Bill Text: IA HF543 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act creating a senior housing tax credit program, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-16 - Introduced, referred to Ways and Means. H.J. 401. [HF543 Detail]
Download: Iowa-2021-HF543-Introduced.html
House
File
543
-
Introduced
HOUSE
FILE
543
BY
BRINK
A
BILL
FOR
An
Act
creating
a
senior
housing
tax
credit
program,
and
1
including
effective
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
16.37A
Senior
housing
tax
credit.
1
For
purposes
of
this
part,
unless
the
context
otherwise
2
requires:
3
1.
“Compliance
period”
means
the
period
of
fifteen
years
4
beginning
with
the
first
taxable
year
of
the
credit
period.
5
2.
“Department”
means
the
department
of
revenue.
6
3.
“Qualified
development”
means
a
senior
housing
7
development
located
in
this
state
approved
pursuant
to
section
8
16.37B.
9
4.
“Senior
housing
development”
means
the
development
and
10
construction
of
single-family
or
multi-residential
housing
for
11
persons
sixty-five
years
of
age
or
older
with
an
emphasis
on
12
safety,
accessibility,
and
adaptability.
13
5.
“Taxpayer”
means
an
individual,
a
person,
firm,
14
corporation,
or
other
entity
that
owns
an
interest,
direct
or
15
indirect,
in
a
qualified
development
who
claims
a
tax
credit
16
under
section
16.37C.
17
Sec.
2.
NEW
SECTION
.
16.37B
Application
——
review
——
18
authorization.
19
1.
The
authority
shall
develop
a
system
for
the
application,
20
review,
and
authorization
of
senior
housing
tax
credits
awarded
21
pursuant
to
this
part
and
shall
control
the
issuance
of
all
tax
22
credit
certificates
to
taxpayers
pursuant
to
this
part.
23
2.
Applications
for
senior
housing
tax
credits
shall
be
24
accepted
during
an
application
period
established
by
the
25
authority.
26
3.
The
authority
may
authorize
the
tax
credit
if
all
of
the
27
following
conditions
are
satisfied:
28
a.
The
tax
credit
certificate
is
issued
to
a
taxpayer
who
29
has
an
ownership
interest
in
the
qualified
development.
30
b.
The
tax
credit
is
necessary
for
the
financial
feasibility
31
of
the
qualified
development.
32
c.
The
amount
of
the
tax
credit
allocated
to
an
owner
33
does
not
exceed
thirty
percent
of
the
cost
of
the
qualified
34
development.
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d.
The
qualified
development
is
the
subject
of
a
recorded
1
restrictive
covenant
requiring
that,
for
the
compliance
period
2
or
for
a
longer
period
agreed
to
by
the
authority
and
the
3
owner
of
the
qualified
development,
the
development
shall
be
4
maintained
and
operated
as
a
qualified
development
and
shall
be
5
in
compliance
with
Tit.
VIII
of
the
federal
Civil
Rights
Act
of
6
1968,
as
amended.
7
4.
Upon
review
of
an
application,
the
authority
may
approve
8
the
qualified
development
for
the
tax
credit
program
provided
9
in
section
16.37C,
and
issue
a
tax
credit
certificate
stating
10
the
amount
of
the
tax
credit
the
authority
determines
the
11
taxpayer
is
eligible
to
claim
for
each
year
of
the
credit
12
period.
13
5.
An
applicant
that
is
unsuccessful
in
receiving
a
tax
14
credit
award
during
an
application
period
may
make
additional
15
applications
during
subsequent
application
periods.
Such
16
applicants
shall
be
required
to
submit
a
new
application
which
17
shall
be
reviewed
in
the
same
manner
as
other
applications
in
18
that
application
period.
19
Sec.
3.
NEW
SECTION
.
16.37C
Senior
housing
tax
credits
——
20
limits.
21
1.
A
senior
housing
tax
credit
shall
be
allowed
against
22
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V,
23
and
in
chapter
432,
and
against
the
moneys
and
credits
tax
24
imposed
in
section
533.329,
in
the
amount
determined
by
the
25
authority
pursuant
to
this
part.
Any
tax
credit
in
excess
of
26
the
taxpayer’s
liability
for
the
tax
year
is
not
refundable
but
27
may
be
credited
to
the
tax
liability
for
the
following
five
28
years
or
until
depleted,
whichever
is
earlier.
