Bill Text: IA SF2325 | 2021-2022 | 89th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
Senate
File
2325
-
Introduced
SENATE
FILE
2325
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3032)
A
BILL
FOR
An
Act
related
to
matters
under
the
purview
of
the
economic
1
development
authority
including
the
high
quality
jobs
2
program,
the
Iowa
energy
center,
and
the
workforce
housing
3
tax
incentive
program,
and
including
effective
date
and
4
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5319SV
(2)
89
ko/jh
S.F.
2325
Section
1.
Section
15.108,
subsection
9,
paragraph
g,
Code
1
2022,
is
amended
to
read
as
follows:
2
g.
Administer
the
Iowa
energy
center
established
in
section
3
15.120
.
This
paragraph
“g”
is
repealed
July
1,
2022
2027
.
4
Sec.
2.
Section
15.120,
subsection
1,
Code
2022,
is
amended
5
by
adding
the
following
new
paragraph:
6
NEW
PARAGRAPH
.
h.
To
support
research
and
development
of
7
strategies
for
carbon
management.
8
Sec.
3.
Section
15.120,
subsection
5,
Code
2022,
is
amended
9
to
read
as
follows:
10
5.
This
section
is
repealed
July
1,
2022
2027
.
11
Sec.
4.
Section
15.335C,
subsection
2,
Code
2022,
is
amended
12
to
read
as
follows:
13
2.
For
purposes
of
this
section
,
“economically
distressed
14
area”
means
a
county
that
ranks
among
the
bottom
thirty-three
of
15
all
Iowa
counties,
as
measured
by
one
meets
at
least
three
of
16
the
following
criteria
:
17
a.
Average
The
county
ranks
among
the
thirty-three
Iowa
18
counties
with
the
highest
average
monthly
unemployment
level
19
rates
for
the
most
recent
twelve-month
period
based
on
the
20
applicable
local
area
unemployment
statistics
produced
by
the
21
United
States
department
of
labor,
bureau
of
labor
statistics
.
22
b.
Average
The
county
ranks
among
the
thirty-three
Iowa
23
counties
with
the
highest
average
annualized
unemployment
24
level
rates
for
the
most
recent
five-year
period
based
on
the
25
applicable
local
area
unemployment
statistics
produced
by
the
26
United
States
department
of
labor,
bureau
of
labor
statistics
.
27
c.
The
county
ranks
among
the
thirty-three
Iowa
counties
28
with
the
lowest
annual
average
weekly
wages
based
on
the
most
29
recent
quarterly
census
of
employment
and
wages
published
30
by
the
United
States
department
of
labor,
bureau
of
labor
31
statistics.
32
d.
The
county
ranks
among
the
thirty-three
Iowa
counties
33
with
the
highest
family
poverty
rates
based
on
the
most
recent
34
American
community
survey
five-year
estimate
released
by
the
35
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United
States
census
bureau.
1
e.
The
county
ranks
among
the
thirty-three
Iowa
counties
2
with
the
highest
percentage
population
loss.
Percentage
3
population
loss
shall
be
calculated
by
comparing
the
most
4
recent
population
estimate
produced
by
the
United
States
5
census
bureau
to
the
most
recent
decennial
census
released
6
by
the
United
States
census
bureau,
except
for
a
calendar
7
year
in
which
the
decennial
census
data
is
released,
then
the
8
percentage
population
loss
shall
be
calculated
by
comparing
the
9
population
in
the
decennial
census
released
that
calendar
year
10
to
the
population
in
decennial
census
released
ten
years
prior.
11
f.
The
county
ranks
among
the
thirty-three
Iowa
counties
12
with
the
highest
percentage
of
persons
sixty-five
years
of
age
13
or
older
based
on
the
most
recent
American
community
survey
14
five-year
estimate
released
by
the
United
States
census
bureau.
15
Sec.
5.
Section
15.335C,
Code
2022,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
3.
The
authority
may
designate
a
county
18
that
does
not
meet
at
least
three
of
the
criteria
in
subsection
19
2
as
an
economically
distressed
area
under
this
section
if
20
a
business
located
in
the
county
experiences
a
layoff
or
a
21
closure
that
has
a
significant
impact
on
a
community
within
the
22
county.
The
authority
shall
adopt
rules
to
establish
a
process
23
for
designating
a
county
an
economically
distressed
area
under
24
this
subsection.
25
Sec.
6.
Section
15.352,
subsection
10,
Code
2022,
is
amended
26
to
read
as
follows:
27
10.
“Small
city”
means
any
of
the
following:
28
a.
Any
city
or
township
located
in
this
state,
except
those
29
located
wholly
within
one
or
more
of
the
eleven
most
populous
30
counties
in
the
state,
as
determined
by
either
the
most
recent
31
population
estimates
issued
estimate
produced
by
the
United
32
States
bureau
of
census
or
the
most
recent
decennial
census
33
released
by
the
United
States
bureau
of
census
.
