Bill Text: IA SF2287 | 2017-2018 | 87th General Assembly | Introduced

Iowa Senate Bill 2287 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act related to the high quality jobs program by allowing additional tax incentives for businesses locating in specified areas, and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-14 - Subcommittee: Feenstra, Dotzler, and Smith. S.J. 319. [SF2287 Detail]

Download: Iowa-2017-SF2287-Introduced.html


Senate File 2287 - Introduced




                                 SENATE FILE       
                                 BY  BOWMAN

                                      A BILL FOR

  1 An Act related to the high quality jobs program by allowing
  2    additional tax incentives for businesses locating in
  3    specified areas, and including applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 15.335A, subsection 1, unnumbered
  1  2 paragraph 1, Code 2018, is amended to read as follows:
  1  3    Tax incentives are available to eligible businesses as
  1  4 provided in this section. The incentives under this subsection
  1  5  are based upon the number of jobs created or retained that pay
  1  6 at least one hundred twenty percent of the qualifying wage
  1  7 threshold and the amount of the qualifying investment made
  1  8 according to the following schedule:
  1  9    Sec. 2.  Section 15.335A, Code 2018, is amended by adding the
  1 10 following new subsection:
  1 11    NEW SUBSECTION.  1A.  a.  In addition to the tax incentives
  1 12 available under subsection 1, an additional investment tax
  1 13 credit of up to two percent is available to an eligible
  1 14 business that locates in a city or an unincorporated area
  1 15 located in this state that has a population of less than or
  1 16 equal to seven thousand, as determined under the latest federal
  1 17 decennial census.
  1 18    b.  This subsection is repealed June 30, 2025.
  1 19    Sec. 3.  ADDITIONAL INVESTMENT TAX CREDIT ==== EFFECTIVENESS
  1 20 STUDY.
  1 21    1.  The authority shall conduct a study regarding the
  1 22 effectiveness of the additional investment tax credit
  1 23 established pursuant to section 15.335A, subsection 1A, by
  1 24 comparing the five=year period immediately preceding the
  1 25 effective date of this Act to the five=year period immediately
  1 26 following the effective date of this Act, and identifying all
  1 27 of the following for each eligible business:
  1 28    a.  The size of the business.
  1 29    b.  The number of jobs created.
  1 30    c.  The average wage of all jobs created.
  1 31    d.  How long the business has been located in the city or
  1 32 unincorporated area.
  1 33    e.  Any measurable economic impact on the city or
  1 34 unincorporated area attributable to the location of an eligible
  1 35 business.
  2  1    f.  The percentage of additional investment tax credit the
  2  2 business received pursuant to section 15.335A, subsection 1A.
  2  3    2.  The authority shall submit a report including findings
  2  4 and recommendations for increasing the number of eligible
  2  5 businesses that locate in a city or unincorporated area that
  2  6 has a population of seven thousand or less to the governor and
  2  7 the general assembly no later than January 1, 2024.
  2  8    Sec. 4.  APPLICABILITY.  This Act applies to an eligible
  2  9 business that receives a tax incentive under section 15.335A on
  2 10 or after July 1, 2018.
  2 11                           EXPLANATION
  2 12 The inclusion of this explanation does not constitute agreement with
  2 13 the explanation's substance by the members of the general assembly.
  2 14    This bill relates to tax incentives under the high quality
  2 15 job program for eligible businesses that locate in cities or
  2 16 unincorporated areas in the state that are under a specified
  2 17 population level.
  2 18    The bill permits the economic development authority to
  2 19 award an additional investment tax credit of up to 2 percent
  2 20 to an eligible business that locates in a city or in an
  2 21 unincorporated area located in this state that has a population
  2 22 of 7,000 or less.
  2 23    The bill requires the authority to conduct a study regarding
  2 24 the effectiveness of the additional investment tax credit
  2 25 by comparing the five=year period immediately prior to the
  2 26 availability of the additional investment tax credit to the
  2 27 five=year period immediately following the availability of
  2 28 the tax credit, and identifying specific metrics for each
  2 29 eligible business that located in a city or unincorporated
  2 30 area with a population of 7,000 or less during that time
  2 31 period. These metrics include the size of the business, the
  2 32 number of jobs created, the average wage of the jobs, how long
  2 33 the business has been located in the area, the percentage of
  2 34 additional tax credit the business received, and any measurable
  2 35 economic impact on the community that can be attributed to the
  3  1 business. The authority must submit a report with findings and
  3  2 recommendations to the governor and general assembly no later
  3  3 than January 1, 2024.
  3  4    The bill provides for the repeal of the additional
  3  5 investment tax credit effective June 30, 2025.
  3  6    The bill applies to an eligible business that receives a tax
  3  7 incentive under Code section 15.335A on or after July 1, 2018.
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