Bill Text: IA HF2455 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the administration of the redevelopment tax credits program by the economic development authority and including applicability provisions. (Formerly HF 2287) (Formerly HSB 540)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-04-01 - Withdrawn. H.J. 627. [HF2455 Detail]
Download: Iowa-2013-HF2455-Introduced.html
House
File
2455
-
Introduced
HOUSE
FILE
2455
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2287)
(SUCCESSOR
TO
HSB
540)
A
BILL
FOR
An
Act
relating
to
the
administration
of
the
redevelopment
tax
1
credits
program
by
the
economic
development
authority
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
15.291,
Code
2014,
is
amended
by
adding
1
the
following
new
subsections:
2
NEW
SUBSECTION
.
01.
“Abandoned
public
building”
means
a
3
vertical
improvement,
as
defined
in
section
15J.1,
constructed
4
for
use
primarily
by
a
political
subdivision
of
the
state
for
a
5
public
purpose
and
whose
current
use
is
outdated
or
prevents
6
a
better
or
more
efficient
use
of
the
property
by
the
current
7
owner.
“Abandoned
public
building”
includes
vacant,
blighted,
8
obsolete,
or
otherwise
underutilized
property.
9
NEW
SUBSECTION
.
4A.
“Political
subdivision”
means
a
city,
10
county,
township,
or
school
district.
11
NEW
SUBSECTION
.
4B.
“Previously
remediated
or
redeveloped”
12
means
any
prior
remediation
or
redevelopment,
including
13
development
for
which
an
award
of
tax
credits
under
this
part
14
has
been
made.
15
NEW
SUBSECTION
.
6A.
“Redevelopment
tax
credits
program”
16
means
the
tax
credits
program
administered
pursuant
to
sections
17
15.293A
and
15.293B.
18
Sec.
2.
Section
15.291,
subsection
3,
unnumbered
paragraph
19
1,
Code
2014,
is
amended
to
read
as
follows:
20
“Grayfield
site”
means
an
abandoned
public
building
or
an
21
industrial
or
commercial
property
meeting
that
meets
all
of
the
22
following
requirements:
23
Sec.
3.
Section
15.291,
subsection
6,
Code
2014,
is
amended
24
to
read
as
follows:
25
6.
“Qualifying
redevelopment
project”
means
a
brownfield
or
26
a
grayfield
site
being
redeveloped
or
improved
by
the
property
27
owner.
“Qualifying
redevelopment
project”
does
not
include
a
28
previously
remediated
or
redeveloped
brownfield
or
grayfield
29
site.
30
Sec.
4.
Section
15.293A,
subsection
1,
paragraph
c,
Code
31
2014,
is
amended
to
read
as
follows:
32
c.
(1)
Any
Except
as
provided
in
subparagraph
(2),
any
33
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
34
year
is
not
refundable
but
may
be
credited
to
the
tax
liability
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for
the
following
five
years
or
until
depleted,
whichever
is
1
earlier.
2
(2)
A
tax
credit
in
excess
of
the
taxpayer’s
liability
for
3
the
tax
year
is
refundable
if
all
of
the
following
conditions
4
are
met:
5
(a)
The
taxpayer
is
an
investor
making
application
for
tax
6
credits
provided
in
this
section
and
is
an
entity
organized
7
under
chapter
504
and
qualifying
under
section
501(c)(3)
of
the
8
Internal
Revenue
Code
as
an
organization
exempt
from
federal
9
income
tax
under
section
501(a)
of
the
Internal
Revenue
Code.
10
(b)
The
taxpayer
establishes
during
the
application
11
process
described
in
section
15.293B
that
the
requirement
in
12
subparagraph
division
(a)
is
satisfied.
The
authority,
when
13
issuing
a
certificate
to
a
taxpayer
that
meets
the
requirements
14
in
this
subparagraph
(2),
shall
indicate
on
the
certificate
15
that
such
requirements
have
been
satisfied.
16
(3)
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
17
prior
to
the
tax
year
in
which
the
taxpayer
first
receives
the
18
tax
credit.
19
Sec.
5.
Section
15.293A,
subsection
2,
paragraph
a,
Code
20
2014,
is
amended
by
striking
the
paragraph.
21
Sec.
6.
Section
15.293A,
subsection
2,
paragraph
b,
22
subparagraph
(1),
Code
2014,
is
amended
to
read
as
follows:
23
(1)
To
claim
a
redevelopment
tax
credit
under
this
24
section
,
a
taxpayer
must
attach
include
one
or
more
tax
credit
25
certificates
to
with
the
taxpayer’s
tax
return.
