Bills › 91st General Assembly
Relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax
Sponsored by Sen. Mark S. Lofgren (R)
Where it is now
- Done: IntroducedJanuary 30, 2025
- Done: SubcommitteeFebruary 11, 2025
- Done: Senate committeeMay 9, 2025
- Skipped: Passes the SenateContinued as SF 653
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 653 → Its progress continues under the new number. Go to SF 653 What’s a funnel?
What’s in it
AI summary This law changes how much money people can get back through historic preservation tax credits. It extends a rule that protects the rights of people who were already awarded these credits before July 1, 2023. This ensures that those who received credits earlier are not negatively affected by the new rules.1
Read the official explanation
During the 2022 legislative session, House File 2317 was enacted which gradually reduced the refundability of the historic preservation tax credit commencing with the tax year beginning January 1, 2023, until percent of the credit in excess of tax liability is refundable for tax years beginning on or after January 1, 2027. Previously, the tax credit was 100 percent refundable. House File 2317 also enacted a provision preserving existing rights to the tax credit issued, awarded, or allowed prior to January 1, 2023, to reduce the effect House File 2317 had on existing tax credits being awarded. This bill expands the applicability of the preservation of existing rights provision from January 1, 2023, to July 1, 2023, to historic preservation tax credits issued, awarded, or allowed prior to July 1, 2023.
Senate subcommittee
Named February 11, 2025. On May 9, 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 allows certain Historic Preservation Tax Credits awarded between January 1, 2023, and July 1, 2023, to be fully refundable. It is projected to decrease revenue to the State General Fund by $300,000 in fiscal year 2026.3
Read the fiscal note
Description
Senate File 653 expands the applicability of the preservation of a right to claim or redeem at 100.0% refundability Historic Preservation Tax Credits issued, awarded, or allowed from January 1, 2023, to July 1, 2023, including any tax credit carryforward amount.
Background
2022 Iowa Acts, House File 2317 (Income Tax Rate Reduction and Exemptions Act) gradually reduced the refundability of the Historic Preservation Tax Credit from 100.0% refundability in tax year (TY) 2022 to 75.0% in TY 2027. The Act also enacted a provision preserving existing rights to tax credits issued, awarded, or allowed prior to January 1, 2023, to reduce the effect the Act had on existing tax credits awarded.
In FY 2024, which comprises the majority of TY 2023 returns and tax credit claims, actual tax credit claims to the State for the Historic Preservation Tax Credit totaled $40.8 million, as published in the Iowa Department of Revenue’s (IDR’s) December 2024 Contingent Liabilities Report.
Assumptions
- According to the IDR, $11.4 million in Historic Preservation Tax Credits was awarded between January 1, 2023, and July 1, 2023.
- All tax credits awarded for the Historic Preservation Tax Credit between January 1, 2023, and July 1, 2023, have been claimed and were reduced by $300,000 due to refundability under current law.
- Any fiscal impact due to the Bill would occur in FY 2026 as amended returns are filed due to the elimination of refund reduction requirements for awards made between January 1, 2023, and July 1, 2023.
Fiscal Impact
The proposed expansion of the preservation of existing rights for relevant tax credits issued, awarded, or allowed until July 1, 2023, is projected to decrease revenue to the State General Fund by $300,000 in FY 2026.
Sources
- Iowa Department of Revenue
- Legislative Services Agency analysis
- Refundability of Historic Tax Credits · May 12, 2025 · $300,000
- Refundability of Historic Tax Credits · April 21, 2025 · $300,000
Lobbying
4 for · 0 against · 22 undecided · Who →
Family tree
Study bill
Similar bills
- HSB 232 Relating to the historic preservation tax credit available against the individual and corp…91st General Assembly · In committeeNearly identical
Matched by wording or an identical title.