SF 496 (LSB 2194SS (8) 87)

SENATE FILE 496

BY  DANIELSON

A BILL FOR

An Act relating to state and local government revenue and finance by requiring the legislative services agency to conduct a biennial tax expenditure study and report to the general assembly and the legislative tax expenditure committee, making the availability of tax expenditures in future fiscal years subject to approval by the general assembly, and limiting appropriations for certain property tax credits in future fiscal years.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
TAX EXPENDITURE STUDY

    Section 1.  NEW SECTION.  2A.9  Tax expenditure study and report.
   1.  For purposes of this section, “tax expenditure” means the same as defined in section 2.48, subsection 1, paragraph “a”.
   2.  Beginning in 2018, and every even-numbered year thereafter, the legislative services agency shall conduct a study and prepare a written report on the fiscal impact that tax expenditures have on state and local government capacity to raise revenue. The study shall examine tax expenditures related to the following:
   a.  The individual income tax imposed in chapter 422, division II.
   b.  The corporate income tax imposed in chapter 422, division III.
   c.  Tax credits available against the franchise tax imposed in chapter 422, division V, the insurance companies tax imposed in chapter 432, and the moneys and credits tax imposed in section 533.329.
   d.  The sales and use taxes imposed in chapter 423.
   e.  Property taxes levied by or on behalf of political subdivisions.
   3.  a.  The 2018 study shall examine the relevant tax expenditures for the most recent year for which complete tax expenditure data is available.
   b.  Each subsequent study shall examine the relevant tax expenditure data for the year or years for which complete tax expenditure data is available since the last complete year that was the subject of a previous report. However, if there is not a new year for which complete tax expenditure data is available, the study shall examine the available tax expenditure data for the year following the last year for which complete tax expenditure data was included in the previous report.
   4.  The legislative services agency shall submit the written report to the general assembly and the chairpersons of the legislative tax expenditure committee by January 31, 2019, and by January 31 of each odd-numbered year thereafter, containing the results of the study conducted during the previous year.
   5.  The department of revenue and any other state or local agency shall cooperate with the legislative services agency in providing the information necessary to complete each study.
DIVISION II
TAX EXPENDITURE LIMITATION

    Sec. 2.  NEW SECTION.  421C.1  Tax expenditure defined.
   Any reference to “tax expenditure” in this chapter includes all of the following:
   1.  Withholding tax credits.
   a.  The accelerated career education program job credit allowed under section 260G.4A.
   b.  The new jobs credit from withholding allowed under section 15A.7, or section 15E.197, Code 2014, or section 260E.5.
   c.  The targeted jobs withholding tax credit allowed under chapter 403.19A.
   2.  Tax credits.
   a.  The agricultural assets transfer tax credit allowed under sections 16.80 and 422.11M and section 422.33, subsection 21. 
   b.  The custom farming contract tax credit allowed under sections 16.81 and 422.11M and section 422.33, subsection 21.
   c.  The farm to food donation tax credit allowed under chapter 190B, section 422.11R, and section 422.33, subsection 30.
   d.  The charitable conservation contribution tax credit allowed under section 422.11W and section 422.33, subsection 25. 
   e.  The school tuition organization tax credit allowed under section 422.11S and section 422.33, subsection 28.
   f.  The personal exemption credits allowed under section 422.12, subsection 2, paragraph “a”.
   g.  The tuition and textbook tax credit allowed under section 422.12, subsection 2, paragraph “b”.
   h.  The volunteer fire fighter and emergency medical services personnel tax credit allowed under section 422.12, subsection 2, paragraph “c”.
   i.  The reserve peace officer tax credit allowed under section 422.12, subsection 2, paragraph “d”.
   j.  The adoption tax credit allowed under section 422.12A.
   k.  The child and dependent care tax credit allowed under section 422.12C.
   l.  The early childhood development tax credit allowed under section 422.12C.
   m.  The earned income tax credit allowed under section 422.12B. 
   n.  The geothermal heat pump tax credit allowed under section 422.11I.
   o.  The geothermal tax credit allowed under section 422.10A.
   p.  The solar energy system tax credit allowed under section 422.11L, section 422.33, subsection 29, section 422.60, subsection 12, and section 533.329, subsection 2, paragraph “l”.
