Bill Text: IA HSB722 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to tax credits awarded by the economic development authority for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.(See HF 2674.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-27 - Committee report approving bill, renumbered as HF 2674. [HSB722 Detail]
Download: Iowa-2023-HSB722-Introduced.html
House
Study
Bill
722
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
tax
credits
awarded
by
the
economic
1
development
authority
for
specific
capital
contributions
2
made
to
certified
rural
business
growth
funds
for
investment
3
in
qualified
businesses.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
6330YC
(1)
90
jm/jh
H.F.
_____
Section
1.
NEW
SECTION
.
15.490
Short
title.
1
This
part
shall
be
known
and
may
be
cited
as
the
“Iowa
Rural
2
Development
Tax
Credit
Program”
.
3
Sec.
2.
NEW
SECTION
.
15.491
Definitions.
4
As
used
in
this
part,
unless
the
context
otherwise
requires:
5
1.
“Affiliate”
means
a
person
that
directly,
or
indirectly
6
through
one
or
more
intermediaries,
controls,
is
controlled
7
by,
or
is
under
common
control
with
another
person.
A
person
8
is
controlled
by
another
person
if
the
controlling
person
9
holds,
directly
or
indirectly,
the
majority
voting
or
ownership
10
interest
in
the
controlled
person
or
has
control,
by
contract
11
or
by
law,
over
the
day-to-day
operations
of
the
controlled
12
person.
13
2.
“Authority”
means
the
economic
development
authority
14
created
in
section
15.105.
15
3.
“Closing
date”
means
the
date
on
which
a
rural
business
16
growth
fund
completes
collection
of
all
contributions
and
17
investments
and
submits
all
required
documentation
to
the
18
authority
pursuant
to
section
15.492,
subsection
7.
19
4.
“Credit-eligible
capital
contribution”
means
an
investment
20
of
cash
by
a
person
in
a
rural
business
growth
fund
that
is
21
eligible
for
a
tax
credit
certificate
issued
by
the
authority
22
pursuant
to
section
15.493,
subsection
1.
The
cash
investment
23
shall
purchase
either
of
the
following:
24
a.
An
equity
interest
in
the
growth
fund.
25
b.
A
debt
instrument,
at
par
value
or
premium,
issued
by
the
26
growth
fund
that
has
a
maturity
date
at
least
six
years
after
27
the
growth
fund’s
closing
date.
28
5.
“Depository
institution”
means
the
same
as
defined
in
29
section
524.1802.
30
6.
“Eligible
investment
authority”
means
the
amount
stated
31
on
the
certification
the
authority
issues
pursuant
to
section
32
15.492,
subsection
7,
paragraph
“a”
.
At
least
sixty
percent
33
of
a
growth
fund’s
eligible
investment
authority
shall
be
34
comprised
of
credit-eligible
capital
contributions.
35
-1-
LSB
6330YC
(1)
90
jm/jh
1/
22
H.F.
_____
7.
“Employee”
means
a
natural
person
who
is
employed
in
this
1
state
by
a
qualified
business
and
who
is
either
salaried,
works
2
a
minimum
of
thirty-five
hours
per
week,
or
another
period
of
3
time
generally
accepted
by
custom,
industry,
or
practice
as
4
full-time
employment.
5
8.
“Equity
holder”
means
a
person
that
makes
an
equity
6
investment
in
a
rural
business
growth
fund.
7
9.
“Growth
investment”
means
any
of
the
following:
8
a.
Capital
or
equity
investments
in
a
qualified
business.
9
b.
A
loan
to
a
qualified
business
if
all
of
the
following
10
conditions
apply:
11
(1)
The
loan
has
a
stated
maturity
of
at
least
two
years.
12
(2)
The
principal
payments
have
been
deferred
for
at
least
13
two
years.
14
(3)
The
pro
forma
financial
statements
of
the
qualified
15
business
result
in
a
leverage
ratio
of
greater
than
three
to
16
one
when
comparing
debt
to
earnings
before
interest,
taxes,
17
depreciation,
and
amortization.
18
c.
A
senior
secured
loan
if
the
senior
secured
loan
is
19
secured
first
by
a
mortgage
on
real
estate
with
a
loan
to
value
20
ratio
of
less
than
eighty
percent,
and
the
qualified
business
21
has
a
credit
refusal
letter
or
similar
correspondence
from
a
22
depository
institution
located
in
this
state.
23
10.
“Jobs
created”
means
the
number
of
new
employees
at
24
a
qualified
business,
after
an
initial
growth
investment,
at
25
the
end
of
each
subsequent
calendar
year.
This
number
is
26
calculated
annually
by
adding
together
the
number
of
employees
27
at
the
qualified
business
on
the
last
day
of
each
calendar
28
month
and
dividing
by
twelve,
then
subtracting
the
number
of
29
employees
at
the
qualified
business
on
the
date
the
day
before
30
the
date
of
the
initial
growth
investment.
If
the
resulting
31
total
is
less
than
zero,
the
jobs
created
is
equal
to
zero.
32
11.
“Jobs
retained”
means
the
number
of
employees
at
a
33
qualified
business
the
day
before
the
date
of
an
initial
growth
34
investment
that
the
qualified
business’s
chief
executive
35
-2-
LSB
6330YC
(1)
90
jm/jh
2/
22
H.F.
_____
officer
or
similar
officer
certifies
as
being
positions
located
1
in
this
state
that
would
have
been
eliminated
but
for
the
2
initial
growth
investment.
3
12.
“Located
in”
means
the
place
or
places
at
which
a
4
business’s
operations
are
located
and
where
at
least
sixty
5
percent
of
the
business’s
employees
work,
or
where
employees
6
that
are
paid
at
least
sixty
percent
of
the
business’s
payroll
7
work.
8
13.
“Program”
means
the
Iowa
rural
development
tax
credit
9
program
administered
under
this
part.
10
14.
“Qualified
business”
means
any
business
within
this
11
state
that
has
fewer
than
two
hundred
fifty
employees,
12
including
ostensible
subcontractors
pursuant
to
13
C.F.R.
13
§121.103(h)(4),
and
is
not
located
in
whole
or
in
part
in
one
14
or
more
of
the
twelve
most
populous
counties
in
the
state,
as
15
determined
by
the
most
recent
decennial
census
released
by
the
16
United
States
bureau
of
census.
17
15.
“Revenue”
means
the
total
state
and
local
income
18
produced
by
a
rural
business
growth
fund’s
economic
activity.
