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SENATE BACKS CREDIT GIVEAWAY, 48-0
March 30, 2007
When both parties agree, it often means they're ganging up on us. That seems to be the case with SF 566, a bill that passed the Iowa Senate yesterday without dissent.
The bill increases the annual cap on Iowa building rehab credits to $20 million, from the long-oversubscribed $4 million. That's pretty straightforward.
What's sneaky is the way the bill also increases the value of tax credits that have already been issued for work already done or committed to. These credits are "refundable" if they exceed your Iowa tax without the credits; the state writes you a check. Up to now the refund has been discounted based on a formula in the Iowa code. This bill eliminates the discount, making credits already issued worth that much more.
Economic development credits may or may not be wise (I tend to think not), but even proponents of such credits don't support increasing them for work already committed. The credit was so oversubscribed under the old formula that they quintupled the amount allowed, so you wouldn't think it needed to be sweetened at all. But the Iowa Senate does, 48-0.
• Eye on the Legislature: 2007 Bookmark: del.icio.us • Digg • reddit
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