A
tax
credit
26
certificate
shall
not
be
used
or
attached
to
included
with
a
27
return
filed
for
a
taxable
year
beginning
prior
to
July
1,
2009
28
the
tax
year
listed
on
the
certificate
.
29
Sec.
7.
Section
15.293A,
subsection
3,
unnumbered
paragraph
30
1,
Code
2014,
is
amended
to
read
as
follows:
31
The
amount
of
the
tax
credit
shall
equal
one
of
be
determined
32
by
the
board
in
conjunction
with
the
council.
However,
the
tax
33
credit
shall
not
exceed
the
following
amount,
as
applicable
:
34
Sec.
8.
Section
15.293A,
subsection
6,
Code
2014,
is
amended
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to
read
as
follows:
1
6.
For
the
fiscal
year
beginning
July
1,
2009,
the
maximum
2
amount
of
tax
credits
issued
by
the
authority
shall
not
exceed
3
one
million
dollars.
For
each
subsequent
fiscal
year,
the
4
The
amount
of
tax
credits
that
may
be
issued
awarded
by
the
5
authority
board
shall
be
subject
to
the
limitation
in
section
6
15.119
.
7
Sec.
9.
Section
15.293A,
subsections
8,
9,
10,
11,
12,
and
8
13,
Code
2014,
are
amended
by
striking
the
subsections.
9
Sec.
10.
Section
15.293B,
Code
2014,
is
amended
to
read
as
10
follows:
11
15.293B
Approval
——
requirements
——
repayment
Application
——
12
registration
——
agreement
.
13
1.
a.
The
authority
shall
develop
a
system
for
the
14
application,
review,
registration,
and
authorization
of
15
projects
awarded
tax
credits
pursuant
to
this
part
and
16
shall
control
the
issuance
of
all
tax
credit
certificates
to
17
investors
pursuant
to
this
part.
18
b.
The
authority
shall
accept
and
,
in
conjunction
with
19
the
council,
review
applications
for
tax
credits
pursuant
to
20
provided
in
section
15.293A
and,
with
the
approval
of
the
21
council,
make
tax
credit
award
recommendations
regarding
the
22
applications
to
the
board.
23
c.
Applications
for
redevelopment
tax
credits
shall
be
24
accepted
during
an
annual
application
period
established
by
the
25
authority.
26
d.
Upon
review
of
an
application,
the
authority
may
27
register
the
project
with
the
redevelopment
tax
credits
28
program.
If
the
authority
registers
the
project,
the
authority
29
may,
in
conjunction
with
the
council,
make
a
preliminary
30
determination
as
to
the
amount
of
tax
credit
for
which
an
award
31
recommendation
will
be
made
to
the
board.
32
e.
After
registering
the
project,
the
authority
shall
notify
33
the
investor
of
successful
registration
under
the
redevelopment
34
tax
credits
program.
The
notification
may
include
the
amount
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of
tax
credit
for
which
an
award
recommendation
will
be
made
1
to
the
board.
If
an
award
recommendation
is
included
in
the
2
notification,
such
notification
shall
include
a
statement
that
3
the
award
recommendation
is
a
recommendation
only.
The
amount
4
of
tax
credit
included
on
a
tax
credit
certificate
issued
5
pursuant
to
this
section
shall
be
contingent
upon
an
award
6
by
the
board
and
upon
completion
of
the
requirements
in
this
7
section.
8
f.
(1)
All
completed
applications
shall
be
reviewed
and
9
scored
on
a
competitive
basis
by
the
council
and
the
board.
In
10
reviewing
and
scoring
applications,
the
council
and
the
board
11
may
consider
any
factors
the
council
and
board
deem
appropriate
12
for
a
competitive
application
process,
including
but
not
13
limited
to
the
financial
need,
quality,
and
feasibility
of
a
14
qualifying
redevelopment
project.
15
(2)
For
purposes
of
this
paragraph:
16
(a)
“Feasibility”
means
the
likelihood
that
the
project
will
17
obtain
the
financing
necessary
to
allow
for
full
completion
of
18
the
project
and
the
likelihood
that
the
proposed
redevelopment
19
or
improvement
that
is
the
subject
of
the
project
will
be
fully
20
completed.
21
(b)
“Financial
need”
means
the
difference
between
the
total
22
costs
of
the
project
less
the
total
financing
that
will
be
23
received
for
the
project.
24
(c)
“Quality”
means
the
merit
of
the
project
after
25
considering
and
evaluating
its
total
characteristics
and
26
measuring
those
characteristics
in
a
uniform,
objective
manner
27
against
the
total
characteristics
of
other
projects
that
have
28
applied
for
the
tax
credit
provided
in
section
15.293A
during
29
the
same
annual
application
period.
