agreement
21pursuant to section 15.318 may claim a tax credit in an amount
22equal to the product of five cents multiplied by the number
23of pounds of renewable chemicals produced in this state from
24biomass feedstock by the eligible business during the calendar
25year in excess of the eligible business’s pre-eligibility
26production threshold. However, an eligible business shall
27not receive a tax credit for the production of a secondarily
28derived building block chemical if that chemical is also the
29subject of a credit at the time of production as a first
30product. The renewable chemical production tax credit shall
31not be available for any renewable chemical produced before the
322017 calendar year or after the 2026 2035 calendar year.
33 Sec. 7. Section 15.320, subsection 1, Code 2023, is amended
34to read as follows:
351. For purposes of this section, “successful tax credit
-3-1applicant” includes, with respect to each calendar year, an
2eligible business that was issued a tax credit certificate for
3production of renewable chemicals during that calendar year,
4and an eligible business that successfully applied for a tax
5credit for the production of renewable chemicals during that
6calendar year, but was not issued a tax credit and was instead
7placed on a wait list pursuant to section 15.318, subsection
83, paragraph “e”.
9 Sec. 8. Section 15.320, subsection 2, Code 2023, is amended
10by striking the subsection and inserting in lieu thereof the
11following:
122. By January 31 of each year, the board, in cooperation
13with the department of revenue, shall submit to the general
14assembly and to the governor a report describing the activities
15of the program for the most recent calendar year for which the
16tax credit application period has ended pursuant to section
1715.318, subsection 1, paragraph “d”. The report shall, at a
18minimum, include the following information:
19a. The aggregate number of pounds, and a list of each type,
20of renewable chemicals produced in Iowa by all successful
21tax credit applicants during the calendar year prior to the
22calendar year for which the successful applicants first applied
23for a tax credit under the program.
24b. The aggregate number of pounds, and a list of each type,
25of renewable chemicals produced in Iowa by all successful tax
26credit applicants during each calendar year.
27c. The number of employees located in Iowa of all successful
28tax credit applicants during the calendar year prior to the
29calendar year for which the successful applicants first applied
30for a tax credit under the program.
31d. The number of employees located in Iowa of all successful
32tax credit applicants during each calendar year.
33e. For each eligible business issued a renewable chemical
34production tax credit during each calendar year:
35(1) The identity of the eligible business.
-4- 1(2) The amount of the tax credit.
2(3) The manner in which the eligible business first
3qualified as an eligible business under section 15.317,
4subsection 4, whether by organizing, expanding, or locating in
5the state.
6f. The total amount of all renewable chemical production tax
7credits claimed during each calendar year, and the portion of
8each claim issued as a refund.
9 Sec. 9. Section 15.320, subsection 3, Code 2023, is amended
10to read as follows:
113. To protect the presumption of confidentiality
12established in section 15.318, subsection 5, the board shall
13report all information in an aggregate form to prevent,
14as much as possible, information being attributable to any
15particular eligible business, except as provided in subsection
162, paragraph “k” “e”.
17 Sec. 10. Section 15.322, Code 2023, is amended to read as
18follows:
1915.322 Future repeal.
20Section 15.315, 15.316, 15.317, 15.318, 15.319, 15.320,
2115.321, and this section, are repealed July 1, 2030 2039.
22 Sec. 11. Section 15E.52, subsection 1, paragraph c, Code
232023, is amended to read as follows:
24c. “Innovative business” means a business applying novel
25or original methods to the manufacture of a product or the
26delivery of a service. “Innovative business” includes but is
27not limited to a business engaged in the industries of advanced
28manufacturing, biosciences, and information technology, or
29educational technology.
30 Sec. 12. Section 15E.52, subsection 5, paragraph a, Code
312023, is amended to read as follows:
32a. To receive a tax credit, a taxpayer must submit an
33application to the board. The board shall issue certificates
34under this section on a first-come, first-served basis, which
35certificates may be redeemed for tax credits. The board shall
-5-1issue such certificates so that not more than the amount
2allocated for such tax credits under section 15.119, subsection
32, may be claimed. The board shall not issue a certificate
4before September 1, 2014.
