Bill Text: IA HF2412 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the programs and duties of the economic development authority by making changes relative to the use of life cycle cost analyses, by making technical changes related to the high quality jobs program, by making changes relative to authority assistance for certain federal small business programs, by allowing counties, cities, and the authority to amend certain economic development enterprise zones agreements, and by making changes to the historic preservation and cultural and entertainment district tax credit, including transferring administrative oversight of the tax credit from the department of cultural affairs to the economic development authority, and including effective date provisions. (Formerly HSB 612) (See Cmte. Bill HF 2443)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-04-06 - Withdrawn. H.J. 603. [HF2412 Detail]
Download: Iowa-2015-HF2412-Introduced.html
House File 2412 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 612) A BILL FOR 1 An Act relating to the programs and duties of the economic 2 development authority by making changes relative to the use 3 of life cycle cost analyses, by making technical changes 4 related to the high quality jobs program, by making changes 5 relative to authority assistance for certain federal small 6 business programs, by allowing counties, cities, and the 7 authority to amend certain economic development enterprise 8 zones agreements, and by making changes to the historic 9 preservation and cultural and entertainment district tax 10 credit, including transferring administrative oversight of 11 the tax credit from the department of cultural affairs to 12 the economic development authority, and including effective 13 date provisions. 14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5171HV (4) 86 aw/sc PAG LIN 1 1 DIVISION I 1 2 LIFE CYCLE COST ANALYSES 1 3 Section 1. Section 470.1, Code 2016, is amended by adding 1 4 the following new subsection: 1 5 NEW SUBSECTION. 01. "Addition" means new construction equal 1 6 to or greater than twenty thousand square feet of usable floor 1 7 space that is heated or cooled by a mechanical or electrical 1 8 system and is joined to an existing facility. 1 9 Sec. 2. Section 470.1, subsections 6, 7, and 10, Code 2016, 1 10 are amended to read as follows: 1 11 6. "Facility" means a building having twenty thousand square 1 12 feet or more of usable floor space that is heated or cooled 1 13 by a mechanical or electrical systemor any building, system, 1 14 or physical operation which consumes more than forty thousand 1 15 British thermal units (BTUs) per square foot per year. 1 16 7. "Initial cost" means the moneys required for the capital 1 17 construction or renovation of a facility or the construction 1 18 of an addition. 1 19 10. "Renovation" means a project whereadditions or1 20 alterations, that are not additions, to an existing facility 1 21 exceed fifty percent of the value of a facility and will affect 1 22 an energy system. 1 23 Sec. 3. Section 470.2, Code 2016, is amended to read as 1 24 follows: 1 25 470.2 Policy ==== analysis required. 1 26 The general assembly declares that energy management is of 1 27 primary importance in the design of publicly owned facilities. 1 28Commencing January 1, 1980On or after the effective date of 1 29 this division of this Act, a public agency responsible for the 1 30 construction or renovation of a facility or the construction of 1 31 an addition shall, in a design begun after that date, include 1 32 as a design criterion the requirement that a life cycle cost 1 33 analysis be conducted for the facility. The objectives of the 1 34 life cycle cost analysis are to optimize energy efficiency at 1 35 an acceptable life cycle cost. The life cycle cost analysis 2 1 shall meet the requirements of section 470.3. 2 2 Sec. 4. Section 470.3, subsection 2, Code 2016, is amended 2 3 to read as follows: 2 4 2. A public agency or a person preparing a life cycle cost 2 5 analysis for a public agency shallconsider the methods and 2 6 analytical models provided by the authority and available 2 7 through the commissioner, which are suited to the purpose 2 8 for which the project is intended. Within sixty days of 2 9 final selection of a design architect or engineer, a public 2 10 agency, which is also a state agency under section 7D.34, shall 2 11 notify the commissioner and the authority of the methodology 2 12 to be used to perform the life cycle cost analysis, on forms 2 13 provided by the authorityuse the methodology set forth in the 2 14 guidelines established, by rule, by the commissioner. 