IA
Iowa House Bill HF1054

Iowa 2025-2026 Regular Session

Iowa House Bill HF1054

Caption

A bill for an act relating to matters under the purview of the Iowa economic development authority and the department of workforce development, including tax credit limits, the major economic growth attraction program, layoffs and facility closures, the brownfield redevelopment fund, and the Iowa economic emergency fund; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(Formerly HSB 305.)

Impact

The financial implications of HF 1054 are notable as the bill sets defined limits on the total amount of tax credits available each fiscal year, thus establishing a framework that influences how funds can be allocated to various economic development programs. The introduction of new tax credits, particularly for research and development, aims to attract businesses engaged in advanced industries, which could potentially lead to increased investment in innovation within the state. Additionally, the repeal of existing credits may free up state resources but also raises concerns among advocates who believe these incentives are crucial for current small businesses and emerging startups.

Summary

House File 1054 introduces significant changes to economic development strategies within Iowa, specifically concerning tax credit programs. The bill seeks to implement a comprehensive overhaul by repealing several existing tax credits, such as the assistive device tax credit, and creating new programs aimed at stimulating growth in key sectors. Key initiatives include the establishment of a 'business incentives for growth' program, a seed investor tax credit program, and a sustainable aviation fuel production tax credit designed to support local businesses focused on emerging technologies. These developments aim to bolster Iowa's economic landscape by facilitating job creation and enhancing competitiveness.

Contention

Points of contention surrounding HF 1054 include the elimination of several established tax incentives, which have historically been utilized by various sectors to stimulate growth. Critics argue that the removal of these credits may hinder the financial support system that local businesses depend on, potentially leading to job losses in the short term. Furthermore, there is concern regarding the eligibility criteria and potential administrative burden imposed on businesses wishing to qualify for the newly established programs. As stakeholders navigate these changes, ongoing discussions will likely center around balancing fiscal responsibility with the need for robust economic support.

Latest IA HF1054 Activity

View All Events: IA 2025-2026 Regular Session HF1054

Companion Bills

IA SF657

Similar To A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.

IA SSB1205

Related A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

IA HSB305

Related A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

Previously Filed As

IA HF641

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 HSB 23; See HF 679.)

IA SF408

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.)

IA HF679

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 HF 641, HSB 23.)

IA HSB23

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 HF 641, HF 679.)

IA SSB1087

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.)

IA SF575

A bill for an act relating to the economic development authority, including renewable chemical production, workforce housing, and innovation fund tax credits, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions. (Formerly SF 408, SSB 1087.) Effective date: 07/01/2023. Applicability date: 06/30/2023, 07/01/2023.

IA HF2662

A bill for an act establishing the Iowa film production incentive program and fund within the economic development authority. (Formerly HSB 731.)

IA HF2674

A bill for an act relating to tax credits awarded by the economic development authority for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.(Formerly HSB 722.)

IA HSB731

A bill for an act establishing the Iowa film production incentive program and fund within the economic development authority.(See HF 2662.)

IA SF574

A bill for an act relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions. (Formerly SSB 1162.) Effective date: 05/10/2024.

Similar Bills

IA SF657

A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.

IA SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

IA HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

IA SF574

A bill for an act relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions. (Formerly SSB 1162.) Effective date: 05/10/2024.

IA HF642

A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(Formerly HSB 147.)

IA SSB1162

A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(See SF 574.)

IA HSB147

A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(See HF 642.)

CA AB999

Income taxes: credit: small business investment.