HF 2418 (LSB 6113YH (3) 90)

HOUSE FILE 2418

BY  JACOBY

A BILL FOR

An Act creating a legislative tax expenditure committee to review certain tax expenditures prior to repeal or that are otherwise ending.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 2.45, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  a.  The legislative tax expenditure 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 expenditure committee shall have the powers and duties described in section 2.48, subsection 5.
    Sec. 2.  Section 2.48, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  The legislative tax expenditure committee shall do a review of the tax expenditures listed in subsection 3, and the following tax expenditures one year prior to any repeal or otherwise ending of that tax expenditure if possible under the circumstances:
   (1)  Geothermal heat pump tax credit under section 422.12N.
   (2)  Volunteer fire fighter, volunteer emergency medical services personnel, and reserve peace officer tax credit under section 422.12.
   (3)  Workforce housing tax incentives under section 15.355.
   (4)  Enterprise zones program administered pursuant to sections 15E.191 through 15E.197, Code 2014.
   (5)  Accelerated career education program under chapter 260G, in coordination with the community colleges.
   (6)  Adoption tax credit under section 422.12A.
   (7)  Investment in qualifying businesses tax credit under chapter 15E, subchapter V.
   (8)  E-15 plus gasoline promotion tax credit under section 422.11Y.
   (9)  Employer child care tax credit under section 237A.31.
   (10)  Farm to food donation tax credit under chapter 190B, subchapter I.
   (11)  Hoover presidential library tax credit under section 15E.364.
   b.  In reviewing the tax expenditures program subject to repeal or otherwise ending, the review shall encompass the reasons for the repeal or ending of the program balanced with the equity, simplicity, competitiveness, and public purpose of the legislation that enacted the tax expenditure, as those issues pertain to taxation in Iowa.
   c.  For a tax expenditure reviewed pursuant to this subsection, the committee shall submit a report to the legislative council containing the results of the review. The report shall contain a statement of the purpose of the repeal or ending of the program balanced with the policy goals of the tax expenditure and a return on investment calculation for the tax expenditure. For purposes of this paragraph, “return on investment calculation” means analyzing the cost to the state of providing the tax expenditure, analyzing the benefits realized by the state from providing the tax expenditure, and reaching a conclusion as to whether the benefits of the tax expenditure are worth the cost to the state of providing the tax expenditure. The report may make a recommendation relating to the reviewed tax expenditure.
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 expenditure committee to review certain tax expenditures prior to repeal or otherwise ending.
   The bill creates a legislative tax expenditure committee (committee) as a committee of the legislative council which shall be composed of 10 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.
   The purpose of the committee is to review a tax expenditure prior to any repeal or otherwise ending of that tax expenditure program if possible under the circumstances. The bill requires such a review of tax expenditures in Code section 2.48(3), and of other tax expenditures listed in the bill.
   The bill requires the committee to submit a report to the legislative council containing the results of the review. The report may make a recommendation relating to the reviewed tax expenditure.