Iowa Senate Bill SF408

Iowa 2023-2024 Regular Session

• Introduced: 2/23/23
• Refer: 2/27/23

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 SSB 1087; See SF 575.)

Impact

One significant change brought by SF408 is the extension of the renewable chemicals production tax credit, which now allows these credits to be claimed through fiscal years up to 2036, and extends the availability of credits for renewable chemicals produced through 2035. Moreover, the bill eliminates the wait list for credit allocation under the chemical program, thereby potentially accelerating investments in renewable chemical production and supporting business growth in this domain. The new stipulations also require eligible businesses to notify the authority sooner post-investment, which could streamline administrative procedures. Overall, the implications of these changes aim to facilitate economic growth in high-tech sectors and encourage the development of innovative manufacturing in Iowa.

Summary

Senate File 408, a bill relating to the Iowa economic development authority, introduces modifications to existing tax credit programs and establishes an enhanced framework for promoting Iowa-made wines, beers, and spirits. The bill is divided into two main divisions: the first concerning tax credits linked to investments in qualifying businesses and innovation funds, and the second focusing on the Iowa wine, beer, and spirits promotion board. The bill effectively reallocates funds, allowing for a cumulative maximum cap of $10 million yearly across all programs, which is an increase for specific allocations previously set at lower thresholds. This shift showcases a commitment to bolster Iowa's manufacturing and innovation sectors through financial incentives.

Contention

Some points of contention arise around the restructuring of the Iowa wine, beer, and spirits promotion board, which now incorporates representation for distilleries. The board's authority has been broadened to not only promote wine and beer but now includes spirits, reflecting an integrated strategy for elevating Iowa’s alcoholic beverage industry. Critics may argue that this change could lead to a disparity in promotional focus and funding between various sectors of the beverage industry. Furthermore, adjustments to tax credit allocations could face scrutiny regarding their equitable distribution among eligible businesses, as well as whether these credits will sufficiently incentivize the target sectors.