2 15 Sec. 5. Section 470.4, Code 2016, is amended to read as 2 16 follows: 2 17 470.4 Analysis approved. 2 18 The life cycle cost analysis shall be approved by the public 2 19 agency before contracts for the construction or renovation 2 20 of a facility or the construction of an addition are let. A 2 21 public agency may accept a facility design and shall meet 2 22 the requirements of this chapter if the design meets the 2 23 operational requirements of the agency and provides the optimum 2 24 life cycle cost. The public agency shall retain a copy of the 2 25 life cycle cost analysis and a statement justifying a design 2 26 decision both of which shall be available for public inspection 2 27 at reasonable hours. 2 28 Sec. 6. Section 470.6, Code 2016, is amended to read as 2 29 follows: 2 30 470.6 Restriction on use of public funds. 2 31 Public funds shall not be used for the construction or 2 32 renovation of a facility or the construction of an addition 2 33 unless the design for the work is prepared in accordance with 2 34 this chapter and the actual construction or renovation of 2 35 the facility or the construction of the addition meets the 3 1 requirements of the design. 3 2 Sec. 7. Section 470.7, Code 2016, is amended to read as 3 3 follows: 3 4 470.7 Life cycle cost analysis ==== approval. 3 5 1. The public agency responsible for the new construction 3 6 or renovation of a public facility or the construction of an 3 7 addition to a public facility shall submit a copy of the life 3 8 cycle cost analysis for review by the commissioner who shall 3 9 consult with the authority. If the public agency is also a 3 10 state agency under section 7D.34, comments by the authority 3 11 or the commissioner, including any recommendation for changes 3 12 in the analysis, shall, within thirty days of receipt of the 3 13 analysis, be forwarded in writing to the public agency. If 3 14 either the authority or the commissioner disagrees with any 3 15 aspects of the life cycle cost analysis, the public agency 3 16 affected shall timely respond in writing to the commissioner 3 17 and the authority. The response shall indicate whether the 3 18 agency intends to implement the recommendations and, if the 3 19 agency does not intend to implement them, the public agency 3 20 shall present its reasons. The reasons may include but are 3 21 not limited to a description of the purpose of the facility or 3 22 renovation, preservation of historical architectural features, 3 23 architectural and site considerations, and health and safety 3 24 concerns. 3 25 2. Within thirty days of receipt of the response of the 3 26 public agency affected, the authority, the commissioner, or 3 27 both, shall notify in writing the public agency affected of 3 28 the authority's, the commissioner's, or both's agreement 3 29 or disagreement with the response. In the event of a 3 30 disagreement, the authority, the commissioner, or both, shall 3 31 at the same time transmit the notification of disagreement 3 32 with response and related papers to the executive council 3 33 for resolution pursuant to section 7D.34. The life cycle 3 34 cost analysis process, including submittal and approval, and 3 35 implementation exemption requests pursuant to section 470.8, 4 1 shall be completed prior to the letting of contracts for the 4 2 construction or renovation of a facility or the construction 4 3 of an addition. 4 4 Sec. 8. Section 470.8, Code 2016, is amended to read as 4 5 follows: 4 6 470.8 Life cycle cost analysis ==== implementation and 4 7 exemptions. 4 8 1. The public agency responsible for the new construction 4 9 or renovation of a public facility or the construction of an 4 10 addition shall implement the recommendations of the life cycle 4 11 cost analysis. 4 12 2. The commissioner shall adopt rules for the 4 13 implementation and administration of the life cycle cost 4 14 analysis. The commissioner, in consultation with the director, 4 15 shall, by rule, develop criteria to exempt facilities from 4 16 the implementation requirements of this section. Using the 4 17 criteria, the commissioner, in cooperation with the director, 4 18 shall exempt facilities on acase by casecase=by=case basis. 4 19 Factors to be considered when developing the exemption criteria 4 20 shall include, but not be limited to, a description of the 4 21 purpose of the facility or renovation, the preservation 4 22 of historical architectural features, site considerations, 4 23 and health and safety concerns. The commissioner and the 4 24 director shall grant or deny a request for exemption from the 4 25 requirements of this section within thirty days of receipt of 4 26 the request. 