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SF 653

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

Iowa expands historic preservation tax credits to apply against income, franchise, and insurance premium taxes, broadening incentives for building rehabilitation projects.

Referred to Ways and Means.
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Bill Summary · SF 653

Legislative bill overview

SF 653 modifies Iowa's historic preservation tax credit program by expanding its availability to apply against individual income taxes, corporate income taxes, the franchise tax, and the insurance premiums tax. The bill broadens the types of taxes against which property owners and developers can claim credits for expenses incurred in preserving or rehabilitating historically significant structures.

Why is this important

Historic preservation tax credits incentivize investment in older buildings and neighborhoods, which can drive economic revitalization, job creation in construction and trades, and property tax revenue growth in affected areas. By expanding which tax categories qualify for the credit, Iowa aims to make the incentive more accessible and attractive to a wider range of investors and businesses, potentially unlocking more rehabilitation projects statewide.

Potential points of contention

  • Fiscal impact: Expanding eligible tax types will reduce state tax revenue; the fiscal note documents this cost, which may face scrutiny during budget deliberations
  • Equity concerns: Benefits may disproportionately favor wealthy investors and corporations with sufficient tax liability to utilize credits, rather than benefiting low-income communities
  • Geographic concentration: Credits may cluster in certain urban areas with valuable historic buildings, leaving rural and economically disadvantaged regions with fewer rehabilitation opportunities

Compiled from official sources — confirm details with the bill’s official record.

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