House File 12 - IntroducedA Bill ForAn Act 1providing for the future repeal of certain tax credits.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2FUTURE REPEAL OF EXISTING TAX CREDITS
3   Section 1.  NEW SECTION.  15.293C  Future repeal.
   4Sections 15.293A and 15.293B are repealed on January 1,
52025.
6   Sec. 2.  Section 15.322, Code 2019, is amended to read as
7follows:
   815.322  Future repeal.
   9Section 15.315, 15.316, 15.317, 15.318, 15.319, 15.320,
1015.321, and this section, are repealed July 1, 2030 January 1,
112025
.
12   Sec. 3.  NEW SECTION.  15.337  Future repeal.
   13Sections 15.331A, 15.331C, 15.333, 15.333A, and 15.335, are
14repealed January 1, 2025.
15   Sec. 4.  Section 15A.7, Code 2019, is amended by adding the
16following new subsection:
17   NEW SUBSECTION.  5.  This section is repealed on January 1,
182025.
19   Sec. 5.  NEW SECTION.  15E.47  Future repeal.
   20Sections 15E.41, 15E.42, 15E.43, 15E.44, 15E.46, and this
21section are repealed January 1, 2025.
22   Sec. 6.  Section 15E.52, Code 2019, is amended by adding the
23following new subsection:
24   NEW SUBSECTION.  14.  This section is repealed on January 1,
252025.
26   Sec. 7.  Section 16.80, Code 2019, is amended by adding the
27following new subsection:
28   NEW SUBSECTION.  11.  This section is repealed on January 1,
292025.
30   Sec. 8.  Section 260E.5, Code 2019, is amended by adding the
31following new subsection:
32   NEW SUBSECTION.  7.  This section is repealed on January 1,
332025.
34   Sec. 9.  Section 260G.4A, Code 2019, is amended by adding the
35following new subsection:
-1-1   NEW SUBSECTION.  7.  This section is repealed on January 1,
22025.
3   Sec. 10.  Section 403.19A, Code 2019, is amended by adding
4the following new subsection:
5   NEW SUBSECTION.  4.  This section is repealed on January 1,
62025.
7   Sec. 11.  Section 422.10, Code 2019, is amended by adding the
8following new subsection:
9   NEW SUBSECTION.  7.  This section is repealed on January 1,
102025.
11   Sec. 12.  Section 422.10B, Code 2019, is amended to read as
12follows:
   13422.10B  Renewable chemical production tax credit.
   14The taxes imposed under this division, less the credits
15allowed under section 422.12, shall be reduced by a renewable
16chemical production tax credit allowed under section 15.319.
17This section is repealed January 1, 2033 2025.
18   Sec. 13.  Section 422.11L, Code 2019, is amended by adding
19the following new subsection:
20   NEW SUBSECTION.  7.  This section is repealed on January 1,
212025.
22   Sec. 14.  Section 422.11S, Code 2019, is amended by adding
23the following new subsection:
24   NEW SUBSECTION.  10.  This section is repealed on January 1,
252025.
26   Sec. 15.  Section 422.11W, Code 2019, is amended by adding
27the following new subsection:
28   NEW SUBSECTION.  5.  This section is repealed on January 1,
292025.
30   Sec. 16.  Section 422.33, subsection 5, Code 2019, is amended
31by adding the following new paragraph:
32   NEW PARAGRAPH.  j.  This subsection is repealed on January
331, 2025.
34   Sec. 17.  Section 422.33, subsection 9, Code 2019, is amended
35by adding the following new paragraph:
-2-1   NEW PARAGRAPH.  d.  This subsection is repealed on January
21, 2025.
3   Sec. 18.  Section 422.33, subsection 25, Code 2019, is
4amended by adding the following new paragraph:
5   NEW PARAGRAPH.  d.  This subsection is repealed on January
61, 2025.
7   Sec. 19.  NEW SECTION.  476B.11  Future repeal.
   8This chapter is repealed effective January 1, 2025.
9   Sec. 20.  NEW SECTION.  476C.8  Future repeal.
   10This chapter is repealed effective January 1, 2025.
11   Sec. 21.  PRESERVATION OF EXISTING RIGHTS.
   121.  This division of this Act is not intended to and shall
13not limit, modify, or otherwise adversely affect any amount
14of tax credit issued, awarded, or allowed prior to January 1,
152025, nor shall it limit, modify, or otherwise adversely affect
16a taxpayer’s right to claim or redeem a tax credit issued,
17awarded, or allowed prior to January 1, 2025, including but not
18limited to any tax credit carryforward amount.