4 27 Sec. 9. EFFECTIVE UPON ENACTMENT. This division of this 4 28 Act, being deemed of immediate importance, takes effect upon 4 29 enactment. 4 30 DIVISION II 4 31 HIGH QUALITY JOBS PROGRAM ==== DEFINITION 4 32 Sec. 10. Section 15.333, subsection 2, unnumbered paragraph 4 33 1, Code 2016, is amended to read as follows: 4 34 For purposes of this section, "newinvestment directly 4 35 related to new jobs created by the project"investment" means the 5 1 cost of machinery and equipment, as defined in section 427A.1, 5 2 subsection 1, paragraphs "e" and "j", purchased for use in the 5 3 operation of the eligible business, the purchase price of which 5 4 has been depreciated in accordance with generally accepted 5 5 accounting principles, the purchase price of real property and 5 6 any buildings and structures located on the real property, and 5 7 the cost of improvements made to real property which is used 5 8 in the operation of the eligible business. "Newinvestment 5 9 directly related to new jobs created by the project"investment" 5 10 also means the annual base rent paid to a third=party developer 5 11 by an eligible business for a period not to exceed ten years, 5 12 provided the cumulative cost of the base rent payments for that 5 13 period does not exceed the cost of the land and the third=party 5 14 developer's costs to build or renovate the building for the 5 15 eligible business. The eligible business shall enter into a 5 16 lease agreement with the third=party developer for a minimum 5 17 of five years. If, however, within five years of purchase, 5 18 the eligible business sells, disposes of, razes, or otherwise 5 19 renders unusable all or a part of the land, buildings, or other 5 20 existing structures for which tax credit was claimed under this 5 21 section, the tax liability of the eligible business for the 5 22 year in which all or part of the property is sold, disposed of, 5 23 razed, or otherwise rendered unusable shall be increased by one 5 24 of the following amounts: 5 25 Sec. 11. Section 15.333A, subsection 2, unnumbered 5 26 paragraph 1, Code 2016, is amended to read as follows: 5 27 For purposes of this section, "newinvestment directly 5 28 related to new jobs created by the project"investment" means the 5 29 cost of machinery and equipment, as defined in section 427A.1, 5 30 subsection 1, paragraphs "e" and "j", purchased for use in the 5 31 operation of the eligible business, the purchase price of which 5 32 has been depreciated in accordance with generally accepted 5 33 accounting principles, the purchase price of real property and 5 34 any buildings and structures located on the real property, and 5 35 the cost of improvements made to real property which is used 6 1 in the operation of the eligible business. "Newinvestment 6 2 directly related to new jobs created by the project"investment" 6 3 also means the annual base rent paid to a third=party developer 6 4 by an eligible business for a period not to exceed ten years, 6 5 provided the cumulative cost of the base rent payments for that 6 6 period does not exceed the cost of the land and the third=party 6 7 developer's costs to build or renovate the building for the 6 8 eligible business. The eligible business shall enter into a 6 9 lease agreement with the third=party developer for a minimum 6 10 of five years. If, however, within five years of purchase, 6 11 the eligible business sells, disposes of, razes, or otherwise 6 12 renders unusable all or a part of the land, buildings, or other 6 13 existing structures for which tax credit was claimed under this 6 14 section, the tax liability of the eligible business for the 6 15 year in which all or part of the property is sold, disposed of, 6 16 razed, or otherwise rendered unusable shall be increased by one 6 17 of the following amounts: 6 18 DIVISION III 6 19 FEDERAL SMALL BUSINESS PROGRAMS ==== AUTHORITY ASSISTANCE 6 20 Sec. 12. Section 15.411, subsection 4, paragraphs a, b, and 6 21 c, Code 2016, are amended to read as follows: 6 22 a. (1) The authority shall establish and administer an 6 23 outreach program for purposes of assisting businesses with 6 24 applications to the federal small business innovation research 6 25 and small business technology transfer programs. 