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House File 83 - IntroducedA Bill ForAn Act 1creating a legislative tax credit review committee as a
2committee of the legislative council.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 2.45, Code 2021, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 5A. a. The legislative tax credit review
4committee which shall be composed of ten members of the general
5assembly, consisting of five members from each house, to be
6appointed by the legislative council. In appointing the five
7members of each house to the committee, the council shall
8appoint three members from the majority party and two members
9from the minority party.
10b. The legislative tax credit review committee shall have
11the powers and duties described in section 2.49.
12 Sec. 2. NEW SECTION. 2.49 Legislative tax credit review
13committee.
141. Duties of committee. The legislative tax credit review
15committee shall do all of the following:
16a. Evaluate each tax credit listed in subsection 3 according
17to the guidelines set forth in subsection 2 and assess its
18equity, simplicity, competitiveness, public purpose, adequacy,
19and extent of conformance with the original purpose of the
20legislation that enacted the tax credit, as those issues
21pertain to taxation in Iowa. For purposes of this section, “tax
22credit” includes any tax credit or other tax incentive listed in
23subsection 3 or provided under a program listed in subsection
243.
25b. For each tax credit reviewed, the committee shall submit
26a report to the legislative council containing the results
27of the review. The report shall contain a statement of the
28policy goals of the tax credit and shall attempt to calculate a
29return on investment for each tax credit, unless the committee
30determines such a calculation is not within the capabilities
31of the committee. For purposes of this paragraph, “return
32on investment” means the net value, if any, provided to the
33state by a tax credit after analyzing the cost to the state
34against the benefit realized by the state of offering that
35particular tax credit. The report may include recommendations
-1-1for better aligning tax credits with the original intent of
2the legislation or with the changing circumstances of the
3state, or recommendations for the imposition of a limitation
4on a specified tax credit, a limit on the total amount of tax
5credits, or any other recommendation for a specific tax credit
6or the program under which the tax credit is provided.
72. Public meetings.
8a. The committee shall conduct reviews of each tax credit
9listed in subsection 3 using a public meeting format that
10invites substantial and meaningful input and comment from both
11subject matter experts and the general public.
12b. Each year, the committee shall conduct at least one
13public meeting for each tax credit reviewed, and no more
14than one tax credit shall be reviewed at each meeting. The
15committee shall designate a time and place for a public
16meeting and provide public notice at least five days prior to
17a meeting.
183. Schedule of review of tax credits. The committee shall
19review the following tax credits according to the following
20schedule:
21a. In each even-numbered year:
22(1) The accelerated career education program job credit
23allowed under section 260G.4A.
24(2) The assistive device tax credit allowed under section
25422.33.
26(3) The endow Iowa tax credit allowed under section 15E.305.
27(4) The high quality jobs program under chapter 15,
28subchapter II, part 13.
29(5) The redevelopment tax credit allowed under section
3015.293A.
31(6) The renewable energy tax credit allowed under chapter
32476C.
33(7) The solar energy system tax credit allowed under
34sections 422.llL and 422.33.
35(8) The tax credit for investments in a qualifying business
-2-1under chapter 15E, subchapter V.
2(9) The wind energy production tax credit allowed under
3chapter 476B.
4(10) The adoption tax credit allowed under section 422.12A.
5(11) The charitable conservation contribution tax credit
6allowed under sections 422.11W and 422.33.
7(12) The E-15 plus gasoline promotion tax credit allowed
8under sections 422.11Y and 422.33.
9(13) The industrial new jobs training program under chapter
10260E.
11b. In each odd-numbered year:
12(1) The beginning farmer tax credit allowed under section
1316.81.
14(2) The historic preservation tax credit allowed under
15chapter 404A.
16(3) The renewable chemical production tax credit under
17sections 15.315 through 15.322.
18(4) The school tuition organization tax credit allowed
19under sections 422.11S and 422.33.
