Bill Text: IA SF2339 | 2013-2014 | 85th General Assembly | Enrolled
Bill Title: A bill for an act relating to the administration of the redevelopment tax credits program by the economic development authority and including applicability provisions. (Formerly SSB 3050 and SF 2256.) Effective 7-1-14.
Spectrum: Committee Bill
Status: (Passed) 2014-04-10 - Signed by Governor. S.J. 769. [SF2339 Detail]
Download: Iowa-2013-SF2339-Enrolled.html
Senate
File
2339
AN
ACT
RELATING
TO
THE
ADMINISTRATION
OF
THE
REDEVELOPMENT
TAX
CREDITS
PROGRAM
BY
THE
ECONOMIC
DEVELOPMENT
AUTHORITY
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
15.291,
Code
2014,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
01.
“Abandoned
public
building”
means
a
vertical
improvement,
as
defined
in
section
15J.1,
constructed
for
use
primarily
by
a
political
subdivision
of
the
state
for
a
public
purpose
and
whose
current
use
is
outdated
or
prevents
a
better
or
more
efficient
use
of
the
property
by
the
current
owner.
“Abandoned
public
building”
includes
vacant,
blighted,
obsolete,
or
otherwise
underutilized
property.
NEW
SUBSECTION
.
4A.
“Political
subdivision”
means
a
city,
county,
township,
or
school
district.
NEW
SUBSECTION
.
4B.
“Previously
remediated
or
redeveloped”
means
any
prior
remediation
or
redevelopment,
including
development
for
which
an
award
of
tax
credits
under
this
part
has
been
made.
NEW
SUBSECTION
.
6A.
“Redevelopment
tax
credits
program”
means
the
tax
credits
program
administered
pursuant
to
sections
15.293A
and
15.293B.
Sec.
2.
Section
15.291,
subsection
3,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
“Grayfield
site”
means
an
abandoned
public
building
or
an
industrial
or
commercial
property
meeting
that
meets
all
of
the
following
requirements:
Sec.
3.
Section
15.291,
subsection
6,
Code
2014,
is
amended
to
read
as
follows:
Senate
File
2339,
p.
2
6.
“Qualifying
redevelopment
project”
means
a
brownfield
or
a
grayfield
site
being
redeveloped
or
improved
by
the
property
owner.
“Qualifying
redevelopment
project”
does
not
include
a
previously
remediated
or
redeveloped
brownfield
or
grayfield
site.
Sec.
4.
Section
15.293A,
subsection
1,
paragraph
c,
Code
2014,
is
amended
to
read
as
follows:
c.
(1)
Any
Except
as
provided
in
subparagraph
(2),
any
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
tax
liability
for
the
following
five
years
or
until
depleted,
whichever
is
earlier.
(2)
A
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
is
refundable
if
all
of
the
following
conditions
are
met:
(a)
The
taxpayer
is
an
investor
making
application
for
tax
credits
provided
in
this
section
and
is
an
entity
organized
under
chapter
504
and
qualifying
under
section
501(c)(3)
of
the
Internal
Revenue
Code
as
an
organization
exempt
from
federal
income
tax
under
section
501(a)
of
the
Internal
Revenue
Code.
(b)
The
taxpayer
establishes
during
the
application
process
described
in
section
15.293B
that
the
requirement
in
subparagraph
division
(a)
is
satisfied.
The
authority,
when
issuing
a
certificate
to
a
taxpayer
that
meets
the
requirements
in
this
subparagraph
(2),
shall
indicate
on
the
certificate
that
such
requirements
have
been
satisfied.
(3)
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
first
receives
the
tax
credit.
Sec.
5.
Section
15.293A,
subsection
2,
paragraph
a,
Code
2014,
is
amended
by
striking
the
paragraph.
Sec.
6.
Section
15.293A,
subsection
2,
paragraph
b,
subparagraph
(1),
Code
2014,
is
amended
to
read
as
follows:
(1)
To
claim
a
redevelopment
tax
credit
under
this
section
,
a
taxpayer
must
attach
include
one
or
more
tax
credit
certificates
to
with
the
taxpayer’s
tax
return.
A
tax
credit
certificate
shall
not
be
used
or
attached
to
included
with
a
return
filed
for
a
taxable
year
beginning
prior
to
July
1,
2009
the
tax
year
listed
on
the
certificate
.
Sec.
7.
Section
15.293A,
subsection
3,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
The
amount
of
the
tax
credit
shall
equal
one
of
be
determined
by
the
board
in
conjunction
with
the
council.
