Bill Text: IA SF2325 | 2021-2022 | 89th General Assembly | Enrolled

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Bill Title: A bill for an act related to matters under the purview of the economic development authority including the high quality jobs program, the Iowa energy center, and the workforce housing tax incentive program, and including effective date and retroactive applicability provisions. (Formerly SSB 3032.) Effective date: 03/23/2022. Applicability date: 07/01/2021.

Spectrum: Committee Bill

Status: (Passed) 2022-06-22 - Fiscal note. [SF2325 Detail]

Download: Iowa-2021-SF2325-Enrolled.html

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Senate File 2325 - Enrolled
Senate File 2325
AN ACT
RELATED TO MATTERS UNDER THE PURVIEW OF THE ECONOMIC DEVELOPMENT
AUTHORITY INCLUDING THE HIGH QUALITY JOBS PROGRAM, THE IOWA
ENERGY CENTER, AND THE WORKFORCE HOUSING TAX INCENTIVE
PROGRAM, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE
APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 15.108, subsection 9, paragraph g, Code
2022, is amended to read as follows:
g. Administer the Iowa energy center established in section
15.120 . This paragraph “g” is repealed July 1, 2022 2027 .
Sec. 2. Section 15.120, subsection 1, Code 2022, is amended
by adding the following new paragraph:
NEW PARAGRAPH . h. To support research and development of
strategies for carbon management.
Sec. 3. Section 15.120, subsection 5, Code 2022, is amended
to read as follows:
5. This section is repealed July 1, 2022 2027 .
Sec. 4. Section 15.335C, subsection 2, Code 2022, is amended
to read as follows:
2. For purposes of this section , “economically distressed
area” means a county that ranks among the bottom thirty-three of
all Iowa counties, as measured by one meets at least three of
the following criteria :
a. Average The county ranks among the thirty-three Iowa
counties with the highest average monthly unemployment level

Senate File 2325, p. 2
rates for the most recent twelve-month period based on the
applicable local area unemployment statistics produced by the
United States department of labor, bureau of labor statistics .
b. Average The county ranks among the thirty-three Iowa
counties with the highest average annualized unemployment
level rates for the most recent five-year period based on the
applicable local area unemployment statistics produced by the
United States department of labor, bureau of labor statistics .
c. The county ranks among the thirty-three Iowa counties
with the lowest annual average weekly wages based on the most
recent quarterly census of employment and wages published
by the United States department of labor, bureau of labor
statistics.
d. The county ranks among the thirty-three Iowa counties
with the highest family poverty rates based on the most recent
American community survey five-year estimate released by the
United States census bureau.
e. The county ranks among the thirty-three Iowa counties
with the highest percentage population loss. Percentage
population loss shall be calculated by comparing the most
recent population estimate produced by the United States
census bureau to the most recent decennial census released
by the United States census bureau, except for a calendar
year in which the decennial census data is released, then the
percentage population loss shall be calculated by comparing the
population in the decennial census released that calendar year
to the population in decennial census released ten years prior.
f. The county ranks among the thirty-three Iowa counties
with the highest percentage of persons sixty-five years of age
or older based on the most recent American community survey
five-year estimate released by the United States census bureau.
Sec. 5. Section 15.335C, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 3. The authority may designate a county
that does not meet at least three of the criteria in subsection
2 as an economically distressed area under this section if
a business located in the county experiences a layoff or a
closure that has a significant impact on a community within the
county. The authority shall adopt rules to establish a process

Senate File 2325, p. 3
for designating a county an economically distressed area under
this subsection.
Sec. 6. Section 15.352, subsection 10, Code 2022, is amended
to read as follows:
10. “Small city” means any of the following:
a. Any city or township located in this state, except those
located wholly within one or more of the eleven most populous
counties in the state, as determined by either the most recent
population estimates issued estimate produced by the United
States bureau of census or the most recent decennial census
released by the United States bureau of census .
b. Any city or township located wholly within one or more of
the eleven most populous counties in the state, as determined
pursuant to paragraph “a” , and that meets all of the following
requirements:
(1) The city or township has a population less than or equal
to two thousand five hundred as determined by either the most
recent population estimate produced by the United States bureau
of census or the most recent decennial census released by the
United States bureau of census.
(2) The city or township had population growth of less
than thirty percent as calculated by comparing the population
in the most recent decennial census released by the United
States census bureau to the population in the decennial census
released ten years prior.
Sec. 7. Section 15.352, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 11. “Urban area” means any city or
township, except for a small city, that is wholly located
within one or more of the eleven most populous counties in
the state, as determined by either the most recent population
estimate produced by the United States bureau of census or the
most recent decennial census released by the United States
bureau of census.
Sec. 8. Section 15.353, subsection 2, paragraph e, Code
2022, is amended by striking the paragraph.
Sec. 9. Section 15.353, subsection 3, Code 2022, is amended
to read as follows:
3. a. Except as provided in paragraph “b” , the average