20(5) The innovation fund investment tax credit allowed under
21section 15E.52.
22(6) The workforce housing tax incentives program under
23sections 15.351 through 15.356.
24(7) The biodiesel blended fuel tax credit allowed under
25sections 422.11P and 422.33.
26(8) The child and dependent care tax credit allowed under
27section 422.12C.
28(9) The E-85 gasoline promotion tax credit allowed under
29sections 422.110 and 422.33.
30(10) The earned income tax credit allowed under section
31422.12B.
32(11) The farm to food donation tax credit allowed under
33chapter 190B.
34(12) The research activities tax credits allowed under
35sections 15.335, 422.10, and 422.33.
-3- 1(13) The tuition and textbook tax credit allowed under
2section 422.12.
3(14) The volunteer fire fighter and emergency medical
4services personnel and reserve peace officer tax credits
5allowed under section 422.12.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill creates a legislative tax credit review committee
10(committee) as part of the legislative council to review
11specified tax credits. The committee shall be composed of 10
12members of the general assembly appointed by the legislative
13council, consisting of five from each house, three from each
14majority party, and two from the minority party.
15The committee is charged with evaluating a specified
16list of tax credits and incentives listed in the bill each
17even-numbered and odd-numbered year, so that the full list
18is reviewed every two years. The tax credit review list
19contains the tax credits and incentives listed in the most
20recent tax credits contingent liabilities report published by
21the department of revenue and not previously repealed by the
22general assembly.
23The committee is required to review tax credits and
24incentives using a public meeting format that invites
25substantial and meaningful input and comment from both
26subject matter experts and the general public. Each year, the
27committee is required to conduct at least one public meeting
28for each tax credit or incentive reviewed, and no more than
29one tax credit or incentive shall be reviewed at each meeting.
30Public notice of the time and place must be provided at least
31five days prior to each meeting.
32In reviewing tax credits and incentives, the committee
33is required to make certain assessments as described in the
34bill and to produce reports containing certain information as
35described in the bill.
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2committee of the legislative council.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 2.45, Code 2021, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 5A. a. The legislative tax credit review
4committee which shall be composed of ten members of the general
5assembly, consisting of five members from each house, to be
6appointed by the legislative council. In appointing the five
7members of each house to the committee, the council shall
8appoint three members from the majority party and two members
9from the minority party.
10b. The legislative tax credit review committee shall have
11the powers and duties described in section 2.49.
12 Sec. 2. NEW SECTION. 2.49 Legislative tax credit review
13committee.
141. Duties of committee. The legislative tax credit review
15committee shall do all of the following:
16a. Evaluate each tax credit listed in subsection 3 according
17to the guidelines set forth in subsection 2 and assess its
18equity, simplicity, competitiveness, public purpose, adequacy,
19and extent of conformance with the original purpose of the
20legislation that enacted the tax credit, as those issues
21pertain to taxation in Iowa. For purposes of this section, “tax
22credit” includes any tax credit or other tax incentive listed in
23subsection 3 or provided under a program listed in subsection
243.
25b. For each tax credit reviewed, the committee shall submit
26a report to the legislative council containing the results
27of the review. The report shall contain a statement of the
28policy goals of the tax credit and shall attempt to calculate a
29return on investment for each tax credit, unless the committee
30determines such a calculation is not within the capabilities
31of the committee. For purposes of this paragraph, “return
32on investment” means the net value, if any, provided to the
33state by a tax credit after analyzing the cost to the state
34against the benefit realized by the state of offering that
35particular tax credit. The report may include recommendations
-1-1for better aligning tax credits with the original intent of
2the legislation or with the changing circumstances of the
3state, or recommendations for the imposition of a limitation
4on a specified tax credit, a limit on the total amount of tax
5credits, or any other recommendation for a specific tax credit
6or the program under which the tax credit is provided.