   192.  The repeal of a provision of law pursuant to this
20division of this Act shall not constitute grounds for
21rescission or modification of agreements entered into under
22those provisions of law, if any. Any agreement entered into
23prior to January 1, 2025, under a provision of law repealed
24in this division of this Act, shall remain in effect until
25it expires under its own terms, and shall be governed by the
26applicable provisions of law as they existed immediately prior
27to January 1, 2025.
28   Sec. 22.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
29legislation is required to fully implement this division of
30this Act. The director of the department of revenue shall, in
31compliance with section 2.16, prepare draft legislation for
32submission to the legislative services agency, as necessary, to
33implement the repeal of the tax credits under this division of
34this Act and under other provisions of law.
35DIVISION II
-3-1FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS
2   Sec. 23.  NEW SECTION.  422.3A  Future tax credit repeal.
   31.  For purposes of this section, “tax credit program” means
4any provision of law enacted by the general assembly that
5provides for an amount of money against the taxes imposed in
6this chapter, chapter 432, or in section 533.329.
   72.  Notwithstanding any other provision of law to the
8contrary, any tax credit program enacted by the general
9assembly that takes effect on or after January 1, 2020, is
10repealed on January 1 of the sixth year following the effective
11date of the tax credit program, unless another provision of the
12Code provides for an earlier repeal date.
   133.  The repeal of a tax credit program pursuant to subsection
142 is not intended to and shall not limit, modify, or otherwise
15adversely affect any amount of tax credit issued, awarded, or
16allowed prior to the effective date of the tax credit program
17repeal pursuant to subsection 2, nor shall it limit, modify,
18or otherwise adversely affect a taxpayer’s right to claim or
19redeem a tax credit issued, awarded, or allowed prior to the
20effective date of the tax credit program repeal pursuant to
21subsection 2, including but not limited to any tax credit
22carryforward amount.
   234.  The repeal of a tax credit program pursuant to subsection
242 shall not constitute grounds for rescission or modification
25of agreements entered into under the tax credit program, if
26any. Any agreement entered into under a tax credit program
27prior to the effective date of the repeal of the tax credit
28program under subsection 2 shall remain in effect until it
29expires under its own terms, and shall be governed by the tax
30credit program as it existed prior to its repeal pursuant to
31subsection 2.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35This bill provides for the future repeal of certain existing
-4-1state income tax credits, and provides for the future repeal of
2tax credits enacted by the general assembly in the future.
   3DIVISION I — FUTURE REPEAL OF EXISTING TAX CREDITS.
4 Division I repeals on January 1, 2025, the following tax
5credits that currently have no repeal date: the accelerated
6career education program job tax credit; the agricultural
7assets transfer tax credit; the assistive device corporate tax
8credit; the sales and use tax refund, corporate tax credit for
9certain sales taxes paid by third-party developers, investment
10tax credit, insurance premiums tax credit, and supplemental
11research activities tax credit available under the high quality
12jobs program; the redevelopment tax credits; the school tuition
13organization tax credit; the solar energy system tax credit;
14the innovation fund investment tax credit; the tax credit
15for investments in a qualifying business; the wind energy
16production tax credit; the charitable conservation contribution
17tax credit; the new jobs credits from withholding available
18under the Iowa industrial new job training program; the
19research activities credits; the renewable energy tax credit;
20and the targeted jobs withholding tax credit.
   21The bill amends the repeal date of the renewable chemical
22production tax credit from July 1, 2030, to January 1, 2025.
   23The bill provides that the repeal of a tax credit shall
24not affect tax credits issued, awarded, or allowed prior to
25January 1, 2025, or affect a taxpayer’s ability to claim or
26redeem such tax credits, including but not limited to any tax
27credit carryforward amount, and further provides that the bill
28shall not constitute grounds for rescission or modification
29of agreements entered into for a tax credit, and that such
30agreements shall remain in effect until they expire under their
31own terms and shall be governed by the applicable provisions of
32law as they existed immediately prior to January 1, 2025.
   33The bill provides that additional legislation is required to
34fully implement the repeal of these tax credits and requires
35the director of the department of revenue to prepare draft
-5-1legislation in compliance with Code section 2.16 for submission
2to the legislative services agency to implement the repeal of
3the tax credits.
   4DIVISION II — FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS.
5 Division II provides that any tax credit program available
6against the individual or corporate income tax, the franchise
7tax, the insurance premiums tax, or the moneys and credits tax,
8enacted by the general assembly on or after January 1, 2020,
9is repealed after five years, unless another provision of law
10provides for an earlier repeal date.
   11The bill provides that the repeal of a tax credit program
12pursuant to this provision shall not affect the tax credits or
13tax credit agreements entered into prior to the repeal of the
14tax credit program in the same manner as described above for
15the repeal of the existing tax credits.
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