(Radio Iowa) – 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 dollars per year and putting more money into housing tax credits. A new five million dollar credit would be available to encourage 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 they’re no longer needed since lawmakers have significantly Iowa’s individual income tax rate and the corporate tax rate.