72. Public meetings.
8a. The committee shall conduct reviews of each tax credit
9listed in subsection 3 using a public meeting format that
10invites substantial and meaningful input and comment from both
11subject matter experts and the general public.
12b. Each year, the committee shall conduct at least one
13public meeting for each tax credit reviewed, and no more
14than one tax credit shall be reviewed at each meeting. The
15committee shall designate a time and place for a public
16meeting and provide public notice at least five days prior to
17a meeting.
183. Schedule of review of tax credits. The committee shall
19review the following tax credits according to the following
20schedule:
21a. In each even-numbered year:
22(1) The accelerated career education program job credit
23allowed under section 260G.4A.
24(2) The assistive device tax credit allowed under section
25422.33.
26(3) The endow Iowa tax credit allowed under section 15E.305.
27(4) The high quality jobs program under chapter 15,
28subchapter II, part 13.
29(5) The redevelopment tax credit allowed under section
3015.293A.
31(6) The renewable energy tax credit allowed under chapter
32476C.
33(7) The solar energy system tax credit allowed under
34sections 422.llL and 422.33.
35(8) The tax credit for investments in a qualifying business
-2-1under chapter 15E, subchapter V.
2(9) The wind energy production tax credit allowed under
3chapter 476B.
4(10) The adoption tax credit allowed under section 422.12A.
5(11) The charitable conservation contribution tax credit
6allowed under sections 422.11W and 422.33.
7(12) The E-15 plus gasoline promotion tax credit allowed
8under sections 422.11Y and 422.33.
9(13) The industrial new jobs training program under chapter
10260E.
11b. In each odd-numbered year:
12(1) The beginning farmer tax credit allowed under section
1316.81.
14(2) The historic preservation tax credit allowed under
15chapter 404A.
16(3) The renewable chemical production tax credit under
17sections 15.315 through 15.322.
18(4) The school tuition organization tax credit allowed
19under sections 422.11S and 422.33.
20(5) The innovation fund investment tax credit allowed under
21section 15E.52.
22(6) The workforce housing tax incentives program under
23sections 15.351 through 15.356.
24(7) The biodiesel blended fuel tax credit allowed under
25sections 422.11P and 422.33.
26(8) The child and dependent care tax credit allowed under
27section 422.12C.
28(9) The E-85 gasoline promotion tax credit allowed under
29sections 422.110 and 422.33.
30(10) The earned income tax credit allowed under section
31422.12B.
32(11) The farm to food donation tax credit allowed under
33chapter 190B.
34(12) The research activities tax credits allowed under
35sections 15.335, 422.10, and 422.33.
-3- 1(13) The tuition and textbook tax credit allowed under
2section 422.12.
3(14) The volunteer fire fighter and emergency medical
4services personnel and reserve peace officer tax credits
5allowed under section 422.12.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill creates a legislative tax credit review committee
10(committee) as part of the legislative council to review
11specified tax credits. The committee shall be composed of 10
12members of the general assembly appointed by the legislative
13council, consisting of five from each house, three from each
14majority party, and two from the minority party.
15The committee is charged with evaluating a specified
16list of tax credits and incentives listed in the bill each
17even-numbered and odd-numbered year, so that the full list
18is reviewed every two years. The tax credit review list
19contains the tax credits and incentives listed in the most
20recent tax credits contingent liabilities report published by
21the department of revenue and not previously repealed by the
22general assembly.
23The committee is required to review tax credits and
24incentives using a public meeting format that invites
25substantial and meaningful input and comment from both
26subject matter experts and the general public. Each year, the
27committee is required to conduct at least one public meeting
28for each tax credit or incentive reviewed, and no more than
29one tax credit or incentive shall be reviewed at each meeting.
30Public notice of the time and place must be provided at least
31five days prior to each meeting.
32In reviewing tax credits and incentives, the committee
33is required to make certain assessments as described in the
34bill and to produce reports containing certain information as
35described in the bill.
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