Bill to limit tax credits proposed

March 16, 2017

In light of the Revenue Estimating Conference’s (REC) projections on the budget, Rep Pat Grassley (R-New Hartford), chairman of the House Appropriations Committee, filed HSB 187, which would limit and gradually reduce the amount of tax credits, affecting many business incentives. The bill would also eliminate refundability when there is no tax liability. This would affect the Research Activities Credit, which brings many good jobs and economic activity to Iowa. The legislation would cap “contingent liabilities” tax credits at $400 million beginning in the next fiscal year and reduce the cap by $10 million per year through fiscal year 2021. Rep. Grassley said the cap is the most significant element of the plan because it would let lawmakers as well as the REC know the state’s liability rather than work off projections.

                 Pat Grassley proposed capping Iowa tax credits (The Gazette)