Dems: Economic Growth – week of Feb. 15, 2016

February 22, 2016

SF 2052 –Biofuels Tax Credits

SF 2179/SSB 3095 – Apprenticeship Incentives in the High Quality Jobs Program

SF 2212/SSB 3146 –Baseball and Softball Tournament Facility Sales Tax Rebate

SSB 3136 –Changes to the Nuisance Property Remediation Fund



SF 2052 extends the expiration date of four biofuel tax credits from January 1, 2018, to January 1, 2025. The four programs are: E15 Plus Gasoline Promotion Tax Credit, E85 Gasoline Promotion Tax Credit, Biodiesel Blended Fuel Tax Credit and Biodiesel Production Refund. The bill increase the tax credit rate for biodiesel blended fuels of B-11 or higher from 4.5 cents per gallon to 7 cents per gallon. This change is retroactive to tax years beginning on or after January 1, 2016. Finally, the bill repeals references (in the E85 and E15 tax credit programs) to the Ethanol Promotion Tax Credit claimed by a retail dealer. This becomes effective on January 1, 2021, when the Ethanol Promotion Tax credit is due to expire. [2/16: short form]


SF 2179/SSB 3095 provides additional incentives to businesses that quality for High Quality jobs projects and use Apprenticeship Training program contractors and subcontractors. If an eligible business directs 70 percent of the qualifying investment to qualifying contractors or subcontractors, they are eligible for an additional investment tax credit of up to 1.4 percent. If the eligible business directs more than 70 percent of the qualifying investment to qualifying contractors or subcontractors, the additional tax credit available will increase 0.02 percent above the 1.4 percent base for each percentage point increase to the percent of the qualifying investment directed to qualifying contactors or subcontractors. This goes up to 100 percent for apprenticeship contractors and subcontractors to the full 2 percent investment tax credit. This is all negotiable with the Iowa Economic Development Authority. The bill applies to businesses that receive an award under the High Quality Jobs program on or after July 1, 2016. [2/11: short form]


SF 2212/SSB 3146 modifies the rebate of state sales tax to the owner or operator of a baseball and softball tournament facility and movie site. The bill changes the name of the qualifying “baseball and softball tournament facility and movie site” to a “baseball and softball complex.” A complex will qualify for the rebate if the project is completed after July 1, 2016, and has a construction cost of at least $10 million (a change from current law). The bill removes the requirement that the owner/operator be for-profit. The bill changes the availability of the rebate for each complex to specify that the rebate only applies to sales tax collected for the 10-year period beginning on or after the completion date. The bill specifies that any one complex cannot receive more than $2.5 million in total rebates. The repeal date of the rebate provision is changed to provide that the rebate is repealed 30 days after a total of $16.5 million has been rebated. [2/16: 10-5 (Bowman, Breitbach, Chelgren, Guth, Schneider “no”)]


SSB 3136, as amended in committee, makes changes to the Nuisance Property Remediation Fund administered by the Iowa Economic Development Authority (IEDA). The bill allows IEDA to provide grants to cities, in addition to loans and forgivable loans, for financial assistance. The bill requires IEDA to dedicate at least 25 percent of all money awarded from the fund each fiscal year to cities with populations of less than 1,500. In addition, IEDA must give priority to cities that participate in community development planning and programs with a Council of Government. [2/16: short form]

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