House Republican Newsletter

Iowa House Passes Support for Hoover Presidential Library Renovations

     House File 588 passed the Iowa House this week with nearly unanimous support. The bill creates a Hoover Presidential Library Tax Credit. The 31^st 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 million renovation of the library, museums, 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 grants to a person shall not exceed 5 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 Sept. 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 The tax credit is available in tax years beginning on or after Jan. 1, 2021, but before Jan. 1, 2024, and is repealed Dec. 31, 2029, to account for the carryforward of any excess credit that may be credited to the person’s tax liability for up to five years.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.