KDSN RADIO News
Reynolds Administration proposes changes in state tax credits
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 per year and putting more money into housing tax credits. A new $5 million 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. “But you all have made us more competitive every session that you have, led by Governor Reynolds, when you get to the point of where we are with our corporate taxes…our personal income taxes, regulatory reform and all that,” Durham said, “it’s a totally different landscape.”
Christina Bateman of Atlantic told lawmakers she’s very concerned about the proposed repeal of the Endow Iowa program. She said the program’s tax credits helped the $75 million “Vision Atlantic” project focused on housing, child care, and quality of life.
“They encourage and ensure that our generational wealth stays in our community and is there to support our key entities into the future,” Bateman said. “They are there also to help us build these large capital projects, which would be impossible otherwise.”
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.
(Reporting by Katarina Sostaric, Iowa Public Radio; additional reporting by Radio Iowa’s O. Kay Henderson)
