Iowa House Bill HF109

Iowa 2025-2026 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25

Caption

A bill for an act relating to the maximum amount of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

Summary

HF 109 increases the annual cap on Iowa’s workforce housing tax incentives program. Under current law, the program is limited to $35 million in tax credits per fiscal year; the bill raises that ceiling to $50 million. It also increases the portion reserved for qualified housing projects in small cities from $17.5 million to $25 million, while leaving the existing eligibility framework and program structure in place. The bill amends Iowa Code section 15.119, which governs certain economic development tax credits. These credits may be applied against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax. By increasing the available allocation, the bill would allow the Iowa Economic Development Authority to authorize more workforce housing projects to receive credits, especially in small cities that are registered on or after July 1, 2017. The general sentiment reflected in the available record is limited because the bill was only introduced and referred to the Ways and Means Committee, with no recorded votes or committee debate provided. Based on the bill’s structure, it appears to be a pro-development measure intended to expand housing supply and support local economic growth, particularly in smaller communities. No specific opposition or controversy is documented in the provided materials. The main policy choice embedded in the bill is fiscal: it would increase the amount of state tax credit authority available for workforce housing, which could benefit developers and local governments seeking housing projects, but also reduces potential state tax revenue by expanding the credit cap.

Impact

The bill would amend Iowa Code section 15.119 to raise the statewide workforce housing tax credit allocation cap from $35 million to $50 million per fiscal year and increase the small-cities set-aside from $17.5 million to $25 million. This would expand the amount of tax incentives that may be awarded against several state taxes, including individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax, thereby increasing the state’s exposure to foregone revenue and broadening access to credits for qualifying housing projects.

Sentiment

The available record suggests generally favorable or supportive intent toward workforce housing and economic development, but there is no recorded committee testimony or vote history to show active support or opposition. Because the bill was only introduced and referred to committee, sentiment must be inferred from its purpose rather than from legislative debate. The measure appears designed to encourage more housing construction, especially in smaller cities, which is typically framed positively by proponents of local development and housing availability.

Contention

No explicit points of contention are documented in the provided materials. The likely areas of debate would be the cost to the state through higher tax credit allocations, whether the increased cap is necessary, and whether the larger small-city reservation appropriately targets housing needs. Potential stakeholders include housing developers, small-city officials, economic development advocates, and fiscal conservatives concerned about tax expenditure growth.