5 Sec. 13. Section 15E.52, subsection 5, paragraph b, Code
62023, is amended by striking the paragraph.
7 Sec. 14. Section 15E.52, subsection 8, Code 2023, is amended
8to read as follows:
98. The board shall not certify an innovation fund after June
1030, 2023 2028.
11 Sec. 15. Section 15E.52, subsection 10, paragraph b, Code
122023, is amended by striking the paragraph.
13 Sec. 16. Section 422.10B, Code 2023, is amended to read as
14follows:
15422.10B Renewable chemical production tax credit.
16The taxes imposed under this subchapter, less the credits
17allowed under section 422.12, shall be reduced by a renewable
18chemical production tax credit allowed under section 15.319.
19This section is repealed January 1, 2033 2041.
20 Sec. 17. Section 422.33, subsection 22, Code 2023, is
21amended to read as follows:
2222. The taxes imposed under this subchapter shall be reduced
23by a renewable chemical production tax credit allowed under
24section 15.319. This subsection is repealed January 1, 2033
25 2041.
26 Sec. 18. APPLICABILITY.
271. The following apply to all applications submitted to the
28renewable chemical production tax credit program on or after
29July 1, 2023:
30a. The section of this division of this Act amending section
3115.316, subsection 3.
32b. The section of this division of this Act amending section
3315.318, subsection 1.
34c. The section of this division of this Act amending section
3515.318, subsection 3, paragraphs “a”, “d”, and “e”.
-6- 12. The following apply to all eligible businesses placed on
2a wait list pursuant to section 15.318, subsection 3, paragraph
3“e”, on or before June 30, 2023:
4a. The portion of the section of this division of this Act
5amending section 15.318, subsection 3, paragraph “e”.
6b. The section of this division of this Act amending section
715.320, subsection 1.
83. The following applies to all applications submitted
9to the economic development authority’s board for innovation
10fund investment tax credits, administered pursuant to section
1115E.52, on or after July 1, 2023:
12The section of this division of this Act amending section
1315E.52, subsection 1, paragraph “c”.
144. The following applies to all applications submitted for
15innovation fund tax credits, administered pursuant to section
1615E.52, placed on a wait list pursuant to section 15E.52,
17subsection 5, paragraph “b”:
18The section of this division of this Act amending section
1915E.52, subsection 5, paragraph “b”.
20DIVISION II
21Iowa wine, Beer, and SPIRITS Promotion board
22 Sec. 19. Section 15E.116, Code 2023, is amended to read as
23follows:
2415E.116 Iowa wine, and beer, and spirits promotion board.
25An Iowa wine, and beer, and spirits promotion board is
26created. The board consists of three four members appointed
27by the director of the economic development authority. Each
28member shall serve a term of two years on the board. One member
29shall represent the authority, one member shall represent the
30 Iowa wine makers, and one member shall represent the Iowa beer
31makers, and one member shall represent Iowa distilleries. The
32board shall advise the authority on the best means to promote
33wine, and beer, and spirits made in Iowa.
34 Sec. 20. Section 15E.117, Code 2023, is amended to read as
35follows:
-7- 115E.117 Promotion of Iowa wine, and beer, and spirits.
21. The economic development authority shall consult with
3the Iowa wine, and beer, and spirits promotion board on the
4best means to promote wine, and beer, and spirits made in Iowa.
52. The authority has shall have the authority to contract
6with private persons for the promotion of beer, and wine, and
7spirits made in Iowa.
83. Moneys appropriated to the authority pursuant to
9sections 123.143 and 123.183, and moneys transferred to the
10authority pursuant to section 123.17, subsection 8A, may
11be used by the authority for the purposes of this section,
12including administrative expenses incurred under this section.
13 Sec. 21. Section 123.17, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 8A. After any transfers provided for
16in subsections 3, 5, 6, 7, and 8 are made, and before any
17other transfer to the general fund, the department of commerce
18shall transfer to the economic development authority from the
19beer and liquor control fund the lesser of two hundred fifty
20thousand dollars or one percent of the gross sales of native
21distilled spirits by all class “A” native distilled spirits
22license holders made by the division for the purposes of
23promoting Iowa wine, beer, and spirits.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to the economic development authority,
28including certain tax credit programs, the Iowa wine, beer, and
29spirits promotion board, and the beer and liquor control fund.