19
16.
“Rural
business
growth
fund”
or
“growth
fund”
means
a
20
person,
or
an
affiliate
of
a
person,
certified
by
the
authority
21
pursuant
to
section
15.492,
subsection
7,
paragraph
“a”
.
22
17.
“Within
this
state”
means
in
the
state
of
Iowa,
or
an
23
out-of-state
business
that
has
agreed
to
use
a
proposed
growth
24
investment
to
become
a
qualified
business
within
one
hundred
25
eighty
days
of
receiving
the
growth
investment.
26
Sec.
3.
NEW
SECTION
.
15.492
Application
and
agreement.
27
1.
The
authority
shall
begin
accepting
program
applications
28
on
January
7,
2025.
An
application
is
deemed
received
based
29
on
the
date
and
time
stamp
that
shall
be
generated
by
the
30
authority
upon
receipt
of
the
application.
Applications
31
received
by
the
authority
on
the
same
day
shall
be
deemed
to
32
have
been
received
simultaneously.
33
2.
A
person
seeking
certification
as
a
rural
business
34
growth
fund
shall
apply
to
the
authority
in
the
form
and
manner
35
-3-
LSB
6330YC
(1)
90
jm/jh
3/
22
H.F.
_____
prescribed
by
the
authority.
The
application
must
include
all
1
of
the
following:
2
a.
The
eligible
investment
authority
sought
by
the
3
applicant.
4
b.
A
copy
of
the
applicant’s,
or
an
affiliate
of
the
5
applicant’s,
license
as
a
rural
business
investment
company
6
as
defined
under
7
U.S.C.
§2009cc(14),
or
license
as
a
small
7
business
investment
company
under
15
U.S.C.
§681.
8
c.
Documentation
as
required
by
the
authority
to
establish
9
that
at
least
one
principal
of
the
applicant
has
been
an
10
officer
or
an
employee
of
the
rural
business
investment
11
company,
the
small
business
investment
company,
or
an
affiliate
12
thereof,
for
a
minimum
of
four
years
prior
to
the
date
of
13
application.
14
d.
A
revenue
impact
assessment
for
the
applicant’s
proposed
15
growth
investments
as
determined
by
an
econometric
analysis
16
conducted
by
a
nationally
recognized
third-party
independent
17
econometric
firm.
The
revenue
impact
assessment
must
provide
18
an
analysis
of
the
applicant’s
proposed
growth
investments
over
19
the
ten
consecutive
years
following
the
date
the
applicant’s
20
application
is
submitted
to
the
authority,
and
must
demonstrate
21
that
there
will
be
a
positive
revenue
impact
on
this
state
22
that
exceeds
the
cumulative
amount
of
tax
credits,
that
if
the
23
application
is
approved,
may
be
issued
by
the
authority
to
the
24
rural
business
growth
fund’s
investors.
25
e.
The
number
of
jobs
created
and
the
number
of
jobs
26
retained
assumed
in
the
revenue
impact
assessment
required
by
27
paragraph
“d”
.
28
f.
A
signed
affidavit
from
each
investor
that
identifies
29
the
investor
and
the
amount
of
the
credit-eligible
capital
30
contribution
that
the
investor
has
committed
to
the
applicant’s
31
proposed
growth
fund.
32
g.
A
nonrefundable
application
fee
of
five
thousand
dollars.
33
All
application
fees
submitted
to
the
authority
pursuant
to
34
this
paragraph
shall
be
used
by
the
authority
to
administer
35
-4-
LSB
6330YC
(1)
90
jm/jh
4/
22
H.F.
_____
this
part.
1
3.
The
authority
shall
review
and
make
a
determination
2
to
approve
or
deny
each
application
within
the
time
frame
3
adopted
by
rule
by
the
authority.
The
authority
shall
review
4
applications
on
a
first-come,
first-served
basis
as
determined
5
pursuant
to
subsection
1.
6
4.
The
authority
shall
not
approve
more
than
forty-five
7
million
dollars
in
eligible
investment
authority
and
not
more
8
than
twenty-seven
million
dollars
in
credit-eligible
capital
9
contributions
under
the
program.
If
approved
applications
10
that
are
simultaneously
received
would
collectively
exceed
the
11
maximum
limit
on
eligible
investment
authority
or
the
maximum
12
on
credit-eligible
capital
contributions,
the
authority
shall
13
proportionally
reduce
the
growth
fund’s
eligible
investment
14
authority
and
credit-eligible
capital
contributions
for
each
15
of
the
simultaneous
applications
as
necessary
to
comply
with
16
the
maximum
limits.
17
5.
The
authority
shall
reject
an
application
for
any
of
the
18
following
reasons:
19
a.
The
applicant
failed
to
comply
with
any
of
the
20
requirements
pursuant
to
subsection
2.
21
b.
The
authority
has
already
approved
the
maximum
eligible
22
investment
authority
or
the
maximum
credit-eligible
capital
23
contributions
pursuant
to
subsection
4.
24
6.
a.
If
the
authority
rejects
an
application,
the
25
authority
shall
send
a
notice
of
rejection
to
the
applicant
and
26
provide
a
reason
for
the
rejection.
27
b.
If
the
authority
has
rejected
an
application
on
any
28
grounds
other
than
subsection
5,
paragraph
“b”
,
the
applicant
29
may
provide
additional
information
to
the
authority
to
cure
30
the
defects
in
the
application.
All
additional
information
31
must
be
received
by
the
authority
within
fifteen
business
days
32
from
the
date
the
authority
sent
the
notice
of
rejection
to
33
the
applicant.
The
authority
shall
review
and
reconsider,
34
within
the
time
frame
adopted
by
rule
by
the
authority,
any
35
-5-
LSB
6330YC
(1)
90
jm/jh
5/
22
H.F.
_____
application
for
which
additional
information
is
provided
within
1
the
fifteen
business
days.
If
an
application
is
approved
by
2
the
authority
after
review
and
reconsideration,
the
application
3
shall
be
considered
complete
as
of
its
original
date
of
4
submission.
5
c.
If
an
applicant
does
not
submit
additional
information
6
within
fifteen
business
days
from
the
date
the
authority
sent
7
the
applicant
the
notice
of
rejection,
the
applicant
may
submit
8
a
new
application
at
any
time
pursuant
to
subsection
2
and
the
9
application
shall
be
reviewed
by
the
authority
pursuant
to
10
subsection
3.
