Bill Text: IA HSB204 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act creating an empower rural Iowa Act to provide incentives for broadband and workforce housing, and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-04-10 - Committee report, recommending amendment and passage. H.J. 811. [HSB204 Detail]
Download: Iowa-2019-HSB204-Introduced.html
House
Study
Bill
204
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
GOVERNOR
BILL)
A
BILL
FOR
An
Act
creating
an
empower
rural
Iowa
Act
to
provide
incentives
1
for
broadband
and
workforce
housing,
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
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S.F.
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H.F.
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DIVISION
I
1
TITLE
OF
ACT
2
Section
1.
TITLE
OF
ACT.
This
Act
shall
be
known
and
may
be
3
cited
as
the
“Empower
Rural
Iowa
Act”.
4
DIVISION
II
5
BROADBAND
6
Sec.
2.
Section
8B.1,
Code
2019,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
4A.
“Facilitate”
means
a
communication
9
service
provider’s
ability
to
provide
broadband
service
at
10
or
above
the
download
and
upload
speeds
identified
by
the
11
office
by
rule
to
a
home,
farm,
school,
or
business
within
a
12
commercially
reasonable
time
and
at
a
commercially
reasonable
13
price
upon
request
by
a
consumer.
14
Sec.
3.
Section
8B.1,
subsection
12,
Code
2019,
is
amended
15
to
read
as
follows:
16
12.
“Targeted
service
area”
means
a
United
States
census
17
bureau
census
block
located
in
this
state,
including
any
crop
18
operation
located
within
the
census
block,
within
which
no
19
communications
service
provider
offers
or
facilitates
broadband
20
service
at
or
above
twenty-five
megabits
per
second
of
download
21
speed
and
three
megabits
per
second
of
upload
speed
as
of
July
22
1,
2015
the
download
and
upload
speeds
identified
by
the
office
23
by
rule
as
of
the
date
identified
by
the
office
by
rule,
which
24
speeds
and
date
may
be
updated
by
the
office
periodically
as
25
the
office
deems
appropriate
.
26
Sec.
4.
Section
8B.10,
subsection
1,
Code
2019,
is
amended
27
to
read
as
follows:
28
1.
The
determination
of
whether
a
communications
service
29
provider
offers
or
facilitates
broadband
service
meeting
the
30
download
or
upload
speeds
specified
in
the
definition
of
31
targeted
service
area
in
section
8B.1
identified
by
the
office
32
by
rule
shall
be
determined
or
ascertained
by
reference
to
33
broadband
availability
maps
or
data
sources
that
are
widely
34
accepted
for
accuracy
and
available
for
public
review
and
35
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comment
and
that
are
identified
by
the
office
by
rule.
1
Sec.
5.
Section
8B.11,
subsection
1,
Code
2019,
is
amended
2
to
read
as
follows:
3
1.
The
office
shall
administer
a
broadband
grant
program
to
4
award
grants
to
communications
service
providers
that
reduce
5
or
eliminate
targeted
service
areas
by
installing
broadband
6
infrastructure
that
facilitates
broadband
service
at
or
above
7
the
download
and
upload
speeds
identified
by
the
office
by
rule
8
in
targeted
service
areas
in
accordance
with
this
section
.
9
Sec.
6.
Section
8B.11,
subsection
2,
paragraph
c,
Code
2019,
10
is
amended
to
read
as
follows:
11
c.
Notwithstanding
section
8.33
,
moneys
in
the
fund
12
that
remain
unencumbered
or
unobligated
at
the
close
of
the
13
fiscal
year
shall
not
revert
but
shall
remain
available
for
14
expenditure
for
the
purposes
designated
until
the
close
of
15
the
succeeding
fiscal
year
three
years
following
the
last
16
day
of
the
fiscal
year
in
which
the
funds
were
originally
17
appropriated
.
18
Sec.
7.
Section
8B.11,
subsection
3,
Code
2019,
is
amended
19
to
read
as
follows:
20
3.
Communications
service
providers
may
apply
to
the
office
21
for
a
grant
pursuant
to
this
section
for
the
installation
of
22
broadband
infrastructure
that
facilitates
broadband
service
23
at
or
above
twenty-five
megabits
per
second
of
download
speed
24
and
three
megabits
per
second
of
upload
speed
the
download
and
25
upload
speeds
identified
by
the
office
by
rule
in
targeted
26
service
areas.
The
office
shall
include
representatives
from
27
schools,
communities,
agriculture,
industry,
and
other
areas
28
as
appropriate
to
review
and
recommend
grant
awards.
The
29
office
shall
conduct
an
open
application
review
process
and
30
include
a
public
internet
site
for
applications,
results,
and
31
performance.
32
Sec.
8.
Section
8B.11,
subsection
4,
paragraph
b,
Code
2019,
33
is
amended
to
read
as
follows:
34
b.
Except
as
otherwise
provided
in
this
section
,
the
The
35
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office
shall
not
evaluate
applications
based
on
the
office’s
1
knowledge
of
the
applicant
except
for
the
broadband
grants
in
2
a
fair
and
unbiased
manner,
and
may
consider
any
information
3
obtained
by
the
office
outside
of
the
application
process
in
4
addition
to
information
provided
in
the
an
application.
