New laws take effect on July 1

June 30, 2016

Friday is July 1 - the beginning of the state’s fiscal year and also the date when many laws passed in the 2016 legislative session will take effect. Most notably, Iowa manufacturers can now take advantage of a sales and use tax exemption for supplies consumed during the manufacturing process. HF 2433 passed in March and included language to clarify the law related to Iowa’s sales tax exemptions for manufacturers. ABI put together a frequently asked questions document about the legislation you can access here. The Iowa Department of Revenue has also put together helpful information, which is available here.

Other new laws that take effect tomorrow include:

HF 2392: Also known as the career and technical education modernization legislation. ABI members continue to need qualified workers whether the industry is finance or manufacturing. The goal of the legislation is to get everyone communicating and talking about ways to better prepare students for the workforce and also capitalize on business experts as well as educational leaders.

HF 2443: Makes changes relating to various economic development authority programs, including:

  • transfers administrative oversight of the historic tax credit program from the Iowa Department of Cultural Affairs to the Iowa Economic Development Authority
  • makes changes relative to the use of life cycle cost analyses
  • makes technical changes related to the high quality jobs program
  • makes changes relative to authority assistance for certain federal small business programs
  • allows counties, cities, and the authority to amend certain economic development enterprise zones agreements.

SF 2300: Renewable chemical production tax credit legislation supported by ABI. As part of the compromise to keep the legislation revenue neutral, beginning July 1 the High Quality Jobs Program will see an annual cap of $105 million dollars. The portion of the legislation related to tax credits for biochemical production will go into effect Jan. 1, 2017.

SF 2308: Also known as the Enhance Iowa bill. This legislation is focused on increased quality of life offerings. The state board formerly known as Vision Iowa will become Enhance Iowa and opportunities for funding will expand more broadly than the original Vision Iowa Board had planned.

HF2331: Restricts the state from investing public funds in companies that boycott Israel and requires each public fund to develop a list of scrutinized companies.

HF 2277: Includes electric transmission owners in the definitions of those entities allowed in public roads rights-of-way. This will allow companies who own the transmission lines to gain access to the poles that are in need of repair.

HF 2345: Requires counties to submit a report detailing the status of Iowa’s structurally deficient bridges and how road use tax funds were used to repair structurally deficient bridges.

HF 2373: An update to the administration of limited partnerships and limited liability companies doing business in the state of Iowa.

SF 2170: Includes changes to the public notice requirements for government contracting/bids.

HF 2385: Increases the penalties for littering to up to $3,000 for repeat offenders and includes a definition of littering.

HF 2400: A bill supported by the Iowa Bar Association makes changes to the Uniform Fraudulent Transfer Act, now known as the Iowa Uniform Voidable Transactions Act.

HF 2415: Directs Iowa Workforce Development to put together a veterans preference information clearinghouse. The purpose is to provide information to government entities, citizens and veterans who are interested in the laws of the state related to veterans.