11
7.
a.
If
the
authority
approves
an
application,
the
12
authority
shall
send
a
notice
to
the
applicant
certifying
all
13
of
the
following:
14
(1)
The
applicant
as
a
rural
business
growth
fund.
15
(2)
The
growth
fund’s
eligible
investment
authority
and
16
required
credit-eligible
contributions.
17
(3)
The
required
number
of
jobs
created
and
the
required
18
number
of
jobs
retained
based
on
the
number
submitted
in
the
19
applicant’s
application,
prorated
if
the
growth
fund’s
eligible
20
investment
authority
is
reduced
pursuant
to
subsection
4.
21
b.
Within
forty-five
calendar
days
of
the
date
the
authority
22
sent
the
notice
of
certification
pursuant
to
paragraph
“a”
,
23
the
rural
business
growth
fund
shall
comply
with
all
of
the
24
following
requirements:
25
(1)
Collect
all
credit-eligible
capital
contributions
26
from
each
investor
whose
affidavit
was
included
in
the
growth
27
fund’s
application.
If
the
growth
fund’s
requested
eligible
28
investment
authority
has
been
proportionally
reduced
pursuant
29
to
subsection
4,
each
investor’s
required
credit-eligible
30
capital
contribution
shall
be
reduced
by
the
same
proportion.
31
(2)
Collect
one
or
more
equity
investments
contributed
32
directly
or
indirectly
by
affiliates
of
the
growth
fund,
33
including
employees
and
principals
of
such
affiliates,
that
34
must
equal
at
least
ten
percent
of
the
growth
fund’s
eligible
35
-6-
LSB
6330YC
(1)
90
jm/jh
6/
22
H.F.
_____
investment
authority.
1
(3)
Collect
one
or
more
investments
of
cash
that,
when
added
2
to
the
contributions
collected
under
subparagraphs
(1)
and
(2),
3
equal
the
growth
fund’s
total
eligible
investment
authority.
4
c.
Within
sixty-five
calendar
days
of
the
date
the
authority
5
sent
the
notice
of
certification
pursuant
to
paragraph
“a”
,
6
the
rural
business
growth
fund
shall
comply
with
all
of
the
7
following
requirements:
8
(1)
Submit
documentation
to
the
authority
sufficient
to
9
prove
to
the
satisfaction
of
the
authority
that
the
growth
fund
10
has
collected
amounts
described
in
paragraph
“b”
,
subparagraphs
11
(1),
(2),
and
(3).
12
(2)
Submit
documentation
to
the
authority
that
identifies
13
all
affiliates
of
an
investor
described
in
paragraph
“b”
,
14
subparagraph
(1),
that
may
be
eligible
to
claim
a
tax
credit
15
issued
by
the
authority
pursuant
to
section
15.493,
subsection
16
1.
17
8.
If
a
growth
fund
fails
to
comply
with
subsection
7,
18
paragraph
“b”
or
“c”
,
the
growth
fund’s
certification
shall
19
lapse.
Any
eligible
investment
authority
and
credit-eligible
20
capital
contributions
that
lapse
pursuant
to
this
subsection
21
shall
not
count
toward
the
maximum
limits
on
eligible
22
investment
authority
and
credit-eligible
capital
contributions
23
pursuant
to
subsection
4.
If
a
growth
fund’s
eligible
24
investment
authority
lapses
pursuant
to
this
subsection,
the
25
authority
shall
first
award
the
lapsed
eligible
investment
26
authority
pro
rata
to
each
rural
business
growth
fund
that
27
was
awarded
less
than
the
eligible
investment
authority
that
28
the
rural
business
growth
fund
sought
in
the
growth
fund’s
29
application.
A
rural
business
growth
fund
that
is
awarded
30
lapsed
eligible
investment
authority
must
comply
with
the
31
requirements
of
subsection
7,
paragraph
“b”
,
as
related
to
the
32
additional
eligible
investment
authority.
The
authority
may
33
award
any
remaining
lapsed
eligible
investment
authority
to
34
new
applicants
until
the
maximum
limits
on
eligible
investment
35
-7-
LSB
6330YC
(1)
90
jm/jh
7/
22
H.F.
_____
authority
and
credit-eligible
capital
contributions
pursuant
1
to
subsection
4
are
met.
2
9.
After
a
growth
fund’s
successful
submission
to
the
3
authority
of
the
required
documentation
pursuant
to
subsection
4
7,
paragraph
“c”
,
subparagraphs
(1)
and
(2),
the
growth
fund
5
shall
enter
into
an
agreement
with
the
authority
that
specifies
6
the
requirements
that
must
be
met
for
successful
completion
7
of
the
program.
At
a
minimum,
the
agreement
shall
contain
8
provisions
addressing
all
of
the
following:
9
a.
The
legal
name
of
the
growth
fund.
10
b.
The
growth
fund’s
closing
date.
11
c.
The
growth
fund’s
eligible
investment
authority
as
12
certified
by
the
authority.
13
d.
Each
investor
of
the
growth
fund
and
each
investor’s
14
credit-eligible
capital
contribution.
15
e.
The
minimum
number
of
jobs
that
must
be
created
and
the
16
minimum
number
of
jobs
that
must
be
retained
as
a
result
of
17
the
growth
fund’s
growth
investments
to
avoid
paying
state
18
reimbursement
pursuant
to
section
15.497.
19
f.
Revocation
and
recapture
of
tax
credits
pursuant
to
20
section
15.494.
21
g.
Any
terms
deemed
necessary
by
the
authority
to
effect
22
compliance
with
the
program
requirements
pursuant
to
this
part.
23
Sec.
4.
NEW
SECTION
.
15.493
Tax
credits.
24
1.
After
an
agreement
is
executed
pursuant
to
section
25
15.492,
subsection
9,
the
authority
shall
issue
a
tax
credit
26
certificate
to
each
investor
whose
affidavit
was
included
27
in
the
growth
fund’s
application
and
whose
credit-eligible
28
capital
contribution
was
collected
pursuant
to
section
29
15.492,
subsection
7,
paragraph
“b”
,
subparagraph
(1).
The
30
tax
credit
certificate
shall
specify
the
amount
of
the
31
tax
credit
allocated
to
that
investor
as
a
result
of
the
32
investor’s
credit-eligible
capital
contribution.
