Bill Text: IA SF574 | 2023-2024 | 90th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions. (Formerly SSB 1162.) Effective date: 05/10/2024.
Spectrum: Committee Bill
Status: (Passed) 2024-05-10 - Correction approved. S.J. 962. [SF574 Detail]
Download: Iowa-2023-SF574-Introduced.html
Bill Title: A bill for an act relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions. (Formerly SSB 1162.) Effective date: 05/10/2024.
Spectrum: Committee Bill
Status: (Passed) 2024-05-10 - Correction approved. S.J. 962. [SF574 Detail]
Download: Iowa-2023-SF574-Introduced.html
Senate
File
574
-
Introduced
SENATE
FILE
574
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1162)
A
BILL
FOR
An
Act
establishing
the
major
economic
growth
attraction
1
program
to
be
administered
by
the
economic
development
2
authority,
and
providing
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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1228SV
(2)
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S.F.
574
Section
1.
Section
9I.3,
subsection
3,
Code
2023,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
f.
(1)
An
interest
in
agricultural
land
3
acquired
by
a
foreign
business
for
an
immediate
use
other
than
4
farming
if
all
of
the
following
requirements
are
met:
5
(a)
The
foreign
business
qualifies
as
an
eligible
business
6
pursuant
to
section
15.283.
7
(b)
The
foreign
business
is
incorporated
under
the
laws
of
8
a
foreign
country
that
is
an
allied
country
and
the
foreign
9
business
is
wholly
owned
directly
or
indirectly
by
nonresident
10
aliens
of
an
allied
country,
or
is
a
business
entity,
whether
11
or
not
incorporated,
which
is
wholly
owned
directly
or
12
indirectly
by
nonresident
aliens
of
an
allied
country.
As
part
13
of
the
foreign
business’s
application
under
section
15.284,
14
the
foreign
business
provides
documentation
to
the
authority,
15
as
deemed
necessary
by
the
authority,
to
establish
that
the
16
foreign
business
is
incorporated
under
the
laws
of
a
foreign
17
country
that
is
an
allied
country
and
the
foreign
business
is
18
wholly
owned
directly
or
indirectly
by
nonresident
aliens
of
19
an
allied
country;
or
is
a
business
entity,
whether
or
not
20
incorporated,
which
is
wholly
owned
directly
or
indirectly
by
21
nonresident
aliens
of
an
allied
country.
22
(c)
The
agricultural
land
is
a
mega
site,
or
included
in
a
23
mega
site.
24
(d)
The
foreign
business
is
not
actively
engaged
in
farming.
25
(e)
The
board
authorizes
the
acquisition
of
the
26
agricultural
land
under
the
MEGA
program
administered
by
the
27
economic
development
authority
pursuant
to
sections
15.281
28
through
15.289.
29
(2)
As
used
in
this
paragraph:
30
(a)
“Actively
engaged
in
farming”
means
the
same
as
defined
31
in
section
15.282.
32
(b)
“Allied
country”
means
the
same
as
defined
in
10
U.S.C.
33
§2350f(d)(1).
34
(c)
“Authority”
means
the
economic
development
authority.
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(d)
“Board”
means
the
members
of
the
authority
appointed
by
1
the
governor
and
in
whom
the
powers
of
the
authority
are
vested
2
pursuant
to
section
15.105.
3
(e)
“Certified
site”
means
a
site
that
has
been
issued
a
4
certificate
of
readiness
by
the
authority
pursuant
to
section
5
15E.18.
6
(f)
“Mega
site”
means
the
same
as
defined
in
section
15.282.
7
Sec.
2.
NEW
SECTION
.
15.281
Short
title.
8
This
part
shall
be
known
and
may
be
cited
as
the
“Major
9
Economic
Growth
Attraction
Program”
or
“MEGA
Program”
.
10
Sec.
3.
NEW
SECTION
.
15.282
Definitions.
11
As
used
in
this
part,
unless
the
context
otherwise
requires:
12
1.
“Actively
engaged
in
farming”
means
any
of
the
following:
13
a.
Performing
physical
work
which
significantly
contributes
14
to
crop
or
livestock
production.
15
b.
Making
or
taking
part
in
making
decisions
contributing
to
16
or
affecting
the
success
of
a
farm’s
operations.
17
c.
Entering
into
a
contractual
relationship
with
an
18
outside
entity
to
farm
agricultural
land
as
part
of
a
farm’s
19
operations.
20
2.
