Bill Text: IA SF408 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the economic development authority, including certain tax credit programs, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions.(Formerly SSB 1087; See SF 575.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-04-24 - Committee report approving bill, renumbered as SF 575. S.J. 944. [SF408 Detail]
Download: Iowa-2023-SF408-Introduced.html
Senate
File
408
-
Introduced
SENATE
FILE
408
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
1087)
A
BILL
FOR
An
Act
relating
to
the
economic
development
authority,
1
including
certain
tax
credit
programs,
the
Iowa
wine,
beer,
2
and
spirits
promotion
board,
and
the
beer
and
liquor
control
3
fund,
and
including
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
TAX
CREDITS
2
Section
1.
Section
15.119,
subsection
2,
paragraphs
d,
e,
3
and
h,
Code
2023,
are
amended
to
read
as
follows:
4
d.
The
tax
credits
for
investments
in
qualifying
businesses
5
issued
pursuant
to
section
15E.43
,
and
the
tax
credits
for
6
investments
in
an
innovation
fund
pursuant
to
section
15E.52
.
7
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
8
authority
shall
allocate
two
million
an
aggregate
amount
of
tax
9
credits
that
is
not
more
than
ten
million
dollars
for
purposes
10
of
this
paragraph,
unless
the
authority
determines
that
the
tax
11
credits
awarded
will
be
less
than
that
amount
.
On
or
before
12
June
30
of
each
year,
the
authority
shall
determine
the
amount
13
of
the
aggregate
amount
of
tax
credits
that
shall
be
allocated
14
for
tax
credits
issued
for
investments
in
qualifying
businesses
15
pursuant
to
section
15E.43,
and
the
amount
that
shall
be
16
allocated
for
tax
credits
for
investments
in
an
innovation
fund
17
pursuant
to
section
15E.52.
18
e.
The
tax
credits
for
investments
in
an
innovation
fund
19
pursuant
to
section
15E.52
.
In
allocating
tax
credits
pursuant
20
to
this
subsection
,
the
authority
shall
allocate
eight
million
21
dollars
for
purposes
of
this
paragraph,
unless
the
authority
22
determines
that
the
tax
credits
awarded
will
be
less
than
that
23
amount.
24
h.
The
renewable
chemical
production
tax
credit
program
25
administered
pursuant
to
sections
15.315
through
15.322
.
In
26
allocating
tax
credits
pursuant
to
this
subsection
for
the
27
fiscal
year
beginning
July
1,
2021,
and
for
each
fiscal
year
28
thereafter
beginning
before
July
1,
2037
,
the
authority
shall
29
not
allocate
more
than
five
million
dollars
for
purposes
of
30
this
paragraph.
This
paragraph
is
repealed
July
1,
2030
2039
.
31
Sec.
2.
Section
15.316,
subsection
3,
Code
2023,
is
amended
32
to
read
as
follows:
33
3.
“Building
block
chemical”
means
a
molecule
converted
34
from
biomass
feedstock
as
a
first
product
or
a
secondarily
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derived
product
that
can
be
further
refined
into
a
higher-value
1
chemical,
material,
or
consumer
product.
“Building
block
2
chemical”
includes
but
is
not
limited
to
high-purity
glycerol,
3
oleic
acid,
lauric
acid,
methanoic
or
formic
acid,
arabonic
4
acid,
erythonic
acid,
glyceric
acid,
glycolic
acid,
lactic
5
acid,
3-hydroxypropionate,
propionic
acid,
malonic
acid,
6
serine,
succinic
acid,
fumaric
acid,
malic
acid,
aspartic
7
acid,
3-hydroxybutyrolactone,
acetoin,
threonine,
itaconic
8
acid,
furfural,
levulinic
acid,
glutamic
acid,
xylonic
acid,
9
xylaric
acid,
xylitol,
arabitol,
citric
acid,
aconitic
acid,
10
5-hydroxymethylfurfural,
lysine,
gluconic
acid,
glucaric
acid,
11
sorbitol,
gallic
acid,
ferulic
acid,
butyric
acid,
nonfuel
12
butanol,
nonfuel
ethanol,
or
such
additional
molecules
as
may
13
be
included
by
the
authority
by
rule
after
consultation
with
14
appropriate
experts
from
Iowa
state
university,
including
15
but
not
limited
to
the
Iowa
state
university
center
for
16
biorenewable
chemicals.
