15.318 Eligible business application and agreement — maximum tax credits.

945 words·~4 min read·/ia/chapter-15-economic-development-authority/15-318

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Application.

a. An eligible business that produces a renewable chemical in this state from biomass feedstock during a calendar year may apply to the authority for the renewable chemical production tax credit provided in section 15.319.

b. The application shall be made to the authority in the manner prescribed by the authority.

c. The application shall be made during the calendar year following the calendar year in which the renewable chemicals are produced.

d. The authority may accept applications on a continuous basis or may establish, by rule, an annual application deadline.

e. The application shall include all of the following information:

(1)The amount of renewable chemicals produced in the state from biomass feedstock by the eligible business during the calendar year, measured in pounds.

(2)Any other information reasonably required by the authority in order to establish and verify eligibility under the program.

f. All complete applications submitted by eligible businesses shall be reviewed and scored on a competitive basis by the authority pursuant to rules adopted by the authority.

2. Agreement and fees.

a. Before being issued a tax credit under section 15.319, an eligible business shall enter into an agreement with the authority for the successful completion of all requirements of the program. As part of the agreement, the eligible business shall agree to collect and provide any information reasonably required by the authority in order to allow the board to fulfill its reporting obligation under section 15.320.

b. Compliance cost fees shall apply to all agreements entered into under this program and shall be collected by the authority in the amount and manner as follows:

(1)The imposition of a one-time compliance cost fee of five hundred dollars to be collected by the authority prior to the issuance of a tax incentive certificate.

(2)The imposition of a compliance cost fee equal to one-half of one percent of the value of tax incentives claimed pursuant to an agreement that has an aggregate tax incentive value of one hundred thousand dollars or greater. The authority shall collect the fee from the business after the tax incentive is claimed by the business from the department of revenue.

c. An eligible business shall fulfill all the requirements of the program and the agreement before the authority issues the business a tax credit certificate or enters into a subsequent agreement with the business under this section. The authority may decline to enter into a subsequent agreement with the business under this section or to issue a tax credit if an agreement is not successfully fulfilled.

d. Upon establishing that all requirements of the program and the agreement have been fulfilled, the authority shall issue a tax credit certificate to the eligible business stating the amount of renewable chemical production tax credit the eligible business may claim.

3. Maximum tax credit amount.

a. The maximum amount of tax credit that the authority may issue under section 15.319 to an eligible business for the production of renewable chemicals in a calendar year is one million dollars.

b. An eligible business shall not receive a tax credit for renewable chemicals produced before the date the business first qualified as an eligible business pursuant to section 15.317.

c. An eligible business shall only receive a tax credit for renewable chemicals produced in a calendar year to the extent such production exceeds the eligible business’s pre-eligibility production threshold.

d. The authority shall not issue an eligible business more than five tax credit certificates under the program.

e. In each fiscal year beginning on or after July 1, 2025, and ending on or before June 30, 2036, the authority may award an amount of tax credits under the program not to exceed the maximum aggregate amount determined by the board pursuant to section 15.119, subsection 2, paragraph “b”.

§15.318, ECONOMIC DEVELOPMENT AUTHORITY 2

4. Termination and repayment. The failure by an eligible business in fulfilling any requirement of the program or any of the terms and obligations of an agreement entered into pursuant to this section may result in the reduction, termination, or rescission of the tax credits under section 15.319 and may subject the eligible business to the repayment or recapture of tax credits claimed. After a final determination by the authority, the authority shall notify the department of revenue of any required repayment or recapture of a tax credit.

The repayment or recapture of a tax credit pursuant to this subsection shall be considered a tax payment due and payable to the department of revenue by any taxpayer who has claimed the tax credit, and the failure to make such a repayment may be treated by the department of revenue in the same manner as a failure to pay the tax shown due or required to be shown due with the filing of a return or deposit form.

5. Confidentiality.

a. Except as provided in paragraph “b”, any information or record in the possession of the authority with respect to the program shall be presumed by the authority to be a trade secret protected under chapter 550 or common law and shall be kept confidential by the authority unless otherwise ordered by a court.

b. The identity of a tax credit recipient and the amount of the tax credit shall be considered public information under chapter 22.

2016 Acts, ch 1065, §7, 15, 16; 2017 Acts, ch 54, §76; 2023 Acts, ch 116, §3 – 5, 17; 2025 Acts, ch 136, §4, 31, 32, 59

Referred to in §2.48, 15.319, 15.320, 15.322

For future repeal of this section effective July 1, 2039, see §15.322

Subsection 2, paragraph b amended

Subsection 3, paragraph e amended

Subsection 4 amended