Tax credit overhaul expected to move forward Thursday
April 13, 2017
An amendment was released late Wednesday to HSB 187, tax credit legislation that affects many of Iowa's existing tax credit programs. You can read the 30-page amendment here. The amendment increases taxes for many Iowa businesses who take advantage of existing incentives. ABI has long stated that any reduction in credits should be a part of a comprehensive tax reform plan. At this time, there is no tax reduction that businesses would receive from the amendment and we continue to oppose the amendment.
A few highlights of the proposed amendment are, among other things:
- lowers the cap of economic development tax credits from $170 million to $128 million
- lowers the amount of the Research Activities Credit from 6.5 to 5.5 percent
- eliminates refundability of Resesarch Activities Credit, allows an eight year carryforward
- allows refundability only for new businesses or claimants who have not previously claimed the research activities
- credit for up to five years
- sunsets the High Quality Jobs program
The amended bill could pass out of the House Appropriations Committee this afternoon. ABI Tax Committee members will receive an update after the committee meets. If you would like to join the Tax Committee and receive these updates, contact Michelle Vollstedt, firstname.lastname@example.org.