17
Sec.
3.
Section
15.318,
subsection
1,
Code
2023,
is
amended
18
by
adding
the
following
new
paragraph:
19
NEW
PARAGRAPH
.
f.
All
complete
applications
submitted
20
by
eligible
businesses
shall
be
reviewed
and
scored
on
a
21
competitive
basis
by
the
authority
pursuant
to
rules
adopted
22
by
the
authority.
23
Sec.
4.
Section
15.318,
subsection
2,
paragraphs
c
and
d,
24
Code
2023,
are
amended
to
read
as
follows:
25
c.
An
eligible
business
shall
fulfill
all
the
requirements
26
of
the
program
and
the
agreement
before
receiving
the
authority
27
issues
the
business
a
tax
credit
certificate
or
entering
enters
28
into
a
subsequent
agreement
with
the
business
under
this
29
section
.
The
authority
may
decline
to
enter
into
a
subsequent
30
agreement
with
the
business
under
this
section
or
to
issue
a
31
tax
credit
if
an
agreement
is
not
successfully
fulfilled.
32
d.
Upon
establishing
that
all
requirements
of
the
program
33
and
the
agreement
have
been
fulfilled,
the
authority
shall
34
issue
a
tax
credit
and
related
tax
credit
certificate
to
the
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eligible
business
stating
the
amount
of
renewable
chemical
1
production
tax
credit
the
eligible
business
may
claim.
2
Sec.
5.
Section
15.318,
subsection
3,
paragraphs
a,
d,
and
3
e,
Code
2023,
are
amended
to
read
as
follows:
4
a.
The
maximum
amount
of
tax
credit
that
the
authority
may
5
be
issued
issue
under
section
15.319
to
an
eligible
business
6
for
the
production
of
renewable
chemicals
in
a
calendar
year
7
shall
not
exceed
the
following:
8
(1)
In
the
case
of
an
eligible
business
that
has
been
in
9
operation
in
the
state
for
five
years
or
less
at
the
time
of
10
application,
is
one
million
dollars.
11
(2)
In
the
case
of
an
eligible
business
that
has
been
in
12
operation
in
the
state
for
more
than
five
years
at
the
time
of
13
application,
five
hundred
thousand
dollars.
14
d.
An
The
authority
shall
not
issue
an
eligible
business
15
shall
not
receive
more
than
five
tax
credits
credit
16
certificates
under
the
program.
17
e.
The
authority
shall
issue
tax
credits
under
the
program
18
on
a
first-come,
first-served
basis
until
the
maximum
amount
of
19
tax
credits
allocated
pursuant
to
section
15.119,
subsection
20
2
,
paragraph
“h”
,
is
reached.
The
authority
shall
maintain
a
21
list
of
successful
applicants
under
the
program,
so
that
if
the
22
maximum
aggregate
amount
of
tax
credits
is
reached
in
a
given
23
fiscal
year,
eligible
businesses
that
successfully
applied
24
but
for
which
tax
credits
were
not
issued
shall
be
placed
on
25
a
wait
list
in
the
order
the
eligible
businesses
applied
and
26
shall
be
given
priority
for
receiving
tax
credits
in
succeeding
27
fiscal
years.
Placement
on
a
wait
list
pursuant
to
this
28
paragraph
shall
not
constitute
a
promise
binding
the
state.
29
The
availability
of
a
tax
credit
and
issuance
of
a
tax
credit
30
certificate
pursuant
to
this
subsection
in
a
future
fiscal
year
31
is
contingent
upon
the
availability
of
tax
credits
in
that
32
particular
fiscal
year.
In
each
fiscal
year
beginning
on
or
33
after
July
1,
2023,
and
ending
on
or
before
June
30,
2036,
the
34
authority
may
award
an
amount
of
tax
credits
under
the
program
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not
to
exceed
the
maximum
aggregate
amount
allocated
in
section
1
15.119,
subsection
2,
paragraph
“h”
.