   q.  The wind energy production tax credit and the renewable energy production tax credit allowed under chapters 476B and 476C, section 422.llJ, section 422.33, subsection 16, section 422.60, subsection 7, section 432.12E, and section 437A.17B.
   r.  The biodiesel blended fuel tax credit allowed under section 422.11P and section 422.33, subsection 11C.
   s.  The E-15 plus gasoline promotion tax credit allowed under section 422.11Y and section 422.33, subsection 11D.
   t.  The E-85 gasoline promotion tax credit allowed under section 422.11O and section 422.33, subsection 11B.
   u.  The ethanol promotion tax credit allowed under section 422.11N and section 422.33, subsection 11A.
   v.  The fuel tax credit allowed under sections 422.110 through 422.112.
   w.  The renewable chemical production tax credit allowed under sections 15.319 and 422.10B and section 422.33, subsection 22.
   x.  The endow Iowa tax credit allowed under sections 15E.305 and 422.11H, section 422.33, subsection 14, section 422.60, subsection 6, section 432.12D, and section 533.329, subsection 2, paragraph “h”. 
   y.  The investment tax credit allowed under section 15.333, section 422.11F, subsection 2, section 422.33, subsection 12, paragraph “b”, section 422.60, subsection 5, paragraph “b”, and section 533.329, subsection 2, paragraph “e”.
   z.  The insurance premiums tax credit allowed under section 15.333A and section 432.12C, subsection 2.
   aa.  The new jobs tax credit allowed under section 422.11A and section 422.33, subsection 6.
   ab.  The innovation fund investment tax credit allowed under sections 15E.52 and 422.11Z, section 422.33, subsection 13, section 422.60, subsection 11, section 432.12M, and section 533.329 subsection 2, paragraph “j”.
   ac.  The workforce housing investment tax credit allowed under section 15.355, subsection 3, section 422.11C, section 422.33, subsection 15, section 422.60, subsection 13, section 432.12G, and section 533.239, subsection 2, paragraph “k”.
   ad.  The research activities credit and supplemental research activities credit allowed under sections 15.335 and 422.10 and section 422.33, subsection 5.
   ae.  The assistive device tax credit allowed under section 422.33, subsection 9.
   af.  The corporate tax credit for certain sales taxes paid by third-party developers allowed under section 15.331C, section 422.33, subsection 19, section 422.60, subsection 8, section 432.12H, and section 533.329, subsection 2, paragraph “d”.
   ag.  The historic preservation and cultural and entertainment district tax credit allowed under chapter 404A, section 422.11D, section 422.33, subsection 10, section 422.60, subsection 4, and section 432.12A.
   ah.  The redevelopment tax credit allowed under chapter 15, subchapter II, part 9, section 422.11V, section 422.33, subsection 26, section 422.60, subsection 10, section 432.12L, and section 533.329, subsection 2, paragraph “i”.
   ai.  The investment tax credit allowed under section 15E.43, section 422.11F, subsection 1, section 422.33, subsection 12, section 422.60, subsection 5, paragraph “a”, section 432.12C, subsection 1, and section 533.329, subsection 2, paragraph “f”.
   aj.  The Iowa taxpayers trust fund tax credit allowed under section 422.11E.
   ak.  The minimum tax credit allowed under section 422.11B and section 422.33, subsection 7.
   3.  Sales and use tax refunds.
   a.  The high quality jobs program sales and use tax refund allowed under section 15.331A.
   b.  The workforce housing tax incentive program sales and use tax refund allowed under section 15.355, subsection 2.
   c.  The wind energy production tax credit and the renewable energy production tax credit sales and use tax refunds allowed under chapters 476B and 476C and section 423.4, subsection 4.
   d.  The sales and use tax refunds allowed under section 423.4.
   4.  Exemptions from the sales and use tax, hotel and motel tax, equipment tax, real estate transfer tax, automobile rental excise tax, fee for new registration, and motor fuel and special fuel taxes.
   a.  The exemptions from the sales tax provided in section 423.3, except subsections 1 and 43.
   b.  The exemptions from the use tax provided in section 423.6, except subsections 1, 2, and 4.
   c.  The exemptions from the state hotel and motel tax provided in section 423A.5, subsection 1.
   d.   The exemptions from the automobile rental excise tax provided in section 423C.3, subsection 1.
   e.  The exemptions from the equipment tax provided in section 423D.3.
   f.  The exemptions from the real estate transfer tax provided in section 428A.2.
   g.  The exemptions from the fee for new registration provided in section 321.105A, subsection 2, paragraphs “a” through “c”.
   h.  The exemptions from the motor fuel and special fuel taxes provided in section 452A.17, subsection 1, paragraph “a”, except subparagraph (1).