5
Sec.
9.
Section
8B.11,
subsections
7
and
8,
Code
2019,
are
6
amended
to
read
as
follows:
7
7.
The
office
shall
not
award
a
grant
pursuant
to
this
8
section
on
or
after
July
1,
2020
2025
.
9
8.
The
office
shall
may
adopt
rules
pursuant
to
chapter
17A
10
interpreting
this
chapter
or
necessary
for
administering
this
11
chapter
,
including
but
not
limited
to
rules
relating
to
the
12
broadband
grant
program
process,
management,
and
measurements
13
as
deemed
necessary
by
the
office.
14
Sec.
10.
Section
427.1,
subsection
40,
paragraphs
a
and
b,
15
Code
2019,
are
amended
to
read
as
follows:
16
a.
The
owner
of
broadband
infrastructure
shall
be
entitled
17
to
an
exemption
from
taxation
to
the
extent
provided
in
this
18
subsection
for
assessment
years
beginning
before
January
1,
19
2022
2027
.
For
the
purposes
of
Unless
the
context
otherwise
20
requires,
the
words
and
phrases
used
in
this
subsection
,
21
“broadband
infrastructure”
and
“targeted
service
area”
mean
the
22
same
as
shall
have
the
same
meaning
as
the
words
and
phrases
23
used
in
chapter
8B,
including
but
not
limited
to
the
words
and
24
phrases
defined
in
section
8B.1
.
25
b.
The
exemption
shall
apply
to
the
installation
of
26
broadband
infrastructure
that
facilitates
broadband
service
27
at
or
above
twenty-five
megabits
per
second
of
download
speed
28
and
three
megabits
per
second
of
upload
speed
the
download
and
29
upload
speeds
identified
by
the
office
of
the
chief
information
30
officer
by
rule
commenced
and
completed
on
or
after
July
1,
31
2015,
and
before
July
1,
2020
2025
,
in
a
targeted
service
area,
32
and
used
to
deliver
internet
services
to
the
public.
A
person
33
claiming
an
exemption
under
this
subsection
shall
certify
to
34
the
local
assessor
prior
to
commencement
of
the
installation
35
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that
the
broadband
installation
of
broadband
infrastructure
1
will
take
place
facilitate
broadband
service
at
or
above
the
2
download
and
upload
speeds
identified
by
the
office
of
the
3
chief
information
officer
by
rule
within
a
targeted
service
4
area
and
shall
specify
the
current
number
of
homes,
farms,
5
schools,
and
businesses
in
the
targeted
service
area
that
were
6
offered
broadband
service
and
the
download
and
upload
speeds
7
available
prior
to
the
broadband
infrastructure
installation
8
for
which
the
exemption
is
claimed
and
the
number
of
homes,
9
farms,
schools,
and
businesses
in
the
targeted
service
area
10
that
will
be
offered
broadband
service
and
the
download
11
and
upload
speeds
that
will
be
available
as
a
result
of
12
installation
of
the
broadband
infrastructure
for
which
the
13
exemption
is
claimed.
14
Sec.
11.
Section
427.1,
subsection
40,
paragraph
f,
15
subparagraph
(1),
subparagraph
division
(d),
Code
2019,
is
16
amended
to
read
as
follows:
17
(d)
Certification
from
the
office
of
the
chief
information
18
officer
pursuant
to
section
8B.10
that
the
installation
is
19
being
performed
or
was
completed
will
facilitate
broadband
20
service
at
or
above
the
download
and
upload
speeds
identified
21
by
the
office
of
the
chief
information
officer
by
rule
in
22
a
targeted
service
area.
Certification
from
the
office
of
23
the
chief
information
officer
that
broadband
infrastructure
24
installed
in
a
targeted
service
area
facilitates
broadband
25
service
at
or
above
twenty-five
megabits
per
second
of
download
26
speed
and
three
megabits
per
second
of
upload
speed.
27
DIVISION
III
28
WORKFORCE
HOUSING
TAX
INCENTIVE
PROGRAM
29
Sec.
12.
Section
15.119,
subsection
2,
paragraph
g,
Code
30
2019,
is
amended
to
read
as
follows:
31
g.
The
workforce
housing
tax
incentives
program
administered
32
pursuant
to
sections
15.351
through
15.356
.
In
allocating
33
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
34
not
allocate
more
than
twenty
twenty-five
million
dollars
for
35
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purposes
of
this
paragraph.
Of
the
moneys
allocated
under
1
this
paragraph,
five
ten
million
dollars
shall
be
reserved
for
2
allocation
to
qualified
housing
projects
in
small
cities,
as
3
defined
in
section
15.352
,
that
are
registered
on
or
after
July
4
1,
2017.
5
Sec.
13.
Section
15.352,
subsection
10,
Code
2019,
is
6
amended
to
read
as
follows:
7
10.
“Small
city”
means
any
city
or
township
located
in
this
8
state,
except
those
located
wholly
within
one
or
more
of
the
9
eleven
most
populous
counties
in
the
state,
as
determined
by
10
the
most
recent
federal
decennial
census
population
estimates
11
issued
by
the
United
States
bureau
of
census
.
