A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

2025-2026 Regular Session

HSB 232 protects historic preservation tax credits for taxpayers awarded before July 1, 2023, ensuring ongoing support for preservation projects in Iowa.

Subcommittee: Vondran, Gjerde and Wills, J.

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Bill Overview

Bill Number: HSB 232

Title: A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.

Status: Currently in subcommittee (Vondran, Gjerde, and Wills, J.)

Introduced: February 20, 2025

Classification: Proposed bill

Subject Areas: Corporate taxes, franchise taxes, historic preservation, income taxes, insurance, tax credits, taxation

Purpose and Intent

The primary aim of HSB 232 is to amend existing legislation regarding the historic preservation tax credit, which is available to taxpayers against various state taxes. This bill seeks to protect the rights of taxpayers who have already been awarded tax credits prior to a specified date, ensuring that their benefits are not adversely affected by recent changes to the tax credit structure.

Key Provisions

Amendment to Existing Law: The bill amends Section 53 of the 2022 Iowa Acts, chapter 1002, to expand the preservation of existing rights related to historic preservation tax credits.

Extension of Protection: The protection for existing tax credits is extended from January 1, 2023, to July 1, 2023. This means that any tax credits issued, awarded, or allowed before July 1, 2023, will not be limited or adversely affected by the changes introduced in House File 2317.

Refundability Changes: The bill acknowledges previous legislation (House File 2317) that gradually reduced the refundability of the historic preservation tax credit from 100% to 75% for tax years beginning on or after January 1, 2027.

Impact

Taxpayers: The bill primarily affects individuals and corporations that have received or will receive historic preservation tax credits. It ensures that those who have already claimed credits before July 1, 2023, can continue to benefit from them without reductions.

Historic Preservation Projects: By maintaining the integrity of tax credits for existing projects, the bill aims to support ongoing and future historic preservation efforts within the state.

Procedural Aspects

Legislative Timeline:

Introduced and referred to the Ways and Means Committee on February 20, 2025.
Currently under review by a subcommittee consisting of members Vondran, Gjerde, and Wills, J.

This summary provides an overview of HSB 232, highlighting its purpose, key provisions, and potential impact on taxpayers and historic preservation initiatives in Iowa.

Bill