“Base
employment
level”
means
the
number
of
full-time
21
equivalent
positions
at
a
business,
as
established
by
the
22
authority
and
the
business
using
the
business’s
payroll
23
records,
as
of
the
date
the
business
applies
for
tax
incentives
24
under
the
program.
25
3.
“Benefit”
means
nonwage
compensation
provided
to
an
26
employee.
“Benefits”
include
medical
and
dental
insurance,
a
27
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
28
life
insurance,
vision
insurance,
and
disability
insurance.
29
4.
“Certified
site”
means
a
site
that
has
been
issued
a
30
certificate
of
readiness
by
the
authority
pursuant
to
section
31
15E.18.
32
5.
“Community”
means
a
city,
county,
or
entity
established
33
pursuant
to
chapter
28E.
34
6.
“Contract
completion”
means
the
date
of
completion
of
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the
terms
of
a
contract
between
a
contractor
and
an
eligible
1
business.
2
7.
“Contractor”
means
a
person
that
has
executed
a
contract
3
with
an
eligible
business
for
the
provision
of
property,
4
materials,
or
services
for
the
construction
or
equipping
of
a
5
facility
that
is
part
of
the
eligible
business’s
project.
6
8.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
7
full-time
equivalent
positions
added
to
an
eligible
business’s
8
payroll,
at
the
location
of
the
eligible
business’s
project,
in
9
excess
of
the
eligible
business’s
base
employment
level.
10
9.
“Data
center
business”
means
the
same
as
defined
in
11
section
423.3,
subsection
95.
12
10.
“Eligible
business”
means
a
business
that
meets
the
13
requirements
of
section
15.283.
14
11.
“Foreign
business”
means
the
same
as
defined
in
section
15
9I.1.
16
12.
“Full-time
equivalent
position”
means
a
non-part-time
17
position
for
the
number
of
hours
or
days
per
week
considered
18
to
be
full-time
work
for
the
kind
of
service
or
work
performed
19
for
an
employer.
Typically,
a
“full-time
equivalent
position”
20
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
21
including
all
paid
holidays,
vacations,
sick
time,
and
other
22
paid
leave.
23
13.
“Maintenance
period”
means
the
period
of
time
between
24
the
project
completion
date
and
the
maintenance
period
25
completion
date
during
which
an
eligible
business
must
maintain
26
all
created
jobs
per
the
agreement
under
section
15.285.
27
14.
“Maintenance
period
completion
date”
means
the
date
on
28
which
the
maintenance
period
ends.
29
15.
“Mega
site”
means
a
certified
site
greater
than
one
30
thousand
acres.
31
16.
“Program”
means
the
major
economic
growth
attraction
32
program.
33
17.
“Project”
means
an
activity
or
set
of
activities
34
directly
related
to
the
start-up
or
location
of
an
eligible
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business,
proposed
in
an
eligible
business’s
application
to
the
1
program,
that
will
accomplish
the
goals
of
the
program.
2
18.
“Project
completion
date”
means
the
date
by
which
an
3
eligible
business
that
has
been
approved
by
the
authority
to
4
participate
in
the
program
agrees
to
complete
the
terms
and
5
conditions
of
the
agreement
under
section
15.285.
6
19.
“Project
completion
period”
means
the
period
of
time
7
between
the
date
the
authority
approves
an
eligible
business
to
8
participate
in
the
program
and
the
project
completion
date.
9
20.
“Qualifying
investment”
means
a
capital
investment
10
in
real
property
located
on
a
certified
site,
including
the
11
purchase
price
of
the
land,
site
preparation,
infrastructure,
12
and
building
construction
for
use
in
the
operation
of
an
13
eligible
business.
“Qualifying
investment”
also
means
a
capital
14
investment
in
depreciable
assets
for
use
in
the
operation
of
an
15
eligible
business.
16
21.
“Qualifying
wage
threshold”
means
the
mean
wage
level
17
represented
by
the
wages
within
two
standard
deviations
of
18
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
19
business
is
located,
as
calculated
by
the
authority
by
rule,
20
using
the
most
current
covered
wage
and
employment
data
21
available
from
the
department
of
workforce
development
for
the
22
laborshed
area
in
which
the
eligible
business
is
located.
23
22.
“Subcontractor”
means
a
person
that
contracts
with
24
a
contractor
for
the
provision
of
property,
materials,
or
25
services
for
the
construction
or
equipping
of
a
facility
that
26
is
part
of
an
eligible
business’s
project.