For
the
purposes
12
of
this
part,
a
small
city
that
is
located
in
more
than
one
13
county
shall
be
considered
to
be
located
in
the
county
having
14
the
greatest
taxable
base
within
the
small
city.
15
Sec.
14.
Section
15.354,
subsection
1,
paragraph
a,
Code
16
2019,
is
amended
to
read
as
follows:
17
a.
A
housing
business
seeking
workforce
housing
tax
18
incentives
provided
in
section
15.355
shall
make
application
to
19
the
authority
in
the
manner
prescribed
by
the
authority.
The
20
authority
may
accept
applications
on
a
continuous
basis
during
21
one
or
more
annual
application
periods
to
be
determined
by
the
22
authority
by
rule
.
23
Sec.
15.
Section
15.354,
subsection
2,
Code
2019,
is
amended
24
to
read
as
follows:
25
2.
Registration.
Application
review
——
tax
incentive
award.
26
a.
All
completed
applications
shall
be
reviewed
and
scored
27
on
a
competitive
basis
by
the
authority
pursuant
to
rules
28
adopted
by
the
authority.
29
a.
b.
Upon
review
of
the
application,
the
authority
30
may
register
the
housing
project
under
the
program.
If
the
31
authority
registers
the
housing
project,
the
authority
shall
32
make
a
preliminary
determination
as
to
the
amount
of
tax
33
incentives
for
which
the
housing
project
qualifies
and
scoring
34
of
all
applications
received
during
an
application
period,
the
35
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authority
may
make
a
tax
incentive
award
to
a
housing
project,
1
which
tax
incentive
award
shall
represent
the
maximum
amount
of
2
tax
incentives
the
housing
project
may
qualify
for
under
the
3
program
.
In
determining
a
tax
incentive
award,
the
authority
4
shall
not
use
an
amount
of
project
costs
that
exceeds
the
5
amount
included
in
the
application
of
the
housing
business.
6
Tax
incentive
awards
shall
be
approved
by
the
director
of
the
7
authority.
8
b.
c.
After
registering
the
housing
project
making
a
9
tax
incentive
award
,
the
authority
shall
notify
the
housing
10
business
of
successful
registration
under
the
program
its
tax
11
incentive
award
.
The
notification
shall
include
the
amount
12
of
tax
incentives
under
section
15.355
for
which
the
housing
13
business
has
received
preliminary
approval
an
award
and
a
14
statement
that
the
amount
is
a
preliminary
determination
only
15
housing
business
has
no
right
to
receive
a
tax
incentive
16
certificate
or
claim
a
tax
incentive
until
all
requirements
17
of
the
program,
including
all
requirements
imposed
by
the
18
agreement
entered
into
pursuant
to
subsection
3,
are
satisfied
.
19
The
amount
of
tax
credits
included
on
a
tax
credit
certificate
20
issued
pursuant
to
this
section
,
or
a
claim
for
refund
of
sales
21
and
use
taxes,
shall
be
contingent
upon
completion
of
the
all
22
requirements
in
subsection
3
.
23
d.
An
applicant
that
does
not
receive
a
tax
incentive
award
24
during
an
application
period
may
make
additional
applications
25
during
subsequent
application
periods.
Such
applicant
shall
be
26
required
to
submit
a
new
application
and
shall
be
competitively
27
reviewed
and
scored
in
the
same
manner
as
other
applicants
in
28
that
application
period.
29
Sec.
16.
Section
15.354,
subsection
3,
paragraphs
a
and
e,
30
Code
2019,
are
amended
to
read
as
follows:
31
a.
Upon
successful
registration
of
receipt
of
a
tax
32
incentive
award
by
the
housing
project,
the
housing
business
33
shall
enter
into
an
agreement
with
the
authority
for
the
34
successful
completion
of
all
requirements
of
the
program.
The
35
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agreement
shall
identify
the
tax
incentive
award
amount,
the
1
tax
incentive
award
date,
the
project
completion
deadline,
and
2
the
total
costs
of
the
housing
project.
3
e.
(1)
Upon
review
of
the
examination
and
verification
4
of
the
amount
of
the
qualifying
new
investment,
the
authority
5
may
notify
the
housing
business
of
the
amount
that
the
housing
6
business
may
claim
as
a
refund
of
the
sales
and
use
tax
under
7
section
15.355,
subsection
2,
and
may
issue
a
tax
credit
8
certificate
to
the
housing
business
stating
the
amount
of
9
workforce
housing
investment
tax
credits
under
section
15.355
,
10
subsection
3,
the
eligible
housing
business
may
claim.
The
11
sum
of
the
amount
that
the
housing
business
may
claim
as
a
12
refund
of
the
sales
and
use
tax
and
the
amount
of
the
tax
credit
13
certificate
shall
not
exceed
the
amount
of
the
tax
incentive
14
award.
15
(2)
If
upon
review
of
the
examination
in
subparagraph
16
(1)
the
authority
determines
that
a
housing
project
has
17
incurred
project
costs
in
excess
of
the
amount
submitted
in
the
18
application
made
pursuant
to
subsection
1
and
identified
in
the
19
agreement
,
the
authority
shall
do
one
of
the
following:
20
(a)
If
the
project
costs
do
not
cause
the
housing
project’s
21
average
dwelling
unit
cost
to
exceed
the
applicable
maximum
22
amount
authorized
in
section
15.353,
subsection
3
,
the
23
authority
may
consider
the
agreement
fulfilled
and
may
issue
a
24
tax
credit
certificate.
