Bill Text: IA HSB670 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to certain tax incentive and tax credit programs administered by the economic development authority and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-03-02 - Subcommittee Meeting: 03/04/2020 12:25PM House Lounge. [HSB670 Detail]
Download: Iowa-2019-HSB670-Introduced.html
House
Study
Bill
670
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
certain
tax
incentive
and
tax
credit
1
programs
administered
by
the
economic
development
authority
2
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
15.353,
subsection
3,
Code
2020,
is
1
amended
to
read
as
follows:
2
3.
a.
Except
as
provided
in
paragraph
“b”
,
the
The
average
3
dwelling
unit
cost
does
not
exceed
two
hundred
thousand
dollars
4
per
dwelling
unit
an
amount
determined
by
the
authority
by
5
rule
.
In
determining
the
average
dwelling
unit
cost
the
6
authority
shall
consider,
at
a
minimum,
building
material
7
costs,
labor
costs,
land
or
property
acquisition
costs,
and
8
site
development
costs.
9
b.
(1)
The
average
dwelling
unit
cost
does
not
exceed
10
two
hundred
fifty
thousand
dollars
per
dwelling
unit
if
the
11
project
involves
the
rehabilitation,
repair,
redevelopment,
12
or
preservation
of
property
described
in
section
404A.1,
13
subsection
8
,
paragraph
“a”
.
14
(2)
The
average
dwelling
unit
cost
for
the
project
does
not
15
exceed
two
hundred
fifteen
thousand
dollars
per
dwelling
unit
16
if
the
project
is
located
in
a
small
city.
17
Sec.
2.
Section
15.354,
subsection
3,
paragraph
d,
Code
18
2020,
is
amended
to
read
as
follows:
19
d.
Upon
completion
of
a
housing
project,
a
housing
business
20
shall
submit
all
of
the
following
to
the
authority:
21
(1)
an
An
examination
of
the
project
in
accordance
with
the
22
American
institute
of
certified
public
accountants’
statements
23
on
standards
for
attestation
engagements,
completed
by
a
24
certified
public
accountant
authorized
to
practice
in
this
25
state
,
shall
be
submitted
to
the
authority
.
26
(2)
A
statement
of
the
final
amount
of
qualifying
new
27
investment
for
the
housing
project.
28
(3)
Any
information
the
authority
deems
necessary
to
ensure
29
compliance
with
the
agreement
signed
by
the
housing
business
30
pursuant
to
paragraph
“a”
,
the
requirements
of
this
part,
and
31
the
rules
the
authority
and
the
department
of
revenue
adopt
32
pursuant
to
section
15.356.
33
Sec.
3.
Section
15.354,
subsection
3,
paragraph
e,
34
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
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(1)
Upon
review
of
the
examination
,
and
verification
of
1
the
amount
of
the
qualifying
new
investment,
and
review
of
2
any
other
information
submitted
pursuant
to
paragraph
“d”
,
3
subparagraph
(3),
the
authority
may
notify
the
housing
business
4
of
the
amount
that
the
housing
business
may
claim
as
a
refund
5
of
the
sales
and
use
tax
under
section
15.355,
subsection
2
,
6
and
may
issue
a
tax
credit
certificate
to
the
housing
business
7
stating
the
amount
of
workforce
housing
investment
tax
credits
8
under
section
15.355
,
subsection
3
,
the
eligible
housing
9
business
may
claim.
The
sum
of
the
amount
that
the
housing
10
business
may
claim
as
a
refund
of
the
sales
and
use
tax
and
11
the
amount
of
the
tax
credit
certificate
shall
not
exceed
the
12
amount
of
the
tax
incentive
award.
13
Sec.
4.
Section
15.355,
subsection
2,
Code
2020,
is
amended
14
to
read
as
follows:
15
2.
A
housing
business
may
claim
a
refund
of
the
sales
and
16
use
taxes
paid
under
chapter
423
that
are
directly
related
to
17
a
housing
project
and
specified
in
the
agreement.
The
refund
18
available
pursuant
to
this
subsection
shall
be
as
provided
in
19
section
15.331A
,
excluding
subsection
2
,
paragraph
“c”
,
of
20
that
section.
For
purposes
of
the
program,
the
term
“project
21
completion”
,
as
used
in
section
15.331A
,
shall
mean
the
date
22
on
which
the
authority
notifies
the
department
of
revenue
that
23
all
applicable
requirements
of
an
the
agreement
entered
into
24
pursuant
to
section
15.354
,
subsection
3,
paragraph
“a”
,
and
25
all
applicable
requirements
of
this
part,
including
the
rules
26
the
authority
and
the
department
of
revenue
adopted
pursuant
to
27
section
15.356,
are
satisfied.
28
Sec.
5.
Section
404A.1,
subsection
8,
Code
2020,
is
amended
29
by
adding
the
following
new
paragraph:
30
NEW
PARAGRAPH
.
d.
The
property
is
not
a
homeowner-occupied
31
residential
property
or
a
residential
property
occupied
as
a
32
personal
residence
by
an
applicant
to
the
program.
33
Sec.
6.
APPLICABILITY.
This
Act
applies
to
projects
for
34
which
an
application
is
submitted
to
the
workforce
housing
tax
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incentives
program
pursuant
to
chapter
15,
part
17,
or
to
the
1
historic
preservation
tax
credit
program
pursuant
to
chapter
2
404A,
on
or
after
the
effective
date
of
this
Act.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
certain
tax
incentive
and
tax
credit
7
programs
administered
by
the
economic
development
authority.
8
Current
law
requires
that
to
be
eligible
for
the
workforce
9
housing
tax
incentive
program
(program)
the
average
dwelling
10
unit
cost
must
not
exceed
$200,000,
subject
to
certain
11
exceptions,
for
a
proposed
housing
project
(project).
The
12
bill
amends
that
requirement
to
allow
the
economic
development
13
authority
(authority)
to
determine
by
rule
the
average
dwelling
14
unit
cost
that
is
eligible
for
the
program.
In
determining
15
the
average
dwelling
unit
cost,
the
authority
is
required
to
16
consider,
at
a
minimum,
building
material
costs,
labor
costs,
17
land
or
property
acquisition
costs,
and
site
development
costs.
18
Current
law
requires
that
upon
completion
of
a
project,
a
19
housing
business
(business)
must
submit
an
examination
of
the
20
project
in
accordance
with
the
American
institute
of
certified
21
public
accountants’
statements
on
standards
for
attestation
22
engagements
completed
by
a
certified
public
accountant
23
authorized
to
practice
in
this
state.
The
bill
requires
that
24
in
addition
to
the
examination,
the
business
must
submit
a
25
statement
of
the
final
amount
of
qualifying
new
investment
for
26
the
project
and
any
information
the
authority
deems
necessary
27
to
ensure
the
business’s
compliance
with
the
program.
28
The
bill
amends
the
historic
preservation
tax
credit
program
29
(preservation
program)
to
make
homeowner-occupied
residential
30
property
and
residential
property
occupied
as
a
personal
31
residence
ineligible
for
the
preservation
program.
32
The
bill
applies
to
projects
for
which
an
application
is
33
submitted
to
the
program,
or
to
the
preservation
program,
on
or
34
after
the
effective
date
of
the
bill.
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