27
23.
“Tax
incentives”
means
tax
credits,
tax
refunds,
or
tax
28
exemptions
authorized
under
the
program
by
the
authority
for
an
29
eligible
business.
30
Sec.
4.
NEW
SECTION
.
15.283
Eligible
business.
31
1.
To
be
eligible
to
receive
tax
incentives
under
32
the
program,
a
business
must
meet
all
of
the
following
33
requirements:
34
a.
The
business’s
proposed
project
must
be
located
on
a
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certified
site
greater
than
two
hundred
fifty
acres
that
the
1
authority
has
determined
is
suitable
for
the
project.
2
b.
The
business’s
qualifying
investment
in
the
proposed
3
project
must
exceed
one
billion
dollars.
4
c.
The
community
in
which
the
proposed
project
is
located
5
must
approve
the
project
either
by
ordinance
or
resolution.
6
d.
(1)
The
business
must
be
primarily
engaged
in
advanced
7
manufacturing,
biosciences,
or
research
and
development.
8
The
business
shall
not
be
a
data
center
business,
a
retail
9
business,
or
a
business
where
a
cover
charge
or
membership
10
requirement
restricts
certain
individuals
from
entering
the
11
business.
12
(2)
Factors
the
authority
shall
consider
to
determine
if
13
a
business
is
primarily
engaged
in
advanced
manufacturing,
14
biosciences,
or
research
and
development
shall
include
but
are
15
not
limited
to
all
of
the
following:
16
(a)
The
business’s
North
American
industry
classification
17
system
code.
18
(b)
The
business’s
main
sources
of
revenue.
19
(c)
The
business’s
customer
base.
20
e.
(1)
The
business
must
not
be
solely
relocating
21
operations
from
one
area
of
the
state
to
another
area
of
22
the
state.
A
proposed
project
that
does
not
create
jobs
or
23
involve
a
substantial
amount
of
new
capital
investment
shall
24
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
25
this
subparagraph,
the
authority
shall
consider
a
letter
from
26
the
affected
local
community’s
government
officials
supporting
27
the
business’s
move
away
from
the
affected
local
community
28
in
making
a
determination
whether
the
business
is
solely
29
relocating
operations.
30
(2)
This
paragraph
shall
not
be
construed
to
prohibit
31
a
business
from
expanding
the
business’s
operations
in
a
32
community
if
the
business
has
similar
operations
in
this
state
33
that
are
not
closing
or
undergoing
a
substantial
reduction
in
34
operations.
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f.
The
business
must
create
jobs
as
part
of
the
business’s
1
proposed
project.
The
business
must
demonstrate
that
the
2
created
jobs
will
pay
at
least
one
hundred
forty
percent
of
the
3
qualifying
wage
threshold
by
the
project
completion
date,
and
4
through
the
maintenance
period
completion
date.
5
g.
The
business
must
provide
comprehensive
benefits
to
6
each
employee
employed
in
a
created
job.
The
authority
may
7
adopt
rules
under
chapter
17A
to
determine
the
requirements
for
8
comprehensive
benefits.
9
h.
(1)
The
business
must
not
have
a
record
of
violations
10
of
the
law
or
of
regulations,
including
but
not
limited
to
11
antitrust,
environmental,
trade,
or
worker
safety,
that
over
12
a
period
of
time
show
a
consistent
pattern
or
that
establish
13
the
business’s
intentional,
criminal,
or
reckless
conduct
in
14
violation
of
such
laws
or
regulations.
15
(2)
If
the
authority
determines
that
the
business
has
a
16
record
of
violations
described
in
subparagraph
(1),
and
the
17
authority
finds
that
the
violations
did
not
seriously
affect
18
public
health,
public
safety,
or
the
environment,
the
business
19
may
be
eligible
to
qualify
for
tax
incentives,
and
an
exemption
20
under
section
9I.3,
subsection
3,
paragraph
“f”
,
under
the
21
program.
22
(3)
If
the
authority
determines
that
the
business
has
23
a
record
of
violations
described
in
subparagraph
(1),
and
24
the
authority
finds
that
there
were
mitigating
circumstances
25
related
to
the
violations,
the
business
may
be
eligible
to
26
qualify
for
tax
incentives
under
the
program.
27
(4)
In
making
determinations
and
findings
under
28
subparagraphs
(2)
and
(3),
and
making
a
determination
whether
a
29
business
is
disqualified
from
the
program,
the
authority
shall
30
be
exempt
from
chapter
17A.