25
(b)
If
the
project
costs
cause
the
housing
project’s
26
average
dwelling
unit
cost
to
exceed
the
applicable
maximum
27
amount
authorized
in
section
15.353,
subsection
3
,
but
does
not
28
cause
the
average
dwelling
unit
cost
to
exceed
one
hundred
ten
29
percent
of
such
applicable
maximum
amount,
the
authority
may
30
consider
the
agreement
fulfilled
and
may
issue
a
tax
credit
31
certificate.
In
such
case,
the
authority
shall
reduce
the
tax
32
incentive
award
and
the
corresponding
amount
of
tax
incentives
33
the
eligible
housing
project
may
claim
under
section
15.355,
34
subsections
2
and
3
,
by
the
same
percentage
that
the
housing
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project’s
average
dwelling
unit
cost
exceeds
the
applicable
1
maximum
amount
under
section
15.353,
subsection
3
,
and
such
2
tax
incentive
reduction
shall
be
reflected
on
the
tax
credit
3
certificate.
If
the
authority
issues
a
certificate
pursuant
4
to
this
subparagraph
division,
the
department
of
revenue
5
shall
accept
the
certificate
notwithstanding
that
the
housing
6
project’s
average
dwelling
unit
costs
exceeds
the
maximum
7
amount
specified
in
section
15.353,
subsection
3
.
8
(c)
If
the
project
costs
cause
the
housing
project’s
9
average
dwelling
unit
cost
to
exceed
one
hundred
ten
percent
10
of
the
applicable
maximum
amount
authorized
in
section
15.353,
11
subsection
3
,
the
authority
shall
determine
the
eligible
12
housing
business
to
be
in
default
under
the
agreement
,
shall
13
revoke
the
tax
incentive
award,
and
shall
not
issue
a
tax
14
credit
certificate.
The
housing
business
shall
not
be
allowed
15
a
refund
of
sales
and
use
tax
under
section
15.355,
subsection
16
2.
17
Sec.
17.
Section
15.354,
subsection
4,
Code
2019,
is
amended
18
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
19
following:
20
4.
Maximum
tax
incentives
amount.
21
a.
(1)
For
fiscal
years
beginning
on
or
after
July
1,
2019,
22
the
authority
shall
not
award
in
any
fiscal
year
an
amount
of
23
tax
incentives
for
housing
projects
located
in
small
cities,
or
24
for
other
housing
projects,
in
excess
of
the
amounts
allocated
25
for
each
category
in
section
15.119,
subsection
2,
paragraph
26
“g”
.
This
paragraph
“a”
applies
to
housing
projects
awarded
tax
27
incentives
pursuant
to
subsection
2
on
or
after
July
1,
2019,
28
and
to
housing
projects
registered
prior
to
July
1,
2019,
under
29
section
15.354,
subsection
2,
Code
2019.
30
(2)
Notwithstanding
subparagraph
(1),
and
section
15.119,
31
subsection
2,
paragraph
“g”
,
if
the
sum
of
the
amount
of
tax
32
incentives
applied
for
in
valid
applications
submitted
in
a
33
given
fiscal
year
beginning
on
or
after
July
1,
2019,
for
34
housing
projects
located
in
small
cities,
plus
the
amount
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of
tax
incentives
eligible
for
issuance
to
housing
projects
1
located
in
small
cities
that
were
registered
prior
to
July
2
1,
2019,
under
section
15.354,
subsection
2,
Code
2019,
does
3
not
exceed
the
amount
reserved
for
housing
projects
located
4
in
small
cities
pursuant
to
section
15.119,
subsection
2,
5
paragraph
“g”
,
the
authority
may
award
the
remaining
amount
of
6
tax
incentives
reserved
for
housing
projects
located
in
small
7
cities
to
other
housing
projects
during
that
same
fiscal
year.
8
(3)
Notwithstanding
subparagraph
(1),
and
section
15.119,
9
subsection
2,
paragraph
“g”
,
the
authority
may
award
during
a
10
fiscal
year
an
aggregate
amount
of
tax
incentives
to
housing
11
projects
located
in
small
cities
that
is
less
than
the
amount
12
reserved
for
allocation
to
small
cities
under
section
15.119,
13
subsection
2,
paragraph
“g”
,
provided
the
difference
between
14
the
amount
of
the
small
city
reservation
and
the
aggregate
15
amount
actually
awarded
to
small
cities
during
that
fiscal
year
16
is
awarded
during
that
same
fiscal
year
to
housing
projects
17
registered
prior
to
July
1,
2018.
18
b.
With
regard
to
a
housing
project
registered
prior
to
19
July
1,
2019,
a
tax
incentive
shall
be
considered
awarded
for
20
purposes
of
paragraph
“a”
when
the
authority
enters
into
an
21
agreement
with
the
housing
business
for
that
housing
project
22
as
provided
under
section
15.354,
subsection
3,
Code
2019.
