Iowa Code 2.48 – Review of tax incentive programs
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1. As used in this section, “tax expenditure” means an exclusion from the operation or collection of a tax imposed in this state. Tax expenditures include tax credits, exemptions, deductions, and rebates. Tax expenditures also include sales tax refunds issued pursuant to section 423.3 or 423.4.
Terms Used In Iowa Code 2.48
- Child: includes child by adoption. See Iowa Code 4.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Dependent: A person dependent for support upon another.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- year: means twelve consecutive months. See Iowa Code 4.1
2. a. (1) The department administering a tax expenditure described in subsection 3 shall engage in a review of the tax expenditure based upon the schedule in subsection 3. If multiple departments administer the tax expenditure, the departments shall cooperate in the review.
(2) The review shall consist of evaluating any tax expenditure described in subsection 3 and assess its equity, simplicity, competitiveness, public purpose, adequacy, and extent of conformance with the original purpose of the legislation that enacted the tax expenditure, as those issues pertain to taxation in Iowa.
b. (1) The department shall file a report detailing the review with the general assembly no later than December 15 of the year the credit is scheduled to be reviewed in subsection 3.
(2) The report may include recommendations for better aligning tax expenditures with the original intent of the legislation that enacted the tax expenditure.
3. The applicable department shall review the following tax expenditures and incentives according to the following schedule:
a. In 2011:
(1) The high quality jobs program under chapter 15, subchapter II, part 13.
(2) The tax credits for increasing research activities available under sections 15.335, 422.10, and 422.33.
(3) The franchise tax credits available under sections 422.11 and 422.33.
(4) The earned income tax credit available under section 422.12B.
b. In 2012:
(1) The Iowa fund of funds program in chapter 15E, subchapter VII.
(2) The targeted jobs withholding credits available under section 403.19A.
(3) Funding of urban renewal projects with increased local sales and services tax revenues under section 423B.10.
(4) School tuition organization tax credits under sections 422.11S and 422.33.
(5) Tuition and textbook tax credits under section 422.12.
c. In 2013:
(1) The child and dependent care and early childhood development tax credits under section 422.12C.
(2) The endow Iowa tax credits authorized under section 15E.305.
(3) The redevelopment tax credits available under section 15.293A.
(4) Property tax revenue divisions for urban renewal areas under section 403.19.
d. In 2014:
(1) Tax credits for investments in qualifying businesses under chapter 15E, subchapter V.
(2) Historic preservation tax credits under chapter 404A.
(3) Wind energy production tax credits under chapter 476B.
(4) Renewable energy tax credits under chapter 476C.
(5) The ethanol promotion tax credits available under section 422.11N.
(6) The E-85 gasoline promotion tax credits available under section 422.11O.
(7) The biodiesel blended fuel tax credits available under section 422.11P.
e. In 2015:
(1) The beginning farmer tax credit program as provided in chapter 16, subchapter VIII, part 5, subpart B.
(2) The claim of right tax credit under section 422.5.
(3) The reduction in allocating income to Iowa by S corporation shareholders under section 422.8.
(4) The minimum tax credit under section 422.11B, Code 2023, and sections 422.33 and 422.60.
(5) The assistive device corporate tax credit under section 422.33.
(6) The charitable conservation contribution tax credit under sections 422.11W and 422.33.
(7) The motor vehicle fuel tax credit under section 422.110.
(8) The new jobs tax credits available under section 422.11A.
f. In 2016:
(1) The homestead tax exemption and credit under chapter 425.
(2) The elderly and disabled property tax credit under chapter 425.
(3) The agricultural land tax credit under chapter 426.
(4) The military service tax credit under chapter 426A.
g. In 2017, the innovation fund investment tax credit available under section 15E.52.
h. In 2022, the renewable chemical production tax credit program available under sections 15.315 through 15.322.
4.
A tax expenditure or incentive reviewed pursuant to subsection 3 shall be reviewed again not more than five years after the tax expenditure or incentive was most recently reviewed.