31
2.
a.
In
determining
if
a
business
is
eligible
to
32
participate
in
the
program,
the
authority
shall
consider
a
33
variety
of
factors,
including
but
not
limited
to
all
of
the
34
following:
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(1)
The
quality
of
the
business’s
proposed
project’s
1
created
jobs.
The
authority
shall
place
greater
emphasis
on
2
created
jobs
that
are
high
wage,
low
turnover,
that
provide
3
comprehensive
benefits,
and
that
expose
employees
to
minimal
4
occupational
hazards.
A
business
that
pays
wages
substantially
5
below
that
of
similar
businesses
located
in
the
same
geographic
6
area
shall
not
be
given
priority
under
the
program.
7
(2)
The
impact
of
the
business’s
proposed
project
on
8
businesses
that
are
in
competition
with
the
business.
9
The
authority
shall
make
a
good-faith
effort
to
identify
10
existing
Iowa
businesses
in
competition
with
the
business
11
being
considered
for
the
program.
The
authority
shall
make
12
a
good-faith
effort
to
determine
the
probability
that
any
13
proposed
tax
incentives
will
displace
employees
of
the
14
competing
businesses.
In
determining
the
impact
on
the
15
competing
businesses,
created
jobs
resulting
from
employees
16
being
displaced
from
the
competing
businesses
shall
not
be
17
counted
as
created
jobs
for
the
applying
business’s
project.
18
(3)
The
business’s
proposed
project’s
economic
impact
19
on
the
state.
The
authority
shall
place
greater
emphasis
20
on
businesses
and
proposed
projects
that
meet
the
following
21
requirements:
22
(a)
The
business
has
a
high
proportion
of
in-state
23
suppliers.
24
(b)
The
proposed
project
will
diversify
the
state
economy.
25
(c)
The
business
has
few
in-state
competitors.
26
(d)
The
proposed
project
has
the
potential
to
create
jobs
on
27
an
ongoing
basis.
28
(e)
Any
other
factors
the
authority
deems
relevant
in
29
determining
the
economic
impact
of
a
proposed
project.
30
Sec.
5.
NEW
SECTION
.
15.284
Applications
——
authorization
31
of
tax
credits
and
exemptions.
32
1.
Applications
for
the
program
shall
be
submitted
to
the
33
authority
in
the
form
and
manner
prescribed
by
the
authority
by
34
rule.
Each
application
must
be
accompanied
by
an
application
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fee
in
an
amount
determined
by
the
authority
by
rule.
1
2.
In
determining
the
eligibility
of
a
business
to
2
participate
in
the
program,
the
authority
may
engage
outside
3
experts
to
complete
a
technical,
financial,
or
other
review
4
of
an
application
submitted
by
a
business
if
such
review
is
5
outside
the
expertise
of
the
authority.
6
3.
a.
The
authority
and
the
board
may
negotiate
with
an
7
eligible
business
regarding
the
terms
of,
and
the
aggregate
8
value
of,
the
tax
incentives
the
eligible
business
may
receive
9
under
the
program.
10
b.
The
board
may
authorize
any
combination
of
tax
incentives
11
available
under
the
program
for
an
eligible
business.
12
4.
The
board
may
authorize
an
exemption
to
restrictions
on
13
agricultural
land
holdings
pursuant
to
section
9I.3,
subsection
14
3,
paragraph
“f”
.
15
Sec.
6.
NEW
SECTION
.
15.285
Agreement.
16
1.
An
eligible
business
that
is
approved
by
the
authority
to
17
participate
in
the
program
shall
enter
into
an
agreement
with
18
the
authority
that
specifies
the
criteria
for
the
successful
19
completion
of
all
requirements
of
the
program.
The
agreement
20
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
21
following:
22
a.
The
eligible
business
must
certify
to
the
authority
23
annually
that
the
business
is
in
compliance
with
the
agreement.
24
b.
If
the
eligible
business
fails
to
comply
with
any
25
requirements
of
the
program
or
the
agreement,
the
eligible
26
business
may
be
required
to
repay
any
tax
incentives
the
27
authority
issued
to
the
eligible
business.
A
required
28
repayment
of
a
tax
incentive
shall
be
considered
a
tax
payment
29
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
30
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
31
repayment
may
be
treated
by
the
department
of
revenue
in
the
32
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
33
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
34
c.