The
tax
33
credit
allocated
to
any
one
investor
shall
be
equal
to
the
34
investor’s
credit-eligible
capital
contribution
to
the
growth
35
-8-
LSB
6330YC
(1)
90
jm/jh
8/
22
H.F.
_____
fund.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
1
name,
address,
tax
identification
number,
the
name
of
the
2
rural
business
growth
fund
associated
with
the
tax
credit,
and
3
any
other
information
required
by
the
department
of
revenue.
4
The
tax
credit
may
be
claimed
against
the
taxes
imposed
in
5
chapter
422,
subchapter
V,
the
insurance
premium
and
insurance
6
retaliatory
premium
tax
imposed
in
chapter
432,
or
the
moneys
7
and
credits
tax
imposed
in
section
533.329.
8
2.
One-third
of
the
amount
of
a
tax
credit
issued
to
an
9
investor
pursuant
to
subsection
1
may
be
claimed
in
the
tax
10
year
of
the
third,
fourth,
and
fifth
anniversaries
of
the
11
growth
fund’s
closing
date,
exclusive
of
the
amount
of
tax
12
credit
carried
forward
pursuant
to
subsection
4.
13
3.
a.
A
tax
credit
issued
under
this
part
is
not
14
refundable
and
shall
not
be
sold,
transferred,
or
allocated
15
by
the
investor
to
any
person
other
than
an
affiliate
of
the
16
investor
that
was
an
affiliate
at
the
time
of
the
growth
fund’s
17
submission
of
the
investor’s
affidavit
pursuant
to
section
18
15.492,
subsection
2,
paragraph
“f”
.
19
b.
Within
ninety
calendar
days
of
the
sale,
transfer,
or
20
allocation
of
a
tax
credit,
the
affiliate
shall
submit
the
tax
21
credit
certificate
to
the
department
of
revenue
along
with
a
22
statement
containing
the
affiliate’s
name,
tax
identification
23
number,
address,
and
any
other
information
required
by
the
24
department
of
revenue.
25
c.
Within
thirty
calendar
days
of
receiving
the
tax
credit
26
certificate
and
the
affiliate’s
statement,
the
department
of
27
revenue
shall
issue
the
affiliate
a
replacement
tax
credit
28
certificate.
The
replacement
tax
credit
certificate
must
29
contain
all
of
the
information
required
for
the
original
tax
30
credit
certificate
and
must
have
the
same
expiration
date
that
31
appeared
on
the
original
tax
credit
certificate.
32
4.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
33
shall
submit
the
tax
credit
certificate
with
the
taxpayer’s
34
tax
return
for
each
taxable
year
in
which
the
tax
credit
is
35
-9-
LSB
6330YC
(1)
90
jm/jh
9/
22
H.F.
_____
claimed.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
1
liability
for
the
tax
year
may
be
carried
forward
to
the
2
taxpayer’s
tax
liability
for
subsequent
years
until
the
tax
3
credit
is
depleted.
4
Sec.
5.
NEW
SECTION
.
15.494
Revocation
and
recapture
of
tax
5
credits.
6
1.
The
authority
shall
recapture
any
tax
credits
used
by
7
a
taxpayer
and
shall
revoke
any
tax
credits
issued
pursuant
8
to
section
15.493,
subsection
1,
if,
before
a
rural
business
9
growth
fund
exits
the
program
pursuant
to
section
15.496,
any
10
of
the
following
occur:
11
a.
The
growth
fund
cannot
provide
documentation
to
the
12
authority
to
substantiate
to
the
satisfaction
of
the
authority
13
all
of
the
following:
14
(1)
That
the
growth
fund,
within
thirty
months
after
the
15
growth
fund’s
closing
date,
has
invested
one
hundred
percent
16
of
the
growth
fund’s
eligible
investment
authority
in
growth
17
investments.
18
(2)
That
the
growth
fund,
after
investing
one
hundred
19
percent
of
the
growth
fund’s
eligible
investment
authority
20
in
growth
investments
within
thirty
months
after
the
growth
21
fund’s
closing
date,
has
maintained
growth
investments
equal
to
22
one
hundred
percent
of
the
growth
fund’s
eligible
investment
23
authority
at
all
times
up
to
the
fifth
anniversary
after
the
24
growth
fund’s
closing
date.
For
purposes
of
this
subparagraph,
25
a
growth
investment
is
maintained
even
if
it
is
sold
or
repaid,
26
as
long
as
the
growth
fund
reinvests
an
amount
equal
to
the
27
growth
investment
returned
or
recovered
from
the
original
28
growth
investment,
exclusive
of
any
profits
realized,
in
other
29
growth
investments
in
this
state
within
the
twelve
consecutive
30
months
immediately
after
the
date
of
the
return
or
recovery
31
of
such
growth
investment.
Amounts
received
periodically
32
by
a
growth
fund
are
deemed
continuously
invested
in
growth
33
investments
if
the
amounts
are
reinvested
by
the
growth
fund
in
34
one
or
more
qualified
businesses
by
the
end
of
the
following
35
-10-
LSB
6330YC
(1)
90
jm/jh
10/
22
H.F.
_____
calendar
year.
1
b.
The
growth
fund
makes
a
growth
investment
in
a
qualified
2
business
that
directly,
or
indirectly
through
an
affiliate,
3
owns,
has
the
right
to
acquire
an
ownership
interest
in,
makes
4
a
loan
to,
or
makes
an
investment
in,
the
growth
fund,
an
5
affiliate
of
the
growth
fund,
or
an
investor
in
the
growth
6
fund.
This
paragraph
shall
not
apply
to
investments
in
7
publicly
traded
securities
by
a
qualified
business,
or
to
an
8
owner
or
an
affiliate
of
the
qualified
business.
For
purposes
9
of
this
paragraph,
a
growth
fund
shall
not
be
considered
an
10
affiliate
of
a
qualified
business
solely
because
of
the
growth
11
fund’s
growth
investment
in
the
qualified
business.
12
c.
The
growth
fund,
before
exiting
the
program
pursuant
to
13
section
15.496,
makes
a
distribution
or
payment
that
results
14
in
the
growth
fund
having
less
than
one
hundred
percent
of
its
15
initial
investment
authority
invested
in
growth
investments
in
16
this
state,
available
for
growth
investments,
or
held
in
cash
17
and
marketable
securities.
18
2.