30
g.
Upon
reviewing
and
scoring
all
applications
that
are
31
part
of
an
annual
application
period,
the
board
may
award
tax
32
credits
provided
in
section
15.293A.
33
h.
If
the
applicant
for
a
tax
credit
provided
in
section
34
15.293A
has
also
applied
to
an
agency
of
the
federal
government
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or
to
the
authority,
the
board,
or
any
other
agency
of
state
1
government
for
additional
financial
assistance,
the
authority,
2
the
council,
and
the
board
shall
consider
the
amount
of
funding
3
to
be
received
from
such
public
sources
when
making
a
tax
4
credit
award
pursuant
to
this
section.
5
i.
An
applicant
that
is
unsuccessful
in
receiving
a
tax
6
credit
award
during
an
annual
application
period
may
make
7
additional
applications
during
subsequent
annual
application
8
periods.
Such
applicants
shall
be
required
to
submit
a
new
9
application
and
shall
be
competitively
reviewed
and
scored
in
10
the
same
manner
as
other
applicants
in
that
annual
application
11
period.
12
2.
An
investor
applying
for
a
tax
credit
shall
provide
the
13
authority
with
all
of
the
following:
14
a.
Information
showing
the
total
costs
of
the
qualifying
15
redevelopment
project,
including
the
costs
of
land
acquisition,
16
cleanup,
and
redevelopment.
17
b.
Information
about
the
financing
sources
of
the
investment
18
which
are
directly
related
to
the
qualifying
redevelopment
19
project
for
which
the
taxpayer
investor
is
seeking
approval
for
20
a
tax
credit
,
as
provided
in
section
15.293A
.
21
c.
Any
other
information
deemed
necessary
by
the
board
and
22
the
council
to
review
and
score
the
application
pursuant
to
23
subsection
1.
24
3.
If
a
taxpayer
receives
an
investor
is
awarded
a
tax
25
credit
pursuant
to
section
15.293A
,
but
this
section,
the
26
authority
and
the
investor
shall
enter
into
an
agreement
27
concerning
the
qualifying
redevelopment
project.
If
the
28
investor
fails
to
comply
with
any
of
the
requirements
of
the
29
agreement
,
the
taxpayer
loses
any
right
to
the
tax
credit,
30
and
the
authority
may
find
the
investor
in
default
under
the
31
agreement
and
may
revoke
all
or
a
portion
of
the
tax
credit
32
award.
The
department
of
revenue
,
upon
notification
by
the
33
authority
of
an
event
of
default,
shall
seek
recovery
repayment
34
of
the
value
of
the
any
such
tax
credit
received
already
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claimed
in
the
same
manner
as
provided
in
section
15.330,
1
subsection
2
.
2
4.
This
section
is
repealed
on
June
30,
2021.
A
registered
3
project
shall
be
completed
within
thirty
months
of
the
date
the
4
project
was
registered
unless
the
authority
provides
additional
5
time
to
complete
the
project.
A
project
shall
not
be
provided
6
more
than
twelve
months
of
additional
time.
If
the
registered
7
project
is
not
completed
within
the
time
required,
the
project
8
is
not
eligible
to
claim
a
tax
credit
provided
in
section
9
15.293A.
10
5.
a.
Upon
completion
of
a
registered
project,
an
audit
11
of
the
project,
completed
by
an
independent
certified
public
12
accountant
licensed
in
this
state,
shall
be
submitted
to
the
13
authority.
14
b.
Upon
review
of
the
audit
and
verification
of
the
amount
15
of
the
qualifying
investment,
the
authority
may
issue
a
tax
16
credit
certificate
to
the
investor
stating
the
amount
of
tax
17
credit
under
section
15.293A
the
investor
may
claim.
18
6.
The
authority,
in
conjunction
with
the
department
of
19
revenue,
shall
adopt
rules
to
administer
the
redevelopment
tax
20
credits
program.
21
Sec.
11.
Section
15.294,
subsection
4,
Code
2014,
is
amended
22
to
read
as
follows:
23
4.
The
council,
in
conjunction
with
the
authority,
shall
24
consider
applications
for
redevelopment
tax
credits
as
25
described
provided
in
sections
section
15.293A
and
15.293B
,
26
and
may
recommend
to
the
authority
which
applications
to
27
approve
and
the
amount
of
such
tax
credits
that
each
project
is
28
eligible
to
receive
should
be
awarded
by
the
board
.