2
Sec.
6.
Section
15.319,
subsection
1,
Code
2023,
is
amended
3
to
read
as
follows:
4
1.
An
eligible
business
that
has
entered
into
an
agreement
5
pursuant
to
section
15.318
may
claim
a
tax
credit
in
an
amount
6
equal
to
the
product
of
five
cents
multiplied
by
the
number
7
of
pounds
of
renewable
chemicals
produced
in
this
state
from
8
biomass
feedstock
by
the
eligible
business
during
the
calendar
9
year
in
excess
of
the
eligible
business’s
pre-eligibility
10
production
threshold.
However,
an
eligible
business
shall
11
not
receive
a
tax
credit
for
the
production
of
a
secondarily
12
derived
building
block
chemical
if
that
chemical
is
also
the
13
subject
of
a
credit
at
the
time
of
production
as
a
first
14
product.
The
renewable
chemical
production
tax
credit
shall
15
not
be
available
for
any
renewable
chemical
produced
before
the
16
2017
calendar
year
or
after
the
2026
2035
calendar
year.
17
Sec.
7.
Section
15.320,
subsection
1,
Code
2023,
is
amended
18
to
read
as
follows:
19
1.
For
purposes
of
this
section
,
“successful
tax
credit
20
applicant”
includes,
with
respect
to
each
calendar
year,
an
21
eligible
business
that
was
issued
a
tax
credit
certificate
for
22
production
of
renewable
chemicals
during
that
calendar
year
,
23
and
an
eligible
business
that
successfully
applied
for
a
tax
24
credit
for
the
production
of
renewable
chemicals
during
that
25
calendar
year,
but
was
not
issued
a
tax
credit
and
was
instead
26
placed
on
a
wait
list
pursuant
to
section
15.318,
subsection
27
3
,
paragraph
“e”
.
28
Sec.
8.
Section
15.320,
subsection
2,
Code
2023,
is
amended
29
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
30
following:
31
2.
By
January
31
of
each
year,
the
board,
in
cooperation
32
with
the
department
of
revenue,
shall
submit
to
the
general
33
assembly
and
to
the
governor
a
report
describing
the
activities
34
of
the
program
for
the
most
recent
calendar
year
for
which
the
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tax
credit
application
period
has
ended
pursuant
to
section
1
15.318,
subsection
1,
paragraph
“d”
.
The
report
shall,
at
a
2
minimum,
include
the
following
information:
3
a.
The
aggregate
number
of
pounds,
and
a
list
of
each
type,
4
of
renewable
chemicals
produced
in
Iowa
by
all
successful
5
tax
credit
applicants
during
the
calendar
year
prior
to
the
6
calendar
year
for
which
the
successful
applicants
first
applied
7
for
a
tax
credit
under
the
program.
8
b.
The
aggregate
number
of
pounds,
and
a
list
of
each
type,
9
of
renewable
chemicals
produced
in
Iowa
by
all
successful
tax
10
credit
applicants
during
each
calendar
year.
11
c.
The
number
of
employees
located
in
Iowa
of
all
successful
12
tax
credit
applicants
during
the
calendar
year
prior
to
the
13
calendar
year
for
which
the
successful
applicants
first
applied
14
for
a
tax
credit
under
the
program.
15
d.
The
number
of
employees
located
in
Iowa
of
all
successful
16
tax
credit
applicants
during
each
calendar
year.
17
e.
For
each
eligible
business
issued
a
renewable
chemical
18
production
tax
credit
during
each
calendar
year:
19
(1)
The
identity
of
the
eligible
business.
20
(2)
The
amount
of
the
tax
credit.
21
(3)
The
manner
in
which
the
eligible
business
first
22
qualified
as
an
eligible
business
under
section
15.317,
23
subsection
4,
whether
by
organizing,
expanding,
or
locating
in
24
the
state.
25
f.
The
total
amount
of
all
renewable
chemical
production
tax
26
credits
claimed
during
each
calendar
year,
and
the
portion
of
27
each
claim
issued
as
a
refund.