34
b.
Any
city
or
township
located
wholly
within
one
or
more
of
35
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the
eleven
most
populous
counties
in
the
state,
as
determined
1
pursuant
to
paragraph
“a”
,
and
that
meets
all
of
the
following
2
requirements:
3
(1)
The
city
or
township
has
a
population
less
than
or
equal
4
to
two
thousand
five
hundred
as
determined
by
either
the
most
5
recent
population
estimate
produced
by
the
United
States
bureau
6
of
census
or
the
most
recent
decennial
census
released
by
the
7
United
States
bureau
of
census.
8
(2)
The
city
or
township
had
population
growth
of
less
9
than
thirty
percent
as
calculated
by
comparing
the
population
10
in
the
most
recent
decennial
census
released
by
the
United
11
States
census
bureau
to
the
population
in
the
decennial
census
12
released
ten
years
prior.
13
Sec.
7.
Section
15.352,
Code
2022,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
11.
“Urban
area”
means
any
city
or
16
township,
except
for
a
small
city,
that
is
wholly
located
17
within
one
or
more
of
the
eleven
most
populous
counties
in
18
the
state,
as
determined
by
either
the
most
recent
population
19
estimate
produced
by
the
United
States
bureau
of
census
or
the
20
most
recent
decennial
census
released
by
the
United
States
21
bureau
of
census.
22
Sec.
8.
Section
15.353,
subsection
2,
paragraph
e,
Code
23
2022,
is
amended
by
striking
the
paragraph.
24
Sec.
9.
Section
15.353,
subsection
3,
Code
2022,
is
amended
25
to
read
as
follows:
26
3.
a.
Except
as
provided
in
paragraph
“b”
,
the
average
27
dwelling
unit
cost
does
not
exceed
two
hundred
thousand
28
dollars
per
dwelling
unit
the
maximum
amount
established
by
29
the
board
for
each
fiscal
year
for
the
applicable
project
30
type
and
project
location.
The
board
shall
establish
the
31
maximum
average
dwelling
unit
cost
for
a
project
that
includes
32
single-family
dwelling
units
that
is
located
in
a
small
city
33
and
for
a
project
that
includes
single-family
dwelling
units
34
that
is
located
in
an
urban
area.
The
board
shall
establish
35
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the
maximum
average
dwelling
unit
cost
for
a
project
that
1
includes
multiple
dwelling
unit
buildings
and
is
located
2
in
a
small
city
and
for
a
project
that
includes
multiple
3
dwelling
unit
buildings
and
is
located
in
an
urban
area.
In
4
establishing
each
maximum
average
dwelling
unit
cost,
the
board
5
shall
primarily
consider
the
most
recent
annual
United
States
6
census
bureau
building
permits
survey
and
historical
program
7
data
.
8
b.
(1)
The
average
dwelling
unit
cost
does
not
exceed
two
9
hundred
fifty
thousand
dollars
per
dwelling
unit
if
If
the
10
project
involves
the
rehabilitation,
repair,
redevelopment,
11
or
preservation
of
property
described
in
section
404A.1,
12
subsection
8
,
paragraph
“a”
,
the
average
dwelling
unit
cost
13
shall
not
exceed
one
hundred
twenty-five
percent
of
the
maximum
14
average
dwelling
unit
cost
established
by
the
board
for
the
15
applicable
project
type
and
project
location
as
provided
in
16
paragraph
“a”
.
17
(2)
The
average
dwelling
unit
cost
for
the
project
does
not
18
exceed
two
hundred
fifteen
thousand
dollars
per
dwelling
unit
19
if
the
project
is
located
in
a
small
city.
20
Sec.
10.
Section
15.354,
subsection
3,
paragraph
c,
21
subparagraph
(2),
Code
2022,
is
amended
to
read
as
follows:
22
(2)
The
authority
may
for
good
cause
within
the
discretion
23
of
the
authority
extend
a
housing
project’s
completion
24
deadline
once
by
up
to
twelve
months
upon
application
by
25
the
housing
business,
which
application
shall
be
made
prior
26
to
the
expiration
of
the
three-year
completion
deadline
in
27
subparagraph
(1)
in
the
manner
and
form
prescribed
by
the
28
authority
.
The
authority
may
approve
a
second
extension
of
29
up
to
twelve
months
if
prior
to
the
expiration
of
the
first
30
twelve-month
extension
the
housing
business
applies
and
31
substantiates
to
the
satisfaction
of
the
authority
that
the
32
second
extension
is
warranted
due
to
extenuating
circumstances
33
outside
the
control
of
the
housing
business.