6 26 (2) The goals of this assistance are to increase the number 6 27 of successfulphase II small business innovation researchgrant 6 28 and contract proposals in the state, increase the amount of 6 29 such grant and contract funds awarded in the state, stimulate 6 30 subsequent investment by industry, venture capital, and other 6 31 sources, and encourage businesses to commercialize promising 6 32 technologies. 6 33 b. (1) In administering the program, the authority may 6 34 provide technical and financial assistance to businesses. 6 35 Financial assistance provided pursuant to this subsection 7 1shallmay be awarded to a business in an amount not to exceed 7 2twenty=fiveone hundred thousand dollarstofor anysingle 7 3 businessindividual federal award under this subsection. 7 4 (2) The authority may require successful applicants to 7 5 repay the amount of financial assistance received, but shall 7 6 not require unsuccessful applicants to repay such assistance. 7 7 Any moneys repaid pursuant to this subsection may be used to 7 8 provide financial assistance to other applicants. 7 9 c. The authority may also provide financial assistance 7 10 for purposes of helping businesses meet thematching funds7 11 requirements of the federal small business innovation research 7 12 and small business technology transfer programs. 7 13 DIVISION IV 7 14 ENTERPRISE ZONES 7 15 Sec. 13. 2014 Iowa Acts, chapter 1130, section 43, 7 16 subsection 1, is amended to read as follows: 7 17 1. On or after the effective date of this division of this 7 18 Act, a city or county shall not create an enterprise zone under 7 19 chapter 15E, division XVIII, or enter into a new agreementor 7 20 amend an existing agreementunder chapter 15E, division XVIII. 7 21 A city or county and the economic development authority, with 7 22 the approval of the economic development authority board, may 7 23 amend an agreement for compliance reasons if the amendment 7 24 does not increase the amount of incentives awarded under the 7 25 agreement. 7 26 DIVISION V 7 27 HISTORIC PRESERVATION AND CULTURAL AND ENTERTAINMENT DISTRICT 7 28 TAX CREDIT 7 29 Sec. 14. Section 404A.1, Code 2016, is amended by adding the 7 30 following new subsection: 7 31 NEW SUBSECTION. 01. "Authority" means the economic 7 32 development authority created in section 15.105. 7 33 Sec. 15. Section 404A.2, subsection 1, Code 2016, is amended 7 34 to read as follows: 7 35 1. An eligible taxpayer who has entered into an agreement 8 1 under section 404A.3, subsection 3, is eligible to receive a 8 2 historic preservation and cultural and entertainment district 8 3 tax credit in an amount equal to twenty=five percent of 8 4 the qualified rehabilitation expenditures of a qualified 8 5 rehabilitation project that are specified in the agreement. 8 6 Notwithstanding any other provision of this chapter or any 8 7 provision in the agreement to the contrary, the amount of 8 8 the tax credits shall not exceed twenty=five percent of the 8 9 final qualified rehabilitation expenditures verified by the 8 10departmentauthority pursuant to section 404A.3, subsection 5, 8 11 paragraph "c". 8 12 Sec. 16. Section 404A.2, Code 2016, is amended by adding the 8 13 following new subsection: 8 14 NEW SUBSECTION. 2A. a. Tax credit certificates issued 8 15 under section 404A.3 may be transferred to any person. Within 8 16 ninety days of transfer, the transferee shall submit the 8 17 transferred tax credit certificate to the department of revenue 8 18 along with a statement containing the transferee's name, tax 8 19 identification number, address, the denomination that each 8 20 replacement tax credit certificate is to carry, and any other 8 21 information required by the department of revenue. However, 8 22 tax credit certificate amounts of less than the minimum amount 8 23 established by rule by the department of revenue shall not be 8 24 transferable. 8 25 b. Within thirty days of receiving the transferred tax 8 26 credit certificate and the transferee's statement, the 8 27 department of revenue shall issue one or more replacement tax 8 28 credit certificates to the transferee. Each replacement tax 8 29 credit certificate must contain the information required for 8 30 the original tax credit certificate and must have the same 8 31 expiration date that appeared on the transferred tax credit 8 32 certificate. 