HF 2047 (LSB 5008YH (4) 87)

HOUSE FILE 2047

BY  JACOBY

A BILL FOR

An Act creating a legislative tax credit review committee as a committee of the legislative council.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 2.45, Code 2018, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  a.  The legislative tax credit review committee which shall be composed of ten members of the general assembly, consisting of five members from each house, to be appointed by the legislative council. In appointing the five members of each house to the committee, the council shall appoint three members from the majority party and two members from the minority party.
   b.  The legislative tax credit review committee shall have the powers and duties described in section 2.49.
    Sec. 2.  NEW SECTION.  2.49  Legislative tax credit review committee.
   1.  Duties of committee.  The legislative tax credit review committee shall do all of the following:
   a.  Evaluate each tax credit listed in subsection 3 according to the guidelines set forth in subsection 2 and assess its equity, simplicity, competitiveness, public purpose, adequacy, and extent of conformance with the original purpose of the legislation that enacted the tax credit, as those issues pertain to taxation in Iowa. For purposes of this section, “tax credit” includes any tax credit or other tax incentive listed in subsection 3 or provided under a program listed in subsection 3. 
   b.  For each tax credit reviewed, the committee shall submit a report to the legislative council containing the results of the review. The report shall contain a statement of the policy goals of the tax credit and shall attempt to calculate a return on investment for each tax credit, unless the committee determines such a calculation is not within the capabilities of the committee. For purposes of this paragraph, “return on investment” means the net value, if any, provided to the state by a tax credit after analyzing the cost to the state against the benefit realized by the state of offering that particular tax credit. The report may include recommendations for better aligning tax credits with the original intent of the legislation or with the changing circumstances of the state, or recommendations for the imposition of a limitation on a specified tax credit, a limit on the total amount of tax credits, or any other recommendation for a specific tax credit or the program under which the tax credit is provided.
   2.  Public meetings.  
   a.  The committee shall conduct reviews of each tax credit listed in subsection 3 using a public meeting format that invites substantial and meaningful input and comment from both subject matter experts and the general public.
   b.  Each year, the committee shall conduct at least one public meeting for each tax credit reviewed, and no more than one tax credit shall be reviewed at each meeting. The committee shall designate a time and place for a public meeting and provide public notice at least five days prior to a meeting.
   3.  Schedule of review of tax credits.  The committee shall review the following tax credits according to the following schedule:
   a.  In each even-numbered year:
   (1)  The accelerated career education program job credit allowed under section 260G.4A.
   (2)  The assistive device tax credit allowed under section 422.33. 
   (3)  The endow Iowa tax credit allowed under section 15E.305.
   (4)  The high quality jobs program under chapter 15, subchapter II, part 13. 
   (5)  The redevelopment tax credit allowed under section 15.293A. 
   (6)  The renewable energy tax credit allowed under chapter 476C.
   (7)  The solar energy system tax credit allowed under sections 422.llL and 422.33. 
   (8)  The tax credit for investments in a qualifying business under chapter 15E, subchapter V.
   (9)  The wind energy production tax credit allowed under chapter 476B. 
   (10)  The adoption tax credit allowed under section 422.12A.
   (11)  The charitable conservation contribution tax credit allowed under sections 422.11W and 422.33. 
   (12)  The E-15 plus gasoline promotion tax credit allowed under sections 422.11Y and 422.33.
   (13)  The early childhood development tax credit allowed under section 422.12C. 
   (14)  The ethanol promotion tax credit allowed under sections 422.11N and 422.33. 
   (15)  The industrial new jobs training program under chapter 260E.
   b.  In each odd-numbered year: 
   (1)  The agricultural assets transfer tax credit allowed under section 16.80. 
   (2)  The historic preservation tax credit allowed under chapter 404A. 
   (3)  The renewable chemical production tax credit under sections 15.315 through 15.322. 
   (4)  The school tuition organization tax credit allowed under section 422.11S and 422.33. 
   (5)  The innovation fund investment tax credit allowed under section 15E.52.
   (6)  The workforce housing tax incentives program under sections 15.351 through 15.356. 
   (7)  The biodiesel blended fuel tax credit allowed under sections 422.11P and 422.33. 
   (8)  The child and dependent care tax credit allowed under section 422.12C. 
   (9)  The E-85 gasoline promotion tax credit allowed under sections 422.110 and 422.33. 
   (10)  The earned income tax credit allowed under section 422.12B. 
   (11)  The farm to food donation tax credit allowed under chapter 190B. 
   (12)  The geothermal heat pump tax credit allowed under section 422.11I and the geothermal tax credit allowed under section 422.10A. 
   (13)  The research activities tax credits allowed under sections 15.335, 422.10, and 422.33. 
   (14)  The tuition and textbook tax credit allowed under section 422.12. 
   (15)  The volunteer firefighter and emergency medical services personnel and reserve peace officer tax credits allowed under section 422.12. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a legislative tax credit review committee (committee) as part of the legislative council to review specified tax credits. The committee shall be composed of 10 members of the general assembly appointed by the legislative council, consisting of five from each house, three from each majority party, and two from the minority party. 
   The committee is charged with evaluating a specified list of tax credits and incentives listed in the bill each even-numbered and odd-numbered year, so that the full list is reviewed every two years. The tax credit review list contains the tax credits and incentives listed in the most recent tax credits contingent liabilities report published by the department of revenue and not previously repealed by the general assembly. 
   The committee is required to review tax credits and incentives using a public meeting format that invites substantial and meaningful input and comment from both subject matter experts and the general public. Each year, the committee is required to conduct at least one public meeting for each tax credit or incentive reviewed, and no more than one tax credit or incentive shall be reviewed at each meeting. Public notice of the time and place must be provided at least five days prior to each meeting. 
   In reviewing tax credits and incentives, the committee is required to make certain assessments as described in the bill and to produce reports containing certain information as described in the bill.