House Study Bill 123 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to the Hoover presidential library tax credit 1 available against the individual and corporate income taxes, 2 the franchise tax, the insurance premiums tax, and the 3 moneys and credits tax. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1647YC (4) 90 jm/jh

H.F. _____ Section 1. Section 15E.364, subsections 1 and 7, Code 2023, 1 are amended to read as follows: 2 1. For tax years beginning on or after January 1, 2021, 3 but before January 1, 2024 2025 , a tax credit shall be allowed 4 against the taxes imposed in chapter 422, subchapters II , III , 5 and V , and in chapter 432 , and against the moneys and credits 6 tax imposed in section 533.329 , equal to twenty-five percent of 7 a person’s donation to the Hoover presidential foundation for 8 the Hoover presidential library and museum renovation project 9 fund. An individual may claim a tax credit under this section 10 of a partnership, limited liability company, S corporation, 11 estate, or trust electing to have income taxed directly to 12 the individual. The amount claimed by the individual shall 13 be based upon the pro rata share of the individual’s earnings 14 from the partnership, limited liability company, S corporation, 15 estate, or trust. 16 7. This section is repealed December 31, 2029 2030 . 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to the Hoover presidential library tax 21 credit available against the individual and corporate income 22 taxes, the franchise tax, the insurance premiums tax, and the 23 moneys and credits tax. 24 Currently, the tax credit applies to tax years beginning on 25 or after January 1, 2021, but before January 1, 2024. The bill 26 extends the tax years a taxpayer is able to take the tax credit 27 by one tax year. Under the bill, a taxpayer is able to take the 28 tax credit through tax years beginning before January 1, 2025. 29 The bill extends the repeal date of the tax credit by one 30 year to align with the current carryforward provisions allowing 31 any unused portion of the tax credit to be carried forward up 32 to five years. 33 The Hoover presidential library tax credit equals 25 percent 34 of a taxpayer’s donation to the Hoover presidential foundation 35 -1- LSB 1647YC (4) 90 jm/jh 1/ 2