Iowa House Passes Support for Hoover Presidential Library Renovation
House File 588 passed the Iowa House this week with nearly unanimous support. The bill creates a Hoover Presidential Library Tax Credit. The 31st President of the United States was born in Iowa and his presidential library is located in West Branch. The library’s foundation is currently planning a $20.0 million renovation of the library, museum, and associated grounds.
The amount of the credit is 25 percent of a person’s donation to the Hoover presidential foundation for the Hoover presidential library and museum renovation project fund. Additionally, the credit is not refundable or transferable, but the excess may be carried forward five years or until depleted, whichever occurs first. The tax credit cannot be carried back to a tax year prior to the tax year in which the person claims the tax credit.
The Hoover Presidential Library Tax Credit has a program cap of $5 million. The maximum amount of tax credits granted to a person shall not exceed five percent of the aggregate amount of tax credits authorized under the cap. Additionally, 10 percent of the aggregate amount of tax credits authorized shall be reserved for those donations in amounts of $30,000 or less. If any portion of the reserved tax credits have not been distributed by September 1, 2023, the remaining reserved tax credits can be available to any other eligible person.
House File 588 requires the economic development authority to develop a system for authorization and distribution of tax credits. The tax credit is available in tax years beginning on or after January 1, 2021, but before January 1, 2024 and is repealed December 31, 2029, to account for the carryforward of any excess credit that may be credited to the person’s tax liability for up to five years. The bill will now move to the Senate for further consideration.
If you have further interest in these or any other bill in the House please contact me and I will do my best to try and keep you up to date. You can also follow bills on the legislative website once you know the bill number http://www.legis.iowa.gov.
Lee Hein 