However,
the
tax
Senate
File
2339,
p.
3
credit
shall
not
exceed
the
following
amount,
as
applicable
:
Sec.
8.
Section
15.293A,
subsection
6,
Code
2014,
is
amended
to
read
as
follows:
6.
For
the
fiscal
year
beginning
July
1,
2009,
the
maximum
amount
of
tax
credits
issued
by
the
authority
shall
not
exceed
one
million
dollars.
For
each
subsequent
fiscal
year,
the
The
amount
of
tax
credits
that
may
be
issued
awarded
by
the
authority
board
shall
be
subject
to
the
limitation
in
section
15.119
.
Sec.
9.
Section
15.293A,
subsections
8,
9,
10,
11,
and
12,
Code
2014,
are
amended
by
striking
the
subsections.
Sec.
10.
Section
15.293B,
Code
2014,
is
amended
to
read
as
follows:
15.293B
Approval
——
requirements
——
repayment
Application
——
registration
——
agreement
.
1.
a.
The
authority
shall
develop
a
system
for
the
application,
review,
registration,
and
authorization
of
projects
awarded
tax
credits
pursuant
to
this
part
and
shall
control
the
issuance
of
all
tax
credit
certificates
to
investors
pursuant
to
this
part.
b.
The
authority
shall
accept
and
,
in
conjunction
with
the
council,
review
applications
for
tax
credits
pursuant
to
provided
in
section
15.293A
and,
with
the
approval
of
the
council,
make
tax
credit
award
recommendations
regarding
the
applications
to
the
board.
c.
Applications
for
redevelopment
tax
credits
shall
be
accepted
during
an
annual
application
period
established
by
the
authority.
d.
Upon
review
of
an
application,
the
authority
may
register
the
project
with
the
redevelopment
tax
credits
program.
If
the
authority
registers
the
project,
the
authority
may,
in
conjunction
with
the
council,
make
a
preliminary
determination
as
to
the
amount
of
tax
credit
for
which
an
award
recommendation
will
be
made
to
the
board.
e.
After
registering
the
project,
the
authority
shall
notify
the
investor
of
successful
registration
under
the
redevelopment
tax
credits
program.
The
notification
may
include
the
amount
of
tax
credit
for
which
an
award
recommendation
will
be
made
to
the
board.
If
an
award
recommendation
is
included
in
the
notification,
such
notification
shall
include
a
statement
that
the
award
recommendation
is
a
recommendation
only.
The
amount
of
tax
credit
included
on
a
tax
credit
certificate
issued
pursuant
to
this
section
shall
be
contingent
upon
an
award
Senate
File
2339,
p.
4
by
the
board
and
upon
completion
of
the
requirements
in
this
section.
f.
(1)
All
completed
applications
shall
be
reviewed
and
scored
on
a
competitive
basis
by
the
council
and
the
board.
In
reviewing
and
scoring
applications,
the
council
and
the
board
may
consider
any
factors
the
council
and
board
deem
appropriate
for
a
competitive
application
process,
including
but
not
limited
to
the
financial
need,
quality,
and
feasibility
of
a
qualifying
redevelopment
project.
(2)
For
purposes
of
this
paragraph:
(a)
“Feasibility”
means
the
likelihood
that
the
project
will
obtain
the
financing
necessary
to
allow
for
full
completion
of
the
project
and
the
likelihood
that
the
proposed
redevelopment
or
improvement
that
is
the
subject
of
the
project
will
be
fully
completed.
(b)
“Financial
need”
means
the
difference
between
the
total
costs
of
the
project
less
the
total
financing
that
will
be
received
for
the
project.
(c)
“Quality”
means
the
merit
of
the
project
after
considering
and
evaluating
its
total
characteristics
and
measuring
those
characteristics
in
a
uniform,
objective
manner
against
the
total
characteristics
of
other
projects
that
have
applied
for
the
tax
credit
provided
in
section
15.293A
during
the
same
annual
application
period.
g.
Upon
reviewing
and
scoring
all
applications
that
are
part
of
an
annual
application
period,
the
board
may
award
tax
credits
provided
in
section
15.293A.
h.
If
the
applicant
for
a
tax
credit
provided
in
section
15.293A
has
also
applied
to
an
agency
of
the
federal
government
or
to
the
authority,
the
board,
or
any
other
agency
of
state
government
for
additional
financial
assistance,
the
authority,
the
council,
and
the
board
shall
consider
the
amount
of
funding
to
be
received
from
such
public
sources
when
making
a
tax
credit
award
pursuant
to
this
section.
i.
