Bill Text: IA HF785 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to rural economic development by providing tax incentives for high-quality jobs in rural communities. (Formerly HSB 252.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-27 - Referred to Appropriations. H.J. 1076. [HF785 Detail]
Download: Iowa-2019-HF785-Introduced.html
House
File
785
-
Introduced
HOUSE
FILE
785
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
HSB
252)
A
BILL
FOR
An
Act
relating
to
rural
economic
development
by
providing
tax
1
incentives
for
high-quality
jobs
in
rural
communities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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785
Section
1.
Section
15.102,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
08.
“Rural
community”
means
any
city
3
located
in
this
state
with
a
population
of
thirty
thousand
4
or
less
in
a
county
with
a
population
of
fifty
thousand
or
5
less.
A
rural
community
located
in
more
than
one
county
shall
6
be
considered
to
be
located
in
the
county
having
the
greatest
7
taxable
base
within
the
city.
8
Sec.
2.
Section
15.335A,
subsection
1,
unnumbered
paragraph
9
1,
Code
2019,
is
amended
to
read
as
follows:
10
Tax
Except
as
provided
in
subsection
1A,
tax
incentives
are
11
available
to
eligible
businesses
as
provided
in
this
section
12
subsection
.
The
incentives
are
based
upon
the
number
of
jobs
13
created
or
retained
that
pay
at
least
one
hundred
twenty
14
percent
of
the
qualifying
wage
threshold
and
the
amount
of
the
15
qualifying
investment
made
according
to
the
following
schedule:
16
Sec.
3.
Section
15.335A,
Code
2019,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
1A.
Tax
incentives
are
available
to
19
eligible
businesses
in
rural
communities
as
provided
in
this
20
subsection.
The
incentives
are
based
upon
the
number
of
21
jobs
created
or
retained
that
pay
at
least
one
hundred
ten
22
percent
of
the
qualifying
wage
threshold
and
the
amount
of
the
23
qualifying
investment
made
according
to
the
following
schedule:
24
a.
The
number
of
jobs
is
zero
and
economic
activity
is
25
furthered
by
the
qualifying
investment
and
the
amount
of
the
26
qualifying
investment
is
one
of
the
following:
27
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
28
is
the
investment
tax
credit
of
up
to
two
percent.
29
(2)
At
least
fifty
thousand
dollars
but
less
than
two
30
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
31
investment
tax
credit
of
up
to
two
percent
and
the
sales
tax
32
refund.
33
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
34
tax
incentives
are
the
investment
tax
credit
of
up
to
two
35
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percent,
the
sales
tax
refund,
and
the
additional
research
and
1
development
tax
credit.
2
b.
The
number
of
jobs
is
one
but
not
more
than
five
and
the
3
amount
of
the
qualifying
investment
is
one
of
the
following:
4
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
5
is
the
investment
tax
credit
of
up
to
three
percent.
6
(2)
At
least
fifty
thousand
dollars
but
less
than
two
7
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
8
investment
tax
credit
of
up
to
three
percent
and
the
sales
tax
9
refund.
10
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
11
tax
incentives
are
the
investment
tax
credit
of
up
to
three
12
percent,
the
sales
tax
refund,
and
the
additional
research
and
13
development
tax
credit.
14
c.
The
number
of
jobs
is
six
but
not
more
than
ten
and
the
15
amount
of
the
qualifying
investment
is
one
of
the
following:
16
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
17
is
the
investment
tax
credit
of
up
to
four
percent.
18
(2)
At
least
fifty
thousand
dollars
but
less
than
two
19
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
20
investment
tax
credit
of
up
to
four
percent
and
the
sales
tax
21
refund.
22
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
23
tax
incentives
are
the
investment
tax
credit
of
up
to
four
24
percent,
the
sales
tax
refund,
and
the
additional
research
and
25
development
tax
credit.
26
d.
The
number
of
jobs
is
eleven
but
not
more
than
fifteen
27
and
the
amount
of
the
qualifying
investment
is
one
of
the
28
following:
29
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
30
is
the
investment
tax
credit
of
up
to
five
percent.
31
(2)
At
least
fifty
thousand
dollars
but
less
than
two
32
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
33
investment
tax
credit
of
up
to
five
percent
and
the
sales
tax
34
refund.
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785
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
1
tax
incentives
are
the
investment
tax
credit
of
up
to
five
2
percent,
the
sales
tax
refund,
and
the
additional
research
and
3
development
tax
credit.
4
e.
The
number
of
jobs
is
sixteen
or
more
and
the
amount
of
5
the
qualifying
investment
is
one
of
the
following:
6
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
7
is
the
investment
tax
credit
of
up
to
six
percent.
8
(2)
At
least
fifty
thousand
dollars
but
less
than
two
9
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
10
investment
tax
credit
of
up
to
six
percent
and
the
sales
tax
11
refund.
12
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
13
tax
incentives
are
the
investment
tax
credit
of
up
to
six
14
percent,
the
sales
tax
refund,
and
the
additional
research
and
15
development
tax
credit.
16
f.
