Iowa House Bill HF641

Iowa 2023-2024 Regular Session

• Introduced: 3/7/23
• Refer: 3/7/23

Caption

A bill for an act relating to the economic development authority, including certain tax credit programs, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions.(Formerly HSB 23; See HF 679.)

Impact

Notably, HF641 eliminates the wait list that was previously maintained for the renewable chemical program, allowing for a more straightforward application process for businesses seeking tax credits. The maximum amount of tax credit that can be issued to a business is also reaffirmed in the bill, with the cap remaining at $1 million for new businesses and $500,000 for those established for over five years. This move is intended to promote investment in renewable chemical production, thereby helping Iowa to transition to a more sustainable economy.

Summary

House File 641 addresses various aspects of economic development in Iowa, focusing on tax credit programs associated with renewable chemical production and the promotion of Iowa wines, beers, and spirits. The bill extends the future repeal date for the renewable chemical program from July 1, 2030, to July 1, 2036. Additionally, it allows for the production tax credits related to renewable chemicals to be claimed until the end of calendar year 2035, instead of the previous deadline of 2026. This provides a longer period for eligible businesses to benefit from these tax incentives.

Contention

In addition to matters related to renewable chemicals, the bill also expands the Iowa wine and beer promotion board to include representation for spirits. This change aims to modernize the board's focus to include emerging sectors within the alcohol production industry in Iowa. However, there may be concerns from small-scale producers about the allocation of resources and whether the promotion of spirits now affects funding for smaller beer and wine producers, potentially leading to contention among different types of producers in the state.