23
Notwithstanding
any
provision
of
law
to
the
contrary,
a
housing
24
business
shall
have
no
right
to
enter
into
an
agreement
with
25
the
authority
for
a
housing
project
registered
prior
to
July
1,
26
2019,
until
the
authority
allocates
an
amount
of
tax
incentives
27
to
the
housing
project
and
notifies
the
housing
business
28
that
the
authority
is
prepared
to
execute
the
agreement
29
and
make
a
tax
incentive
award
for
the
housing
project.
A
30
housing
business
shall
have
no
right
to
receive
a
tax
credit
31
certificate
or
claim
a
tax
incentive
for
a
housing
project
32
registered
prior
to
July
1,
2019,
until
the
housing
business
33
enters
into
an
agreement
with
the
authority.
34
c.
In
making
tax
incentive
awards
during
any
fiscal
year
35
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in
which
there
are
housing
projects
registered
prior
to
July
1
1,
2019,
which
are
eligible
to
receive
tax
incentives
under
2
the
program,
the
authority
shall
give
priority
in
making
tax
3
incentive
awards
to
housing
projects
registered
prior
to
July
4
1,
2019.
The
authority
shall
create
and
maintain
a
wait
list
5
of
housing
projects
registered
prior
to
July
1,
2019,
and
such
6
housing
projects
shall
be
placed
on
the
wait
list
in
the
order
7
the
housing
projects
were
registered.
8
d.
The
maximum
aggregate
amount
of
tax
incentives
that
9
may
be
awarded
and
issued
under
section
15.355
to
a
housing
10
business
for
a
housing
project
shall
not
exceed
one
million
11
dollars.
12
e.
If
a
housing
business
qualifies
for
a
higher
amount
13
of
tax
incentives
under
section
15.355
than
is
allowed
by
14
the
limitation
imposed
in
paragraph
“d”
,
the
authority
and
15
the
housing
business
may
negotiate
an
apportionment
of
the
16
reduction
in
tax
incentives
between
the
sales
tax
refund
17
provided
in
section
15.355,
subsection
2,
and
the
workforce
18
housing
investment
tax
credits
provided
in
section
15.355,
19
subsection
3,
provided
the
total
aggregate
amount
of
tax
20
incentives
after
the
apportioned
reduction
does
not
exceed
the
21
amount
in
paragraph
“d”
.
22
Sec.
18.
Section
15.354,
subsection
5,
Code
2019,
is
amended
23
to
read
as
follows:
24
5.
Termination
and
repayment.
The
failure
by
a
housing
25
business
in
completing
a
housing
project
to
comply
with
any
26
requirement
of
this
program
or
any
of
the
terms
and
obligations
27
of
an
agreement
entered
into
pursuant
to
this
section
may
28
result
in
the
revocation,
reduction,
termination,
or
rescission
29
of
the
tax
incentive
award
or
the
approved
tax
incentives
and
30
may
subject
the
housing
business
to
the
repayment
or
recapture
31
of
tax
incentives
claimed
under
section
15.355
.
The
repayment
32
or
recapture
of
tax
incentives
pursuant
to
this
section
shall
33
be
accomplished
in
the
same
manner
as
provided
in
section
34
15.330,
subsection
2
.
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Sec.
19.
Section
15.355,
subsection
2,
Code
2019,
is
amended
1
to
read
as
follows:
2
2.
A
housing
business
may
claim
a
refund
of
the
sales
and
3
use
taxes
paid
under
chapter
423
that
are
directly
related
to
4
a
housing
project
and
specified
in
the
agreement
.
The
refund
5
available
pursuant
to
this
subsection
shall
be
as
provided
in
6
section
15.331A
,
excluding
subsection
2
,
paragraph
“c”
,
of
7
that
section.
For
purposes
of
the
program,
the
term
“project
8
completion”
,
as
used
in
section
15.331A
,
shall
mean
the
date
on
9
which
the
authority
notifies
the
department
of
revenue
that
all
10
applicable
requirements
of
an
agreement
entered
into
pursuant
11
to
section
15.354
are
satisfied.
12
Sec.
20.
Section
15.355,
subsection
3,
paragraph
a,
13
subparagraphs
(1)
and
(2),
Code
2019,
are
amended
to
read
as
14
follows:
15
(1)
For
a
housing
project
not
located
in
a
small
city,
ten
16
percent
of
the
qualifying
new
investment
of
a
housing
project
17
specified
in
the
agreement
.
18
(2)
For
a
housing
project
located
in
a
small
city,
twenty
19
percent
of
the
qualifying
new
investment
of
a
housing
project
20
specified
in
the
agreement
.
21
Sec.
21.
APPLICABILITY.
22
1.
Except
as
provided
in
subsection
2,
this
division
of
23
this
Act
applies
to
housing
projects
awarded
tax
incentives
by
24
the
authority
under
the
program
on
or
after
July
1,
2019,
and
25
housing
projects
registered
by
the
authority
under
the
program
26
prior
to
July
1,
2019,
shall
be
governed
by
sections
15.352,
27
15.354,
and
15.355,
Code
2019.
28
2.
