House File 238 - Introduced HOUSE FILE 238 BY JACOBY A BILL FOR An Act creating a legislative tax credit review committee as a 1 committee of the legislative council. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2089YH (2) 88 jm/jh
H.F. 238 Section 1. Section 2.45, Code 2019, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 5A. a. The legislative tax credit review 3 committee which shall be composed of ten members of the general 4 assembly, consisting of five members from each house, to be 5 appointed by the legislative council. In appointing the five 6 members of each house to the committee, the council shall 7 appoint three members from the majority party and two members 8 from the minority party. 9 b. The legislative tax credit review committee shall have 10 the powers and duties described in section 2.49. 11 Sec. 2. NEW SECTION . 2.49 Legislative tax credit review 12 committee. 13 1. Duties of committee. The legislative tax credit review 14 committee shall do all of the following: 15 a. Evaluate each tax credit listed in subsection 3 according 16 to the guidelines set forth in subsection 2 and assess its 17 equity, simplicity, competitiveness, public purpose, adequacy, 18 and extent of conformance with the original purpose of the 19 legislation that enacted the tax credit, as those issues 20 pertain to taxation in Iowa. For purposes of this section, “tax 21 credit” includes any tax credit or other tax incentive listed in 22 subsection 3 or provided under a program listed in subsection 23 3. 24 b. For each tax credit reviewed, the committee shall submit 25 a report to the legislative council containing the results 26 of the review. The report shall contain a statement of the 27 policy goals of the tax credit and shall attempt to calculate a 28 return on investment for each tax credit, unless the committee 29 determines such a calculation is not within the capabilities 30 of the committee. For purposes of this paragraph, “return 31 on investment” means the net value, if any, provided to the 32 state by a tax credit after analyzing the cost to the state 33 against the benefit realized by the state of offering that 34 particular tax credit. The report may include recommendations 35 -1- LSB 2089YH (2) 88 jm/jh 1/ 5
H.F. 238 for better aligning tax credits with the original intent of 1 the legislation or with the changing circumstances of the 2 state, or recommendations for the imposition of a limitation 3 on a specified tax credit, a limit on the total amount of tax 4 credits, or any other recommendation for a specific tax credit 5 or the program under which the tax credit is provided. 6 2. Public meetings. 7 a. The committee shall conduct reviews of each tax credit 8 listed in subsection 3 using a public meeting format that 9 invites substantial and meaningful input and comment from both 10 subject matter experts and the general public. 11 b. Each year, the committee shall conduct at least one 12 public meeting for each tax credit reviewed, and no more 13 than one tax credit shall be reviewed at each meeting. The 14 committee shall designate a time and place for a public 15 meeting and provide public notice at least five days prior to 16 a meeting. 17 3. Schedule of review of tax credits. The committee shall 18 review the following tax credits according to the following 19 schedule: 20 a. In each even-numbered year: 21 (1) The accelerated career education program job credit 22 allowed under section 260G.4A. 23 (2) The assistive device tax credit allowed under section 24 422.33. 25 (3) The endow Iowa tax credit allowed under section 15E.305. 26 (4) The high quality jobs program under chapter 15, 27 subchapter II, part 13. 28 (5) The redevelopment tax credit allowed under section 29 15.293A. 30 (6) The renewable energy tax credit allowed under chapter 31 476C. 32 (7) The solar energy system tax credit allowed under 33 sections 422.llL and 422.33. 34 (8) The tax credit for investments in a qualifying business 35 -2- LSB 2089YH (2) 88 jm/jh 2/ 5
H.F. 238 under chapter 15E, subchapter V. 1 (9) The wind energy production tax credit allowed under 2 chapter 476B. 3 (10) The adoption tax credit allowed under section 422.12A. 4 (11) The charitable conservation contribution tax credit 5 allowed under sections 422.11W and 422.33. 6 (12) The E-15 plus gasoline promotion tax credit allowed 7 under sections 422.11Y and 422.33. 8 (13) The ethanol promotion tax credit allowed under 9 sections 422.11N and 422.33. 10 (14) The industrial new jobs training program under chapter 11 260E. 12 b. In each odd-numbered year: 13 (1) The agricultural assets transfer tax credit allowed 14 under section 16.80. 15 (2) The historic preservation tax credit allowed under 16 chapter 404A. 17 (3) The renewable chemical production tax credit under 18 sections 15.315 through 15.322. 19 (4) The school tuition organization tax credit allowed 20 under section 422.11S and 422.33. 21 (5) The innovation fund investment tax credit allowed under 22 section 15E.52. 23 (6) The workforce housing tax incentives program under 24 sections 15.351 through 15.356. 25 (7) The biodiesel blended fuel tax credit allowed under 26 sections 422.11P and 422.33. 27 (8) The child and dependent care tax credit allowed under 28 section 422.12C. 29 (9) The E-85 gasoline promotion tax credit allowed under 30 sections 422.110 and 422.33. 31 (10) The earned income tax credit allowed under section 32 422.12B. 33 (11) The farm to food donation tax credit allowed under 34 chapter 190B. 35 -3- LSB 2089YH (2) 88 jm/jh 3/ 5
H.F. 238 (12) The research activities tax credits allowed under 1 sections 15.335, 422.10, and 422.33. 2 (13) The tuition and textbook tax credit allowed under 3 section 422.12. 4 (14) The volunteer firefighter and emergency medical 5 services personnel and reserve peace officer tax credits 6 allowed under section 422.12. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill creates a legislative tax credit review committee 11 (committee) as part of the legislative council to review 12 specified tax credits. The committee shall be composed of 10 13 members of the general assembly appointed by the legislative 14 council, consisting of five from each house, three from each 15 majority party, and two from the minority party. 16 The committee is charged with evaluating a specified 17 list of tax credits and incentives listed in the bill each 18 even-numbered and odd-numbered year, so that the full list 19 is reviewed every two years. The tax credit review list 20 contains the tax credits and incentives listed in the most 21 recent tax credits contingent liabilities report published by 22 the department of revenue and not previously repealed by the 23 general assembly. 24 The committee is required to review tax credits and 25 incentives using a public meeting format that invites 26 substantial and meaningful input and comment from both 27 subject matter experts and the general public. Each year, the 28 committee is required to conduct at least one public meeting 29 for each tax credit or incentive reviewed, and no more than 30 one tax credit or incentive shall be reviewed at each meeting. 31 Public notice of the time and place must be provided at least 32 five days prior to each meeting. 33 In reviewing tax credits and incentives, the committee 34 is required to make certain assessments as described in the 35 -4- LSB 2089YH (2) 88 jm/jh 4/ 5
H.F. 238 bill and to produce reports containing certain information as 1 described in the bill. 2 -5- LSB 2089YH (2) 88 jm/jh 5/ 5