Des Moines, Iowa (RI) — The Iowa Economic Development Authority’s proposed overhaul of state tax credits has cleared initial review in the House and Senate.
The changes would include limiting the money spent on research and development tax credits to 40 million dollars per year and putting more money into housing tax credits. A new five-million-dollar credit would be available to encourage the production of sustainable aviation fuel. During testimony at the legislature, Iowa Economic Development Authority director Debi Durham said some of the state’s current incentives were designed to compensate for Iowa not having competitive tax policies.
Christina Bateman of Atlantic told lawmakers she’s very concerned about the proposed repeal of the Endow Iowa program. She says the program’s tax credits helped the 75-million-dollar “Vision Atlantic” project focused on housing, child care, and quality of life.
Each year, the Endow Iowa program awards up to six million dollars to non-profit foundations that use the money to provide tax credits to donors. Business groups have also expressed concerns about limiting the state tax credit for research activities.
KIWA Staff Photo