An
application
34
by
a
housing
business
shall
be
made
in
the
manner
and
form
35
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prescribed
by
the
authority
by
rule.
1
Sec.
11.
Section
15.354,
subsection
3,
paragraph
e,
2
subparagraph
(2),
subparagraph
divisions
(b)
and
(c),
Code
3
2022,
are
amended
to
read
as
follows:
4
(b)
If
the
project
costs
cause
the
housing
project’s
average
5
dwelling
unit
cost
to
exceed
the
applicable
maximum
amount
6
authorized
in
section
15.353,
subsection
3
,
but
do
not
cause
7
the
average
dwelling
unit
cost
to
exceed
one
hundred
ten
fifty
8
percent
of
such
applicable
maximum
amount,
the
authority
may
9
consider
the
agreement
fulfilled
and
may
issue
a
tax
credit
10
certificate.
In
such
case,
the
authority
shall
reduce
the
tax
11
incentive
award
and
the
corresponding
amount
of
tax
incentives
12
the
eligible
housing
project
may
claim
under
section
15.355,
13
subsections
2
and
3
,
by
the
same
percentage
that
the
housing
14
project’s
average
dwelling
unit
cost
exceeds
the
applicable
15
maximum
amount
under
section
15.353,
subsection
3
,
and
such
16
tax
incentive
reduction
shall
be
reflected
on
the
tax
credit
17
certificate.
If
the
authority
issues
a
certificate
pursuant
18
to
this
subparagraph
division,
the
department
of
revenue
19
shall
accept
the
certificate
notwithstanding
that
the
housing
20
project’s
average
dwelling
unit
costs
exceed
the
maximum
amount
21
specified
in
section
15.353,
subsection
3
.
22
(c)
If
the
project
costs
cause
the
housing
project’s
average
23
dwelling
unit
cost
to
exceed
one
hundred
ten
fifty
percent
of
24
the
applicable
maximum
amount
authorized
in
section
15.353,
25
subsection
3
,
the
authority
shall
determine
the
eligible
26
housing
business
to
be
in
default
under
the
agreement,
shall
27
revoke
the
tax
incentive
award,
and
shall
not
issue
a
tax
28
credit
certificate.
The
housing
business
shall
not
be
allowed
29
a
refund
of
sales
and
use
tax
under
section
15.355,
subsection
30
2
.
31
Sec.
12.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
32
immediate
importance,
takes
effect
upon
enactment.
33
Sec.
13.
RETROACTIVE
APPLICABILITY.
The
following
34
apply
retroactively
to
July
1,
2021,
to
all
eligible
housing
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businesses
that
the
economic
development
authority
has
not
1
notified
of
the
amount
that
the
housing
business
may
claim
2
as
a
refund
of
the
sales
and
use
tax
under
section
15.355,
3
subsection
2,
and
all
eligible
housing
businesses
that
the
4
economic
development
authority
has
not
issued
a
tax
credit
5
certificate
stating
the
amount
of
workforce
housing
investment
6
tax
credits
under
section
15.355,
subsection
3,
the
eligible
7
housing
business
may
claim:
8
1.
The
section
of
this
Act
amending
section
15.352,
9
subsection
10.
10
2.
The
section
of
this
Act
enacting
section
15.352,
11
subsection
11.
12
3.
The
section
of
this
Act
amending
section
15.353,
13
subsection
2,
paragraph
“e”.
14
4.
The
section
of
this
Act
amending
section
15.353,
15
subsection
3.
16
5.
The
section
of
this
Act
amending
section
15.354,
17
subsection
3,
paragraph
“e”,
subparagraph
(2),
subparagraph
18
divisions
(b)
and
(c).
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
matters
under
the
purview
of
the
23
economic
development
authority
(authority)
including
the
high
24
quality
jobs
program,
the
Iowa
energy
center,
and
the
workforce
25
housing
tax
incentive
program.
26
Under
current
law,
Code
section
15.120,
which
establishes
27
the
Iowa
energy
center,
is
repealed
on
July
1,
2022.
The
bill
28
extends
the
date
to
2027.
The
bill
requires
the
Iowa
energy
29
center
to
support
research
and
development
of
strategies
for
30
carbon
management.
31
Under
current
law,
for
purposes
of
the
high
quality
jobs
32
program,
a
county
is
qualified
as
an
economically
distressed
33
area
if
the
county
ranks
among
the
bottom
33
of
all
Iowa
34
counties,
as
measured
by
either
the
monthly
unemployment
level
35
-6-
LSB
5319SV
(2)
89
ko/jh
6/
9
S.F.
2325
for
the
most
recent
12-month
period,
or
the
average
annualized
1
unemployment
level
for
the
most
recent
five-year
period.
