Bills › 91st General Assembly

HSB 221Renumbered as HF 975 · March 24, 2025

Relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture, and including applicability and retroactive applicability provisions

Proposed by the Economic Development Authority · all agency proposals

Topics:Business & economy Families & human services Taxes Tax credits & incentives

Same legislation: SSB 1106, SF 465, HF 975, SF 622, SF 642

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 20, 2025
Done: SubcommitteeFebruary 20, 2025
Done: House committeeMarch 20, 2025
Skipped: Passes the HouseContinued as HF 975
Next: Senate committee
Next: Passes the Senate
Next: To the Governor
Next: Signed into law

Became HF 975 → Its progress continues under the new number. Go to HF 975 What’s a funnel?

What’s in it

AI summary This bill changes how several state agencies manage money and programs for economic development, tourism, and the arts. It updates rules for tax credits used to fix up old buildings and removes certain requirements for businesses receiving tourism funding. The changes also create a new fund to support arts and culture organizations and shift how the state handles title insurance and homelessness programs.¹

Read the official explanation

This bill relates to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture. Division I eliminates the requirement that the Iowa innovation council review and make recommendations on all applications received by the Iowa economic development authority (IEDA) for financial assistance under the Iowa strategic infrastructure program, and instead requires a committee appointed by the IEDA director to conduct a review and make recommendations. Division II repeals the brownfield redevelopment program, fund, and advisory council (council). The bill requires that the amount of a redevelopment tax credit be determined by members of the IEDA appointed by the governor (the board), rather than determined by the board in conjunction with the council as required under current law. _____ conjunction with the council as required under current law. IEDA may engage outside experts to complete a technical, financial, or other review. The bill makes conforming changes related to elimination of the council. Under current law, upon completion of a registered project for redevelopment tax credits, an audit of the project completed by an independent certified public accountant (CPA) shall be submitted to the IEDA. Under the bill, the investor shall engage a CPA to conduct an examination of the project and submit the examination, and a statement of the amount of final qualifying investments, to the IEDA. Upon review of the examination and statement, the IEDA may issue a tax credit certificate to the investor.335B, as determined by the IEDA. Division III eliminates the requirement that an applicant awarded financial assistance under both the vision Iowa program and the community attraction and tourism program provide and pay at least percent of the cost of a standard medical insurance plan for all full-time employees after the completion of the project for which financial assistance was received. This division applies to applicants awarded financial assistance under both programs on or after the effective date of the bill, and applies retroactively to applicants awarded financial assistance under both programs prior to the effective date of the bill. Under division IV, the director of the IEDA shall appoint a review committee composed of members with relevant expertise to review community attraction and tourism program applications and sports tourism marketing and infrastructure program applications. Under current law, the review committee is composed of five members of the IEDA board. _____ for the historic preservation tax credit program (historic tax program) under current law, for a project for the rehabilitation of property to be considered a “qualified rehabilitation project” (project), that the property not be a single-family dwelling unit, unless the project will result in two or more new single-family dwelling units that were not available for occupancy for at least six months prior to the project, and the dwelling units are located in the same neighborhood as confirmed by the IEDA. The single-family dwelling units must be made available for occupancy as a result of the project. The IEDA may promulgate rules that specify the criteria used to determine if a property is a single-family dwelling unit, and to determine if a property is a qualified rehabilitation project. Under current law, upon successful registration of a project under the historic tax program, the eligible taxpayer (taxpayer) shall enter into an agreement with the IEDA that contains mutually agreeable terms and conditions including the commencement date of the project, which shall not be later than the end of the fiscal year in which the agreement is entered into, and the completion date of the project, which shall be within months of the commencement date. Under the bill, the date by which the project must commence shall be no later than one calendar year from the registration date, except that upon application of the taxpayer the IEDA may extend the date of commencement up to additional months. The date by which the project must be completed shall be no later than three consecutive calendar years from the registration date, except that upon application of the taxpayer, the IEDA may extend the date of commencement up to another months. The project is complete as of the date the property is placed in service. Upon application of the taxpayer made prior to the expiration of the 12-month extension, the IEDA may extend the date by which the project must be completed up to an additional