29
Sec.
12.
APPLICABILITY.
This
Act
applies
to
qualifying
30
redevelopment
projects
for
which
a
redevelopment
tax
credit
31
is
awarded
on
or
after
the
effective
date
of
this
Act,
and
32
qualifying
redevelopment
projects
for
which
a
redevelopment
33
tax
credit
was
awarded
prior
to
the
effective
date
of
this
Act
34
shall
be
governed
by
sections
15.291,
15.293A,
and
15.293B,
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Code
2014.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
makes
several
changes
to
the
redevelopment
tax
5
credits
program
administered
by
the
economic
development
6
authority
(EDA).
7
The
bill
defines
the
“redevelopment
tax
credits
program”
8
to
be
the
tax
credits
program
administered
pursuant
to
Code
9
sections
15.293A
and
15.293B.
10
The
bill
affects
the
qualification
of
redevelopment
projects
11
under
the
redevelopment
tax
credits
program
(program)
by
12
amending
the
definition
of
“grayfield
site”
to
include
an
13
abandoned
public
building,
and
by
specifying
that
a
previously
14
remediated
or
redeveloped
brownfield
site,
which
does
not
15
qualify
for
the
program,
means
any
prior
remediation
or
16
redevelopment,
including
redevelopment
for
which
an
award
of
17
tax
credits
has
been
made
under
the
program.
“Abandoned
public
18
building”
and
related
terms
are
defined
in
the
bill.
19
The
bill
amends
the
tax
credit
application
and
award
20
process.
The
bill
provides
that
tax
credit
applications
shall
21
be
accepted
by
the
EDA
during
an
annual
application
period
22
established
by
the
EDA.
After
an
application
is
received,
the
23
EDA
may
register
the
project
under
the
program
and
may
make
a
24
preliminary
determination
as
to
the
amount
of
tax
credit
for
25
which
an
award
recommendation
will
be
made
to
the
economic
26
development
authority
board
(board).
The
EDA
then
notifies
27
the
investor
of
successful
registration
and,
if
applicable,
28
the
amount
of
tax
credit
for
which
an
award
recommendation
29
will
be
made
to
the
board.
All
applications
that
are
part
of
30
that
annual
application
period
are
required
to
be
reviewed
and
31
scored
on
a
competitive
basis
by
the
brownfield
redevelopment
32
advisory
council
(council)
and
the
board.
In
reviewing
and
33
scoring
applications,
the
council
and
the
board
are
allowed
to
34
consider
any
factors
they
deem
appropriate
for
a
competitive
35
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application
process,
including
but
not
limited
to
the
financial
1
need,
quality,
and
feasibility
of
a
project.
2
The
bill
provides
that
if
an
applicant
is
unsuccessful
in
3
receiving
a
tax
credit
award
from
the
board
during
one
annual
4
application
period,
the
applicant
may
apply
in
a
subsequent
5
annual
application
period
provided
the
applicant
submits
a
new
6
application
and
is
competitively
reviewed
and
scored
in
the
7
same
manner
as
other
applicants
in
that
annual
application
8
period.
9
The
bill
requires
a
tax
credit
application
to
include
any
10
information
deemed
necessary
by
the
board
and
the
council
to
11
appropriately
review
and
score
the
application,
in
addition
to
12
the
information
already
required
under
Iowa
law
relating
to
the
13
project’s
total
costs
and
financing
sources.
The
bill
strikes
14
language
requiring
the
EDA
to
maintain
a
wait
list
for
tax
15
credits.
16
The
bill
strikes
the
provision
requiring
that
if
a
17
redevelopment
tax
credit
recipient
has
also
applied
to
the
18
state
for
additional
financial
assistance,
the
state
shall
not
19
consider
the
receipt
of
the
tax
credit
when
considering
the
20
application
for
additional
financial
assistance
and
instead
21
provides
that
if
a
redevelopment
tax
credit
applicant
also
22
applies
to
a
federal
or
state
agency
for
additional
financial
23
assistance,
the
EDA
and
the
board
shall
consider
the
amount
24
of
funding
from
these
public
sources
when
making
a
tax
credit
25
award.
26
The
bill
amends
the
amount
of
the
tax
credit.
Under
27
current
law,
the
amount
of
the
tax
credit
is
equal
to
a
certain
28
percentage
of
the
investor’s
qualifying
investment
depending
29
on
whether
the
project
is
located
on
a
grayfield
site
or
a
30
brownfield
site
and
whether
or
not
the
project
meets
green
31
development
requirements.