28
Sec.
9.
Section
15.320,
subsection
3,
Code
2023,
is
amended
29
to
read
as
follows:
30
3.
To
protect
the
presumption
of
confidentiality
31
established
in
section
15.318,
subsection
5
,
the
board
shall
32
report
all
information
in
an
aggregate
form
to
prevent,
33
as
much
as
possible,
information
being
attributable
to
any
34
particular
eligible
business,
except
as
provided
in
subsection
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2
,
paragraph
“k”
“e”
.
1
Sec.
10.
Section
15.322,
Code
2023,
is
amended
to
read
as
2
follows:
3
15.322
Future
repeal.
4
Section
15.315
,
15.316
,
15.317
,
15.318
,
15.319
,
15.320
,
5
15.321
,
and
this
section
,
are
repealed
July
1,
2030
2039
.
6
Sec.
11.
Section
15E.43,
subsection
2,
paragraphs
b
and
c,
7
Code
2023,
are
amended
to
read
as
follows:
8
b.
The
maximum
amount
of
a
tax
credit
that
may
be
issued
9
per
calendar
fiscal
year
to
a
natural
person
and
the
person’s
10
spouse
or
dependent
shall
not
exceed
one
hundred
thousand
11
dollars
combined.
For
purposes
of
this
paragraph,
a
tax
12
credit
issued
to
a
partnership,
limited
liability
company,
S
13
corporation,
estate,
or
trust
electing
to
have
income
taxed
14
directly
to
the
individual
shall
be
deemed
to
be
issued
to
15
the
individual
owners
based
upon
the
pro
rata
share
of
the
16
individual’s
earnings
from
the
entity.
For
purposes
of
this
17
paragraph,
“dependent”
has
the
same
meaning
as
provided
by
the
18
Internal
Revenue
Code.
19
c.
The
maximum
amount
of
tax
credits
that
may
be
issued
20
per
calendar
fiscal
year
for
equity
investments
in
any
one
21
qualifying
business
shall
not
exceed
five
hundred
thousand
22
dollars.
23
Sec.
12.
Section
15E.44,
subsection
1,
Code
2023,
is
amended
24
to
read
as
follows:
25
1.
In
order
for
an
equity
investment
to
qualify
for
a
26
tax
credit,
the
business
in
which
the
equity
investment
27
is
made
shall,
within
one
hundred
twenty
sixty
days
of
the
28
date
of
the
first
investment,
notify
the
authority
of
the
29
names,
addresses,
shares
issued,
consideration
paid
for
the
30
shares,
and
the
amount
of
any
tax
credits,
of
all
shareholders
31
who
may
initially
qualify
for
the
tax
credits.
The
list
32
of
shareholders
who
may
qualify
for
the
tax
credits
shall
33
be
amended
as
new
equity
investments
are
sold
or
as
any
34
information
on
the
list
shall
change.
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Sec.
13.
Section
15E.44,
subsection
2,
Code
2023,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0e.
The
business
is
a
business
engaged
3
primarily
in
advanced
manufacturing,
biosciences,
finance,
4
insurance,
information
technology,
or
educational
technology.
5
Sec.
14.
Section
15E.44,
subsection
4,
Code
2023,
is
amended
6
to
read
as
follows:
7
4.
After
verifying
the
eligibility
of
a
qualifying
8
business
,
and
an
investor’s
investment
in
the
qualifying
9
business
,
the
authority
shall
issue
a
tax
credit
certificate
10
to
be
included
with
the
equity
investor’s
tax
return.
The
tax
11
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
12
tax
identification
number,
the
amount
of
credit,
the
name
of
13
the
qualifying
business,
and
other
information
required
by
the
14
department
of
revenue.
The
tax
credit
certificate,
unless
15
rescinded
by
the
authority,
shall
be
accepted
by
the
department
16
of
revenue
as
payment
for
taxes
imposed
pursuant
to
chapter
17
422,
subchapters
II
,
III
,
and
V
,
and
in
chapter
432
,
and
for
18
the
moneys
and
credits
tax
imposed
in
section
533.329
,
subject
19
to
any
conditions
or
restrictions
placed
by
the
authority
upon
20
the
face
of
the
tax
credit
certificate
and
subject
to
the
21
limitations
of
section
15E.43
.
