A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.(See HF 1018.)
The bill is significant as it seeks to maintain the stability and availability of the tax credits for historic preservation, which can incentivize property owners to restore and maintain historically significant structures. This is crucial not only for preserving Iowa's heritage but also for potentially boosting economic activity through revitalized properties. By ensuring the preservation of existing rights, HSB270 helps safeguard the interests of taxpayers who have already initiated projects relying on these tax benefits, potentially impacting state revenues through the preservation tax credits.
House Study Bill 270 focuses on the historic preservation tax credit available against individual and corporate income taxes, the franchise tax, and insurance premiums tax in Iowa. The bill modifies previous legislation by expanding the preservation of existing rights to tax credits issued before July 1, 2023, in addition to credits awarded prior to January 1, 2023. This adjustment aims to protect taxpayers' rights to claim or redeem historic preservation tax credits amidst changes in the credit's refundability that were implemented in a prior bill (House File 2317).
One of the notable points of contention surrounding HSB270 could revolve around the refundability changes introduced in House File 2317. The gradual reduction of the refundability from 100% to 75% by 2027 raises concerns among legislators regarding its potential impact on future projects and investments in historic preservation. Critics may argue that lowering refundability could deter property owners from engaging in preservation efforts, while supporters of HSB270 may contend that the changes aim to ensure the sustainability of the tax credit program while still supporting preservation efforts.