Des Moines, Iowa – State Representative Mark Smith,D-Marshalltown today outlined the details of tax credit reform legislation thatwill boost support for Iowa small businesses whilebringing accountability and common sense to Iowa’s tax credit spending.

“In today’s tough economic times, my top priority is tohelp create good-paying jobs for small businesses.  The tax credit reform planwill shift dollars away from Wall Street companies and move some of thosedollars to support small, Main Street businesses whose success will benefitmore Iowans,” said Smith.

“As spending on tax credits has grown significantly over the lastfew years at a rate far exceeding budget increases for priorities like education, we are listening to our constituents and responding with reforms that willreduce our tax credit liability more than $115 million,” added Smith.

The reforms will end some tax credits, cut many remaining credits, anddramatically increase accountability for all tax credit spending.  Some of thespecific reforms include: suspension of the film tax credit program for twoyears; lowering the cap from $185 million to $120 million on business taxcredits; cutting the Iowa Fund of Funds contingent tax credits from $100million to $60 million. In addition, the Supplemental Research Activities TaxCredit will be cut in half for large corporations and increased to help smallbusinesses. 

“Iowans deserve to know if the money they have spent on taxcredits is producing the jobs and economic growth promised to their community. Our plan will give the same careful, open examination of tax credits that restof the budget already receives each year,” added Smith.

The tax credit accountability measures include an on-going oversightprocess which will regularly evaluate all tax credits for results.  The newreview process will identify which tax credits are not producing results sothey can be fixed or eliminated.