months. _____ extension is warranted due to extenuating circumstances. Under the bill, the IEDA may grant historic preservation tax credits beyond the aggregate tax credit award limit in one fiscal year if, during that fiscal year, the IEDA receives an application for a project that has qualified rehabilitation expenditures that, if registered, would make the taxpayer eligible for tax credits of $10 million or more. The IEDA is then permitted to award tax credits during that fiscal year not to exceed percent more than the maximum aggregate tax credit award limit. Such tax credits awarded shall be considered for purposes of calculating the maximum aggregate tax credit award limit in the immediately succeeding fiscal year. Under division VI, the Iowa finance authority (IFA) may adopt rules to carry out the duties of IFA related to homelessness, and may establish internal rules of procedure, consistent with the requirements of the federal McKinney-Vento Homeless Assistance Act. Under current law, IFA must adopt rules. Division VII eliminates the title guaranty division board. The powers of the title guaranty division relating to the issuance of title guaranties are vested in the IFA board of directors. The director of the IFA shall appoint an attorney as director of the division, and the division director’s appointment and compensation shall be exempt from the merit system.93. Division VIII is related to arts and culture. Under current law, the IEDA is responsible for the Iowa cultural trust, including the issuance of trust fund credits for the promotion of the arts, history, or the sciences and humanities; the issuance of grants for qualified organizations; developing and implementing fee-based educational programming opportunities; conducting surveys of existing art and cultural programs and activities within the state; and the establishment and administration of a film office. _____ responsibility for the IEDA to accept, receive, and administer grants or other funds or gifts from public or private agencies; to design and carry out a comprehensive, statewide, long-range plan (plan) with the assistance of the Iowa arts council to develop the arts in Iowa; and to establish advisory groups for the receipt of federal funds or grants or the administration of the IEDA’s programs. Under the bill, the IEDA is no longer required to establish and administer a film office. Instead, the IEDA is responsible for providing technical assistance for the production of film, television, and video projects in the state. The bill eliminates certified cultural and entertainment districts. The bill eliminates the cultural grant programs under current law, which requires the IEDA to establish a grant program for cities and nonprofit, tax-exempt community organizations for the development of community programs that provide local jobs for Iowa residents and promote Iowa’s historic, ethnic, and cultural heritages through the development of festivals, music, drama, cultural programs, or tourist attractions. Additionally, the IEDA is required to establish a grant program which provides general operating budget support to major, multidisciplinary cultural organizations that demonstrate cultural and managerial excellence on a continuing basis to the citizens of Iowa. _____ projects produced in the state; and to address other goals and priorities in the plan designed by the IEDA. The enhancement fund consists of moneys appropriated by the general assembly and any other moneys that are lawfully available to the IEDA. Each fiscal year, $520,000 is appropriated from gambling and sports wagering taxes to the IEDA for deposit in the enhancement fund. The IEDA may establish and adopt by rule eligibility and priority criteria for allocation of moneys in the enhancement fund. The Iowa arts council (arts council) may elect a chairperson and vice chairperson from the members of the arts council, rather than being designated by the governor under current law. In addition to duties under current law, the arts council is required to recommend programs to ensure that Iowa citizens and communities have access to the cultural, civic, economic, and educational benefits of the arts.482, eliminating the Iowa cultural trust Act, including the Iowa cultural trust, trust fund, grant account, and board of trustees, and eliminates the arts and cultural conferences and caucuses, the cultural and entertainment districts, the Iowa great places program and fund, and the culture, history, and arts teams program. On the effective date of this division of the bill, all unencumbered and unobligated moneys remaining in the Iowa great places program fund, Iowa cultural trust fund, and Iowa cultural trust grant account are transferred to the arts and culture enhancement fund established in the bill.64.

Changed since by amendment S-3160; see Amendments.

Full bill text · What changed before it passed²

House subcommittee

Named February 20, 2025. On March 5, 2025 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

AI summary This bill changes several programs within the Iowa Economic Development Authority, including the elimination of the Brownfield Redevelopment Program and various arts and culture programs. It transfers the $1,446,480 balance from the Brownfield Redevelopment Fund to other state funds and establishes a new Arts and Culture Enhancement Fund. The bill is estimated to have a net neutral fiscal impact over a two-year period regarding historic preservation tax credits, though it may decrease General Fund revenue by up to $9.0 million in any single year.³

Read the fiscal note

Description

House File 975 changes various programs, activities, and appropriations for the Iowa Economic Development Authority (IEDA).

