Iowa 2023-2024 Regular Session

Iowa House Bill HF697

Introduced
4/10/23  
Introduced
4/10/23  

Caption

A bill for an act establishing an Iowa housing tax credit program and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

Impact

The proposed legislation notably increases the annual deduction limits for contributions made to first-time homebuyer savings accounts, from $4,000 to $10,000 for married couples filing jointly, and from $2,000 to $5,000 for other account holders. This change is designed to promote homeownership among first-time buyers by making it more financially accessible. The impact of the housing tax credit program is potentially significant, as it aims to address the pressing need for affordable housing by providing developers with the necessary financial incentives to undertake housing projects for low-income families.

Summary

House File 697 establishes an Iowa housing tax credit program aimed at incentivizing the development of low-income housing projects in the state. The bill allows taxpayers with ownership interests in qualified developments to claim tax credits, which are determined by the Iowa finance authority based on a qualified allocation plan. By defining a comprehensive framework for these credits, the bill seeks to enhance the financial viability of housing projects that are financed through tax-exempt means and meet specific criteria outlined in the Internal Revenue Code.

Contention

While the bill aims to facilitate affordable housing development, there may be points of contention regarding the allocation of tax credits and the potential for market manipulation. Concerns may arise about whether the aggregated cap on tax credits, set at $15 million plus previously unallocated amounts, will sufficiently meet actual housing needs. Additionally, the complexity of the application process and criteria for determining the feasibility of housing projects could lead to debates about who benefits the most from these incentives, ensuring the credits are effectively reaching their intended targets and promoting genuine affordable housing solutions.

Companion Bills

No companion bills found.

Previously Filed As

IA HF659

A bill for an act relating to housing in the state by establishing an Iowa housing tax credit program, establishing a neighborhood renovation grant program, and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

IA SF2326

A bill for an act modifying first-time homebuyers savings accounts, and including retroactive applicability provisions.

IA HF2745

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, urban renewal areas, establishing a program for certain first-time homebuyers, establishing a local government efficiency grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 596.)

IA SF657

A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.

IA SF2472

A bill for an act relating to state and local government taxes, fees, financial authority, and budgets, by modifying property assessment provisions, divisions of revenue, and funding from the secure an advanced vision for education fund, establishing a program for first-time homebuyers, modifying and making appropriations, and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 3001.) Effective date: 05/18/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2026, 07/01/2026, 01/01/2027, 07/01/2027, 07/01/2028.

IA HSB563

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, the election of certain county officers, urban renewal areas and urban revitalization areas, establishing a rent reimbursement program, establishing a program for certain first-time homebuyers, establishing a local government shared-services grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SSB3034

A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, the election of certain county officers, urban renewal areas and urban revitalization areas, establishing a rent reimbursement program, establishing a program for certain first-time homebuyers, establishing a local government shared-services grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

IA SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

IA HB06876

An Act Establishing First-time Homebuyer Savings Accounts And A Related Tax Deduction And Credit.

Similar Bills

No similar bills found.