H.F. 2342 DIVISION I 1 FUTURE REPEAL OF EXISTING TAX CREDITS 2 Section 1. Section 15.322, Code 2026, is amended to read as 3 follows: 4 15.322 Future repeal. 5 Sections 15.315 , 15.316 , 15.317 , 15.318 , 15.319 , 15.320 , 6 15.321 , and this section , are repealed July 1, 2039 January 1, 7 2032 . 8 Sec. 2. Section 15.495, Code 2026, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 4. This section is repealed on January 1, 11 2031. 12 Sec. 3. Section 15.496, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 3. This section is repealed January 1, 15 2029. 16 Sec. 4. Section 15.507, Code 2026, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 4. This section is repealed on January 1, 19 2029. 20 Sec. 5. Section 15.508, Code 2026, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 3. This section is repealed January 1, 23 2030. 24 Sec. 6. Section 15.524, Code 2026, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 9. This section is repealed January 1, 27 2031. 28 Sec. 7. Section 15.533, subsection 1, Code 2026, is amended 29 to read as follows: 30 1. An eligible business that has entered into an agreement 31 pursuant to section 15.532 may claim a tax credit in an amount 32 equal to the product of twenty-five cents multiplied by the 33 number of gallons of sustainable aviation fuel produced in 34 this state from feedstock. The sustainable aviation fuel tax 35 -1- LSB 6014YH (4) 91 jm/jh 1/ 8

H.F. 2342 credit shall not be available for any sustainable aviation fuel 1 produced before the 2026 calendar year or after the 2035 2031 2 calendar year. 3 Sec. 8. Section 15.535, Code 2026, is amended to read as 4 follows: 5 15.535 Future repeal. 6 Sections 15.530 , 15.531 , 15.532 , 15.533 , 15.534 , and this 7 section are repealed January 1, 2037 2031 . 8 Sec. 9. Section 15E.27, Code 2026, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 7. This section is repealed January 1, 11 2032. 12 Sec. 10. Section 15E.52, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 14. This section is repealed on January 1, 15 2028. 16 Sec. 11. Section 15E.305, Code 2026, is amended by adding 17 the following new subsection: 18 NEW SUBSECTION . 6. This section is repealed January 1, 19 2028. 20 Sec. 12. Section 16.81, Code 2026, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 7. This section is repealed on January 1, 23 2028. 24 Sec. 13. Section 260E.5, Code 2026, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 7. This section is repealed on January 1, 27 2028. 28 Sec. 14. Section 260G.4A, Code 2026, is amended by adding 29 the following new subsection: 30 NEW SUBSECTION . 7. This section is repealed on January 1, 31 2032. 32 Sec. 15. Section 260J.1, unnumbered paragraph 1, Code 2026, 33 is amended to read as follows: 34 In order to promote the creation of additional high-quality 35 -2- LSB 6014YH (4) 91 jm/jh 2/ 8

H.F. 2342 new jobs within the state, an agreement under section 260E.3 1 may include a provision for a supplemental new jobs credit from 2 withholding from jobs created under the agreement. A This 3 section is repealed January 1, 2028; however, until such time a 4 provision in an agreement for which a supplemental credit from 5 withholding is included shall provide for the following: 6 Sec. 16. Section 403.19A, Code 2026, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 4. This section is repealed on January 1, 9 2029. 10 Sec. 17. NEW SECTION . 404A.7 Future repeal. 11 This chapter is repealed January 1, 2030. 12 Sec. 18. Section 422.10B, Code 2026, is amended to read as 13 follows: 14 422.10B Renewable chemical production tax credit. 15 The taxes imposed under this subchapter , less the credits 16 allowed under section 422.12 , shall be reduced by a renewable 17 chemical production tax credit allowed under section 15.319 . 18 This section is repealed January 1, 2041 2032 . 19 Sec. 19. Section 422.11A, Code 2026, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 4. This section is repealed January 1, 22 2028. 23 Sec. 20. Section 422.11L, Code 2026, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 8. This section is repealed on January 1, 26 2029. 27 Sec. 21. Section 422.11S, Code 2026, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 10. This section is repealed on January 1, 30 2030. 31 Sec. 22. Section 422.11W, Code 2026, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 5. This section is repealed on January 1, 34 2030. 35 -3- LSB 6014YH (4) 91 jm/jh 3/ 8