The
maximum
amount
of
a
growth
investment
in
a
qualified
19
business,
including
any
amounts
invested
in
affiliates
of
the
20
qualified
business,
that
a
growth
fund
may
count
toward
the
21
growth
fund’s
satisfaction
of
the
requirements
pursuant
to
22
subsection
1,
paragraph
“a”
,
is
the
greater
of
twenty
percent
of
23
the
growth
fund’s
eligible
investment
authority
and
two
million
24
five
hundred
thousand
dollars,
excluding
any
amounts
reinvested
25
in
a
qualified
business.
26
3.
Before
revoking
or
recapturing
a
tax
credit,
the
27
authority
shall
provide
notice
to
the
growth
fund
of
the
reason
28
for
the
pending
revocation
or
recapture.
The
growth
fund
shall
29
have
ninety
calendar
days
after
the
date
the
authority
sends
30
the
notice
to
address
to
the
satisfaction
of
the
authority
any
31
issues
identified
in
the
notice.
Failure
of
the
growth
fund
to
32
satisfactorily
address
any
issues
in
the
notice
shall
result
in
33
revocation
or
recapture
of
the
tax
credit.
34
4.
The
authority
shall
not
revoke
or
recapture
a
tax
credit
35
-11-
LSB
6330YC
(1)
90
jm/jh
11/
22
H.F.
_____
for
any
action
of
a
growth
fund
that
occurs
after
the
growth
1
fund
has
exited
the
program
pursuant
to
section
15.496.
This
2
subsection
shall
not
prohibit
the
authority
from
revoking
or
3
recapturing
a
tax
credit
due
to
an
action
of
a
growth
fund
4
pursuant
to
subsection
1
that
occurs
before
the
date
the
growth
5
fund
exits
the
program,
even
if
the
growth
fund’s
action
is
6
discovered
after
the
date
the
growth
fund
exits
the
program.
7
Sec.
6.
NEW
SECTION
.
15.495
Annual
report.
8
On
or
before
March
31,
unless
a
growth
fund
has
exited
the
9
program
pursuant
to
section
15.496,
each
growth
fund
shall
10
submit
an
annual
report
to
the
authority
in
the
form
and
manner
11
the
authority
prescribes
that
covers
the
preceding
calendar
12
year.
The
report
must
include
each
of
the
growth
fund’s
growth
13
investments
and
must
contain
all
of
the
following
information:
14
1.
Financial
statements
that
provide
evidence
of
each
15
growth
investment.
16
2.
Evidence
that
the
growth
fund
is
in
compliance
with
17
applicable
investment
requirements
pursuant
to
section
15.494,
18
subsection
1,
paragraph
“a”
.
19
3.
The
name,
location,
and
industry
for
each
qualified
20
business
that
received
a
growth
investment,
and
evidence
that
21
the
business
met
the
requirements
to
be
a
qualified
business
at
22
the
time
the
growth
investment
was
made.
23
4.
The
number
of
employees
at
each
qualified
business
on
24
the
date
of
the
growth
fund’s
initial
growth
investment
in
the
25
qualified
business.
26
5.
The
number
of
jobs
created
at
each
qualified
business
and
27
the
average
annual
salary
for
the
jobs
created.
28
6.
The
number
of
jobs
retained
at
each
qualified
business
29
and
the
average
annual
salary
for
the
jobs
retained.
The
30
number
of
jobs
retained
at
a
qualified
business
may
not
exceed
31
the
number
of
jobs
retained
at
the
same
qualified
business
on
32
the
first
annual
report
submitted
by
the
growth
fund.
33
7.
Any
other
information
the
authority
requires.
34
Sec.
7.
NEW
SECTION
.
15.496
Exiting
the
program.
35
-12-
LSB
6330YC
(1)
90
jm/jh
12/
22
H.F.
_____
1.
On
or
after
the
fifth
anniversary
of
a
rural
business
1
growth
fund’s
closing
date,
in
the
form
and
manner
the
2
authority
prescribes,
the
growth
fund
may
apply
to
the
3
authority
to
exit
the
program.
The
growth
fund’s
application
4
must
include
the
state
reimbursement
calculation
pursuant
to
5
section
15.497.
6
2.
The
growth
fund
shall
be
eligible
to
exit
the
program
7
if
a
tax
credit
associated
with
the
growth
fund
has
not
been
8
revoked
or
recaptured
pursuant
to
section
15.494.
9
3.
Within
the
time
frame
adopted
by
rule
by
the
authority,
10
the
authority
shall
send
notice
to
the
growth
fund
of
the
11
authority’s
determination
regarding
the
growth
fund’s
12
application
and
confirmation
of
the
state
reimbursement
the
13
growth
fund
owes
pursuant
to
section
15.497.
If
the
authority
14
denies
the
growth
fund’s
application,
the
notice
shall
include
15
the
reasons
for
the
denial.
If
the
authority
approves
the
16
growth
fund’s
application,
the
growth
fund
is
deemed
to
have
17
exited
the
program
on
the
date
the
authority
sends
notice
18
to
the
growth
fund.
If
the
growth
fund
owes
the
state
19
reimbursement,
the
growth
fund
shall
be
prohibited
from
making
20
any
distributions
to
any
equity
holders
of
the
fund
until
the
21
growth
fund
has
remitted
the
state
reimbursement
amount
to
the
22
authority.
All
state
reimbursement
amounts
remitted
to
the
23
authority
shall
be
deposited
in
the
general
fund
of
the
state.
24
Sec.
8.
NEW
SECTION
.
15.497
State
reimbursement
25
calculation.
26
1.
A
state
reimbursement
shall
be
calculated
any
time
a
27
rural
business
growth
fund
exits
the
program
or
any
time
a
28
rural
business
growth
fund
proposes
to
make
a
distribution
to
29
the
growth
fund’s
equity
holders.
The
state
reimbursement
30
shall
equal
the
proposed
distribution
multiplied
by
one
minus
a
31
fraction
that
is
composed
of
the
following:
32
a.
The
numerator
shall
be
the
aggregate
number
of
jobs
33
created
plus
the
number
of
jobs
retained
as
reported
pursuant
34
to
section
15.495,
subsections
5
and
6.
35
-13-
LSB
6330YC
(1)
90
jm/jh
13/
22
H.F.
_____
b.
The
denominator
shall
be
the
number
of
jobs
created
plus
1
the
number
of
jobs
retained
as
stated
in
the
certification
2
pursuant
to
section
15.492,
subsection
7,
paragraph
“a”
,
3
subparagraph
(3).
4
2.
If
the
fraction
is
greater
than
one
hundred
percent,
the
5
growth
fund
shall
not
owe
state
reimbursement.