The
provision
of
this
division
of
this
Act
amending
29
section
15.354,
subsection
4,
applies
to
housing
projects
30
registered
by
the
authority
under
the
program
prior
to
July
1,
31
2019,
and
to
housing
projects
awarded
tax
incentives
by
the
32
authority
under
the
program
on
or
after
July
1,
2019.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
35
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
incentives
for
broadband
and
workforce
2
housing.
3
DIVISION
I
——
TITLE
OF
ACT.
The
bill
provides
that
it
may
be
4
known
and
cited
as
the
“Empower
Rural
Iowa
Act”.
5
DIVISION
II
——
BROADBAND.
Division
II
of
the
bill
6
modifies
provisions
applicable
to
the
broadband
grant
program
7
administered
by
the
office
of
the
chief
information
officer
8
(OCIO)
under
Code
chapter
8B,
and
the
property
tax
exemption
9
for
broadband
infrastructure
provided
in
Code
section
10
427.1(40).
11
Current
law
requires
the
OCIO
to
administer
a
broadband
12
grant
program
to
award
grants
to
communications
service
13
providers
that
reduce
or
eliminate
targeted
service
areas,
14
as
defined,
by
installing
broadband
infrastructure
that
15
facilitates
broadband
service
at
or
above
25
megabits
per
16
second
of
download
speed
and
3
megabits
per
second
of
upload
17
speed
as
of
July
1,
2015.
The
bill
removes
references
to
the
18
specified
download
and
upload
speeds
and
date
throughout
Code
19
chapter
8B
and
instead
allows
the
OCIO
to
identify
such
speeds
20
and
date
by
rule,
which
the
OCIO
may
update
from
time
to
time
as
21
it
deems
appropriate.
The
bill
also
provides
a
new
definition
22
for
“facilitate”
in
Code
section
8B.1,
as
described
in
the
23
bill.
24
Current
law
allows
unencumbered
or
unobligated
moneys
25
remaining
in
the
broadband
grant
fund
at
the
close
of
the
26
fiscal
year
to
remain
available
for
use
until
the
close
of
the
27
succeeding
fiscal
year.
The
bill
instead
provides
that
such
28
moneys
shall
remain
available
until
three
years
following
the
29
last
day
of
the
fiscal
year
in
which
the
funds
were
originally
30
appropriated.
31
Current
law
requires
the
OCIO
to
evaluate
applications
for
32
broadband
grants
only
pursuant
to
the
information
provided
in
33
an
application.
The
bill
provides
that
the
OCIO
shall
evaluate
34
applications
for
broadband
grants
in
a
fair
and
unbiased
35
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manner,
and
allows
the
OCIO
to
consider
any
information
1
obtained
outside
of
the
application
process,
in
addition
to
2
information
provided
in
an
application.
3
The
bill
extends
the
OCIO
broadband
grant
program
from
July
4
1,
2020,
to
July
1,
2025.
5
Current
law
requires
the
OCIO
to
adopt
rules
related
to
the
6
broadband
grant
program.
The
bill
instead
provides
the
OCIO
7
with
discretion
to
adopt
rules
deemed
necessary
to
interpret
or
8
administer
Code
chapter
8B,
including
but
not
limited
to
rules
9
relating
to
the
broadband
grant
program.
10
Current
Code
section
427.1(40)
provides
owners
of
broadband
11
infrastructure
an
exemption
from
property
tax
under
Code
12
chapter
427,
for
installations
of
broadband
infrastructure
13
that
facilitate
broadband
service
at
or
above
the
download
and
14
upload
speeds
specified
in
Code
chapter
8B
in
targeted
service
15
areas
commenced
and
completed
on
or
after
July
1,
2015,
and
16
before
July
1,
2020,
for
assessment
years
beginning
before
17
January
1,
2022.
18
The
bill
provides
that
the
words
and
phrases
used
in
Code
19
section
427.1(40)
shall
have
the
same
meaning
as
used
in
20
Code
chapter
8B,
including
but
not
limited
to
the
words
and
21
phrases
defined
in
Code
section
8B.1.
The
bill
extends
the
22
property
tax
exemption
for
broadband
infrastructure
to
apply
23
to
installations
commenced
and
completed
on
or
after
July
1,
24
2015,
and
before
July
1,
2025,
for
assessment
years
beginning
25
before
January
1,
2027.
The
bill
removes
references
to
the
26
specified
download
and
upload
speeds
throughout
Code
section
27
427.1(40)
and
instead
references
the
download
and
upload
28
speeds
identified
by
the
OCIO
by
rule.
The
bill
requires
a
29
person
claiming
an
exemption
to
certify
that
the
broadband
30
installation
will
facilitate
broadband
service
within
a
31
targeted
service
area
at
or
above
the
download
and
upload
32
speeds
identified
by
the
OCIO.
33
DIVISION
III
——
WORKFORCE
HOUSING
TAX
INCENTIVE
PROGRAM.
34
Division
III
of
the
bill
modifies
the
workforce
housing
tax
35
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incentives
program.
1
BACKGROUND.