22
Sec.
15.
Section
15E.52,
subsection
1,
paragraph
c,
Code
23
2023,
is
amended
to
read
as
follows:
24
c.
“Innovative
business”
means
a
business
applying
novel
25
or
original
methods
to
the
manufacture
of
a
product
or
the
26
delivery
of
a
service.
“Innovative
business”
includes
but
is
27
not
limited
to
a
business
engaged
in
the
industries
of
advanced
28
manufacturing,
biosciences,
and
information
technology
,
or
29
educational
technology
.
30
Sec.
16.
Section
15E.52,
subsection
5,
paragraph
a,
Code
31
2023,
is
amended
to
read
as
follows:
32
a.
To
receive
a
tax
credit,
a
taxpayer
must
submit
an
33
application
to
the
board.
The
board
shall
issue
certificates
34
under
this
section
on
a
first-come,
first-served
basis,
which
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certificates
may
be
redeemed
for
tax
credits.
The
board
shall
1
issue
such
certificates
so
that
not
more
than
the
amount
2
allocated
for
such
tax
credits
under
section
15.119,
subsection
3
2
,
may
be
claimed.
The
board
shall
not
issue
a
certificate
4
before
September
1,
2014.
5
Sec.
17.
Section
15E.52,
subsection
5,
paragraph
b,
Code
6
2023,
is
amended
by
striking
the
paragraph.
7
Sec.
18.
Section
15E.52,
subsection
8,
Code
2023,
is
amended
8
to
read
as
follows:
9
8.
The
board
shall
not
certify
an
innovation
fund
after
June
10
30,
2023
2028
.
11
Sec.
19.
Section
15E.52,
subsection
10,
paragraph
b,
Code
12
2023,
is
amended
by
striking
the
paragraph.
13
Sec.
20.
Section
422.10B,
Code
2023,
is
amended
to
read
as
14
follows:
15
422.10B
Renewable
chemical
production
tax
credit.
16
The
taxes
imposed
under
this
subchapter
,
less
the
credits
17
allowed
under
section
422.12
,
shall
be
reduced
by
a
renewable
18
chemical
production
tax
credit
allowed
under
section
15.319
.
19
This
section
is
repealed
January
1,
2033
2041
.
20
Sec.
21.
Section
422.33,
subsection
22,
Code
2023,
is
21
amended
to
read
as
follows:
22
22.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
23
by
a
renewable
chemical
production
tax
credit
allowed
under
24
section
15.319
.
This
subsection
is
repealed
January
1,
2033
25
2041
.
26
Sec.
22.
APPLICABILITY.
27
1.
The
following
apply
to
all
applications
submitted
to
the
28
renewable
chemical
production
tax
credit
program
on
or
after
29
July
1,
2023:
30
a.
The
section
of
this
division
of
this
Act
amending
section
31
15.316,
subsection
3.
32
b.
The
section
of
this
division
of
this
Act
amending
section
33
15.318,
subsection
1.
34
c.
The
section
of
this
division
of
this
Act
amending
section
35
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15.318,
subsection
3,
paragraphs
“a”,
“d”,
and
“e”.
1
2.
The
following
apply
to
all
eligible
businesses
placed
on
2
a
wait
list
pursuant
to
section
15.318,
subsection
3,
paragraph
3
“e”,
on
or
before
June
30,
2023:
4
a.
The
portion
of
the
section
of
this
division
of
this
Act
5
amending
section
15.318,
subsection
3,
paragraph
“e”.
6
b.
The
section
of
this
division
of
this
Act
amending
section
7
15.320,
subsection
1.
8
3.
The
following
apply
to
all
applications
submitted
to
9
the
economic
development
authority’s
board
for
investments
in
10
qualifying
businesses,
administered
pursuant
to
sections
15E.41
11
through
15E.46,
on
or
after
July
1,
2023:
12
a.
The
section
of
this
division
of
this
Act
amending
section
13
15E.44,
subsection
1.