8 33 c. A tax credit shall not be claimed by a transferee 8 34 under this section until a replacement tax credit certificate 8 35 identifying the transferee as the proper holder has been 9 1 issued. The transferee may use the amount of the tax credit 9 2 transferred against the taxes imposed in chapter 422, divisions 9 3 II, III, and V, and in chapter 432, for any tax year the 9 4 original transferor could have claimed the tax credit. Any 9 5 consideration received for the transfer of the tax credit shall 9 6 not be included as income under chapter 422, divisions II, III, 9 7 and V. Any consideration paid for the transfer of the tax 9 8 credit shall not be deducted from income under chapter 422, 9 9 divisions II, III, and V. 9 10 Sec. 17. Section 404A.2, subsection 3, Code 2016, is amended 9 11 to read as follows: 9 12 3. Any credit in excess of the taxpayer's tax liability for 9 13 the tax yearshall be refunded with interest computed under 9 14 section 422.25. In lieu of claiming a refund, a taxpayer 9 15 may elect to have the overpayment shown on the taxpayer's 9 16 final, completed return credited to the tax liability for the 9 17 following yearmay be refunded or, at the taxpayer's election, 9 18 credited to the taxpayer's tax liability for the following five 9 19 years or until depleted, whichever is earlier. A tax credit 9 20 shall not be carried back to a tax year prior to the tax year in 9 21 which the taxpayer redeems the tax credit. 9 22 Sec. 18. Section 404A.2, subsection 4, paragraph c, Code 9 23 2016, is amended to read as follows: 9 24 c. The tax credit certificate, unless rescinded by the 9 25departmentauthority, shall be accepted by the department 9 26 of revenue as payment for taxes imposed in chapter 422, 9 27 divisions II, III, and V, and in chapter 432, subject to any 9 28 conditions or restrictions placed by thedepartmentauthority 9 29 or the department of revenue upon the face of the tax credit 9 30 certificate and subject to the limitations of this program. 9 31 Sec. 19. Section 404A.2, subsection 5, Code 2016, is amended 9 32 by striking the subsection. 9 33 Sec. 20. Section 404A.3, subsections 1 and 2, Code 2016, are 9 34 amended to read as follows: 9 35 1. Application and fees. 10 1 a. An eligible taxpayer seeking historic preservation 10 2 and cultural and entertainment district tax credits provided 10 3 in section 404A.2 shall make application to thedepartment 10 4authority in the manner prescribed by thedepartmentauthority. 10 5 b. The authority and the department may accept applications 10 6 on a continuous basis or may accept applications, or one 10 7 or more components of an application, during one or more 10 8 application periods. 10 9 c. The application shall include any information deemed 10 10 necessary by the authority, in consultation with the 10 11 department, to evaluate the eligibility under the program 10 12 of the applicant and the rehabilitation project, the amount 10 13 of projected qualified rehabilitation expenditures of a 10 14 rehabilitation project, and the amount and source of all 10 15 funding for a rehabilitation project. An applicant shall have 10 16 the burden of proof to demonstrate to thedepartmentauthority 10 17 that the applicant is an eligible taxpayer and the project is a 10 18 qualified rehabilitation project under the program. 10 19 d. Thedepartmentauthority may establish criteria for the 10 20 use of electronic or other alternative filing or submission 10 21 methods for any application, document, or payment requested or 10 22 required under this program. Such criteria may provide for the 10 23 acceptance of a signature in a form other than the handwriting 10 24 of a person. 10 25 e. (1) Thedepartmentauthority may charge application and 10 26 other fees to eligible taxpayers who apply to participate in 10 27 the program. The amount of such fees shall be determined based 10 28 on the costs of the authority and the department associated 10 29 with administering the program. 10 30 (2) Fees collected by thedepartmentauthority pursuant to 10 31 this paragraph shall be deposited with thedepartment pursuant 10 32 toauthority notwithstanding section 303.9, subsection 1. 10 33 2. Registration. 10 34 a. Upon review of the application by the authority and the 10 35 department, thedepartmentauthority may register a qualified 11 1 rehabilitation project under the program. If thedepartment 11 2authority registers the project, thedepartmentauthority 11 3 shall make a preliminary determination as to the amount of tax 11 4 credits for which the project qualifies. 