If
the
eligible
business
undergoes
a
layoff
or
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permanently
closes
any
of
its
facilities
within
the
state,
the
1
eligible
business
may
be
subject
to
all
of
the
following:
2
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
3
incentives
the
authority
issued
to
the
eligible
business.
4
(2)
Repayment
of
any
tax
incentives
that
the
business
5
has
claimed,
and
payment
of
any
penalties
assessed
by
the
6
department
of
revenue.
7
d.
The
project
completion
date,
the
maintenance
period
8
completion
date,
the
required
number
of
created
jobs,
the
9
qualifying
wage
threshold
that
is
applicable
to
the
project,
10
the
amount
of
qualifying
investment,
the
maximum
aggregate
11
value
of
the
tax
incentives
authorized
by
the
board,
and
any
12
other
terms
and
obligations
the
authority
deems
necessary.
13
e.
The
eligible
business
shall
only
employ
individuals
14
legally
authorized
to
work
in
this
state.
If
the
eligible
15
business
is
found
to
knowingly
employ
individuals
who
are
16
not
legally
authorized
to
work
in
this
state,
in
addition
17
to
any
penalties
provided
by
law,
all
or
a
portion
of
any
18
tax
incentives
issued
by
the
authority
shall
be
subject
to
19
recapture
by
the
authority
or
the
department
of
revenue.
20
f.
The
maximum
amount
of
gross
wages,
not
to
exceed
three
21
percent,
that
the
eligible
business
may
withhold
under
section
22
15.286B,
and
the
time
period,
not
to
exceed
the
term
of
the
23
agreement,
during
which
the
specified
amount
of
gross
wages
may
24
be
withheld.
25
g.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
26
eligible
business’s
ongoing
compliance
with
section
15.283.
27
2.
The
business
shall
satisfy
all
applicable
terms
of
28
the
agreement
by
the
project
completion
date;
however,
the
29
board
may
for
good
cause
extend
the
project
completion
date
or
30
otherwise
amend
the
terms
of
the
agreement.
The
board
shall
31
not
amend
the
terms
of
the
agreement
to
allow
an
increase
in
32
the
maximum
aggregate
value
of
the
tax
incentives
authorized
by
33
the
board
under
section
15.284,
subsection
3.
34
3.
The
eligible
business
shall
comply
with
all
applicable
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terms
of
the
agreement
during
the
maintenance
period.
1
4.
The
eligible
business
shall
not
assign
the
agreement
2
to
another
entity
without
the
advance
written
approval
of
the
3
board.
4
5.
The
authority
may
enforce
the
terms
of
the
agreement
as
5
necessary
and
appropriate.
6
Sec.
7.
NEW
SECTION
.
15.286
Sales
and
use
tax
refund.
7
1.
An
eligible
business
that
has
been
issued
a
tax
incentive
8
certificate
under
the
program
shall
be
entitled
to
a
refund
9
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
10
electricity,
water,
and
sewer
utility
services,
tangible
11
personal
property,
or
on
services
rendered,
furnished,
or
12
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
13
the
fulfillment
of
a
written
contract
for
the
construction
or
14
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
15
project.
Taxes
attributable
to
intangible
property
and
16
furniture
and
furnishings
shall
not
be
refunded.
17
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
18
business
shall
file
a
claim
with
the
department
of
revenue
as
19
follows:
20
a.
The
contractor
or
subcontractor
shall
state
under
oath,
21
on
forms
provided
by
the
department
of
revenue,
the
amount
of
22
the
sales
of
tangible
personal
property
or
services
rendered,
23
furnished,
or
performed
including
water,
sewer,
gas,
and
24
electric
utility
services
upon
which
sales
or
use
tax
has
been
25
paid
prior
to
contract
completion,
and
shall
submit
the
forms
26
to
the
eligible
business
before
contract
completion.
27
b.
The
eligible
business
shall
inform
the
department
of
28
revenue
in
writing
of
contract
completion.
The
eligible
29
business
shall,
after
contract
completion,
submit
an
30
application
to
the
department
of
revenue
for
a
refund
of
the
31
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
32
upon
any
tangible
personal
property,
or
services
rendered,
33
furnished,
or
performed,
including
water,
sewer,
gas,
and
34
electric
utility
services.
The
application
shall
be
submitted
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in
the
form
and
manner
prescribed
by
the
department
of
revenue.