14
b.
The
section
of
this
division
of
this
Act
enacting
section
15
15E.44,
subsection
2,
paragraph
“0e”.
16
4.
The
following
applies
to
all
applications
submitted
17
to
the
economic
development
authority’s
board
for
innovation
18
fund
investment
tax
credits,
administered
pursuant
to
section
19
15E.52,
on
or
after
July
1,
2023:
20
The
section
of
this
division
of
this
Act
amending
section
21
15E.52,
subsection
1,
paragraph
“c”.
22
5.
The
following
applies
to
all
applications
submitted
for
23
innovation
fund
tax
credits,
administered
pursuant
to
section
24
15E.52,
placed
on
a
wait
list
pursuant
to
section
15E.52,
25
subsection
5,
paragraph
“b”:
26
The
section
of
this
division
of
this
Act
amending
section
27
15E.52,
subsection
5,
paragraph
“b”.
28
DIVISION
II
29
IOWA
WINE,
BEER,
AND
SPIRITS
PROMOTION
BOARD
30
Sec.
23.
Section
15E.116,
Code
2023,
is
amended
to
read
as
31
follows:
32
15E.116
Iowa
wine
,
and
beer
,
and
spirits
promotion
board.
33
An
Iowa
wine
,
and
beer
,
and
spirits
promotion
board
is
34
created.
The
board
consists
of
three
four
members
appointed
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by
the
director
of
the
economic
development
authority.
Each
1
member
shall
serve
a
term
of
two
years
on
the
board.
One
member
2
shall
represent
the
authority,
one
member
shall
represent
the
3
Iowa
wine
makers,
and
one
member
shall
represent
the
Iowa
beer
4
makers
,
and
one
member
shall
represent
Iowa
distilleries
.
The
5
board
shall
advise
the
authority
on
the
best
means
to
promote
6
wine
,
and
beer
,
and
spirits
made
in
Iowa.
7
Sec.
24.
Section
15E.117,
Code
2023,
is
amended
to
read
as
8
follows:
9
15E.117
Promotion
of
Iowa
wine
,
and
beer
,
and
spirits
.
10
1.
The
economic
development
authority
shall
consult
with
11
the
Iowa
wine
,
and
beer
,
and
spirits
promotion
board
on
the
12
best
means
to
promote
wine
,
and
beer
,
and
spirits
made
in
Iowa.
13
2.
The
authority
has
shall
have
the
authority
to
contract
14
with
private
persons
for
the
promotion
of
beer
,
and
wine
,
and
15
spirits
made
in
Iowa.
16
3.
Moneys
appropriated
to
the
authority
pursuant
to
17
sections
123.143
and
123.183
,
and
moneys
transferred
to
the
18
authority
pursuant
to
section
123.17,
subsection
8A,
may
19
be
used
by
the
authority
for
the
purposes
of
this
section
,
20
including
administrative
expenses
incurred
under
this
section
.
21
Sec.
25.
Section
123.17,
Code
2023,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
8A.
After
any
transfers
provided
for
24
in
subsections
3,
5,
6,
7,
and
8
are
made,
and
before
any
25
other
transfer
to
the
general
fund,
the
department
of
commerce
26
shall
transfer
to
the
economic
development
authority
from
the
27
beer
and
liquor
control
fund
the
lesser
of
two
hundred
fifty
28
thousand
dollars
or
one
percent
of
the
gross
sales
of
native
29
distilled
spirits
by
all
class
“A”
native
distilled
spirits
30
license
holders
made
by
the
division
for
the
purposes
of
31
promoting
Iowa
wine,
beer,
and
spirits.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
relates
to
the
economic
development
authority,
1
including
certain
tax
credit
programs,
the
Iowa
wine,
beer,
and
2
spirits
promotion
board,
and
the
beer
and
liquor
control
fund.
3
The
bill
is
divided
into
two
divisions.
4
DIVISION
I
——
TAX
CREDITS.
Under
current
law,
the
economic
5
development
authority
(authority)
is
required
to
allocate
$2
6
million
in
tax
credits
(credits)
for
investments
in
qualifying
7
businesses
and
allocate
$8
million
in
credits
for
investments
8
in
an
innovation
fund.
