HSB 718 (LSB 6152YC (3) 89)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON HEIN)

A BILL FOR

An Act relating to the maximum amount of tax credits that may be granted to taxpayers under the endow Iowa tax credit, and effective date and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15E.305, subsection 2, paragraph a, Code 2022, is amended to read as follows:
   a.  The maximum amount of tax credits granted to a taxpayer shall not exceed five percent of the aggregate amount of tax credits authorized one hundred thousand dollars in a calendar year.
    Sec. 2.  EFFECTIVE DATE.  This Act takes effect January 1, 2023.
    Sec. 3.  APPLICABILITY.  This Act applies to endowment gifts made to an endow Iowa qualified community foundation on or after January 1, 2023.
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 the endow Iowa tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
   Under current law, the aggregate amount of endow Iowa tax credits authorized annually shall not exceed $6 million, and current law prohibits a taxpayer to be granted more than 5 percent of the $6 million aggregate amount.
   The bill reduces the maximum amount of endow Iowa tax credits that may be granted to a taxpayer from 5 percent of the $6 million aggregate amount to an amount not to exceed $100,000.
   The bill takes effect January 1, 2023, and applies to endowment gifts made on or after that date.