Iowa Senate Bill SSB1087

Iowa 2023-2024 Regular Session

• Introduced: 1/25/23
• Refer: 1/25/23

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.(See SF 408, SF 575.)

Impact

The bill enhances the existing frameworks for business engagements by modifying allocations for tax credits, aiming for an overall limit of $10 million for both the investments in qualifying businesses and innovation funds. The bill also extends existing programs, such as the renewable chemical program, from 2030 to 2039, thereby ensuring sustainability and support for green technologies and manufacturing initiatives within the state. Additionally, stipulations for eligibility and maximum credit amounts are redefined to create a more competitive and accessible environment for emerging businesses.

Summary

Senate Study Bill 1087 focuses on the economic development authority and introduces new provisions regarding tax credit programs, aiming to stimulate business investments within Iowa. This bill outlines two primary divisions: one concerning tax credits for qualifying businesses and investments in an innovation fund, and the other relating to the promotion of Iowa-made beer, wine, and spirits. The adjustments in tax credit allocations are intended to encourage growth in targeted sectors by increasing available funds while simplifying the bureaucratic process for businesses seeking these credits.

Contention

A notable point of contention might arise from the bill's streamlined approach towards issuing tax credits. While proponents argue that removing wait lists and setting clear parameters for credit allocations will foster economic development, critics could express concerns that these changes may favor larger entities at the expense of smaller local businesses. Furthermore, the integration of new members representing Iowa distilleries into the promotion boards raises questions about equal representation for all types of local producers, including smaller wine and beer makers. The reclassification of innovative businesses to include sectors such as educational technology is another point that may provoke debate regarding the breadth of support offered under this bill.