House File 339 - Introduced HOUSE FILE 339 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 84) A BILL FOR An Act relating to certain tax credits awarded by the economic 1 development authority for equity investments in qualifying 2 businesses or innovation funds and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1250HV (1) 88 ko/jh

H.F. 339 Section 1. Section 15.119, subsection 2, paragraphs d and e, 1 Code 2019, are amended to read as follows: 2 d. The tax credits for investments in qualifying businesses 3 issued pursuant to section 15E.43 . In allocating tax credits 4 pursuant to this subsection , the authority shall allocate at 5 least two million and not more than four million dollars for 6 purposes of this paragraph, unless the authority determines 7 that the tax credits awarded will be less than that amount. 8 e. The tax credits for investments in an innovation fund 9 pursuant to section 15E.52 . In allocating tax credits pursuant 10 to this subsection , the authority shall allocate at least six 11 million and not more than eight million dollars for purposes of 12 this paragraph, unless the authority determines that the tax 13 credits awarded will be less than that amount. 14 Sec. 2. Section 15.119, Code 2019, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 2A. On or before June 30 of each year, 17 the authority shall determine the amount of tax credits that 18 shall be issued pursuant to sections 15E.43 and 15E.52 for 19 the following fiscal year. In allocating the amount of tax 20 credits authorized pursuant to subsection 1 among the programs 21 specified in subsection 2, the aggregate amount allocated by 22 the authority for purposes of subsection 2, paragraphs “d” and 23 “e” , shall not exceed ten million dollars. 24 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 25 importance, takes effect upon enactment. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to certain tax credits awarded by the 30 economic development authority for equity investments in a 31 qualifying business or innovation fund. 32 The bill directs the economic development authority to 33 determine on or before June 30 of each year the amount of tax 34 credits that will be issued for the following fiscal year 35 -1- LSB 1250HV (1) 88 ko/jh 1/ 2

H.F. 339 for equity investments in qualifying businesses pursuant to 1 Code section 15E.43 and in innovation funds pursuant to Code 2 section 15E.52. The bill caps the aggregate amount of these 3 tax credits at $10 million. 4 The bill takes effect upon enactment. 5 -2- LSB 1250HV (1) 88 ko/jh 2/ 2