   5.  Inheritance tax exemptions and deductions.
   a.  The exemptions from the inheritance tax provided in sections 450.4 and 450.9.
   b.  The deductions of liabilities from the gross value of an estate provided in section 450.12.
   6.  Adjustments to calculation of income taxes, franchise tax, and moneys and credits tax.
   a.  The adjustments allowed in calculating net income for individual income tax purposes under section 422.7, subsections 5, 7, 8, 9, 10, 12, 12A, 13, 16, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 31A, and 31B, subsection 32, paragraph “a”, subsection 33, subsection 34, paragraph “a”, and subsections 34A, 35, 37, 38, 40, 42, 42A, 44, 45, 46, 46A, 47, 49, 50, 54, 55, 56, 57, and 58.
   b.  The subtractions allowed in section 422.7, subsection 2, and section 422.35, subsection 2, in calculating net income for purposes of the individual income tax and the corporate income tax and franchise tax of interest and dividends from certain Iowa bonds exempt from taxation as otherwise provided by law, including those listed in section 422.7, subsection 2, paragraphs “a” through “v”.
   c.  The deductions from net income for individual income tax purposes allowed under section 422.9, subsections 1 and 2.
   d.  The adjustments allowed in calculating net income for corporate income tax and franchise tax purposes under section 422.35, subsections 4, 5, 6, 6A, 7, 11, 12, 17, 22, and 25.
   e.  The adjustments made in calculating net income for franchise tax purposes under section 422.61, subsection 3, paragraph “g”.
   f.  The forty thousand dollar exemption from the moneys and credits tax allowed to a state credit union in section 533.329, subsection 2, paragraph “a”.
    Sec. 3.  NEW SECTION.  421C.2  Tax expenditures limited —— general assembly annual review and approval.
   1.  Findings and purpose.  The general assembly finds that the number and amount of credits, refunds, rebates, deductions, and exemptions provided against the taxes imposed by this state are substantial and warrant annual review and approval by the general assembly. The purpose of this chapter is to provide for a systematic review and approval by the general assembly of each tax expenditure on an annual basis in order to promote more sustainable and responsible tax revenue collection, budgeting, and appropriation processes in this state.
   2.  Tax expenditure review and approval —— generally.
   a.  Beginning with the 2018 regular session of the general assembly and during each regular session thereafter, the general assembly shall review each tax expenditure listed in section 421C.1, and shall, if desired, expressly approve through an Act of the general assembly the applicability of the tax expenditure for the forthcoming fiscal year as provided in and subject to the limitations of subsections 3 through 8.
   b.  Notwithstanding any other provision of law to the contrary, the provisions of subsections 3 through 8 apply for each fiscal year beginning on or after July 1, 2018, and a tax expenditure not approved by the general assembly as provided in those subsections shall not be available under Iowa law for a fiscal year beginning on or after July 1, 2018.
   3.  Withholding tax credits.  The withholding tax credits listed in section 421C.1, subsection 1, shall not be allowed against any amounts withheld by an employer from wages paid during a fiscal year beginning on or after July 1, 2018, unless the applicability of the withholding tax credit to that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
   4.  Tax credits.  The tax credits listed in section 421C.1, subsection 2, shall not be allowed for any tax year beginning during a fiscal year beginning on or after July 1, 2018, unless the applicability of the tax credit to tax years beginning during that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
   5.  Sales and use tax refunds.  The sales and use tax refunds listed in section 421C.1, subsection 3, shall not be allowed for any sales and use tax liability incurred during a fiscal year beginning on or after July 1, 2018, unless the applicability of the sales and use tax refund to that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
   6.  Exemptions from the sales and use tax, hotel and motel tax, equipment tax, real estate transfer tax, automobile rental excise tax, fee for new registration, and motor fuel and special fuel taxes.  The exemptions listed in section 421C.1, subsection 4, shall not be allowed for any sales, purchases, transfers, or uses during a fiscal year beginning on or after July 1, 2018, unless the applicability of the exemption to that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
   7.  Inheritance tax exemptions and deductions.  The inheritance tax exemptions and deductions listed in section 421C.1, subsection 5, shall not be allowed for any estate of a decedent dying during a fiscal year beginning on or after July 1, 2018, unless the applicability of the exemption or deduction to that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
   8.  Adjustments to calculation of income taxes, franchise tax, and moneys and credits tax.  The adjustments to the calculation of the income taxes, franchise tax, and moneys and credits tax listed in section 421C.1, subsection 6, shall not be allowed for any tax year beginning during a fiscal year beginning on or after July 1, 2018, unless the applicability of the adjustment to tax years beginning during that fiscal year was expressly approved through an Act of the general assembly during the last regular session beginning prior to July 1 of the applicable fiscal year.