Under
2
the
bill,
a
county
qualifies
as
an
economically
distressed
3
area
if
it
meets
at
least
three
of
the
criteria
detailed
in
4
the
bill.
The
authority
may
designate
a
county
that
does
5
not
meet
at
least
three
of
the
criteria
as
an
economically
6
distressed
area
if
a
business
located
in
the
county
experiences
7
a
layoff
or
a
closure
that
has
a
significant
impact
on
a
8
community
within
the
county.
The
authority
shall
adopt
rules
9
to
establish
a
process
for
designating
a
county
an
economically
10
distressed
area
under
those
circumstances.
11
Under
current
law,
for
purposes
of
the
workforce
housing
12
tax
incentive
program
(program),
a
“small
city”
is
defined
13
as
any
city
or
township,
except
those
located
wholly
within
14
one
or
more
of
the
11
most
populous
counties
in
the
state,
as
15
determined
by
the
most
recent
population
estimates
issued
by
16
the
United
States
bureau
of
census
(census
bureau).
The
bill
17
defines
“small
city”
as
any
city
or
township,
except
those
18
located
wholly
within
one
or
more
of
the
11
most
populous
19
counties,
as
determined
by
either
the
most
recent
population
20
estimate
or
the
most
recent
decennial
census
released
by
the
21
census
bureau;
or
any
city
or
township
located
wholly
within
22
one
or
more
of
the
11
most
populous
counties
in
the
state,
23
that
has
a
population
less
than
or
equal
to
2,500,
and
that
24
had
population
growth
of
less
than
30
percent
as
calculated
by
25
comparing
the
population
in
the
most
recent
decennial
census
to
26
the
population
in
the
decennial
census
released
10
years
prior.
27
The
bill
defines
“urban
area”
as
any
city
or
township,
except
28
for
a
small
city,
that
is
wholly
located
within
one
or
more
of
29
the
11
most
populous
counties.
“Urban
area”
is
not
defined
for
30
purposes
of
the
program
under
current
law.
31
The
bill
removes
new
construction,
rehabilitation,
repair,
32
or
redevelopment
of
dwelling
units
in
a
distressed
workforce
33
housing
community
as
an
option
for
a
proposed
housing
project
34
(project)
under
the
program.
To
receive
workforce
housing
tax
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incentives
(tax
incentives)
under
the
program,
a
project
cannot
1
exceed
a
specific
average
dwelling
unit
cost
(unit
cost),
which
2
varies
depending
on
the
type
of
project
and
whether
the
project
3
is
located
in
a
small
city
or
an
urban
area,
as
determined
by
4
the
authority
board
as
detailed
in
the
bill.
5
Under
current
law,
the
authority
may
extend
a
project’s
6
completion
deadline
under
the
program
up
to
12
months
upon
7
application
by
the
housing
business,
which
must
be
made
prior
8
to
the
expiration
of
the
project’s
three-year
completion
9
deadline.
Under
the
bill,
the
authority
may
approve
a
second
10
extension
of
up
to
12
months
if
prior
to
the
expiration
of
the
11
first
12-month
extension
the
housing
business
makes
application
12
and
substantiates
to
the
satisfaction
of
the
authority
that
the
13
extension
is
warranted
due
to
extenuating
circumstances
outside
14
the
control
of
the
housing
business.
15
Under
current
law,
if
the
cost
of
a
project
causes
a
housing
16
project’s
average
unit
cost
to
exceed
the
authorized
maximum
17
amount,
but
does
not
cause
the
average
unit
cost
to
exceed
18
110
percent
of
the
maximum
amount,
the
authority
may
issue
19
a
tax
credit
certificate
(certificate).
If
the
cost
of
the
20
project
causes
the
average
unit
cost
to
exceed
110
percent,
the
21
authority
shall
determine
the
housing
business
is
in
default,
22
revoke
the
housing
business’s
tax
incentive
award,
and
not
23
issue
it
a
certificate.
Under
the
bill,
the
average
unit
cost
24
cannot
exceed
150
percent
of
the
authorized
maximum
amount.
25
The
sections
of
the
bill
amending
Code
sections
15.352(10),
26
15.352(11),
15.353(2)(e),
15.353(3),
and
15.354(3)(e)(2)(b)-(c)
27
apply
retroactively
to
July
1,
2021,
to
all
eligible
housing
28
businesses
that
the
authority
has
not
notified
of
the
amount
29
that
the
housing
business
may
claim
as
a
refund
of
the
sales
30
and
use
tax
under
Code
section
15.355(2)
and
all
eligible
31
housing
businesses
that
the
authority
has
not
issued
a
32
certificate
stating
the
amount
of
workforce
housing
investment
33
tax
credits
under
Code
section
15.355(3)
the
eligible
housing
34
business
may
claim.
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