11 5 b. After registering the qualified rehabilitation project, 11 6 thedepartmentauthority shall notify the eligible taxpayer of 11 7 successful registration under the program within a period of 11 8 time established by the authority by rule. The notification 11 9 shall include the amount of tax credits under section 404A.2 11 10 for which the qualified rehabilitation project has received 11 11 a tentative award, the fiscal year in which the authority 11 12 expects to allocate the award, and a statement that the amount 11 13is a preliminary determinationand expected fiscal year are 11 14 recommendations only. 11 15 Sec. 21. Section 404A.3, subsection 3, paragraph a, Code 11 16 2016, is amended to read as follows: 11 17 a. Upon successful registration of a qualified 11 18 rehabilitation project, the eligible taxpayer shall enter into 11 19 an agreement with thedepartmentauthority for the successful 11 20 completion of all requirements of the program. 11 21 Sec. 22. Section 404A.3, subsection 3, paragraph b, 11 22 subparagraph (2), Code 2016, is amended to read as follows: 11 23 (2) The rehabilitation work to be performed. An eligible 11 24 taxpayer shall perform the rehabilitation work consistent with 11 25 the United States secretary of the interior's standards for 11 26 rehabilitation, as determined by the department. 11 27 Sec. 23. Section 404A.3, subsection 4, paragraphs a and b, 11 28 Code 2016, are amended to read as follows: 11 29 a. The eligible taxpayer shall, for the length of the 11 30 agreement, annually certify to thedepartmentauthority 11 31 compliance with the requirements of the agreement. The 11 32 certification shall be made at such time as thedepartment 11 33authority shall determine in the agreement. 11 34 b. The eligible taxpayer shall have the burden of proof to 11 35 demonstrate to thedepartmentauthority that all requirements 12 1 of the agreement are satisfied. The taxpayer shall notify 12 2 thedepartmentauthority in a timely manner of any changes 12 3 in the qualification of the rehabilitation project or in 12 4 the eligibility of the taxpayer to claim the tax credit 12 5 provided under this chapter, or of any other change that may 12 6 have a negative impact on the eligible taxpayer's ability to 12 7 successfully complete any requirement under the agreement. 12 8 Sec. 24. Section 404A.3, subsection 4, paragraph c, 12 9 subparagraphs (1) and (2), Code 2016, are amended to read as 12 10 follows: 12 11 (1) If after entering into the agreement but before a 12 12 tax credit certificate is issued, the eligible taxpayer or 12 13 the qualified rehabilitation project no longer meets the 12 14 requirements of the agreement, thedepartmentauthority may 12 15 find the taxpayer in default under the agreement and may revoke 12 16 the tax credit award. 12 17 (2) If an eligible taxpayer obtains a tax credit certificate 12 18 from thedepartmentauthority by way of a prohibited activity, 12 19 the eligible taxpayer and any transferee shall be jointly and 12 20 severally liable to the state for the amount of the tax credits 12 21 so issued, interest and penalties allowed under chapter 422, 12 22 and reasonable attorney fees and litigation costs, except 12 23 that the liability of the transferee shall not exceed an 12 24 amount equal to the amount of the tax credits acquired by the 12 25 transferee. The department of revenue, upon notification 12 26 or discovery that a tax credit certificate was issued to an 12 27 eligible taxpayer by way of a prohibited activity, shall revoke 12 28 any outstanding tax credit and seek repayment of the value 12 29 of any tax credit already claimed, and the failure to make 12 30 such a repayment may be treated by the department of revenue 12 31 in the same manner as a failure to pay the tax shown due or 12 32 required to be shown due with the filing of a return or deposit 12 33 form. A qualifying transferee is not subject to the liability, 12 34 revocation, and repayment imposed under this subparagraph. 12 35 Sec. 25. Section 404A.3, subsection 4, paragraph c, 13 1 subparagraph (3), subparagraph division (a), Code 2016, is 13 2 amended to read as follows: 13 3 (a) "Prohibited activity" means a breach or default under 13 4 the agreement with thedepartmentauthority, the violation 13 5 of any warranty provided by the eligible taxpayer to the 13 6departmentauthority or the department of revenue, the claiming 13 7 of a tax credit issued under this chapter for expenditures that 13 8 are not qualified rehabilitation expenditures, the violation of 13 9 any requirements of this chapter or rules adopted pursuant to 13 10 this chapter, misrepresentation, fraud, or any other unlawful 13 11 act or omission. 13 12 Sec. 26. Section 404A.3, subsections 5, 6, and 7, Code 2016, 13 13 are amended to read as follows: 13 14 5. Examination and audit of project. 