Iowa 2023-2024 Regular Session

Iowa House Bill HSB63

Introduced
1/20/23  
Introduced
1/20/23  

Caption

A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

Impact

The bill is expected to positively influence Iowa's economic landscape by attracting new residents and recent graduates who may otherwise consider relocating to other states for work opportunities. By offering these tax incentives, the state government aims to address potential labor shortages and stimulate local businesses by increasing the consumer base. Furthermore, these credits will only be available to individuals within specific criteria, thereby targeting the relief towards particular demographics who are likely to contribute economically.

Summary

HSB63 introduces new tax credits targeted at new residents and recent graduates in Iowa, aimed at incentivizing individuals to establish residency and contribute to the state's economy. The new resident tax credit allows eligible individuals, defined as those who have recently moved to Iowa for full-time employment, to receive credit against their individual income tax for up to four consecutive years. This credit covers 100% of their tax liability for these years, offering significant financial relief and potentially encouraging population growth in the state.

Contention

Some points of contention may arise related to the eligibility criteria for the tax credits. The bill stipulates that individuals receiving public assistance may not qualify for these credits, which could spark debates regarding inclusivity and fairness. Additionally, the retroactive applicability provisions could create administrative complexities and impact state revenue, which may be focal points in future discussions among policymakers. The planned repeal of the credits contingent on unemployment rates exceeding 4% for three consecutive years introduces further uncertainty, as it ties taxpayer benefits directly to economic performance.

Companion Bills

No companion bills found.

Previously Filed As

IA HF31

A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

IA HF2471

A bill for an act creating an electric outdoor power equipment tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.

IA SF2257

A bill for an act creating a child tax credit available against the individual income tax, and including retroactive applicability provisions.

IA HF958

A bill for an act creating a premarital counseling tax credit available against the individual income tax, and including retroactive 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 HF304

A bill for an act creating a used electric vehicle tax credit available against the individual and corporate income taxes, and including applicability provisions.

IA HF157

A bill for an act creating a nurse preceptor tax credit available against the individual income tax, and including applicability provisions.

IA HF211

A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)

IA HSB306

A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

IA SF459

A bill for an act increasing the earned income tax credit available against the Iowa individual income tax, and including retroactive applicability provisions.

Similar Bills

CA SB214

Medi-Cal: California Community Transitions program.

CA AB1220

Certificated school employees: permanent status.

CA SB304

Juvenile court school pupils: joint transition planning policy: individualized transition plan.

VT H0778

An act relating to legislative and executive term limits

IA HF31

A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

AZ SB1659

Ambulances; drivers; service-hour limit

ND HCR3019

Prohibiting the legislative assembly from proposing certain amendments to article XV of the Constitution of North Dakota; and to provide for application.

NJ A5389

Restricts certain affordable housing eligibility to certain State residents and certain individuals with employment history in the State.