6
3.
The
authority
may
adopt
by
rule
additional
options
7
for
the
state
reimbursement
calculation
that
are
equivalent
8
to
job
creation
and
job
retention
to
measure
a
growth
fund’s
9
growth
investments
impact
on
economic
activity
at
a
qualified
10
business.
11
Sec.
9.
NEW
SECTION
.
15.498
Remedies.
12
The
remedies
for
a
breach
or
default
of
any
of
the
terms
of
13
this
part
by
a
rural
business
growth
fund
shall
be
revocation
14
or
recapture
of
tax
credits
pursuant
to
section
15.494
and
the
15
state
reimbursement
pursuant
to
section
15.497.
16
Sec.
10.
NEW
SECTION
.
15.499
Rules.
17
The
authority,
in
conjunction
with
the
department
of
18
revenue,
shall
adopt
rules
pursuant
to
chapter
17A
as
necessary
19
for
the
implementation
and
administration
of
this
part.
20
Sec.
11.
Section
422.60,
Code
2024,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
16.
The
taxes
imposed
under
this
subchapter
23
shall
be
reduced
by
a
rural
development
tax
credit
allowed
24
under
section
15.493.
25
Sec.
12.
NEW
SECTION
.
432.12P
Rural
development
tax
26
credits.
27
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
28
rural
development
tax
credit
allowed
under
section
15.493
for
a
29
credit-eligible
capital
contribution
to
a
rural
business
growth
30
fund.
31
Sec.
13.
Section
533.329,
subsection
2,
Code
2024,
is
32
amended
by
adding
the
following
new
paragraph:
33
NEW
PARAGRAPH
.
n.
The
moneys
and
credits
tax
imposed
under
34
this
section
shall
be
reduced
by
a
rural
development
tax
credit
35
-14-
LSB
6330YC
(1)
90
jm/jh
14/
22
H.F.
_____
under
section
15.493.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
relates
to
tax
credits
awarded
by
the
economic
5
development
authority
for
specific
capital
contributions
made
6
to
certified
rural
business
growth
funds
for
investment
in
7
qualified
businesses.
The
bill
defines
“qualified
business”
8
to
mean
any
business
within
this
state
that
has
fewer
than
250
9
employees,
including
certain
subcontractors,
and
is
not
located
10
in
whole
or
in
part
in
one
or
more
of
the
12
most
populous
11
counties
in
the
state.
12
The
bill
directs
the
economic
development
authority
13
(authority)
to
begin
accepting
Iowa
rural
development
tax
14
credit
program
(program)
applications
beginning
January
7,
15
2025.
16
The
bill
provides
that
a
person
seeking
certification
as
17
a
rural
business
growth
fund
(growth
fund)
must
apply
to
the
18
authority
and
that
the
application
must
include
the
eligible
19
investment
authority
sought
by
the
applicant,
a
copy
of
the
20
applicant’s
license
as
a
rural
business
investment
company
21
under
7
U.S.C.
§2009cc(14)
or
as
a
small
business
investment
22
company
under
15
U.S.C.
§681,
documentation
that
establishes
23
that
at
least
one
principal
of
the
applicant
has
been
an
24
officer
or
an
employee
of
the
rural
business
investment
25
company,
the
small
business
investment
company
or
an
affiliate,
26
for
a
minimum
of
four
years
prior
to
the
date
of
application,
a
27
revenue
impact
assessment
for
the
applicant’s
proposed
growth
28
investments
as
determined
by
an
econometric
analysis
conducted
29
by
a
third-party
independent
econometric
firm,
the
number
30
of
jobs
created
and
the
number
of
jobs
retained
assumed
in
31
the
revenue
impact
assessment,
a
signed
affidavit
from
each
32
investor
that
states
the
amount
of
the
credit-eligible
capital
33
contribution
that
the
investor
has
committed
to
the
applicant’s
34
proposed
growth
fund,
and
a
nonrefundable
$5,000
application
35
-15-
LSB
6330YC
(1)
90
jm/jh
15/
22
H.F.
_____
fee.
The
bill
defines
“growth
investment”
to
mean
any
of
1
the
following:
capital
or
equity
investments
in
a
qualified
2
business,
a
loan
to
a
qualified
business
subject
to
certain
3
conditions,
or
a
senior
secured
loan
under
certain
conditions.
4
The
bill
defines
“credit-eligible
capital
contribution”
5
as
an
investment
of
cash
by
a
person
in
a
growth
fund
that
6
is
eligible
for
a
tax
credit
issued
by
the
authority.
The
7
investment
must
be
used
to
purchase
either
an
equity
interest
8
in
the
growth
fund
or
a
debt
instrument,
at
par
value
or
9
premium,
issued
by
the
growth
fund
that
has
a
maturity
date
10
at
least
six
years
after
the
growth
fund’s
closing
date.
11
“Eligible
investment
authority”
is
defined
in
the
bill
as
the
12
amount
of
investment
authority
that
the
authority
certifies
for
13
a
specific
growth
fund.
14
The
bill
requires
the
authority
to
review
each
application
15
on
a
first-come,
first-served
basis
and
to
make
a
determination
16
to
approve
or
deny
each
application
within
the
time
frame
17
adopted
by
rule
by
the
authority.
The
authority
shall
not
18
approve
more
than
$45
million
in
eligible
investment
authority
19
and
not
more
than
$27
million
in
credit-eligible
capital
20
contributions.
21
The
authority
must
reject
an
application
if
the
applicant
22
fails
to
submit
any
of
the
required
information,
or
if
the
23
authority
has
already
approved
the
maximum
eligible
investment
24
authority
or
the
maximum
credit-eligible
capital
contributions.
25
If
the
authority
rejects
an
application,
the
authority
must
26
send
a
notice
of
rejection
to
the
applicant,
and
provide
a
27
reason
for
the
rejection.
If
an
application
has
been
rejected
28
because
the
applicant
failed
to
submit
all
of
the
required
29
information,
the
applicant
has
15
days
to
provide
additional
30
information
to
cure
any
defects
in
the
application.
The
31
authority
shall
review
and
reconsider,
within
the
time
frame
32
adopted
by
rule
by
the
authority,
any
application
for
which
33
additional
information
is
provided
within
the
15
business
days.
34
If
an
application
is
approved
by
the
authority
after
review
and
35
-16-
LSB
6330YC
(1)
90
jm/jh
16/
22
H.F.
