A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

This bill modifies Iowa's research activities tax credit for individuals and corporations. It reduces the credit amount based on the number of layoffs a claimant experienced during the tax year: 50% reduction for 1,500+ layoffs, 25% for 1,000-1,500, 12.5% for 500-1,000, and 6.25% for fewer than 500 layoffs. The Department of Revenue must review workforce development layoff notices before approving the credit and can recapture previously claimed credits that don't meet these requirements. The changes apply retroactively to tax years beginning January 1, 2024.