SF 2339– Redevelopment Tax Credits (Brownfields and Grayfields)
SF 2341 – Sales tax rebate for Iowa Speedway
SF 2343 – Renewable energy tax credit qualification dates and eligibility
SF 2344 – Renewable fuels tax credits and providing for the use of biobutanol
FLOOR ACTION:
SF 2339makes several changes to the Redevelopment Tax Credits program administered by the Iowa Economic Development Authority. The bill makes abandoned public buildings eligible for the tax credits; allows tax credits to be refundable for nonprofit, tax-exempt organizations; and changes the program to a competitive award rather than the current first-come, first-served basis. The Economic Development Authority will negotiate the awards and score each application based on such factors as financial need, project quality and project feasibility. The bill eliminates the future repeal of the program. The overall tax credit cap of up to $10 million is not changed, and the maximum amount a project may receive remains 10 percent of the overall amount of tax credits available. The Department of Transportation representative on the Brownfield Development Advisory Council is replaced with a representative from the Professional Developers of Iowa. [3/26: 48-0 (Ernst, Houser excused]
SF 2341 extends the existing sales tax rebate for sales at the Iowa Speedway by 10 years to January 1, 2026. The sales tax rebate was originally set to expire on January 1, 2016, for an amount not to exceed $12.5 million. So far, the sales tax rebated under this mechanism is just under $3.5 million. The bill also changes the definition of a qualified owner to reflect the purchase of the facility by NASCAR last year. [3/24: 36-9 (Behn, Bowman, Chapman, Chelgren, Guth, Quirmbach, Schneider, Smith, Whitver “no”; Greiner, Houser, Kapucian, Segebart, Zumbach excused)]
COMMITTEE ACTION:
SF 2343 provides a two-year extension for the in-service date and the end of the tax credit for wind energy and other renewable energy facilities that have been awarded production tax credits under 476C. This will allow facilities that have qualified for the tax credit to have sufficient time to complete the construction of their facility. The bill also makes changes regarding the 10 megawatts of credits that are reserved for a cogeneration facility that is associated with an ethanol plant. Currently, the only allowed fuel source for the cogeneration facility is natural gas. The bill would allow the facility to also use biogas, landfill gas or methane. [3/24: short form]
SF 2344 extends the existing tax credit for the sale of 15 percent ethanol blended gasoline (E15) and the tax credit for the production of biodiesel. The E15 tax credit is currently 3 cents per gallon sold until the end of 2014, and would drop to 2 cents per gallon for 2015 through 2017. Under the bill, the tax credit will remain at 3 cents per gallon except for the summer blend period, which extends from June 1 through September 15. During this period, the per-gallon credit will increase to 10 cents per gallon to help with the higher cost of fuel that is used during this period to help reduce air pollution during the hotter months. The bill also extends the existing biodiesel production tax credit of 2 cents per gallon. This production tax credit was set to expire January 1, 2015, but will instead be extended by five years to January 1, 2020. [3/24: short form]