Budget & Taxes (Economic Development)

This bill reorganizes Iowa's economic development tax credit programs. It creates five new programs (business incentives for growth, seed investor credits, film production incentives, R&D credits, and sustainable aviation fuel credits) while eliminating seven existing ones (including high quality jobs and employer childcare credits). The bill sets a $170 million annual limit for most tax credits, with specific allocations like $68 million for high quality jobs (though this program is being eliminated), $40 million for R&D credits, and $50 million for the new business incentives program. It also requires the Economic Development Authority to report annual credit allocations to the Department of Revenue.

SF 652 modifies Iowa's economic development programs and urban renewal laws, primarily focusing on housing initiatives. It broadens the definition of "economic development" to include workforce housing and allows urban renewal funds to be used for low and moderate-income family housing. The bill adjusts how certain property taxes, including some school district levies, are allocated in urban renewal areas. It also introduces limitations on the amount of tax revenue municipalities can retain from urban renewal areas over time and sets specific requirements for housing projects within these areas, including a minimum for low and moderate-income housing.

HSB 310 imposes a three-year freeze on all state economic development program funding for Iowa's four most populous counties (Polk, Johnson, Scott, and Dallas), beginning July 1, 2025, and ending June 30, 2028. This moratorium halts all funds and program administration by the economic development authority for these counties during the specified period. The bill directly affects the counties' ability to access state resources for economic development initiatives like business incentives or infrastructure projects. It creates a temporary pause in funding without altering existing programs or creating new ones. The measure focuses solely on delaying current funding disbursements for these specific counties.