_____
reconsideration,
the
application
shall
be
considered
complete
1
as
of
its
original
date
of
submission.
2
If
the
authority
approves
an
application,
the
authority
3
must
send
a
notice
to
the
applicant
certifying
the
applicant
4
as
a
rural
business
growth
fund,
the
growth
fund’s
eligible
5
investment
authority,
and
the
required
number
of
jobs
created
6
and
the
required
number
of
jobs
retained
based
on
the
number
7
submitted
in
the
applicant’s
application.
Within
45
days
of
8
the
date
the
authority
sent
the
notice
of
certification,
the
9
growth
fund
is
required
to
collect
all
credit-eligible
capital
10
contributions
from
each
investor
whose
affidavit
was
included
11
in
the
growth
fund’s
application,
collect
one
or
more
equity
12
investments
contributed
directly
or
indirectly
by
affiliates
13
of
the
growth
fund,
including
employees
and
principals
of
14
such
affiliates,
that
equal
at
least
10
percent
of
the
growth
15
fund’s
eligible
investment
authority,
and
collect
one
or
more
16
investments
of
cash
that
when
added
to
the
credit-eligible
17
capital
contributions
and
the
equity
investments
equal
the
18
growth
fund’s
eligible
investment
authority.
Within
65
days
19
of
the
date
the
authority
sent
the
notice
of
certification,
20
the
growth
fund
must
submit
documentation
to
the
authority
21
to
prove
that
the
appropriate
amounts
have
been
collected
22
by
the
growth
fund,
and
documentation
that
identifies
all
23
affiliates
of
the
investor
that
may
be
eligible
to
claim
a
24
tax
credit
issued
by
the
authority.
If
the
growth
fund
fails
25
to
comply
with
the
collection
and
documentation
requirements,
26
all
eligible
investment
authority
and
credit-eligible
capital
27
contributions
lapse.
Eligible
investment
authority
and
28
credit-eligible
capital
contributions
that
lapse
do
not
count
29
toward
the
maximum
limits
on
eligible
investment
authority
and
30
credit-eligible
capital
contributions
and
may
be
awarded
by
the
31
authority
as
outlined
in
the
bill.
32
If
a
growth
fund
successfully
complies
with
the
collection
33
and
documentation
requirements,
the
growth
fund
must
enter
34
into
an
agreement
with
the
authority
that
specifies
the
35
-17-
LSB
6330YC
(1)
90
jm/jh
17/
22
H.F.
_____
requirements
that
must
be
met
for
successful
completion
of
1
the
program.
The
agreement
must
contain,
at
a
minimum,
the
2
legal
name
of
the
growth
fund,
the
growth
fund’s
closing
date,
3
the
growth
fund’s
eligible
investment
authority
as
certified
4
by
the
authority,
each
investor
of
the
growth
fund
and
each
5
investor’s
credit-eligible
capital
contribution,
the
minimum
6
number
of
jobs
that
must
be
created
and
the
minimum
number
of
7
jobs
that
must
be
retained
as
a
result
of
the
growth
fund’s
8
growth
investments
to
avoid
paying
state
reimbursement,
and
a
9
provision
related
to
revocation
and
recapture
of
tax
credits
if
10
the
growth
fund
fails
to
meet
the
applicable
program
investment
11
requirements.
12
After
the
agreement
is
executed,
the
authority
must
issue
13
a
tax
credit
certificate
to
each
investor
whose
affidavit
14
was
included
in
the
growth
fund’s
application
and
whose
15
credit-eligible
capital
contribution
was
collected
by
the
16
growth
fund.
The
certificate
must
specify
the
amount
of
tax
17
credit
allocated
to
that
investor
and
the
amount
of
the
tax
18
credit
the
eligible
taxpayer
may
claim
against
the
franchise
19
tax
imposed
in
Code
section
422.60,
the
insurance
premium
tax
20
and
insurance
retaliatory
premium
tax
imposed
in
Code
chapter
21
432,
or
the
moneys
and
credits
tax
imposed
in
Code
section
22
533.329.
The
tax
credit
allocated
to
any
one
investor
is
equal
23
to
the
investor’s
credit-eligible
capital
contribution
to
the
24
growth
fund.
An
investor
may
use
one-third
percent
of
the
tax
25
credit
in
each
taxable
year
beginning
in
the
calendar
year
26
following
the
third,
fourth,
and
fifth
anniversaries
of
the
27
growth
fund’s
closing
date.
Any
tax
credit
in
excess
of
the
28
taxpayer’s
tax
liability
for
a
tax
year
may
be
carried
forward
29
to
the
taxpayer’s
tax
liability
for
subsequent
tax
years
until
30
the
tax
credit
is
depleted.
31
The
tax
credits
are
not
refundable
and
cannot
be
sold,
32
transferred,
or
allocated
by
the
investor
to
any
person
other
33
than
an
affiliate
of
the
investor.
The
affiliate
must
submit
34
the
tax
credit
certificate
within
90
days
to
the
department
35
-18-
LSB
6330YC
(1)
90
jm/jh
18/
22
H.F.
_____
of
revenue
(department)
along
with
a
statement
containing
the
1
affiliate’s
name,
tax
identification
number,
address,
and
any
2
other
information
required
by
the
department.
The
department
3
must
issue
the
affiliate
a
replacement
tax
credit
certificate
4
with
the
same
expiration
date
that
appeared
on
the
original
tax
5
credit
certificate.
6
The
authority
shall
revoke
or
recapture
a
tax
credit
if,
7
before
a
growth
fund
exits
the
program,
the
growth
fund
cannot
8
provide
documentation
to
the
authority
to
substantiate
that
the
9
growth
fund,
within
30
months
after
the
growth
fund’s
closing
10
date,
has
invested
100
percent
of
the
growth
fund’s
investment
11
authority
in
growth
investments;
that
the
growth
fund,
after
12
investing
100
percent
of
the
growth
fund’s
investment
authority
13
in
growth
investments
within
30
months
after
the
growth
fund’s
14
closing
date,
has
maintained
growth
investments
equal
to
100
15
percent
of
its
investment
authority
at
all
times
up
to
the
16
fifth
anniversary
after
the
growth
fund’s
closing
date.