Current
law
provides
that
the
workforce
housing
2
tax
incentive
program
(program)
administered
by
the
economic
3
development
authority
(authority)
makes
tax
incentives
in
the
4
form
of
investment
tax
credits
and
sales
and
use
tax
refunds
5
available
to
housing
businesses
that
complete
certain
housing
6
projects
in
Iowa.
In
order
to
receive
tax
incentives,
a
7
housing
business
must
apply
to
the
authority
and
have
its
8
housing
project
registered
by
the
authority,
and
then
must
9
enter
into
an
agreement
with
the
authority
(tax
incentive
10
agreement)
for
the
successful
completion
of
all
requirements
11
of
the
program.
Current
law
requires
a
housing
business
to
12
complete
its
housing
project
within
three
years
from
the
date
13
the
housing
project
is
registered
by
the
authority.
Upon
14
application
by
the
housing
business
prior
to
expiration
of
the
15
three
years,
and
at
the
authority’s
discretion,
a
one-time,
16
12-month
extension
may
be
granted.
If
the
housing
project
17
is
completed
and
properly
examined
by
a
certified
public
18
accountant,
and
all
other
requirements
of
the
tax
incentive
19
agreement
and
the
program
are
satisfied,
the
authority
may
20
issue
a
tax
credit
certificate
and
the
housing
business
may
21
claim
the
tax
incentives
for
which
it
qualifies
under
the
22
program.
Currently,
the
total
tax
incentives
issued
under
the
23
program
per
fiscal
year
cannot
exceed
$20
million.
Of
that
24
$20
million
annual
cap,
$5
million
must
be
reserved
for
tax
25
incentives
issued
to
housing
projects
located
in
small
cities,
26
as
defined
under
the
program.
The
program
also
limits
the
27
maximum
amount
of
tax
incentives
that
may
be
issued
per
housing
28
project
to
$1
million.
Current
law
requires
the
authority
29
to
issue
tax
incentives
under
the
program
on
a
first-come,
30
first-served
basis,
and
in
the
event
the
total
tax
incentives
31
for
all
registered
housing
projects
completed
in
a
fiscal
year
32
exceeds
an
annual
cap,
the
authority
is
required
to
maintain
a
33
wait
list
of
completed
housing
projects,
and
give
those
housing
34
projects
priority
for
being
issued
tax
incentives
in
subsequent
35
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fiscal
years.
1
BILL
CHANGES.
The
bill
amends
current
law
relating
to
the
2
acceptance
of
housing
project
applications
by
the
authority.
3
Current
law
states
that
the
authority
may
accept
applications
4
on
a
continuous
basis.
The
bill
requires
the
authority
to
5
accept
applications
during
one
or
more
application
periods,
and
6
provides
that
housing
project
applications
shall
be
reviewed
7
and
scored
on
a
competitive
basis
by
the
authority
pursuant
to
8
rules
adopted
by
the
authority.
9
The
bill
removes
registration
of
housing
projects
from
the
10
program,
and
provides
that
the
authority
may
make
tax
incentive
11
awards
to
housing
projects.
Tax
incentive
awards
shall
be
12
subject
to
the
approval
of
the
director
of
the
authority.
13
Applicants
who
do
not
receive
a
tax
incentive
award
are
14
authorized
under
the
bill
to
make
additional
applications
for
15
that
housing
project
during
subsequent
application
periods.
In
16
determining
the
tax
incentive
award
of
a
particular
housing
17
project,
the
bill
prohibits
the
authority
from
using
an
amount
18
of
housing
project
costs
that
exceeds
the
amount
included
in
19
the
housing
project
application.
20
The
bill
requires
the
authority
to
notify
the
housing
21
business
of
its
tax
incentive
award.
The
notification
must
22
include
a
statement
that
the
housing
business
has
no
right
to
23
receive
a
tax
incentive
certificate
or
claim
a
tax
incentive
24
until
all
requirements
of
the
program
and
the
tax
incentive
25
agreement
are
satisfied.
26
The
bill
amends
the
requirements
related
to
the
tax
27
incentive
agreement
entered
into
by
the
authority
and
a
housing
28
business
to
provide
that
such
agreement
shall
identify
the
29
tax
incentive
award
amount,
the
tax
incentive
award
date,
the
30
project
completion
deadline,
and
the
total
costs
of
the
housing
31
project.
32
The
bill
provides
that
after
review
of
the
examination
of
33
the
housing
project
and
verification
of
the
qualifying
new
34
investment,
the
authority
may
notify
the
housing
business
of
35
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the
amount
that
the
housing
business
may
claim
as
a
refund
of
1
the
sales
and
use
tax
under
Code
section
15.355(2)
and
may
2
issue
a
tax
credit
certificate
to
the
housing
business
that
3
states
the
workforce
housing
investment
tax
credits
that
the
4
housing
business
may
claim.
The
sum
of
the
sales
and
use
tax
5
refund
and
the
amount
of
the
workforce
housing
investment
tax
6
credits
cannot
exceed
the
amount
of
the
tax
incentive
award.
7
The
bill
also
amends
the
definition
of
“small
city”
for
8
purposes
of
the
program.
Under
current
law,
the
definition
of
9
“small
city”
includes
any
city
or
township
not
located
within
10
the
11
most
populous
counties
in
the
state.