This
division
of
the
bill
requires
the
9
authority
to
allocate
an
aggregate
amount
of
credits
that
is
10
not
more
than
$10
million
for
both
programs.
On
or
before
June
11
30
of
each
year,
the
authority
shall
determine
the
amount
of
12
the
aggregate
amount
of
credits
that
shall
be
allocated
for
13
credits
issued
for
investments
in
qualifying
businesses,
and
14
the
amount
that
shall
be
allocated
for
credits
for
investments
15
in
an
innovation
fund.
16
The
bill
extends
the
future
repeal
date
for
the
renewable
17
chemical
program
from
July
1,
2030,
to
July
1,
2036.
The
bill
18
also
extends
the
availability
of
the
renewable
chemical
program
19
credit
for
any
renewable
chemical
produced
prior
to
the
end
of
20
calendar
year
2035,
rather
than
the
end
of
calendar
year
2026.
21
Under
the
bill,
serine,
threonine,
lysine,
and
nonfuel
22
ethanol
are
removed
from
the
definition
of
“building
block
23
chemical”
for
purposes
of
the
renewable
chemical
program
24
(chemical
program).
All
completed
applications
submitted
by
25
eligible
businesses
to
the
chemical
program
must
be
reviewed
26
and
scored
on
a
competitive
basis
by
the
authority
pursuant
to
27
rules
adopted
by
the
authority,
and
$1
million
is
the
maximum
28
amount
of
credit
that
may
be
issued
to
an
eligible
business
in
29
a
calendar
year.
Under
current
law,
if
an
eligible
business
30
has
been
in
operation
in
the
state
for
five
years
or
less
at
31
the
time
of
application,
the
maximum
credit
is
$1
million.
If
32
the
business
has
been
in
operation
more
than
five
years,
the
33
maximum
is
$500,000.
The
bill
eliminates
the
wait
list
the
34
authority
must
currently
maintain
for
the
chemical
program.
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Under
the
bill,
the
authority
may
award
an
amount
of
credits
1
under
the
chemical
program
not
to
exceed
the
maximum
aggregate
2
amount
allocated
in
Code
section
15.119(2)(h)
for
each
fiscal
3
year
beginning
on
or
after
July
1,
2023,
and
ending
on
or
4
before
June
30,
2036.
Information
regarding
the
chemical
5
program
that
must
be
submitted
to
the
general
assembly
and
6
to
the
governor
by
January
31
each
year
is
detailed
in
the
7
bill
and
differs
from
the
requirements
under
current
law.
The
8
future
repeal
of
the
chemical
program
is
extended
from
July
1,
9
2030,
to
July
1,
2039.
The
bill
extends
the
future
repeal
of
10
the
chemical
program
credit
allowed
under
Code
sections
422.10B
11
and
422.33
from
January
1,
2033,
to
January
1,
2041.
12
For
investments
in
qualifying
businesses,
the
bill
changes
13
the
maximum
amount
of
a
credit
that
may
be
issued
to
a
natural
14
person
and
the
person’s
spouse
or
dependent
from
a
calendar
15
year
basis
to
a
fiscal
year
basis.
The
maximum
amount
of
16
credits
that
may
be
issued
for
equity
investments
in
any
one
17
qualifying
business
also
changes
from
a
calendar
year
to
a
18
fiscal
year.
In
order
for
an
equity
investment
to
qualify
19
for
a
credit,
the
business
in
which
the
equity
investment
is
20
made,
within
60
days
of
the
date
of
the
first
investment,
must
21
provide
the
authority
with
information
as
detailed
in
the
22
bill.
Under
current
law,
the
business
must
do
so
within
120
23
days.
In
order
to
be
a
qualifying
business
in
which
an
equity
24
investment
may
be
made
and
qualify
for
a
credit,
the
bill
adds
25
an
additional
requirement
that
the
business
must
be
a
business
26
engaged
primarily
in
advanced
manufacturing,
biosciences,
27
finance,
insurance,
information
technology,
or
educational
28
technology.