30The bill is divided into two divisions.
31DIVISION I — TAX CREDITS. The bill extends the future
32repeal date for the renewable chemical program from July 1,
332030, to July 1, 2036. The bill also extends the availability
34of the renewable chemical program credit for any renewable
35chemical produced prior to the end of calendar year 2035,
-8-1rather than the end of calendar year 2026.
2Under the bill, serine, threonine, lysine, and nonfuel
3ethanol are removed from the definition of “building block
4chemical” for purposes of the renewable chemical program
5(chemical program). All completed applications submitted by
6eligible businesses to the chemical program must be reviewed
7and scored on a competitive basis by the authority pursuant to
8rules adopted by the authority, and $1 million is the maximum
9amount of credit that may be issued to an eligible business in
10a calendar year. Under current law, if an eligible business
11has been in operation in the state for five years or less at
12the time of application, the maximum credit is $1 million. If
13the business has been in operation more than five years, the
14maximum is $500,000. The bill eliminates the wait list the
15authority must currently maintain for the chemical program.
16Under the bill, the authority may award an amount of credits
17under the chemical program not to exceed the maximum aggregate
18amount allocated in Code section 15.119(2)(h) for each fiscal
19year beginning on or after July 1, 2023, and ending on or
20before June 30, 2036. Information regarding the chemical
21program that must be submitted to the general assembly and
22to the governor by January 31 each year is detailed in the
23bill and differs from the requirements under current law. The
24future repeal of the chemical program is extended from July 1,
252030, to July 1, 2039. The bill extends the future repeal of
26the chemical program credit allowed under Code sections 422.10B
27and 422.33 from January 1, 2033, to January 1, 2041.
28For purposes of innovation fund investment credits, the
29bill adds “educational technology” to the definition of
30“innovative business”. The bill eliminates the wait list
31for the innovation fund tax credit and extends the time the
32authority’s board may certify an innovation fund from June 30,
332023, to June 30, 2028.
34The bill makes conforming changes to Code sections
3515.318(2)(c)-(d), and 15.354(4)(a)-(f).
-9- 1The sections of this division of the bill amending Code
2sections 15.316(3), 15.318(1), 15.318(3)(a), 15.318(3)(d),
3and 15.318(3)(e) apply to all applications submitted to the
4chemical program on or after July 1, 2023. The sections of the
5division of the bill amending Code sections 15.318(3)(e) and
615.320(1) apply to all eligible businesses placed on a wait
7list for the program pursuant to Code section 15.318(3)(e) on
8or before June 30, 2023.
9The section of this division of the bill amending Code
10section 15E.52(1)(c) applies to all applications submitted
11to the authority’s board for innovation fund investment tax
12credits, administered pursuant to Code section 15E.52, on or
13after July 1, 2023. The section of this division of the bill
14amending Code section 15E.52(5)(b) applies to all applications
15submitted for innovation fund tax credits, administered
16pursuant to Code section 15E.52, placed on a wait list pursuant
17to Code section 15E.52(5)(b).
18DIVISION II — IOWA WINE, BEER, AND SPIRITS PROMOTION
19BOARD. This division of the bill modifies the Iowa wine and
20beer promotion board (promotion board) by adding spirits, and
21adds a fourth member to the promotion board to represent Iowa
22distilleries. The current promotion board has three members.
23In addition to advising the authority on the promotion of
24Iowa-made beer and wine, the bill requires the promotion board
25to advise the authority on the promotion of spirits made in
26Iowa. The authority must consult with the promotion board on
27the best means to promote spirits made in Iowa, and permits the
28authority to contract with private persons for the promotion
29of spirits made in Iowa.
30The bill requires the department of commerce, after certain
31other transfers required by current law from the beer and
32liquor control fund are made, to transfer to the authority the
33lesser of $250,000 or 1 percent of the gross sales of native
34distilled spirits by all class “A” native distilled spirits
35license holders made by the alcoholic beverages division. The
-10-1transferred moneys may be used by the authority to promote
2wine, beer, and spirits made in Iowa, and for administrative
3expenses related to such promotion.
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