The following divisions of the Bill have no fiscal impact:

Division I — Strategic Infrastructure Program
Division III — Community Attraction and Tourism, and Vision Iowa — Required Benefits
Division IV — Community Attraction and Tourism Program, and Sports Tourism Marketing and Infrastructure Program — Application Review
Division VI — Homelessness — Iowa Finance Authority
Division VII — Title Guaranty Board — Elimination
Division IX — Conforming Changes
Division X — Iowa Reinvestment Act — District Establishment

The following divisions of the Bill have a fiscal impact and are described in further detail below:

Division II — Brownfield, Grayfields, and Redevelopment Tax Credits
Division V — Historic Preservation Tax Credit
Division VIII — Arts and Culture

Division II — Brownfield, Grayfields, and Redevelopment Tax Credits

Description

Division II of the Bill eliminates the Brownfield Redevelopment Program, the Brownfield Redevelopment Fund, and the Brownfield Redevelopment Advisory Council. The Division makes changes related to the review of Redevelopment Tax Credit applications and transfers any remaining moneys in the Brownfield Redevelopment Fund into a fund or funds established pursuant to Iowa Code section 15.335B.

Background

A brownfield is an abandoned, idled, or underutilized industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination. The Brownfield Redevelopment Program provides financial and technical assistance for the acquisition, remediation, or redevelopment of brownfield sites. The Brownfield Redevelopment Fund last received an appropriation in FY 2010 from the Environment First Fund. As of May 13, 2025, there was approximately $1.4 million in the Brownfield Redevelopment Fund. Assistance for brownfields is also available under the Redevelopment Tax Credit. Additional information about the Redevelopment Tax Credit can be found in this Fiscal Topic. A fund or funds established pursuant to Iowa Code section 15.335B may be used for the following purposes:

To provide project completion assistance and program support to eligible businesses related to certain tax credits, tax refunds, and tax exemptions.
To provide certain economic development region financial assistance.
To provide financial assistance for business accelerators.
To support the Innovation and Commercialization Fund.
To provide financial assistance to businesses engaged in disaster recovery.
To support the Entrepreneur Investment Awards Program Fund.
To support the Strategic Infrastructure Fund.
To support the Nuisance Property Remediation Fund.
To support the Community Catalyst Building Remediation Fund.

Assumptions

No revenue or expenses will be registered for the Brownfield Redevelopment Fund in FY 2025 after May 13, 2025.

Fiscal Impact

Division II of the Bill transfers the balance of the Brownfield Redevelopment Fund to a fund or funds established pursuant to Iowa Code section 15.335B as determined by the IEDA. As of May 13, 2025, there was $1,446,480 in the Brownfield Redevelopment Fund. Division V — Historic Preservation Tax Credit

Description

Division V of the Bill provides that the Historic Preservation Tax Credit (HPTC) may not be used for single-family home projects unless the project results in two or more new single-family homes that are located in the same neighborhood and that were not available for occupancy in the preceding six months. The Division makes changes to the award date, commencement date, and registration date of qualified rehabilitation projects. The IEDA may grant up to two 12-month extensions of a project’s completion date.

The Division permits the IEDA to award 20.0% more than the $45.0 million maximum aggregate award limit for the HPTC if an applicant is eligible for $10.0 million or more in tax credits. Tax credits awarded in excess of the maximum aggregate award limit are credited to the succeeding fiscal year.

Background

The HPTC provides a 25.0% tax credit for qualified expenditures incurred during the substantial rehabilitation of eligible historic properties in Iowa. To qualify, the property or district must meet any of the following criteria:

The property is listed on the National Register of Historic Places or is eligible for such a listing.
The property is designated as having historic significance to a district listed in the National Register of Historic Places or is eligible for this designation.
The property or district is designated as a local landmark by a city or county ordinance.
The property is a barn constructed before 1937.

Additional information on the HPTC, including redemption history, is available in the HPTC Fiscal Topic.

Assumptions

Tax credits are claimed in the year in which they are awarded.
Requirements for claiming the HPTC are unchanged during the projection period.
Demand for the HPTC is unchanged during the projection period.
In any given fiscal year, the maximum aggregate award limit cannot exceed $54.0 million.
Any amount exceeding the maximum aggregate award limit in one year will be credited against the following year’s award amount.

