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.(Formerly SF 170.)
The passage of SF653 would reinforce the protections granted to taxpayers who were issued preservation tax credits before the specified cut-off dates. This allows individuals and businesses that have invested in historic preservation projects to maintain their full rights to claim these tax credits without facing reductions in their refundable amounts. As a result, the bill enhances the attractiveness of historic preservation endeavors, potentially stimulating economic investment in maintaining and restoring historical properties across the state.
Senate File 653 (SF653) is a legislative proposal focused on amending the historic preservation tax credit structure as it applies to the individual and corporate income taxes, franchise tax, and insurance premiums tax in Iowa. The bill is designed to modify the previous provisions established under House File 2317, which gradual phasing out of the full refundability of the historic preservation tax credit starting from the 2023 tax year. SF653 aims to expand the provisions preserving existing rights to tax credits prior to January 1, 2023, extending this coverage to include those credits awarded before July 1, 2023, thus insulating them from the effects of the new legislation on their refundability.
Debate around SF653 may center on the fiscal implications of adjusting the historic preservation tax credit system. Supporters argue that preserving the full value of these credits promotes economic growth by encouraging investment in historic properties, which can lead to revitalization of communities and preservation of cultural heritage. However, some critics may raise concerns regarding the long-term viability and potential revenue implications for the state, questioning whether such tax incentives can be justified amidst other pressing fiscal needs.