Iowa’s Tax Incentive Programs Used by Biofuel Producers Tax Credits Program Evaluation Study

Jin, Zhong and Teahan, Brittany (2009): Iowa’s Tax Incentive Programs Used by Biofuel Producers Tax Credits Program Evaluation Study.

Abstract

Executive Summary: Iowa offers several tax incentive programs that have been utilized by biofuel producers. The tax credit programs include the Enterprise Zone Program (EZ), the New Jobs and Income Program (NJIP), the New Capital Investment Program (NCIP), and the High Quality Job Creation Program (HQJCP). The NJIP and NCIP were replaced by HQJCP on July 1, 2005, but claims under NJIP and NCIP contracts can still be made. The EZ, NJIP, and HQJCP allow biofuel producers to claim a ten percent Investment Tax Credit. The NCIP provides a five percent Investment Tax Credit. All four programs offer a sales and use tax refund and a supplemental Research Activities Tax Credit. The EZ and NJIP also provide a supplemental Iowa Industrial New Job Training Program (260E) withholding tax credit. All four programs were not established specifically to support the biofuel industry but rather to help the State of Iowa promote general business investments. The major findings of the study are:...

• Item Type: MPRA Paper
• Language: English
• Keywords: Investment Tax Credit, Tax Policy, Policy Evaluation, Tobin's Q, Biofuel Investment, Ethanol Production, State and Local Government
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R50 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices; H - Public Economics > H4 - Publicly Provided Goods > H43 - Project Evaluation ; Social Discount Rate; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue

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