Iowa 2023-2024 Regular Session

Iowa House Bill HF641

Introduced
3/7/23  
Introduced
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.

Companion Bills

IA HSB23

Related 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.(See HF 641, HF 679.)

IA SSB1087

Related 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.(See SF 408, SF 575.)

IA SF408

Similar To 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 SSB 1087; See SF 575.)

IA HF679

Similar To 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 HF 641, HSB 23.)

IA SF575

Similar To A bill for an act relating to the economic development authority, including renewable chemical production, workforce housing, and innovation fund tax credits, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions. (Formerly SF 408, SSB 1087.) Effective date: 07/01/2023. Applicability date: 06/30/2023, 07/01/2023.

Previously Filed As

IA HF679

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 HF 641, HSB 23.)

IA HSB23

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.(See HF 641, HF 679.)

IA SF408

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 SSB 1087; See SF 575.)

IA SSB1087

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.(See SF 408, SF 575.)

IA SF575

A bill for an act relating to the economic development authority, including renewable chemical production, workforce housing, and innovation fund tax credits, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions. (Formerly SF 408, SSB 1087.) Effective date: 07/01/2023. Applicability date: 06/30/2023, 07/01/2023.

IA HF1054

A bill for an act relating to matters under the purview of the Iowa economic development authority and the department of workforce development, including tax credit limits, the major economic growth attraction program, layoffs and facility closures, the brownfield redevelopment fund, and the Iowa economic emergency fund; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(Formerly HSB 305.)

IA HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

IA HSB221

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture, and including applicability and retroactive applicability provisions.(See HF 975.)

IA SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

IA HF975

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, arts and culture, and the Iowa reinvestment Act and including applicability and retroactive applicability provisions. (Formerly HSB 221.) Effective date: 07/01/2025. Applicability date: 07/01/2020, 07/01/2025.

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