Fiscal Impact

Division V of the Bill is estimated to have a net neutral fiscal impact over a two-year period. Allowing the HPTC to exceed the maximum aggregate award limit may decrease revenue to the General Fund by up to $9.0 million in any given year with an equal increase in revenue the following year.

Division VIII — Arts and Culture

Description

Division VIII of the Bill eliminates the following IEDA programs:

Regional conferences and a statewide caucus on arts and cultural enhancement.
The Cultural and Entertainment Districts Certification Program.
The Iowa Great Places Program and the Iowa Great Places Program Fund.
The Culture, History, and Arts Teams Program.
The Iowa Cultural Trust, the Iowa Cultural Trust Fund, and the Iowa Cultural Trust Grant Account.
The Community Cultural Grants Program and the Operational Support Grants Program. The Division removes the requirement that the IEDA do the following:
Have advisory groups established by administrative rule.
Develop and implement certain fee-based educational programming opportunities.
Conduct surveys of existing art and cultural programs.
Have a film office.

The Division establishes the Arts and Culture Enhancement Fund. Interest or earnings on the Fund are deposited in the Fund. Moneys in the Fund at the close of a fiscal year remain in the Fund and do not revert to the General Fund. Moneys in the Fund must be used for the following purposes:

To provide support to municipal and nonprofit arts and cultural organizations that serve as significant attractions or community resources.
To support artists and entities that foster artistic and cultural expression, promote lifelong learning and engagement in the arts, advance community development goals, or emphasize Iowa’s diverse heritage through artworks.
To increase access to arts and culture in rural and underserved communities.
To promote and invest in film, television, and video projects in the State.
To address other goals and priorities included in the IEDA’s comprehensive, statewide, long-range plan to develop the arts in Iowa.
To cover the administrative costs of programs under the Arts and Culture Enhancement Fund.

The Division makes changes related to the selection of the chairperson and the duties of the Iowa Arts Council.

The Division provides that the $520,000 standing appropriation in Iowa Code section 99F.11(4)(d)(1) for operational support grants and community cultural grants be deposited in the Arts and Culture Enhancement Fund.

The Division transfers all remaining unencumbered and unobligated moneys in the Iowa Great Places Program Fund, the Iowa Cultural Trust Fund, and the Iowa Cultural Trust Grant Account to the Arts and Culture Enhancement Fund.

Background

In FY 2025, the Community Cultural Grants Program received an appropriation of $172,090, Cultural Trust Grants received an appropriation of $150,000, and the Iowa Great Places Program received an appropriation of $149,710.

Under current law, Iowa Code section 99F.11(4)(d)(1) provides a standing limited appropriation of $520,000 for operational support grants and community cultural grants from a portion of the State Wagering Tax revenue deposited in the General Fund. For FY 2025, this standing appropriation was limited to $448,403 in 2024 Iowa Acts, Senate File 2432 (FY 2025 Economic Development Appropriations Act).

Assumptions

Changes related to the appropriations for the Community Cultural Grants Program, Cultural Trust Grants, and the Iowa Great Places Program will be determined in the annual Economic Development Appropriations Act.
No revenue or expenses will be credited to the Iowa Great Places Program Fund, the Iowa Cultural Trust Fund, and the Iowa Cultural Trust Grant Account for the remainder of FY 2025.

Fiscal Impact

Division VIII of the Bill creates the Arts and Culture Enhancement Fund. Interest earned on moneys in to the Fund will remain with the Fund. The moneys in the Fund will not revert but will remain available for expenditure for subsequent fiscal years.

The Division modifies a standing appropriation of $520,000 for operational support grants and community cultural grants by instead depositing it in the Arts and Culture Enhancement Fund. The Division transfers moneys in the Iowa Great Places Program Fund, the Iowa Cultural Trust Fund, and the Iowa Cultural Trust Grant Account to the Arts and Culture Enhancement Fund. As of May 13, 2025, there was $126,584 in the Iowa Great Places Program Fund; $64,513 in the Iowa Cultural Trust Fund; and $30 in the Iowa Cultural Trust Grant Account.

Fiscal Impact Summary

House File 975 is estimated to increase and decrease the amount of funds available for various funds and programs as shown in Figure 1.

Figure 1 — Fiscal Impact of House File 975 Division V of the Bill is estimated to have a net neutral fiscal impact over a two-year period. The Division may decrease revenue to the General Fund by up to $9.0 million in one year with an equal increase in revenue to the General Fund in the following year.