Dems: Ways & Means – week of April 11, 2016

April 18, 2016

SF 2309 – Biofuels tax credits

SF 2212 – Baseball/Softball complex sales tax rebate

SF 2310 – Knoxville Raceway

HF 2436 – Real estate appraisal management company registration



SF 2309 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 increases the tax credit rate for biodiesel blended fuels of B-11 or higher to 5.5 cents per gallon while also lowering the credit for blends below B-11 to 3.5 cents per gallon beginning January 1, 2018. The current biodiesel blended fuel credit is 4.5 cents per gallon, with no distinction for higher blends. 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 expires.

[4/13: 49-0 (Bertrand absent)]



SF 2310 modifies the existing sales tax rebate program for the Knoxville Raceway. The current program allows the project to receive a rebate of up to $2 million or 25 percent of the project costs associated with the renovation and expansion of the facility. The bill changes the rebate amount to simply state that they are eligible for up to $2 million. The rebate is for sales taxes paid at the facility between January 1, 2015, and January 1, 2025.

[4/12: short form (Behn, Quirmbach “no”)]


SF 2212 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 The repeal date of the rebate provision is changed to provide that the rebate is repealed 30 days after a total of $16.5 million has been rebated. An amendment adopted in committee requires an entity that wants to be eligible for the baseball and softball complex sales tax rebate must apply the same way a project applies to the Community Attraction & Tourism (CAT) Program. A project must not be required to receive a CAT award to be awarded a sales tax rebate. The Iowa Economic Development Authority Board will approve, defer or deny an application for a sales tax rebate.  When reviewing the applications, the Authority will consider, at a minimum, the same factors that are consider in CAT projects: (1) whether the wages, benefits, including health benefits, safety and other attributes of the project would improve the quality of life or the quality of attraction or tourism employment in the community; (2) the extent to which such a project would generate additional recreation and cultural attractions or tourism opportunities; (3) the ability of the project to produce a long-term, tax-generating economic impact; (4) location of the projects and geographic diversity of the applications; (5) the project is primarily a vertical infrastructure project with demonstrated substantial regional or statewide economic impact.

[4/12: short form (Anderson, Behn, Schultz, Smith “no”; Quirmbach “pass”)]


HF 2436 provides for the licensure and regulation of appraisal management companies by the state division of banking. Under federal regulations, an appraisal management company operating in Iowa cannot perform services related to a federally related mortgage unless it is registered and subject to supervision by the state. There currently are no appraisal management companies domiciled in Iowa. However, banks or other mortgage lenders may contract for services to be carried out by these companies so establishing the regulatory framework is necessary.

[4/12: short form]

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