The
number
of
jobs
is
thirty-one
but
not
more
than
forty
17
and
the
amount
of
the
qualifying
investment
is
at
least
two
18
million
dollars,
then
the
tax
incentives
are
the
local
property
19
tax
exemption,
the
investment
tax
credit
of
up
to
seven
20
percent,
the
sales
tax
refund,
and
the
additional
research
and
21
development
tax
credit.
22
g.
The
number
of
jobs
is
forty-one
but
not
more
than
sixty
23
and
the
amount
of
the
qualifying
investment
is
at
least
five
24
million
dollars,
then
the
tax
incentives
are
the
local
property
25
tax
exemption,
the
investment
tax
credit
of
up
to
eight
26
percent,
the
sales
tax
refund,
and
the
additional
research
and
27
development
tax
credit.
28
h.
The
number
of
jobs
is
sixty-one
but
not
more
than
29
eighty
and
the
amount
of
the
qualifying
investment
is
at
least
30
five
million
dollars,
then
the
tax
incentives
are
the
local
31
property
tax
exemption,
the
investment
tax
credit
of
up
to
nine
32
percent,
the
sales
tax
refund,
and
the
additional
research
and
33
development
tax
credit.
34
i.
The
number
of
jobs
is
eighty-one
but
not
more
than
one
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hundred
and
the
amount
of
the
qualifying
investment
is
at
least
1
five
million
dollars,
then
the
tax
incentives
are
the
local
2
property
tax
exemption,
the
investment
tax
credit
of
up
to
ten
3
percent,
the
sales
tax
refund,
and
the
additional
research
and
4
development
tax
credit.
5
j.
The
number
of
jobs
is
at
least
one
hundred
one
and
the
6
amount
of
the
qualifying
investment
is
at
least
ten
million
7
dollars,
then
the
tax
incentives
are
the
local
property
8
tax
exemption,
the
investment
tax
credit
of
up
to
eleven
9
percent,
the
sales
tax
refund,
and
the
additional
research
and
10
development
tax
credit.
11
Sec.
4.
Section
15.335B,
subsection
3,
paragraph
c,
Code
12
2019,
is
amended
to
read
as
follows:
13
c.
(1)
Consider
the
amount
and
type
of
the
local
community
14
match
.
as
follows:
15
(a)
In
a
community
with
a
population
of
less
than
five
16
thousand,
a
community
match
shall
not
be
required.
17
(b)
In
a
community
with
a
population
equal
to
or
greater
18
than
five
thousand
but
less
than
fifteen
thousand,
a
community
19
match
of
at
least
five
percent
of
the
projected
funds
to
be
20
expended
shall
be
required.
21
(c)
In
a
community
with
a
population
equal
to
or
greater
22
than
fifteen
thousand
but
less
than
thirty
thousand,
a
23
community
match
of
at
least
ten
percent
of
the
projected
funds
24
to
be
expended
shall
be
required.
25
(d)
In
a
community
with
a
population
equal
to
or
greater
26
than
thirty
thousand,
a
community
match
of
at
least
twenty
27
percent
of
the
projected
funds
to
be
expended
shall
be
28
required.
29
(2)
The
Notwithstanding
subparagraph
(1),
the
authority
may
30
provide
assistance
to
an
early-stage
business
in
a
high-growth
31
industry
regardless
of
the
amount
of
local
match
involved.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
relates
to
rural
economic
development
by
providing
1
tax
incentives
for
high
quality
jobs
in
rural
communities.
2
The
bill
creates
a
system
of
tax
incentives
under
the
high
3
quality
jobs
program
for
rural
communities
that
is
separate
4
from
the
high
quality
jobs
program
incentives
in
current
Code
5
section
15.335A.
6
The
bill
defines
“rural
community”
to
mean
any
city
located
7
in
this
state
with
a
population
of
30,000
or
less
in
a
county
8
with
a
population
of
50,000
or
less.
A
rural
community
located
9
in
more
than
one
county
is
considered
to
be
located
in
the
10
county
having
the
greatest
taxable
base
within
the
city.
11
The
tax
incentives
for
an
eligible
business
investing
in
a
12
rural
community
varies
under
the
bill
based
upon
the
number
of
13
jobs
created
or
retained
that
pay
at
least
110
percent
of
the
14
qualifying
wage
threshold
and
the
qualifying
investment
made
in
15
the
rural
community
by
the
eligible
business.
16
The
bill
modifies
the
considerations
made
by
the
economic
17
development
authority
prior
to
providing
assistance
for
18
programs
and
projects
pursuant
to
Code
section
15.335B.
In
19
providing
such
assistance
for
programs
and
projects
the
bill
20
specifies
the
economic
development
authority
shall
consider
21
the
amount
and
type
of
the
local
community
match
as
follows:
22
in
a
community
with
a
population
of
less
than
5,000,
a
match
23
is
not
required;
if
the
population
is
equal
to
or
greater
than
24
5,000
but
less
than
15,000,
a
match
of
at
least
5
percent
25
of
the
projected
funds
to
be
expended
is
required;
if
the
26
population
is
equal
to
or
greater
than
15,000
but
less
than
27
30,000,
a
match
of
at
least
10
percent
of
the
projected
funds
28
to
be
expended
is
required;
and
if
the
population
is
equal
to
29
or
greater
than
30,000,
a
match
of
at
least
20
percent
of
the
30
projected
funds
to
be
expended
is
required.
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