13 15 a. An eligible taxpayer shall engage a certified public 13 16 accountant authorized to practice in this state to conduct an 13 17 examination of the project in accordance with the American 13 18 institute of certified public accountants' statements on 13 19 standards for attestation engagements. Upon completion of the 13 20 qualified rehabilitation project, the eligible taxpayer shall 13 21 submit the examination to thedepartmentauthority, along with 13 22 a statement of the amount of final qualified rehabilitation 13 23 expenditures and any other information deemed necessary by the 13 24departmentauthority or the department of revenue in order to 13 25 verify that all requirements of the agreement, this chapter, 13 26 and all rules adopted pursuant to this chapter have been 13 27 satisfied. 13 28 b. Notwithstanding paragraph "a", thedepartmentauthority 13 29 may waive the examination requirement in this subsection if all 13 30 the following requirements are satisfied: 13 31 (1) The final qualified rehabilitation expenditures of the 13 32 qualified rehabilitation project, as verified by thedepartment 13 33authority, do not exceed one hundred thousand dollars. 13 34 (2) The qualified rehabilitation project is funded 13 35 exclusively by private funding sources. 14 1 c. Upon review of the examination, if applicable, the 14 2departmentauthority shall verify that all requirements of 14 3 the agreement, this chapter, and all rules adopted pursuant 14 4 to this chapter have been satisfied and shall verify the 14 5 amount of final qualified rehabilitation expenditures.After 14 6 consultation with the department of revenue, the department may 14 7 issue a tax credit certificate to the eligible taxpayer stating 14 8 the amount of tax credit under section 404A.2 the eligible 14 9 taxpayer may claim. The departmentIf the authority determines 14 10 that all requirements of the agreement, this chapter, and all 14 11 rules adopted pursuant to this chapter have been satisfied and 14 12 it has verified the amount of final qualified rehabilitation 14 13 expenditures, the authority shall issuethea tax credit 14 14 certificatenot later than sixty days following the completion 14 15 of the examination review, if applicable, and the verifications 14 16 and consultation required under this paragraphto the eligible 14 17 taxpayer stating the amount of the credit under section 404A.2 14 18 the eligible taxpayer may claim. 14 19 6. Waivers. Notwithstanding any other provision of this 14 20 chapter to the contrary, thedepartmentauthority may waive 14 21 the requirements of subsections 1 through 4, except the 14 22 requirements relating to allowable cost overruns in subsection 14 23 3, paragraph "b", subparagraph (3), and the requirements 14 24 in subsection 4, paragraphs "b" and "c", for qualified 14 25 rehabilitation projects with final qualified rehabilitation 14 26 expenditures of seven hundred fifty thousand dollars or less 14 27 and may establish by rule different application, registration, 14 28 agreement, compliance, or other requirements relating to such 14 29 projects. 14 30 7. Amendments. Thedepartmentauthority may for good cause 14 31 amend an agreement. 14 32 Sec. 27. Section 404A.4, subsection 1, paragraph a, Code 14 33 2016, is amended to read as follows: 14 34 a. Except as provided in subsections 2 and 3, thedepartment 14 35authority shall not award in any one fiscal year an amount of 15 1 tax credits provided in section 404A.2 in excess of forty=five 15 2 million dollars. 15 3 Sec. 28. Section 404A.4, subsection 3, paragraph a, Code 15 4 2016, is amended to read as follows: 15 5 a. If during the fiscal year beginning July 1, 2016, or 15 6 any fiscal year thereafter, thedepartmentauthority awards 15 7 an amount of tax credits that is less than the maximum 15 8 aggregate tax credit award limit specified in subsection 1, 15 9 the difference between the amount so awarded and the amount 15 10 specified in subsection 1, not to exceed ten percent of the 15 11 amount specified in subsection 1, may be carried forward to the 15 12 succeeding fiscal year and awarded during that fiscal year. 15 13 Sec. 29. Section 404A.5, subsections 1 and 3, Code 2016, are 15 14 amended to read as follows: 15 15 1. Thedepartmentauthority, in consultation with the 15 16 department of revenue, shall be responsible for keeping the 15 17 general assembly and the legislative services agency informed 15 18 on the overall economic impact to the state of qualified 15 19 rehabilitation projects. 15 20 3. Thedepartmentauthority, to the extent it is able, shall 15 21 provide recommendations on whether the limit on tax credits 15 22 should be changed, the need for a broader or more restrictive 15 23 definition of qualified rehabilitation project, and other 15 24 adjustments to the tax credits under this chapter. 