Bill Text: IA HF439 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the workforce housing tax incentives program by increasing the maximum dollar amount that may be allocated to the program, by requiring allocation to certain housing projects, and by increasing the percentage of investment for tax incentives for certain housing projects. (Formerly HSB 65.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-21 - Withdrawn. H.J. 1125. [HF439 Detail]
Download: Iowa-2017-HF439-Introduced.html
House File 439 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 65) A BILL FOR 1 An Act relating to the workforce housing tax incentives 2 program by increasing the maximum dollar amount that may be 3 allocated to the program, by requiring allocation to certain 4 housing projects, and by increasing the percentage of 5 investment for tax incentives for certain housing projects. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1332HV (2) 87 aw/sc PAG LIN 1 1 Section 1. Section 15.119, subsection 2, paragraph a, 1 2 subparagraph (2), Code 2017, is amended to read as follows: 1 3 (2) In allocating tax credits pursuant to this subsection 1 4 for the fiscal year beginning July 1, 2016, and ending June 30, 1 5 2017, the authority shall not allocate more than one hundred 1 6 five million dollars for purposes of this paragraph "a". In 1 7 allocating tax credits pursuant to this paragraph "a" for each 1 8 fiscal year of the fiscal period beginning July 1,20162017, 1 9 and ending June 30, 2021, the authority shall not allocatemore 1 10 thanfor the purposes of this paragraph "a" an amount that 1 11 exceeds an amount equal to the difference of one hundred five 1 12 million dollarsfor purposes of this paragraphless the amount, 1 13 if any, that the allocation for purposes of paragraph "g" 1 14 exceeds twenty million dollars for the same fiscal year. This 1 15 subparagraph (2) is repealed July 1, 2021. 1 16 Sec. 2. Section 15.119, subsection 2, paragraph a, 1 17 subparagraph (3), subparagraph division (a), Code 2017, is 1 18 amended to read as follows: 1 19 (a) In allocating tax credits pursuant to this subsection 1 20 for the fiscal year beginning July 1, 2021, and ending June 1 21 30, 2022, the authority shall not allocatemore thanfor the 1 22 purposes of this paragraph "a" an amount that exceeds an amount 1 23 equal to the difference of one hundred five million dollarsfor 1 24 purposes of this paragraphless the amount, if any, that the 1 25 allocation for purposes of paragraph "g" exceeds twenty million 1 26 dollars for the same fiscal year if the aggregate amount of 1 27 renewable chemical production tax credits under section 15.319 1 28 that were awarded on or after July 1, 2018, but before July 1, 1 29 2021, equals or exceeds twenty=seven million dollars. 1 30 Sec. 3. Section 15.119, subsection 2, paragraph g, Code 1 31 2017, is amended to read as follows: 1 32 g. The workforce housing tax incentives program administered 1 33 pursuant to sections 15.351 through 15.356. In allocating 1 34 tax credits pursuant to this subsection, the authority shall 1 35 not allocate more thantwentythirty million dollars for 2 1 purposes of this paragraph. Of the moneys allocated under this 2 2 paragraph, ten million dollars shall be reserved for allocation 2 3 to qualified housing projects in small cities, as defined in 2 4 section 15.352. 2 5 Sec. 4. Section 15.352, Code 2017, is amended by adding the 2 6 following new subsections: 2 7 NEW SUBSECTION. 3A. "Greenfield site" means a site that 2 8 does not meet the definition of a brownfield site or grayfield 2 9 site. A project proposed at a site located on previously 2 10 undeveloped land or agricultural land shall be presumed to be 2 11 a greenfield site. 2 12 NEW SUBSECTION. 9. "Small city" means any city or township 2 13 located in this state, except those located within the eleven 2 14 most populous counties in the state, as determined by the most 2 15 recent federal decennial census. For the purposes of this 2 16 part, a small city that is located in more than one county 2 17 shall be considered to be located in the county having the 2 18 greatest taxable base within the small city. 2 19 Sec. 5. Section 15.353, subsection 1, paragraph a, Code 2 20 2017, is amended to read as follows: 2 21 a. Four or more single=family dwelling units, except for a 2 22 project located in a small city, then two or more single=family 2 23 dwelling units. 2 24 Sec. 6. Section 15.353, subsection 2, Code 2017, is amended 2 25 by adding the following new paragraph: 2 26 NEW PARAGRAPH. 0d. For a housing project located in a 2 27 small city that meets program requirements under subsection 1, 2 28 paragraph "a", development at a greenfield site. 2 29 Sec. 7. Section 15.353, subsection 2, paragraph d, 2 30 subparagraph (2), subparagraph division (c), Code 2017, is 2 31 amended to read as follows: 2 32 (c) The demand for projects applying under this paragraph 2 33 "d" compared to the demand for projects applying under 2 34 paragraphs "a" through"c""0d". 