IA
Iowa House Bill HF697

Iowa 2023-2024 Regular Session

Iowa House Bill HF697

Introduced
4/10/23  
Introduced
4/10/23  

Caption

A bill for an act establishing an Iowa housing tax credit program and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

Impact

The proposed legislation notably increases the annual deduction limits for contributions made to first-time homebuyer savings accounts, from $4,000 to $10,000 for married couples filing jointly, and from $2,000 to $5,000 for other account holders. This change is designed to promote homeownership among first-time buyers by making it more financially accessible. The impact of the housing tax credit program is potentially significant, as it aims to address the pressing need for affordable housing by providing developers with the necessary financial incentives to undertake housing projects for low-income families.

Summary

House File 697 establishes an Iowa housing tax credit program aimed at incentivizing the development of low-income housing projects in the state. The bill allows taxpayers with ownership interests in qualified developments to claim tax credits, which are determined by the Iowa finance authority based on a qualified allocation plan. By defining a comprehensive framework for these credits, the bill seeks to enhance the financial viability of housing projects that are financed through tax-exempt means and meet specific criteria outlined in the Internal Revenue Code.

Contention

While the bill aims to facilitate affordable housing development, there may be points of contention regarding the allocation of tax credits and the potential for market manipulation. Concerns may arise about whether the aggregated cap on tax credits, set at $15 million plus previously unallocated amounts, will sufficiently meet actual housing needs. Additionally, the complexity of the application process and criteria for determining the feasibility of housing projects could lead to debates about who benefits the most from these incentives, ensuring the credits are effectively reaching their intended targets and promoting genuine affordable housing solutions.

Latest IA HF697 Activity

View All Events: IA 2023-2024 Regular Session HF697

Companion Bills

No companion bills found.

Previously Filed As

IA HF659

A bill for an act relating to housing in the state by establishing an Iowa housing tax credit program, establishing a neighborhood renovation grant program, and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

IA HF38

A bill for an act increasing the annual aggregate amount authorized for the endow Iowa tax credit and including effective date and applicability provisions.

IA HF292

A bill for an act creating a private instruction organization tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

IA HF715

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 187.)

IA HF532

A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.

IA HF370

A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.

IA HF419

A bill for an act relating to the endow Iowa tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax, and including effective date and applicability provisions.

IA HSB187

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(See HF 715.)

IA SSB1148

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(See SF 565.)

IA HSB130

A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.

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