Senate File 2325, p. 4
dwelling unit cost does not exceed two hundred thousand
dollars per dwelling unit the maximum amount established by
the board for each fiscal year for the applicable project
type and project location. The board shall establish the
maximum average dwelling unit cost for a project that includes
single-family dwelling units that is located in a small city
and for a project that includes single-family dwelling units
that is located in an urban area. The board shall establish
the maximum average dwelling unit cost for a project that
includes multiple dwelling unit buildings and is located
in a small city and for a project that includes multiple
dwelling unit buildings and is located in an urban area. In
establishing each maximum average dwelling unit cost, the board
shall primarily consider the most recent annual United States
census bureau building permits survey and historical program
data .
b. (1) The average dwelling unit cost does not exceed two
hundred fifty thousand dollars per dwelling unit if If the
project involves the rehabilitation, repair, redevelopment,
or preservation of property described in section 404A.1,
subsection 8 , paragraph “a” , the average dwelling unit cost
shall not exceed one hundred twenty-five percent of the maximum
average dwelling unit cost established by the board for the
applicable project type and project location as provided in
paragraph “a” .
(2) The average dwelling unit cost for the project does not
exceed two hundred fifteen thousand dollars per dwelling unit
if the project is located in a small city.
Sec. 10. Section 15.354, subsection 3, paragraph c,
subparagraph (2), Code 2022, is amended to read as follows:
(2) The authority may for good cause within the discretion
of the authority extend a housing project’s completion
deadline once by up to twelve months upon application by
the housing business, which application shall be made prior
to the expiration of the three-year completion deadline in
subparagraph (1) in the manner and form prescribed by the
authority . The authority may approve a second extension of
up to twelve months if prior to the expiration of the first
twelve-month extension the housing business applies and

Senate File 2325, p. 5
substantiates to the satisfaction of the authority that the
second extension is warranted due to extenuating circumstances
outside the control of the housing business. An application
by a housing business shall be made in the manner and form
prescribed by the authority by rule.
Sec. 11. Section 15.354, subsection 3, paragraph e,
subparagraph (2), subparagraph divisions (b) and (c), Code
2022, are amended to read as follows:
(b) If the project costs cause the housing project’s average
dwelling unit cost to exceed the applicable maximum amount
authorized in section 15.353, subsection 3 , but do not cause
the average dwelling unit cost to exceed one hundred ten fifty
percent of such applicable maximum amount, the authority may
consider the agreement fulfilled and may issue a tax credit
certificate. In such case, the authority shall reduce the tax
incentive award and the corresponding amount of tax incentives
the eligible housing project may claim under section 15.355,
subsections 2 and 3 , by the same percentage that the housing
project’s average dwelling unit cost exceeds the applicable
maximum amount under section 15.353, subsection 3 , and such
tax incentive reduction shall be reflected on the tax credit
certificate. If the authority issues a certificate pursuant
to this subparagraph division, the department of revenue
shall accept the certificate notwithstanding that the housing
project’s average dwelling unit costs exceed the maximum amount
specified in section 15.353, subsection 3 .
(c) If the project costs cause the housing project’s average
dwelling unit cost to exceed one hundred ten fifty percent of
the applicable maximum amount authorized in section 15.353,
subsection 3 , the authority shall determine the eligible
housing business to be in default under the agreement, shall
revoke the tax incentive award, and shall not issue a tax
credit certificate. The housing business shall not be allowed
a refund of sales and use tax under section 15.355, subsection
2 .
Sec. 12. EFFECTIVE DATE. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 13. RETROACTIVE APPLICABILITY. The following
apply retroactively to July 1, 2021, to all eligible housing

Senate File 2325, p. 6
businesses that the economic development authority has not
notified of the amount that the housing business may claim
as a refund of the sales and use tax under section 15.355,
subsection 2, and all eligible housing businesses that the
economic development authority has not issued a tax credit
certificate stating the amount of workforce housing investment
tax credits under section 15.355, subsection 3, the eligible
housing business may claim:
1. The section of this Act amending section 15.352,
subsection 10.
2. The section of this Act enacting section 15.352,
subsection 11.
3. The section of this Act amending section 15.353,
subsection 2, paragraph “e”.
4. The section of this Act amending section 15.353,
subsection 3.
5. The section of this Act amending section 15.354,
subsection 3, paragraph “e”, subparagraph (2), subparagraph
divisions (b) and (c).
______________________________ ______________________________
JAKE CHAPMAN PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2325, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2022 ______________________________
KIM REYNOLDS
Governor