H.F. 2342 Sec. 23. Section 422.12, Code 2026, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 4. This section is repealed January 1, 3 2032. 4 Sec. 24. Section 422.12A, Code 2026, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 6. This section is repealed January 1, 7 2028. 8 Sec. 25. Section 422.12B, Code 2026, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 3. This section is repealed January 1, 11 2029. 12 Sec. 26. Section 422.12C, Code 2026, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 5. This section is repealed January 1, 15 2030. 16 Sec. 27. Section 422.12N, subsection 7, Code 2026, is 17 amended to read as follows: 18 7. This section is repealed January 1, 2034 2031 . 19 Sec. 28. Section 422.12P, Code 2026, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 7. This section is repealed January 1, 22 2031. 23 Sec. 29. Section 422.33, subsection 25, Code 2026, is 24 amended by adding the following new paragraph: 25 NEW PARAGRAPH . d. This subsection is repealed on January 26 1, 2030. 27 Sec. 30. Section 425.1, Code 2026, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 7. This section is repealed January 1, 30 2031. 31 Sec. 31. Section 425.16, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 3. This section is repealed January 1, 34 2032. 35 -4- LSB 6014YH (4) 91 jm/jh 4/ 8

H.F. 2342 Sec. 32. NEW SECTION . 426.11 Future repeal. 1 This chapter is repealed January 1, 2032. 2 Sec. 33. NEW SECTION . 476B.11 Future repeal. 3 This chapter is repealed effective January 1, 2028. 4 Sec. 34. NEW SECTION . 476C.8 Future repeal. 5 This chapter is repealed effective January 1, 2029. 6 Sec. 35. PRESERVATION OF EXISTING RIGHTS. 7 1. This division of this Act is not intended to and shall 8 not limit, modify, or otherwise adversely affect any amount 9 of tax credit issued, awarded, or allowed prior to January 1, 10 2032, nor shall it limit, modify, or otherwise adversely affect 11 a taxpayer’s right to claim or redeem a tax credit issued, 12 awarded, or allowed prior to January 1, 2032, including but not 13 limited to any tax credit carryforward amount. 14 2. The repeal of a provision of law pursuant to this 15 division of this Act shall not constitute grounds for 16 rescission or modification of agreements entered into under 17 those provisions of law, if any. Any agreement entered into 18 prior to January 1, 2032, under a provision of law repealed 19 in this division of this Act, shall remain in effect until 20 it expires under its own terms, and shall be governed by the 21 applicable provisions of law as they existed immediately prior 22 to January 1, 2032. 23 Sec. 36. CORRESPONDING AMENDMENTS LEGISLATION. Additional 24 legislation is required to fully implement this division of 25 this Act. The director of the department of revenue shall, in 26 compliance with section 2.16, prepare draft legislation for 27 submission to the legislative services agency, as necessary, to 28 implement the repeal of the tax credits under this division of 29 this Act and under other provisions of law. 30 DIVISION II 31 FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS 32 Sec. 37. NEW SECTION . 422.3A Future tax credit repeal. 33 1. For purposes of this section, “tax credit program” means 34 any provision of law enacted by the general assembly that 35 -5- LSB 6014YH (4) 91 jm/jh 5/ 8