    Sec. 4.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional legislation may be required to fully implement this division of this Act. The director of the department of revenue shall, in compliance with section 2.16, prepare draft legislation for submission to the legislative services agency, if necessary, to implement the annual review and approval of tax expenditures under this division of this Act and under other provisions of law.
DIVISION III
PROPERTY TAX CREDITS AND PAYMENTS LIMITATION

    Sec. 5.  Section 25B.7, subsection 2, Code 2017, is amended to read as follows:
   2.  The requirement for fully funding and the consequences of not fully funding credits and exemptions under subsection 1 also apply to all of the following:
   a.  Homestead tax credit pursuant to sections 425.1 through 425.15.
   b.  Low-income property tax credit and elderly and disabled property tax credit pursuant to sections 425.16 through 425.40.
   c.  Family farm property tax credit pursuant to chapter 425A.
   d.  Agricultural land property tax credit pursuant to chapter 426.
   c.  e.  Military service property tax credit and exemption pursuant to chapter 426A, to the extent of six dollars and ninety-two cents per thousand dollars of assessed value of the exempt property.
   f.  Business property tax credit pursuant to chapter 426C.
   g.  Manufactured or mobile home tax credit pursuant to section 435.22.
    Sec. 6.  Section 425.1, subsections 1, 2, and 3, Code 2017, are amended to read as follows:
   1.  a.  A homestead credit fund is created. There For fiscal years beginning before July 1, 2018, there is appropriated annually from the general fund of the state to the department of revenue to be credited to the homestead credit fund, an amount sufficient to implement this chapter.
   b.  The Subject to the availability of funding, the director of the department of administrative services shall issue warrants on the homestead credit fund payable to the county treasurers of the several counties of the state under this chapter.
   2.  The Subject to the availability of funding, the homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state in an amount equal to the actual levy on the first four thousand eight hundred fifty dollars of actual value for each homestead.
   3.  The Subject to the availability of funding, the amount due each county shall be paid in two payments on November 15 and March 15 of each fiscal year, drawn upon warrants payable to the respective county treasurers. The two payments shall be as nearly equal as possible.
    Sec. 7.  Section 425.23, subsection 3, paragraph a, Code 2017, is amended to read as follows:
   a.  A person who is eligible to file a claim for credit for property taxes due and who has a household income of eight thousand five hundred dollars or less and who has an unpaid special assessment levied against the homestead may file a claim for a special assessment credit with the county treasurer. The department shall provide to the respective treasurers the forms necessary for the administration of this subsection. The claim shall be filed not later than September 30 of each year. Upon the filing of the claim, interest for late payment shall not accrue against the amount of the unpaid special assessment due and payable. The claim filed by the claimant constitutes a claim for credit of an amount equal to the actual amount due upon the unpaid special assessment, plus interest, payable during the fiscal year for which the claim is filed against the homestead of the claimant. However, where the claimant is an individual described in section 425.17, subsection 2, paragraph “a”, subparagraph (2), and the tentative credit is determined according to the schedule in subsection 1, paragraph “b”, subparagraph (2), of this section, the claim filed constitutes a claim for credit of an amount equal to one-half of the actual amount due and payable during the fiscal year. The treasurer shall certify to the director of revenue not later than October 15 of each year the total amount of dollars due for claims allowed. The amount of reimbursement due each county shall be certified by the director of revenue and, subject to the availability of funding, paid by the director of the department of administrative services by November 15 of each year, drawn upon warrants payable to the respective treasurer. There For fiscal years beginning before July 1, 2018, there is appropriated annually from the general fund of the state to the department of revenue an amount sufficient to carry out the provisions of this subsection. The treasurer shall credit any moneys received from the department against the amount of the unpaid special assessment due and payable on the homestead of the claimant.