The
bill
requires
the
authority
to
verify
the
29
eligibility
of
a
qualifying
business
and
an
investor’s
30
investment
in
the
qualifying
business
prior
to
issuing
a
credit
31
certificate
to
the
investor.
32
For
purposes
of
innovation
fund
investment
credits,
the
33
bill
adds
“educational
technology”
to
the
definition
of
34
“innovative
business”.
The
bill
eliminates
the
wait
list
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for
the
innovation
fund
tax
credit
and
extends
the
time
the
1
authority’s
board
may
certify
an
innovation
fund
from
June
30,
2
2023,
to
June
30,
2028.
3
The
bill
makes
conforming
changes
to
Code
sections
4
15.318(2)(c)-(d),
and
15.354(4)(a)-(f).
5
The
sections
of
this
division
of
the
bill
amending
Code
6
sections
15.316(3),
15.318(1),
15.318(3)(a),
15.318(3)(d),
7
and
15.318(3)(e)
apply
to
all
applications
submitted
to
the
8
chemical
program
on
or
after
July
1,
2023.
The
sections
of
the
9
division
of
the
bill
amending
Code
sections
15.318(3)(e)
and
10
15.320(1)
apply
to
all
eligible
businesses
placed
on
a
wait
11
list
for
the
program
pursuant
to
Code
section
15.318(3)(e)
on
12
or
before
June
30,
2023.
13
The
sections
of
this
division
of
the
bill
amending
Code
14
section
15E.44(1)
and
enacting
Code
section
15E.44(2)(0e)
apply
15
to
all
applications
submitted
to
the
authority’s
board
for
16
investments
in
qualifying
businesses,
administered
pursuant
to
17
Code
sections
15E.41
through
15E.46,
on
or
after
July
1,
2023.
18
The
section
of
this
division
of
the
bill
amending
Code
19
section
15E.52(1)(c)
applies
to
all
applications
submitted
20
to
the
authority’s
board
for
innovation
fund
investment
tax
21
credits,
administered
pursuant
to
Code
section
15E.52,
on
or
22
after
July
1,
2023.
The
section
of
this
division
of
the
bill
23
amending
Code
section
15E.52(5)(b)
applies
to
all
applications
24
submitted
for
innovation
fund
tax
credits,
administered
25
pursuant
to
Code
section
15E.52,
placed
on
a
wait
list
pursuant
26
to
Code
section
15E.52(5)(b).
27
DIVISION
II
——
IOWA
WINE,
BEER,
AND
SPIRITS
PROMOTION
28
BOARD.
This
division
of
the
bill
modifies
the
Iowa
wine
and
29
beer
promotion
board
(promotion
board)
by
adding
spirits,
and
30
adds
a
fourth
member
to
the
promotion
board
to
represent
Iowa
31
distilleries.
The
current
promotion
board
has
three
members.
32
In
addition
to
advising
the
authority
on
the
promotion
of
33
Iowa-made
beer
and
wine,
the
bill
requires
the
promotion
board
34
to
advise
the
authority
on
the
promotion
of
spirits
made
in
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1164SV
(1)
90
ko/jh
13/
14
S.F.
408
Iowa.
The
authority
must
consult
with
the
promotion
board
on
1
the
best
means
to
promote
spirits
made
in
Iowa,
and
permits
the
2
authority
to
contract
with
private
persons
for
the
promotion
3
of
spirits
made
in
Iowa.
4
The
bill
requires
the
department
of
commerce,
after
certain
5
other
transfers
required
by
current
law
from
the
beer
and
6
liquor
control
fund
are
made,
to
transfer
to
the
authority
the
7
lesser
of
$250,000
or
1
percent
of
the
gross
sales
of
native
8
distilled
spirits
by
all
class
“A”
native
distilled
spirits
9
license
holders
made
by
the
alcoholic
beverages
division.
The
10
transferred
moneys
may
be
used
by
the
authority
to
promote
11
wine,
beer,
and
spirits
made
in
Iowa,
and
for
administrative
12
expenses
related
to
such
promotion.
13
-14-
LSB
1164SV
(1)
90
ko/jh
14/
14