An
applicant
that
is
unsuccessful
in
receiving
a
tax
credit
award
during
an
annual
application
period
may
make
additional
applications
during
subsequent
annual
application
periods.
Such
applicants
shall
be
required
to
submit
a
new
application
and
shall
be
competitively
reviewed
and
scored
in
the
same
manner
as
other
applicants
in
that
annual
application
period.
2.
An
investor
applying
for
a
tax
credit
shall
provide
the
authority
with
all
of
the
following:
Senate
File
2339,
p.
5
a.
Information
showing
the
total
costs
of
the
qualifying
redevelopment
project,
including
the
costs
of
land
acquisition,
cleanup,
and
redevelopment.
b.
Information
about
the
financing
sources
of
the
investment
which
are
directly
related
to
the
qualifying
redevelopment
project
for
which
the
taxpayer
investor
is
seeking
approval
for
a
tax
credit
,
as
provided
in
section
15.293A
.
c.
Any
other
information
deemed
necessary
by
the
board
and
the
council
to
review
and
score
the
application
pursuant
to
subsection
1.
3.
If
a
taxpayer
receives
an
investor
is
awarded
a
tax
credit
pursuant
to
section
15.293A
,
but
this
section,
the
authority
and
the
investor
shall
enter
into
an
agreement
concerning
the
qualifying
redevelopment
project.
If
the
investor
fails
to
comply
with
any
of
the
requirements
of
the
agreement
,
the
taxpayer
loses
any
right
to
the
tax
credit,
and
the
authority
may
find
the
investor
in
default
under
the
agreement
and
may
revoke
all
or
a
portion
of
the
tax
credit
award.
The
department
of
revenue
,
upon
notification
by
the
authority
of
an
event
of
default,
shall
seek
recovery
repayment
of
the
value
of
the
any
such
tax
credit
received
already
claimed
in
the
same
manner
as
provided
in
section
15.330,
subsection
2
.
4.
This
section
is
repealed
on
June
30,
2021.
A
registered
project
shall
be
completed
within
thirty
months
of
the
date
the
project
was
registered
unless
the
authority
provides
additional
time
to
complete
the
project.
A
project
shall
not
be
provided
more
than
twelve
months
of
additional
time.
If
the
registered
project
is
not
completed
within
the
time
required,
the
project
is
not
eligible
to
claim
a
tax
credit
provided
in
section
15.293A.
5.
a.
Upon
completion
of
a
registered
project,
an
audit
of
the
project,
completed
by
an
independent
certified
public
accountant
licensed
in
this
state,
shall
be
submitted
to
the
authority.
b.
Upon
review
of
the
audit
and
verification
of
the
amount
of
the
qualifying
investment,
the
authority
may
issue
a
tax
credit
certificate
to
the
investor
stating
the
amount
of
tax
credit
under
section
15.293A
the
investor
may
claim.
6.
The
authority,
in
conjunction
with
the
department
of
revenue,
shall
adopt
rules
to
administer
the
redevelopment
tax
credits
program.
7.
This
section
is
repealed
on
June
30,
2021.
Senate
File
2339,
p.
6
Sec.
11.
Section
15.294,
subsection
1,
paragraph
c,
Code
2014,
is
amended
by
striking
the
paragraph
and
inserting
in
lieu
thereof
the
following:
c.
One
person
selected
by
the
board
of
directors
of
the
professional
developers
of
Iowa.
Sec.
12.
Section
15.294,
subsection
4,
Code
2014,
is
amended
to
read
as
follows:
4.
The
council,
in
conjunction
with
the
authority,
shall
consider
applications
for
redevelopment
tax
credits
as
described
provided
in
sections
section
15.293A
and
15.293B
,
and
may
recommend
to
the
authority
which
applications
to
approve
and
the
amount
of
such
tax
credits
that
each
project
is
eligible
to
receive
should
be
awarded
by
the
board
.
Sec.
13.
APPLICABILITY.
This
Act
applies
to
qualifying
redevelopment
projects
for
which
a
redevelopment
tax
credit
is
awarded
on
or
after
the
effective
date
of
this
Act,
and
qualifying
redevelopment
projects
for
which
a
redevelopment
tax
credit
was
awarded
prior
to
the
effective
date
of
this
Act
shall
be
governed
by
sections
15.291,
15.293A,
and
15.293B,
Code
2014.
______________________________
PAM
JOCHUM
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2339,
Eighty-fifth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2014
______________________________
TERRY
E.
BRANSTAD
Governor