Iowa House Bill HF710

Iowa 2023-2024 Regular Session

• Introduced: 4/10/23
• Engrossed: 4/13/23
• Refer: 4/18/23
• Enrolled: 5/9/23
• Passed: 6/1/23

Caption

A bill for an act relating to the endow Iowa tax credit, making appropriations, and including retroactive applicability and effective date provisions. (Formerly HF 673, HSB 122.) Effective date: 06/01/2023. Applicability date: 01/01/2023.

Impact

The passage of HF710 is expected to enhance the financial conditions for nonprofit organizations that depend on endowment gifts, as it potentially broadens the scope and effectiveness of the Endow Iowa Tax Credit program. By ensuring a cap on tax credits and clearly defining the applicability of these provisions, the bill aims to stimulate charitable contributions within Iowa while providing essential funding for state projects and programs supporting local communities. The retroactive applicability to January 1, 2023, ensures that it affects contributions made since that date, thus incentivizing donors to engage sooner with the credit opportunity.

Summary

House File 710 is an act focused on the Endow Iowa Tax Credit, appropriations related to sports wagering, and includes provisions for retroactive applicability and effective dates. The bill outlines the allocation of $7 million from the sports wagering receipts fund to the state's general fund for the fiscal year beginning July 1, 2022. Additionally, it modifies the parameters of the Endow Iowa Tax Credit for 2023, capping the total tax credits at thirteen million dollars, which significantly impacts funding opportunities for various community foundations across the state.

Sentiment

The sentiment surrounding HF710 appears generally positive among legislators and stakeholders involved in community development and charitable organizations. The unity in voting (with a summary vote of 47 yeas to 0 nays) reflects a broad support across party lines, indicating a consensus on the benefits of supporting the Endow Iowa Tax Credit and appropriating funds from sports wagering revenues. However, some members may express concerns about the long-term sustainability of this funding model and its dependency on tax revenues from gambling activities.

Contention

While there are no overtly contentious points highlighted in the discussions surrounding HF710, stakeholders may engage in debates over the appropriateness of relying on sports wagering funds for state appropriations. There could be underlying concerns regarding the ethical implications of funding state initiatives through gambling revenues. Additionally, some organizations may argue that the limits imposed on the tax credits could restrict their operational capacities, creating discussions about the balancing act between incentivizing donations and ensuring adequate funding for community initiatives.