The
17
bill
specifies
that
a
growth
investment
is
maintained
even
if
18
it
is
sold
or
repaid,
as
long
as
the
growth
fund
reinvests
an
19
amount
equal
to
the
growth
investment
returned
or
recovered
20
from
the
original
investment,
exclusive
of
any
profits
21
realized,
in
other
growth
investments
in
this
state
within
the
22
12
consecutive
months
immediately
after
the
date
of
the
return
23
or
recovery
of
such
growth
investment.
The
bill
also
specifies
24
that
amounts
received
periodically
by
a
growth
fund
are
deemed
25
continuously
invested
in
growth
investments
if
the
amounts
26
are
reinvested
by
the
growth
fund
in
one
or
more
qualified
27
businesses
by
the
end
of
the
following
calendar
year.
28
The
authority
must
also
revoke
or
recapture
a
tax
credit
29
if,
before
a
growth
fund
exits
the
program,
the
growth
30
fund
makes
a
growth
investment
in
a
qualified
business
that
31
directly,
or
indirectly
through
an
affiliate,
owns,
has
the
32
right
to
acquire
an
ownership
interest
in,
makes
a
loan
to,
33
or
makes
an
investment
in,
the
growth
fund,
an
affiliate
of
34
the
growth
fund,
or
an
investor
in
the
growth
fund.
This
does
35
-19-
LSB
6330YC
(1)
90
jm/jh
19/
22
H.F.
_____
not
apply
to
investments
in
publicly
traded
securities
by
a
1
qualified
business,
or
to
an
owner
or
an
affiliate
of
the
2
qualified
business.
Further,
a
growth
fund
is
not
considered
3
an
affiliate
of
a
qualified
business
solely
because
of
its
4
growth
investment
in
the
qualified
business.
The
authority
5
is
also
required
to
revoke
or
recapture
a
tax
credit
if
the
6
growth
fund,
before
it
exits
the
program,
makes
a
distribution
7
or
payment
that
results
in
the
growth
fund
having
less
than
100
8
percent
of
its
initial
investment
authority
invested
in
growth
9
investments
in
this
state,
available
for
growth
investments,
10
or
held
in
cash
and
marketable
securities.
A
growth
fund
may
11
count
the
greater
of
20
percent
of
the
growth
fund’s
eligible
12
investment
authority
and
$5
million,
excluding
any
amounts
13
reinvested
in
a
qualified
business,
toward
the
growth
fund’s
14
satisfaction
of
the
investment
requirements.
Before
the
15
authority
revokes
or
recaptures
a
tax
credit,
the
authority
16
must
provide
notice
to
the
growth
fund
of
the
reason
for
the
17
pending
revocation
or
recapture
and
the
growth
fund
has
90
days
18
to
address
any
issues
identified
in
the
notice.
Failure
of
the
19
growth
fund
to
address
any
of
the
issues
in
the
notice
results
20
in
revocation
or
recapture
of
the
tax
credit.
21
The
bill
prohibits
the
authority
from
revoking
or
22
recapturing
a
tax
credit
for
any
action
of
a
growth
fund
that
23
occurs
after
the
growth
fund
has
exited
the
program.
The
bill
24
does
not,
however,
prohibit
the
authority
from
revoking
a
tax
25
credit
due
to
an
action
of
a
growth
fund
that
occurs
before
the
26
growth
fund
exits
the
program,
even
if
the
growth
fund’s
action
27
is
discovered
after
the
growth
fund
exits
the
program.
28
On
or
after
the
fifth
anniversary
of
a
growth
fund’s
closing
29
date,
the
growth
fund
may
apply
to
the
authority
to
exit
the
30
program.
A
growth
fund
is
eligible
to
exit
the
program
if
a
31
tax
credit
associated
with
the
growth
fund
has
not
been
revoked
32
or
recaptured.
The
growth
fund’s
application
must
include
the
33
state
reimbursement
calculation.
The
state
reimbursement
owed
34
by
a
rural
business
growth
fund
to
the
authority
is
calculated
35
-20-
LSB
6330YC
(1)
90
jm/jh
20/
22
H.F.
_____
as
detailed
in
the
bill.
Within
the
time
frame
adopted
by
rule
1
by
the
authority,
the
authority
shall
send
notice
to
the
growth
2
fund
of
the
authority’s
determination
regarding
the
application
3
and
confirmation
of
the
state
reimbursement
owed
by
the
growth
4
fund.
If
the
authority
denies
the
application,
the
notice
must
5
include
the
reasons
for
the
denial.
If
the
authority
approves
6
the
application,
the
growth
fund
is
deemed
to
have
exited
the
7
program
on
the
date
the
notice
is
sent
by
the
authority
to
the
8
growth
fund.
If
the
growth
fund
owes
the
state
reimbursement,
9
the
growth
fund
is
prohibited
from
making
any
distributions
to
10
equity
holders
of
the
fund
until
the
state
reimbursement
amount
11
has
been
remitted
to
the
authority.
“Equity
holder”
is
defined
12
in
the
bill
as
a
person
that
makes
a
credit-eligible
capital
13
contribution,
an
equity
investment,
or
a
cash
investment
in
14
a
rural
business
growth
fund.
The
bill
specifies
that
all
15
state
reimbursement
amounts
remitted
to
the
authority
shall
be
16
deposited
in
the
general
fund
of
the
state.
17
Unless
a
growth
fund
has
exited
the
program,
the
growth
18
fund
must
submit
an
annual
report
to
the
authority
that
19
covers
the
preceding
calendar
year.
The
report
must
include
20
documentation
for
each
of
the
growth
fund’s
growth
investments
21
and
must
include
financial
statements
that
provide
evidence
22
of
each
growth
investment,
evidence
that
the
growth
fund
is
23
in
compliance
with
applicable
investment
requirements;
the
24
name,
location,
and
industry
for
each
qualified
business
that
25
received
a
growth
investment;
evidence
that
each
business
met
26
the
requirements
to
be
a
qualified
business
at
the
time
the
27
growth
investment
was
made;
the
number
of
employees
at
each
28
qualified
business
on
the
date
of
the
growth
fund’s
initial
29
growth
investment;
the
number
of
jobs
created
at
each
qualified
30
business;
the
average
annual
salary
for
the
jobs
created;
the
31
number
of
jobs
retained
at
each
qualified
business;
and
the
32
average
annual
salary
for
the
jobs
retained.
33
The
bill
provides
that
the
only
remedies
for
a
breach
or
34
default
of
any
of
the
terms
of
the
program
by
a
growth
fund
35
-21-
LSB
6330YC
(1)
90
jm/jh
21/
22
