Creating a Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax

This bill creates a Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual, corporate, franchise, insurance premium, and moneys and credits taxes. The amount of the credit shall equal 25 percent of a person’s donation to the Caitlin Clark and Lisa Bluder monument fund created in the bill. The bill specifies that the amount of the donation for which the tax credit is claimed shall not be deductible for state income tax purposes. A credit provided in the bill in excess of tax liability is not refundable but the excess for the tax year may be credited to a person’s tax liability for the following five years or until depleted, whichever occurs first. The tax credit shall not be carried back to a tax year prior to the tax year in which the person claims the tax credit. The aggregate amount of tax credits authorized pursuant to the bill shall not exceed $1 million. The maximum amount of tax credits granted to a person shall not exceed 5 percent of the aggregate amount of tax credits authorized under the bill. The bill provides that 10 percent of the aggregate amount of tax credits authorized shall be reserved for those donations in amounts of $30,000 or less. If any portion of the reserved tax credits have not been distributed by September 1, 2028, the remaining reserved tax credits shall be available to any other eligible person. The bill prohibits the transfer of the credit to any other person. The bill requires the economic development authority (authority) to develop a system for authorization of tax credits and shall control the distribution of all tax credits to persons providing a donation subject to this Code section. The bill applies to tax years beginning on or after January 1, 2026, but before January 1, 2030. The tax credit is repealed December 31, 2035, to account for the carryforward of any excess credit that may be credited to the person’s tax liability for up to five years. The bill creates a Caitlin Clark and Lisa Bluder monument fund (fund) under control of the authority. The fund shall consist of appropriations made to the fund, donations, and transfers of interest, earnings, and moneys from other funds or sources as provided by law. The authority shall coordinate the solicitation of donations to the fund with the governor’s office, the university of Iowa, and the offices of the majority leader of the senate and the speaker of the house to determine the location and type of monument to be constructed. The bill prohibits the authority to solicit donations in excess of the estimated costs to construct the monument. The fund is repealed December 31, 2035, to coincide with the repeal of the tax credit due to the carryover provisions, and any remaining moneys in the fund shall be transferred to the general fund of the state.