15 25 Sec. 30. Section 404A.6, Code 2016, is amended to read as 15 26 follows: 15 27 404A.6 Rules. 15 28 The authority, department, and the department of revenue 15 29 shall each adopt rulesto jointly administeras necessary for 15 30 the administration of this chapter. 15 31 EXPLANATION 15 32 The inclusion of this explanation does not constitute agreement with 15 33 the explanation's substance by the members of the general assembly. 15 34 This bill relates to the programs and duties of the economic 15 35 development authority (authority) by modifying life cycle cost 16 1 analysis provisions relating to public facilities, making 16 2 technical changes pertaining to the high quality jobs program, 16 3 modifying economic development authority assistance provisions 16 4 under the business outreach program, modifying provisions 16 5 concerning enterprise zones, and transferring certain duties 16 6 to the authority under the historic preservation and cultural 16 7 entertainment district tax credit program. 16 8 Division I of the bill modifies provisions relating to the 16 9 life cycle analysis required of certain public facilities. 16 10 The division adds a definition of "addition" and modifies the 16 11 definitions of "facility" and "renovation" and requires a 16 12 public agency responsible for the construction or renovation 16 13 of a facility or the construction of an addition to a facility 16 14 to include the performance of a life cycle cost analysis as 16 15 a design criterion on or after the effective date of the 16 16 division. The division requires a public agency or person 16 17 preparing a life cycle cost analysis for a public agency to 16 18 use methodology established, by rule, by the state building 16 19 code commissioner, rather than methods and analytical 16 20 models provided by the authority. The division requires the 16 21 commissioner to also adopt rules for the implementation and 16 22 adoption of the life cycle cost analysis. The division takes 16 23 effect upon enactment. 16 24 Division II of the bill makes technical changes related to 16 25 the definition of a "new investment" under the high quality 16 26 jobs program. 16 27 Division III of the bill relates to the authority's business 16 28 outreach program, which provides technical and financial 16 29 assistance to businesses applying for federal small business 16 30 innovation research and small business technology transfer 16 31 program grants and contracts. 16 32 Under current law, the authority is allowed to provide 16 33 financial assistance of up to $25,000 to any single business 16 34 and is allowed to provide such financial assistance as matching 16 35 funds to allow a business to qualify for either federal 17 1 program. The division provides that the authority may provide 17 2 financial assistance of up to $100,000 to a business for any 17 3 individual federal award under those programs and that the 17 4 financial assistance may be used for any purpose to allow a 17 5 business to meet federal program requirements. 17 6 Division IV of the bill relates to enterprise zones. 17 7 The division allows a city or county and the authority 17 8 for compliance reasons to amend agreements made under the 17 9 enterprise zone program as long as the amendments do not 17 10 increase the amount of incentives awarded and the economic 17 11 development authority board approves. 17 12 Division V of the bill relates to the historic preservation 17 13 and cultural and entertainment district tax credit by 17 14 transferring administrative oversight of the tax credit from 17 15 the department of cultural affairs to the authority. In 17 16 relation to the tax credit, the division allows a taxpayer 17 17 to elect to receive a refund of any credit in excess of the 17 18 taxpayer's liability or to credit the excess against the tax 17 19 liability for the following five years or until depleted, 17 20 whichever is earlier. Under current law, the credit is 17 21 refundable with interest, but, in lieu of a refund, the 17 22 excess may be credited against tax liability for the following 17 23 year. The division makes additional changes related to 17 24 taxpayer notifications, to rehabilitation work standards, and 17 25 to verification and credit issuance processes. Under the 17 26 division, the department of cultural affairs is required to 17 27 consult with the authority on certain historic preservation and 17 28 cultural and entertainment district tax credit processes. LSB 5171HV (4) 86 aw/sc