The
bill
provides
that
the
amount
32
of
the
tax
credit
shall
be
an
amount
determined
by
the
board
33
in
conjunction
with
the
council,
but
shall
not
exceed
those
34
percentages
already
provided
under
current
law.
The
bill
35
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provides
that
the
amount
of
tax
credit
included
on
a
tax
credit
1
certificate
shall
be
contingent
on
an
award
by
the
board,
and
2
on
the
completion
of
an
audit
of
the
project
which
audit
is
3
already
required
under
Iowa
law.
4
The
bill
requires
agreements
under
the
program.
An
investor
5
awarded
tax
credits
is
required
to
enter
into
an
agreement
6
with
the
EDA
concerning
the
qualifying
redevelopment
project.
7
The
bill
amends
language
relating
to
a
taxpayer’s
loss
of
8
any
right
to
a
tax
credit
for
failure
to
comply
with
any
9
requirements,
to
specify
that
if
an
investor
fails
to
comply
10
with
any
requirements
of
the
agreement,
the
authority
may
find
11
the
investor
in
default
and
revoke
all
or
a
portion
of
the
12
tax
credit
award.
If
recovery
of
a
claimed
tax
credit
by
the
13
department
of
revenue
(DOR),
as
required
under
current
law,
14
is
necessary
for
failure
to
maintain
the
requirements
of
an
15
agreement,
the
bill
provides
that
such
recovery
shall
be
in
16
the
same
manner
as
provided
in
Code
section
15.330,
subsection
17
2,
which
relates
to
the
recovery
of
incentives
under
the
high
18
quality
jobs
program.
19
The
bill
amends
the
process
of
claiming
the
tax
credits
20
by
allowing
the
currently
nonrefundable
tax
credits
to
be
21
refundable,
but
only
to
nonprofit
organizations
under
certain
22
conditions.
In
order
for
tax
credits
to
qualify
as
refundable,
23
a
nonprofit
organization
must
be
an
investor
applying
for
24
the
tax
credits,
must
be
organized
under
Code
chapter
504,
25
must
qualify
as
a
tax-exempt
organization
under
section
26
501(c)(3)
of
the
Internal
Revenue
Code,
and
must
establish
27
these
requirements
during
the
tax
credit
application
process.
28
The
EDA
will
be
required
to
indicate
on
the
tax
credit
29
certificate
issued
to
these
nonprofit
organizations
that
such
30
requirements
have
been
met.
The
bill
requires
that
a
taxpayer
31
include,
rather
than
attach,
a
tax
credit
certificate
with
the
32
taxpayer’s
tax
return.
The
bill
amends
the
requirement
that
33
tax
credits
shall
not
be
claimed
for
taxable
years
beginning
34
prior
to
July
1,
2009,
to
require
that
tax
credits
shall
not
35
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be
claimed
prior
to
the
tax
year
listed
on
the
tax
credit
1
certificate.
2
The
bill
strikes
Code
section
15.293A,
subsections
10
and
3
11,
relating
to
the
adoption
of
administrative
rules
by
the
4
EDA
and
the
DOR,
and
the
EDA’s
cooperation
with
the
department
5
of
natural
resources
and
local
governments
regarding
the
6
dissemination
of
information
about
the
program.
The
bill
7
requires
the
authority,
in
conjunction
with
the
department
8
of
revenue,
to
adopt
rules
to
administer
the
program.
The
9
bill
transfers
to
Code
section
15.293B
the
language
from
10
Code
section
15.293A,
subsection
8,
relating
to
the
deadline
11
for
completing
registered
projects,
and
amends
part
of
that
12
language
referencing
the
project’s
approval
date
to
instead
13
reference
the
date
upon
which
the
project
was
registered.
14
The
bill
amends
the
duties
and
powers
of
the
council
to
15
provide
that
it
may
recommend
to
the
EDA
the
amount
of
tax
16
credits
that
a
redevelopment
project
should
be
awarded,
instead
17
of
the
amount
of
tax
credits
that
a
redevelopment
project
is
18
eligible
to
receive.
19
Finally,
the
bill
removes
the
automatic
repeal
date
of
the
20
program,
which
under
current
law
is
set
to
expire
on
June
30,
21
2021.
22
The
bill
applies
to
qualifying
redevelopment
projects
for
23
which
a
redevelopment
tax
credit
is
awarded
on
or
after
the
24
effective
date
of
the
bill.
The
bill
provides
that
qualifying
25
redevelopment
projects
for
which
a
redevelopment
tax
credit
26
was
awarded
prior
to
the
effective
date
of
the
bill
shall
be
27
governed
by
current
law.
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