Providing for the future repeal of tax credits

This bill provides for the future repeal of certain existing state income and property tax credits, and provides for the future repeal of tax credits enacted by the general assembly in the future. DIVISION I —— FUTURE REPEAL OF EXISTING TAX CREDITS. Division I repeals tax credits on a rolling basis over a five-year period beginning January 1, 2027, through January 1, 2031. The bill repeals the following tax credits that currently have no repeal date: the accelerated career education program job tax credit; the beginning farmer tax credit; the assistive device corporate tax credit; the sales and use tax refund, corporate tax credit for certain sales taxes paid by third-party developers, investment tax credit, insurance premiums tax credit, and supplemental research activities tax credit available under the high quality jobs program; the school tuition organization tax credit; the solar energy system tax credit; the innovation fund investment tax credit; the tax credit for investments in a qualifying business; the wind energy production tax credit; the charitable conservation contribution tax credit; the new jobs credits from withholding available under the Iowa industrial new job training program; the research activities credits; the renewable energy tax credit; the targeted jobs withholding tax credit; employer child care tax credit; endow Iowa tax credit; historic preservation tax credit; new jobs tax credit; emergency personnel and tuition textbook tax credits; adoption tax credit; earned income tax credit; child and dependent care or early childhood development tax credit; geothermal heat pump tax credit; public safety officer moving expense tax credit; homestead tax credit; elderly and disabled property tax credit or reimbursement; and the agricultural land credit. The bill amends the repeal date of the renewable chemical production tax credit from January 1, 2039, to January 1, 2031. The bill provides that the repeal of a tax credit shall not affect tax credits issued, awarded, or allowed prior to January 1, 2031, or affect a taxpayer’s ability to claim or redeem such tax credits, including but not limited to any tax credit carryforward amount, and further provides that the bill shall not constitute grounds for rescission or modification of agreements entered into for a tax credit, and that such agreements shall remain in effect until they expire under their own terms and shall be governed by the applicable provisions of law as they existed immediately prior to January 1, 2031.16 for submission to the legislative services agency to implement the repeal of the tax credits. DIVISION II —— FUTURE REPEAL OF FUTURE TAX CREDIT PROGRAMS. Division II provides that any tax credit program available against the individual or corporate income tax, the franchise tax, the insurance premiums tax, or the moneys and credits tax, enacted by the general assembly on or after January 1, 2026, is repealed after five years, unless another provision of law provides for an earlier repeal date. The bill provides that the repeal of a tax credit program pursuant to this provision shall not affect the tax credits or tax credit agreements entered into prior to the repeal of the tax credit program in the same manner as described above for the repeal of the existing tax credits.