    Sec. 8.  Section 425.39, Code 2017, is amended to read as follows:
   425.39  Fund created —— appropriation —— priority.
   The elderly and disabled property tax credit and reimbursement fund is created. There For fiscal years beginning before July 1, 2018, there is appropriated annually from the general fund of the state to the department of revenue to be credited to the elderly and disabled property tax credit and reimbursement fund, from funds not otherwise appropriated, an amount sufficient to implement this division for claimants described in section 425.17, subsection 2, paragraph “a”, subparagraph (1).
    Sec. 9.  Section 425A.1, Code 2017, is amended to read as follows:
   425A.1  Family farm tax credit fund.
   The family farm tax credit fund is created in the office of the treasurer of state. There For fiscal years beginning before July 1, 2018, there shall be transferred annually to the fund the first ten million dollars of the amount annually appropriated to the agricultural land credit fund, provided in section 426.1. Any balance in the fund on June 30 shall revert to the general fund.
    Sec. 10.  Section 426.1, Code 2017, is amended to read as follows:
   426.1  Agricultural land credit fund.
   There is created as a permanent fund in the office of the treasurer of state a fund to be known as the agricultural land credit fund, and for the purpose of establishing and maintaining this fund for each fiscal year beginning before July 1, 2018, there is appropriated thereto from funds in the general fund not otherwise appropriated the sum of thirty-nine million one hundred thousand dollars of which the first ten million dollars shall be transferred to and deposited into the family farm tax credit fund created in section 425A.1. Any balance in said fund on June 30 shall revert to the general fund.
    Sec. 11.  Section 426A.1A, Code 2017, is amended to read as follows:
   426A.1A  Appropriation.
   There For fiscal years beginning before July 1, 2018, there is appropriated from the general fund of the state the amounts necessary to fund the credits provided under this chapter.
    Sec. 12.  Section 426A.2, Code 2017, is amended to read as follows:
   426A.2  Military service tax credit.
   The Subject to the availability of funding, moneys shall be apportioned each year so as to replace all or a portion of the tax which would be due on property eligible for military service tax exemption in the state, if the property were subject to taxation, the amount of the credit to be not more than six dollars and ninety-two cents per thousand dollars of assessed value of property which would be subject to the tax, except for the military service tax exemption.
    Sec. 13.  Section 426C.2, subsection 1, Code 2017, is amended to read as follows:
   1.  A business property tax credit fund is created in the state treasury under the authority of the department. For the fiscal year beginning July 1, 2014, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of fifty million dollars to be used for business property tax credits authorized in this chapter. For the fiscal year beginning July 1, 2015, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of one hundred million dollars to be used for business property tax credits authorized in this chapter. For the each fiscal year in the fiscal period beginning July 1, 2016, and each fiscal year thereafter, and ending June 30, 2018, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of one hundred twenty-five million dollars to be used for business property tax credits authorized in this chapter.
    Sec. 14.  Section 426C.5, subsections 2 and 3, Code 2017, are amended to read as follows:
   2.  The Subject to the availability of funds, the director of revenue shall authorize the department of administrative services to draw warrants on the fund payable to the county treasurers of the several counties of the state in the amounts certified by the department.
   3.  The Subject to the availability of funds, the amount due each county shall be paid in two payments on November 15 and March 15 of each fiscal year, drawn upon warrants payable to the respective county treasurers. The two payments shall be as nearly equal as possible.
    Sec. 15.  Section 435.22, subsection 4, paragraphs e and f, Code 2017, are amended to read as follows:
   e.  The Subject to the availability of funds, the amounts due each county shall be paid by the department of revenue on December 15 of each year, drawn upon warrants payable to the respective county treasurers. The county treasurer in each county shall apportion the payment in accordance with section 435.25.
   f.  There For fiscal years beginning before July 1, 2018, there is appropriated annually from the general fund of the state to the department of revenue an amount sufficient to carry out this subsection.