29
2.
An
individual
may
claim
a
tax
credit
under
this
section
30
of
a
partnership,
limited
liability
company,
S
corporation,
31
estate,
or
trust
electing
to
have
income
taxed
directly
to
32
the
individual.
The
amount
claimed
by
the
individual
shall
33
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
34
from
the
partnership,
limited
liability
company,
S
corporation,
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estate,
or
trust.
1
3.
In
any
calendar
year,
the
aggregate
amount
of
all
tax
2
credits
allocated
by
the
authority
shall
not
exceed
fifteen
3
million
dollars,
plus
the
sum
of
the
following
amounts:
4
a.
The
total
of
all
unallocated
tax
credits,
if
any,
for
the
5
preceding
calendar
years.
6
b.
The
total
amount
of
all
previously
allocated
tax
credits
7
that
have
been
recaptured,
canceled,
or
otherwise
recovered
by
8
the
authority.
9
4.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
10
shall
include
one
or
more
tax
credit
certificates
issued
by
the
11
authority
with
the
taxpayer’s
tax
return.
12
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
13
name,
address,
tax
identification
number,
the
amount
of
the
14
credit
including
the
amount
the
authority
determines
the
15
taxpayer
is
eligible
to
claim
for
each
year
of
the
credit
16
period,
the
name
of
the
qualified
development,
any
other
17
information
required
by
the
department
of
revenue,
and
a
place
18
for
the
name
and
tax
identification
number
of
a
transferee
and
19
the
amount
of
the
tax
credit
being
transferred.
20
c.
Tax
credit
certificates
issued
under
this
section
may
21
be
transferred
to
any
person
or
entity.
Within
ninety
days
22
of
transfer,
the
transferee
shall
submit
the
transferred
tax
23
credit
certificate
to
the
authority
along
with
a
statement
24
containing
the
transferee’s
name,
tax
identification
number,
25
and
address,
the
denomination
that
each
replacement
tax
credit
26
certificate
is
to
carry,
and
any
other
information
required
by
27
the
department
of
revenue.
28
d.
Within
thirty
days
of
receiving
the
transferred
tax
29
credit
certificate
and
the
transferee’s
statement,
the
30
authority
shall
issue
one
or
more
replacement
tax
credit
31
certificates
to
the
transferee.
Each
replacement
tax
credit
32
certificate
must
contain
the
information
required
for
the
33
original
tax
credit
certificate
and
must
have
the
same
34
expiration
date
that
appeared
on
the
transferred
tax
credit
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certificate.
Tax
credit
certificate
amounts
of
less
than
the
1
minimum
amount
established
by
rule
of
the
authority
shall
not
2
be
transferable.
3
e.
A
tax
credit
shall
not
be
claimed
by
a
transferee
4
under
this
section
until
a
replacement
tax
credit
certificate
5
identifying
the
transferee
as
the
proper
holder
has
been
6
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
7
transferred
against
the
taxes
imposed
in
chapter
422,
8
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
the
9
moneys
and
credits
tax
imposed
in
section
533.329,
for
any
tax
10
year
the
original
transferor
could
have
claimed
the
tax
credit.
11
Any
consideration
received
for
the
transfer
of
the
tax
credit
12
shall
not
be
included
as
income
under
chapter
422,
subchapters
13
II,
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
14
tax
credit
shall
not
be
deducted
from
income
under
chapter
422,
15
subchapters
II,
III,
and
V.
16
Sec.
4.
NEW
SECTION
.
16.37D
Compliance
monitoring.
17
The
authority
shall
monitor
and
oversee
compliance
with
18
sections
16.37A
through
16.37C
and
shall
report
specific
19
occurrences
of
noncompliance
to
the
department.
20
Sec.
5.
NEW
SECTION
.
16.37E
Rules.
21
The
authority
and
the
department
shall
adopt
rules
pursuant
22
to
chapter
17A
as
necessary
for
the
implementation
and
23
administration
of
this
part.
24
Sec.
6.
NEW
SECTION
.
422.10C
Senior
housing
tax
credit.
25
The
taxes
imposed
under
this
subchapter,
less
the
credits
26
allowed
under
section
422.12,
shall
be
reduced
by
a
senior
27
housing
tax
credit
allowed
under
section
16.37C.
28
Sec.
7.