2 35 Sec. 8. Section 15.354, subsection 4, paragraph c, Code 3 1 2017, is amended to read as follows: 3 2 c. (1) The authority shall issue tax incentives under the 3 3 program on a first=come, first=served basis until the maximum 3 4 amount of tax incentives allocated pursuant to section 15.119, 3 5 subsection 2, is reached. The authority shall maintain a list 3 6 of registered housing projects under the program so that if 3 7 the maximum aggregate amount of tax incentives is reached in 3 8 a given fiscal year, registered housing projects that were 3 9 completed but for which tax incentives were not issued shall 3 10 be placed on a wait list in the order the registered housing 3 11 projects were registered and shall be given priority for 3 12 receiving tax incentives in succeeding fiscal years. 3 13 (2) The authority shall administer allocations reserved for 3 14 qualified housing projects in small cities separately from the 3 15 general allocation in subparagraph (1). The authority shall 3 16 issue tax incentives for small cities under the program on a 3 17 first=come, first=served basis until the maximum amount of the 3 18 allocation reserved for small cities under section 15.119, 3 19 subsection 2, paragraph "g", is reached. The authority shall 3 20 maintain a list of registered housing projects in small cities 3 21 under the program so that if the maximum aggregate amount 3 22 of tax incentives reserved for small cities is reached in a 3 23 given fiscal year, such registered housing projects that were 3 24 completed but for which tax incentives were not issued shall 3 25 be placed on a wait list in the order the registered housing 3 26 projects were registered and shall be given priority for 3 27 receiving tax incentives in succeeding fiscal years. If the 3 28 maximum aggregate amount of tax incentives reserved for small 3 29 cities is not reached in a given fiscal year, the authority may 3 30 issue tax incentives reserved under this subparagraph (2) to 3 31 other housing projects registered under subsection 2. 3 32 Sec. 9. Section 15.355, subsection 3, paragraph a, Code 3 33 2017, is amended to read as follows: 3 34 a. A housing business may claim a tax credit in an amount 3 35 not to exceed the following: 4 1 (1) For a housing project not located in a small city, ten 4 2 percent of the qualifying new investment of a housing project. 4 3 (2) For a housing project located in a small city, twenty 4 4 percent of the qualifying new investment of a housing project. 4 5 EXPLANATION 4 6 The inclusion of this explanation does not constitute agreement with 4 7 the explanation's substance by the members of the general assembly. 4 8 This bill relates to the workforce housing tax incentives 4 9 program by increasing the maximum dollar amount that may be 4 10 allocated to the program, by requiring that a certain dollar 4 11 value of tax credits be allocated to housing projects in small 4 12 cities, and by increasing the percentage for computing tax 4 13 credits for such housing projects. 4 14 The bill raises the annual allowable tax credits allocation 4 15 under the program from $20 million to $30 million, but 4 16 maintains the economic development authority's (authority) 4 17 $170 million aggregate tax credit limit. The bill requires 4 18 the authority to allocate at least $10 million in tax credits 4 19 to housing projects in small cities and to administer such 4 20 reserved allocations separately. If the authority does not 4 21 reach the $10 million for such projects in a fiscal year, the 4 22 bill provides that the authority may issue tax incentives from 4 23 the reserved allocation to registered housing projects that 4 24 are not located in small cities. Under the bill, a small city 4 25 includes any city or township not located in one of the 11 4 26 most populous counties in the state, as determined by the most 4 27 recent federal decennial census. Under the bill, a small city 4 28 that is located in more than one county is considered to be 4 29 located in the county having the greatest taxable base within 4 30 the small city. 4 31 The bill provides that a housing project in a small city 4 32 that results in two or more new single=family dwelling units 4 33 at a greenfield site, as defined in the bill, may receive tax 4 34 incentives under the program, equaling up to 20 percent of the 4 35 qualifying new investment. 5 1 For the fiscal period beginning July 1, 2017, and ending 5 2 June 30, 2022, the bill requires reductions in the authority's 5 3 allowable allocations to the high quality jobs program 5 4 under the circumstances described in the bill relating to 5 5 the increase in workforce housing tax incentive program tax 5 6 credits. LSB 1332HV (2) 87 aw/sc