    Sec. 16.  Section 441.21A, subsection 1, paragraph a, Code 2017, is amended to read as follows:
   a.  For each fiscal year beginning on or after July 1, 2014, but before July 1, 2018, there is appropriated from the general fund of the state to the department of revenue an amount necessary for the payment of all commercial and industrial property tax replacement claims under this section for the fiscal year. However, for a fiscal year beginning on or after July 1, 2017, the total amount of moneys appropriated from the general fund of the state to the department of revenue for the payment of commercial and industrial property tax replacement claims in that fiscal year shall not exceed the total amount of money necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to state and local government revenue and finance.
   DIVISION I —— TAX EXPENDITURE STUDY. Division I requires the legislative services agency (LSA) to conduct a study on the fiscal impact that tax expenditures for certain taxes identified in the bill have on the revenue-raising capacity of the state. “Tax expenditure” is defined in the bill, but generally includes any exclusion from the operation or collection of a tax such as a credit, exemption, deduction, rebate, or refund. The first study is required to be completed in 2018, and subsequent studies are required every even-numbered year thereafter. The 2018 study is required to examine the relevant tax expenditures for the most recent year for which complete tax expenditure data is available. Each subsequent study shall examine the relevant tax expenditure data for the year or years for which complete data is available since the last complete year studied. However, if there is no new year with complete tax expenditure data available, LSA shall examine the available data for the year following the last complete year that was the subject of a previous report. Following each study, LSA is required to issue a report to the general assembly and the chairpersons of the legislative tax expenditure committee by January 31 of the following year, with the first report being required by January 31, 2019. The bill requires the department of revenue and any other state or local agency to cooperate with LSA in providing the information necessary to complete each study.
   DIVISION II —— TAX EXPENDITURE LIMITATION. Division II requires the general assembly to review all tax expenditures during each regular session beginning in the 2018 regular session. “Tax expenditure” is defined in the bill but generally includes credits, deductions, exemptions, refunds, and rebates available against the income taxes, franchise taxes, moneys and credits tax, inheritance tax, sale and use taxes, and various other special excise taxes imposed by the state.
   In order for any particular tax expenditure to be applicable for a fiscal year beginning on or after July 1, 2018, the bill requires the applicability of that tax expenditure during the fiscal year to be approved through an Act of the general assembly during the regular session preceding the beginning of the fiscal year. Any such tax expenditure not approved for a fiscal year as provided in the bill shall not be available under Iowa law.
   The bill provides rules for the applicability of different types of tax expenditures. A withholding tax credit approved for any particular fiscal year shall apply to amounts withheld by an employer from wages paid during that fiscal year. Tax credits approved for any particular fiscal year shall be available for tax years beginning during that fiscal year. Sales and use tax refunds approved for any particular fiscal year shall be available for sales and use tax liability incurred during that fiscal year. Sales and use tax and other specified excise tax exemptions approved for any particular fiscal year shall be available for sales, purchases, transfers, or uses during that fiscal year. Inheritance tax exemptions and deductions approved for any particular fiscal year shall be available for estates of decedents dying during that fiscal year. Exemptions and deductions provided against the calculation of the income taxes, the franchise tax, and the moneys and credits tax that are approved for any particular fiscal year shall be available for tax years beginning during that particular fiscal year.
   The bill provides that additional legislation may be required to fully implement the review and approval of tax expenditures required under the bill and requires the director of the department of revenue to prepare draft legislation in compliance with Code section 2.16 for submission to the legislative services agency, if necessary, to implement the bill.
   DIVISION III —— PROPERTY TAX CREDITS AND PAYMENTS LIMITATION. Division III strikes the standing limited or unlimited appropriations in Iowa Code for several property tax credits for fiscal years beginning on or after July 1, 2018. This includes the homestead and disabled veteran property tax credit in division I of Code chapter 425, the property tax credit or rent reimbursement for elderly and disabled in division II of Code chapter 425, the family farm tax credit in Code chapter 425A, the agricultural land tax credit in Code chapter 426, the military service tax credit in Code chapter 426A, the business property tax credit in Code chapter 426C, and the manufactured and the mobile home tax credit in Code section 435.22. To the extent these credits were not already included under Code section 25B.7 (funding property tax credits and exemptions), the bill adds these tax credits to the list of tax credits which local governments are only required to provide to the extent such credit will be funded by a state appropriation. 
   Finally, the bill strikes, for fiscal years beginning on or after July 1, 2018, the standing unlimited appropriation in Code section 441.21A for the repayment to local governments of commercial and industrial property tax replacement claims.