HF 203 (LSB 1775YH (5) 91)

HOUSE FILE 203

BY  NORDMAN

A BILL FOR

An Act creating a Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15E.365  Caitlin Clark and Lisa Bluder monument tax credit.
   1.  For tax years beginning on or after January 1, 2026, but before January 1, 2030, a tax credit shall be allowed against the taxes imposed in chapter 422, subchapters II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, equal to twenty-five percent of a person’s donation to the Caitlin Clark and Lisa Bluder monument tax credit fund in section 15E.366. An individual may claim a tax credit under this section of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust.
   2.  The amount of the donation for which the tax credit is claimed shall not be deductible in determining taxable income for state income tax purposes.
   3.  Any tax credit in excess of the person’s tax liability for the tax year may be credited to the tax liability for the following five years or until depleted, whichever occurs first. A tax credit shall not be carried back to a tax year prior to the tax year in which the person claims the tax credit.
   4.  a.  The aggregate amount of tax credits authorized pursuant to this section shall not exceed a total of one million dollars.
   b.  The maximum amount of tax credits granted to a person shall not exceed five percent of the aggregate amount of tax credits authorized.
   c.  Ten percent of the aggregate amount of tax credits authorized shall be reserved for those donations in amounts of thirty thousand dollars or less. If any portion of the reserved tax credits have not been distributed by September 1, 2028, the remaining reserved tax credits shall be available to any other eligible person.
   5.  The tax credit shall not be transferable to any other person.
   6.  The authority shall develop a system for authorization of tax credits under this section and shall control the distribution of all tax credits to persons providing a donation subject to this section. The authority shall adopt administrative rules pursuant to chapter 17A for the qualification and administration of the donations made pursuant to this section.
   7.  This section is repealed December 31, 2035.
    Sec. 2.  NEW SECTION.  15E.366  Caitlin Clark and Lisa Bluder monument tax credit fund.
   1.  A Caitlin Clark and Lisa Bluder monument tax credit fund is created in the state treasury under the control of the authority. The fund shall consist of appropriations made to the fund, donations, and transfers of interest, earnings, and moneys from other funds or sources as provided by law. The Caitlin Clark and Lisa Bluder monument fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state.
   2.  a.  Moneys in the fund shall be used by the authority to fund the construction of a monument of Caitlin Clark and Lisa Bluder to celebrate the accomplishments of Caitlin Clark and Lisa Bluder on and off the basketball court. The authority shall coordinate the solicitation of donations to the fund with the governor’s office, the university of Iowa, and the offices of the majority leader of the senate and the speaker of the house to determine the location and type of monument to be constructed.
   b.  The authority shall not solicit donations in excess of the estimated costs to construct the monument.
   3.  Moneys in the Caitlin Clark and Lisa Bluder monument fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   4.  This section is repealed December 31, 2035, and any remaining moneys in the fund shall be transferred to the general fund of the state.
    Sec. 3.  NEW SECTION.  422.11X  Caitlin Clark and Lisa Bluder monument tax credit.
   The tax imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a Caitlin Clark and Lisa Bluder monument tax credit authorized pursuant to section 15E.365.
    Sec. 4.  Section 422.33, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  33.  The taxes imposed under this subchapter shall be reduced by a Caitlin Clark and Lisa Bluder monument tax credit allowed under section 15E.365.
    Sec. 5.  Section 422.60, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.  The taxes imposed under this subchapter shall be reduced by a Caitlin Clark and Lisa Bluder monument tax credit allowed under section 15E.365.
    Sec. 6.  NEW SECTION.  432.12P  Caitlin Clark and Lisa Bluder monument tax credit.
   The taxes imposed under this chapter shall be reduced by a Caitlin Clark and Lisa Bluder monument tax credit allowed under section 15E.365.
    Sec. 7.  Section 533.329, subsection 2, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  n.  The moneys and credits tax imposed under this section shall be reduced by a Caitlin Clark and Lisa Bluder monument tax credit allowed under section 15E.365.
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 Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes.
   The amount of the credit shall equal 25 percent of a person’s donation to the Caitlin Clark and Lisa Bluder monument fund created in the bill.
   The bill specifies that the amount of the donation for which the tax credit is claimed shall not be deductible for state income tax purposes.
   A credit provided in the bill in excess of tax liability is not refundable but the excess for the tax year may be credited to a person’s tax liability for the following five years or until depleted, whichever occurs first. The tax credit shall not be carried back to a tax year prior to the tax year in which the person claims the tax credit.
   The aggregate amount of tax credits authorized pursuant to the bill shall not exceed $1 million.
   The maximum amount of tax credits granted to a person shall not exceed 5 percent of the aggregate amount of tax credits authorized under the bill.
   The bill provides that 10 percent of the aggregate amount of tax credits authorized shall be reserved for those donations in amounts of $30,000 or less. If any portion of the reserved tax credits have not been distributed by September 1, 2028, the remaining reserved tax credits shall be available to any other eligible person.
   The bill prohibits the transfer of the credit to any other person.
   The bill requires the economic development authority (authority) to develop a system for authorization of tax credits and shall control the distribution of all tax credits to persons providing a donation subject to this Code section.
   The bill applies to tax years beginning on or after January 1, 2026, but before January 1, 2030.
   The tax credit is repealed December 31, 2035, to account for the carryforward of any excess credit that may be credited to the person’s tax liability for up to five years.
   The bill creates a Caitlin Clark and Lisa Bluder monument fund (fund) under control of the authority. The fund shall consist of appropriations made to the fund, donations, and transfers of interest, earnings, and moneys from other funds or sources as provided by law.
   The authority shall coordinate the solicitation of donations to the fund with the governor’s office, the university of Iowa, and the offices of the majority leader of the senate and the speaker of the house to determine the location and type of monument to be constructed. The bill prohibits the authority to solicit donations in excess of the estimated costs to construct the monument.
   The fund is repealed December 31, 2035, to coincide with the repeal of the tax credit due to the carryover provisions, and any remaining moneys in the fund shall be transferred to the general fund of the state.