If
a
city
is
11
located
in
more
than
one
county,
it
is
considered
to
be
located
12
in
the
county
having
the
greatest
taxable
base
within
the
city.
13
Under
the
bill,
“small
city”
includes
any
city
or
township
14
not
located
wholly
within
one
or
more
of
the
11
most
populous
15
counties
in
the
state,
so
that
any
city
or
township
located
16
in
whole
or
in
part
in
one
of
the
88
least
populated
counties
17
in
Iowa
will
qualify
as
a
small
city
under
the
program.
The
18
definition
is
also
amended
to
provide
that
population
is
19
computed
using
the
most
recent
population
estimates
issued
by
20
the
United
States
census
bureau,
instead
of
the
most
recent
21
federal
decennial
census.
22
The
bill
amends
requirements
relating
to
the
termination
23
and
repayment
of
tax
incentives
for
failure
to
comply
with
24
the
requirements
of
the
program
to
provide
that
such
failures
25
to
comply
may
also
result
in
the
revocation
of
the
tax
26
incentive
award.
Current
law
provides
only
for
the
reduction,
27
termination,
or
rescission
of
an
approved
tax
incentive
for
28
failure
to
comply
with
the
requirements
of
the
program.
29
The
bill
amends
language
relating
to
the
calculation
of
the
30
amount
of
tax
incentives
for
which
a
housing
project
qualifies.
31
Under
current
law,
the
amount
of
the
sales
and
use
tax
refunds
32
is
calculated
using
the
taxes
directly
related
to
a
housing
33
project,
and
the
amount
of
the
investment
tax
credits
is
34
calculated
using
a
percentage
of
the
qualifying
new
investment
35
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of
the
housing
project.
The
bill
provides
that
these
amounts
1
of
taxes
or
qualifying
new
investment
will
only
be
used
in
the
2
tax
incentive
calculation
to
the
extent
they
were
specified
in
3
the
tax
incentive
agreement
entered
into
by
the
authority
and
4
the
housing
business.
5
The
program
changes
described
above
apply
to
housing
6
projects
that
receive
a
tax
incentive
award
on
or
after
July
1,
7
2019.
Housing
projects
registered
prior
to
July
1,
2019,
shall
8
be
governed
by
current
law.
9
The
bill
provides
that
the
authority
shall
not
award
more
10
than
$25
million
in
tax
incentives
each
fiscal
year
beginning
11
on
or
after
July
1,
2019,
and
$10
million
of
that
total
cap
12
shall
be
reserved
each
fiscal
year
for
tax
incentive
awards
13
made
to
housing
projects
located
in
small
cities.
For
housing
14
projects
registered
prior
to
July
1,
2019,
the
bill
states
that
15
a
tax
incentive
will
be
considered
awarded
when
the
authority
16
enters
into
a
tax
incentive
agreement
for
that
housing
project
17
as
provided
under
current
law,
and
the
bill
prohibits
a
housing
18
business
from
entering
into
a
tax
incentive
agreement
for
such
19
a
housing
project
until
the
authority
allocates
tax
incentives
20
to
that
housing
project
and
notifies
the
housing
business
that
21
the
authority
is
prepared
to
execute
a
tax
incentive
agreement.
22
The
bill
also
provides
that
a
housing
business
shall
have
23
no
right
to
receive
a
tax
credit
certificate
or
claim
a
tax
24
incentive
for
a
housing
project
registered
prior
to
July
1,
25
2019,
until
the
housing
business
enters
into
a
tax
incentive
26
agreement
with
the
authority.
27
The
bill
provides
two
exceptions
to
the
$10
million
per
year
28
tax
incentive
reservation
for
housing
projects
in
small
cities.
29
First,
if
the
sum
of
the
amount
of
tax
incentive
applications
30
received
for
housing
projects
in
small
cities
during
a
fiscal
31
year,
plus
the
amount
of
tax
incentives
eligible
for
issuance
32
during
that
same
fiscal
year
to
housing
projects
in
small
33
cities
registered
prior
to
July
1,
2019,
does
not
exceed
$10
34
million,
the
authority
may
award
the
difference
to
other
35
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housing
projects
during
that
same
fiscal
year.
Second,
the
1
authority
may
award
less
than
$10
million
of
tax
incentives
to
2
housing
projects
in
small
cities
during
a
fiscal
year
if
the
3
difference
between
the
$10
million
cap
and
the
amount
actually
4
awarded
to
housing
projects
in
small
cities
is
awarded
during
5
the
same
fiscal
year
to
housing
projects
registered
prior
to
6
July
1,
2018.
7
The
bill
provides
that
the
authority
shall
give
priority
8
in
making
tax
incentive
awards
to
housing
projects
registered
9
prior
to
July
1,
2019,
and
shall
create
a
wait
list
of
housing
10
projects
registered
prior
to
July
1,
2019,
and
place
those
11
housing
projects
on
the
list
in
the
order
the
projects
were
12
registered.
13
The
changes
to
the
awarding
and
issuance
of
tax
incentives
14
described
above
apply
to
housing
projects
registered
prior
15
to
July
1,
2019,
and
to
housing
projects
that
receive
a
tax
16
incentive
award
on
or
after
July
1,
2019.
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