H.F. 2342 provides for an amount of money against the taxes imposed in 1 this chapter, chapter 432, or in section 533.329. 2 2. Notwithstanding any other provision of law to the 3 contrary, any tax credit program enacted by the general 4 assembly that takes effect on or after January 1, 2027, is 5 repealed on January 1 of the sixth year following the effective 6 date of the tax credit program, unless another provision of the 7 Code provides for an earlier repeal date. 8 3. The repeal of a tax credit program pursuant to subsection 9 2 is not intended to and shall not limit, modify, or otherwise 10 adversely affect any amount of tax credit issued, awarded, or 11 allowed prior to the effective date of the tax credit program 12 repeal pursuant to subsection 2, nor shall it limit, modify, 13 or otherwise adversely affect a taxpayer’s right to claim or 14 redeem a tax credit issued, awarded, or allowed prior to the 15 effective date of the tax credit program repeal pursuant to 16 subsection 2, including but not limited to any tax credit 17 carryforward amount. 18 4. The repeal of a tax credit program pursuant to subsection 19 2 shall not constitute grounds for rescission or modification 20 of agreements entered into under the tax credit program, if 21 any. Any agreement entered into under a tax credit program 22 prior to the effective date of the repeal of the tax credit 23 program under subsection 2 shall remain in effect until it 24 expires under its own terms, and shall be governed by the tax 25 credit program as it existed prior to its repeal pursuant to 26 subsection 2. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill provides for the future repeal of certain existing 31 state income and property tax credits, and provides for the 32 future repeal of tax credits enacted by the general assembly 33 in the future. 34 DIVISION I —— FUTURE REPEAL OF EXISTING TAX CREDITS. 35 -6- LSB 6014YH (4) 91 jm/jh 6/ 8

H.F. 2342 Division I repeals tax credits on a rolling basis over a 1 five-year period beginning January 1, 2028, through January 2 1, 2032. The bill repeals the following tax credits that 3 currently have no repeal date: the accelerated career 4 education program job tax credit; the beginning farmer tax 5 credit; the sales and use tax refunds under the major economic 6 growth attraction program (MEGA program) and the business 7 incentives for growth program (BIG program); the investment 8 tax credit; the school tuition organization tax credit; the 9 solar energy system tax credit; the innovation fund investment 10 tax credit; the qualifying investment tax credits under the 11 MEGA program and the BIG program; the wind energy production 12 tax credit; the charitable conservation contribution tax 13 credit; the new jobs credits from withholding available under 14 the Iowa industrial new job training program; the research 15 and development tax credit; the renewable energy tax credit; 16 the targeted jobs withholding tax credit; the endow Iowa tax 17 credit; the historic preservation tax credit; the new jobs 18 tax credit; the emergency personnel and tuition textbook tax 19 credits; the adoption tax credit; the earned income tax credit; 20 the child and dependent care or early childhood development tax 21 credit; the geothermal heat pump tax credit; the public safety 22 officer moving expense tax credit; the homestead tax credit; 23 the elderly and disabled property tax credit or reimbursement; 24 and the agricultural land credit. 25 The bill amends the repeal date of the renewable chemical 26 production tax credit from January 1, 2039, to January 1, 2032, 27 and of the sustainable aviation fuel tax credit from January 1, 28 2037, to January 1, 2031. 29 The bill provides that the repeal of a tax credit shall 30 not affect tax credits issued, awarded, or allowed prior to 31 January 1, 2032, or affect a taxpayer’s ability to claim or 32 redeem such tax credits, including but not limited to any tax 33 credit carryforward amount, and further provides that the bill 34 shall not constitute grounds for rescission or modification 35 -7- LSB 6014YH (4) 91 jm/jh 7/ 8

H.F. 2342 of agreements entered into for a tax credit, and that such 1 agreements shall remain in effect until they expire under their 2 own terms and shall be governed by the applicable provisions of 3 law as they existed immediately prior to January 1, 2032. 4 The bill provides that additional legislation is required to 5 fully implement the repeal of these tax credits and requires 6 the director of the department of revenue to prepare draft 7 legislation in compliance with Code section 2.16 for submission 8 to the legislative services agency to implement the repeal of 9 the tax credits. 10 DIVISION II —— FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS. 11 Division II provides that any tax credit program available 12 against the individual or corporate income tax, the franchise 13 tax, the insurance premiums tax, or the moneys and credits tax, 14 enacted by the general assembly on or after January 1, 2027, 15 is repealed after five years, unless another provision of law 16 provides for an earlier repeal date. 17 The bill provides that the repeal of a tax credit program 18 pursuant to this provision shall not affect the tax credits or 19 tax credit agreements entered into prior to the repeal of the 20 tax credit program in the same manner as described above for 21 the repeal of the existing tax credits. 22 -8- LSB 6014YH (4) 91 jm/jh 8/ 8