Iowa 2025-2026 Regular Session

Iowa House Bill HSB312

Introduced
3/6/25  

Caption

A bill for an act relating to state banks' purchase of certain federal tax credits.

Impact

If enacted, HSB312 would significantly modify the regulatory landscape for state banks, expanding their investment horizons. By permitting unrestricted investments in federal tax credits, the bill could potentially increase the financial resources available for banks, fostering more robust lending practices and supporting various economic development initiatives. It may also lead banks to become more involved in industry sectors incentivized through federal tax credits.

Summary

House Study Bill 312 (HSB312) proposes to amend existing laws regarding the investment capabilities of state banks in Iowa. Specifically, the bill aims to allow state banks to purchase federal tax credits as outlined in 26 U.S.C. 45 and 26 U.S.C. 48 without limitation for their own accounts. This change is intended to enhance the flexibility and investment opportunity for state banks, potentially increasing their engagement in federal tax credit programs designed to stimulate economic activity.

Contention

While the bill presents opportunities for economic growth and enhanced investment by state banks, it may raise concerns regarding regulatory oversight and the balance of risk. Critics may argue that allowing unrestricted investment in tax credits could expose banks to higher financial risks if not adequately managed. As with any regulatory change, stakeholders may have differing views on the implications of such a significant policy shift, particularly regarding its potential influence on state financial markets and consumer protections.

Companion Bills

IA SSB1215

Related A bill for an act relating to state banks' purchase of certain federal tax credits.

Previously Filed As

IA SSB1215

A bill for an act relating to state banks' purchase of certain federal tax credits.

IA HF601

A bill for an act relating to fees for wire transmissions, and related income tax credits.(See HF 2750.)

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 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 HF1054

A bill for an act relating to matters under the purview of the Iowa economic development authority and the department of workforce development, including tax credit limits, the major economic growth attraction program, layoffs and facility closures, the brownfield redevelopment fund, and the Iowa economic emergency fund; 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.(Formerly HSB 305.)

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 HSB129

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.

IA SF319

A bill for an act relating to certain cost controls for health care services.(Formerly SSB 1029.)

IA HF131

A bill for an act relating to the redevelopment tax credit program, the nuisance property remediation assistance fund, and assistance for communities to address abandoned buildings.

IA SF139

A bill for an act relating to the redevelopment tax credit program, the nuisance property remediation assistance fund, and assistance for communities to address abandoned buildings.

Similar Bills

No similar bills found.