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.)
Impact
The program sets parameters for the approval of growth funds, including a monetary limit where no more than $45 million in eligible investment authority and $27 million in credit-eligible contributions may be approved in total. It also outlines that groups applying for certification as growth funds must provide detailed documentation illustrating their governance and previous performance in administering funds. Reports will be required to assure compliance with job creation expectations, further tying the program's success to concrete outcomes in the workforce.
Summary
House File 2674 establishes a Rural Development Tax Credit Program aimed at incentivizing investment in rural business growth funds. The bill mandates that funds meeting certain criteria can receive tax credits for capital contributions made towards qualified businesses, specifically those located outside the 12 most populous counties in Iowa and employing fewer than 250 workers. The bill's approach is designed to stimulate economic activity in underserved areas by leveraging private investments to foster job creation and sustain local enterprises.
Contention
Some notable points of contention surrounding HF2674 include the concern over the adequacy of limits placed on investment amounts and the effectiveness of such programs to create sustainable jobs. While supporters argue that the tax incentives are a necessary measure to boost local economies, critics question if reliance on tax credits adequately addresses deeper systemic issues, such as infrastructure and workforce development, which are crucial for the long-term viability of rural businesses. Additionally, there will be scrutiny on monitoring measures ensuring accountability for the funds distributed and jobs reported.
Related
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.(See HF 2674.)
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.(See HF 2674.)
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.
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.
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.)
Establishes the La. Rural Jobs Act Tax Credit Program and authorizes a tax credit for rural growth investments made by rural growth funds (RE1 -$56,000,000 GF RV See Note)
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.)
Establishes the Invest Louisiana Small Business Development Fund and authorizes a premium tax credit for small business growth investments made by qualified investors. (1/1/22) (OR -$30,000,000 GF RV See Note)
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.(See HF 2674.)
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.
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.
Establishes the La. Rural Jobs Act Tax Credit Program and authorizes a tax credit for rural growth investments made by rural growth funds (RE1 -$56,000,000 GF RV See Note)