Section
422.33,
Code
2021,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
31
shall
be
reduced
a
senior
housing
tax
credit
as
allowed
under
32
section
16.37C.
33
Sec.
8.
Section
422.60,
Code
2021,
is
amended
by
adding
the
34
following
new
subsection:
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NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
subchapter
1
shall
be
reduced
by
a
senior
housing
tax
credit
as
allowed
2
under
section
16.37C.
3
Sec.
9.
NEW
SECTION
.
432.12N
Senior
housing
tax
credit.
4
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
5
senior
housing
tax
credit
allowed
under
section
16.37C.
6
Sec.
10.
Section
533.329,
subsection
2,
Code
2021,
is
7
amended
by
adding
the
following
new
paragraph:
8
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
9
this
section
shall
be
reduced
by
a
senior
housing
tax
credit
10
allowed
under
section
16.37C.
11
Sec.
11.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
12
designate
sections
16.37A
through
16.37E,
as
enacted
by
this
13
Act,
as
a
new
part
within
chapter
16,
subchapter
VII,
and
may
14
redesignate
the
new
and
preexisting
parts,
replace
references
15
to
sections
16.37A
through
16.37E
with
references
to
the
new
16
part,
and
correct
internal
references
as
necessary,
including
17
references
in
subchapter
or
part
headnotes.
18
Sec.
12.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
19
2022.
20
Sec.
13.
APPLICABILITY.
This
Act
applies
to
tax
years
21
beginning
on
or
after
January
1,
2022.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
creates
a
senior
housing
tax
credit
program
26
available
against
the
individual
and
corporate
income
taxes,
27
franchise
tax,
insurance
premium
tax,
and
moneys
and
credits
28
tax.
29
The
bill
requires
the
Iowa
finance
authority
(authority)
to
30
develop
a
system
for
the
application,
review,
and
authorization
31
of
senior
housing
tax
credits.
A
tax
credit
may
be
claimed
32
by
a
taxpayer
for
a
“qualified
development”
defined
to
mean
33
a
senior
housing
project
located
in
this
state
approved
by
34
the
authority.
The
bill
defines
“senior
housing
project”
to
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mean
the
development
and
construction
of
single-family
or
1
multiresidential
housing
for
persons
65
years
of
age
or
older
2
with
an
emphasis
on
safety,
accessibility,
and
adaptability.
3
A
senior
housing
tax
credit
may
be
authorized
by
the
4
authority
if
all
of
the
following
apply:
the
tax
credit
is
5
issued
to
a
taxpayer
who
has
an
ownership
interest
in
the
6
qualified
development;
the
tax
credit
is
necessary
for
the
7
financial
feasibility
of
the
qualified
development;
the
amount
8
of
the
tax
credit
allocated
to
an
owner
does
not
exceed
30
9
percent
of
the
cost
of
the
qualified
development;
and
the
10
qualified
development
is
the
subject
of
a
recorded
restrictive
11
covenant
requiring
the
qualified
development
be
maintained
and
12
operated
as
a
qualified
development
for
a
compliance
period
of
13
15
years.
14
The
amount
of
a
senior
housing
tax
credit
award
is
determined
15
by
the
authority
and
any
credit
in
excess
of
the
taxpayer’s
16
liability
for
the
tax
year
is
not
refundable
but
may
be
17
credited
to
the
tax
liability
for
the
following
five
years.
18
In
any
calendar
year,
the
bill
limits
the
aggregate
amount
19
of
the
tax
credit
to
$15
million
plus
the
sum
of
the
total
of
20
unallocated
tax
credits
from
the
preceding
calendar
year
and
21
the
previously
allocated
tax
credits
that
have
been
canceled
22
or
recaptured.
23
A
taxpayer
shall
claim
the
credit
by
including
one
or
more
24
tax
credit
certificates
issued
by
the
authority
with
the
25
taxpayer’s
return.
The
bill
allows
a
tax
credit
certificate
to
26
be
transferred
to
any
person
or
entity.
The
bill
requires
the
27
transferee
to
submit
the
transferred
tax
credit
certificate
to
28
the
authority
within
90
days
of
the
transfer,
and
requires
the
29
authority
to
issue
a
replacement
tax
credit
certificate
within
30
30
days
of
receiving
the
transferred
tax
credit
certificate.
31
The
bill
takes
effect
January
1,
2022,
and
applies
to
tax
32
years
on
or
after
that
date.
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