Iowa House Bill HF2149

Iowa 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/25/24

Caption

A bill for an act relating to the allocation of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

Impact

Under HF2149, there is a clear prioritization for funding housing initiatives in small cities, mandating that at least seventeen million five hundred thousand dollars will be earmarked specifically for such projects. This allocation is seen as a strategic effort to address housing needs in areas that are often neglected in favor of larger urban centers. By ensuring that a significant portion of the funding is directed towards small cities, the bill aims to promote balanced economic growth across the state.

Summary

House File 2149 addresses the allocation of workforce housing tax incentives applicable against various taxes, including individual and corporate income taxes, franchise tax, and insurance premiums tax. The bill introduces specific provisions to enhance funding for workforce housing projects, thereby aiming to stimulate economic development in the state of Iowa. Notably, it limits the amount allocated for these tax incentives to a total of thirty-five million dollars, with significant portions reserved for small cities and qualified housing projects initiated after certain dates.

Contention

While the intent behind HF2149 is to bolster housing development, there may be concerns regarding the effectiveness of such tax incentives in addressing actual housing shortages. Critics could argue that simply providing tax incentives may not be sufficient to attract developers to small cities, particularly if the underlying market conditions remain unattractive. The bill reflects an ongoing discussion about how best to stimulate housing development and whether targeted tax incentives are the optimal approach.