A bill for an act relating to tax credits awarded by the economic development authority for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.

SF 270 creates the "Iowa Rural Development Tax Credit Program," offering tax credits to investors who make cash contributions to certified rural business growth funds. These funds must invest in qualified businesses (small rural businesses with under 250 employees, outside Iowa's 12 most populous counties) and demonstrate a positive revenue impact for the state. The bill requires growth funds to undergo a certification process, including a third-party revenue analysis showing their investments will generate more state revenue than the tax credits issued. Investors receive tax credits based on their contributions, with the program starting accepting applications in 2026.