1
The
department
of
revenue
shall
audit
the
application
and,
2
if
approved,
issue
a
warrant
or
warrants
to
the
eligible
3
business
in
the
amount
of
the
sales
or
use
tax
which
has
been
4
paid
to
the
state
of
Iowa
under
subsection
1.
The
eligible
5
business’s
application
must
be
submitted
to
the
department
of
6
revenue
within
one
year
after
the
project
completion
date.
An
7
application
filed
by
the
eligible
business
in
accordance
with
8
this
section
shall
not
be
denied
by
reason
of
a
limitation
set
9
forth
in
chapter
421
or
423.
10
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
11
to
the
eligible
business
equally
over
five
tax
years.
Interest
12
shall
not
accrue
on
any
part
of
the
refund
that
has
not
yet
been
13
remitted
by
the
department
of
revenue
to
the
eligible
business.
14
3.
A
contractor
or
subcontractor
that
willfully
makes
a
15
false
report
of
tax
paid
under
this
section
is
guilty
of
an
16
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
17
tax
and
any
applicable
penalty
and
interest.
18
Sec.
8.
NEW
SECTION
.
15.286A
Qualifying
investment
tax
19
credit.
20
1.
The
authority
may
authorize
a
tax
credit
for
an
eligible
21
business
that
is
up
to
five
percent
of
the
eligible
business’s
22
qualifying
investment
in
a
certified
site.
The
authority
shall
23
not
issue
a
tax
credit
certificate
to
the
eligible
business
24
until
the
eligible
business’s
project
has
been
placed
in
25
service,
and
at
least
fifty
percent
of
the
created
jobs
the
26
eligible
business
agreed
to
in
the
agreement
under
section
27
15.285,
and
that
pay
at
least
one
hundred
forty
percent
of
the
28
qualifying
wage
threshold,
have
been
added
to
the
eligible
29
business’s
payroll.
The
department
of
revenue
shall
remit
30
the
tax
credit
to
the
eligible
business
equally
over
five
tax
31
years.
The
tax
credit
shall
be
allowed
against
taxes
imposed
32
under
chapter
422,
subchapter
II,
III,
or
V,
and
against
the
33
moneys
and
credits
tax
imposed
in
section
533.329.
If
the
34
eligible
business
is
a
partnership,
S
corporation,
limited
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liability
company,
cooperative
organized
under
chapter
501
and
1
filing
as
a
partnership
for
federal
tax
purposes,
or
estate
2
or
trust
electing
to
have
the
income
taxed
directly
to
the
3
individual,
an
individual
may
claim
the
tax
credit
allowed.
4
The
amount
claimed
by
the
individual
shall
be
based
upon
the
5
pro
rata
share
of
the
individual’s
earnings
of
the
partnership,
6
S
corporation,
limited
liability
company,
cooperative
organized
7
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
8
purposes,
or
estate
or
trust.
Any
tax
credit
in
excess
of
9
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
10
refunded
or,
at
the
eligible
business’s
election,
credited
to
11
the
eligible
business’s
tax
liability
in
any
of
the
following
12
five
consecutive
tax
years
or
until
depleted,
whichever
occurs
13
first.
The
eligible
business
shall
make
such
election
prior
to
14
the
authority
issuing
a
tax
credit
certificate
to
the
eligible
15
business,
and
the
eligible
business’s
election
shall
be
noted
16
on
the
tax
credit
certificate.
A
tax
credit
shall
not
be
17
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
18
tax
credit
is
first
claimed
by
the
eligible
business.
19
2.
If
within
five
years
of
the
date
the
authority
issues
20
an
eligible
business
a
tax
credit
under
subsection
1,
the
21
eligible
business
sells,
disposes
of,
razes,
or
otherwise
22
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
23
other
structures
for
which
the
tax
credit
was
claimed
under
24
this
section,
the
tax
liability
of
the
eligible
business
for
25
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
26
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
27
rendered
unusable
shall
be
increased
by
one
of
the
following
28
amounts:
29
a.
One
hundred
percent
of
the
tax
credit
claimed
under
30
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
31
structures
for
which
the
tax
credit
was
claimed
under
this
32
section
cease
to
be
eligible
for
the
tax
credit
within
one
33
year
after
the
date
the
authority
issued
the
tax
credit
to
the
34
eligible
business.
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b.
Eighty
percent
of
the
tax
credit
claimed
under
this
1
section
if
all
or
a
part
of
the
land,
buildings,
or
other
2
structures
for
which
the
tax
credit
was
claimed
under
this
3
section
cease
to
be
eligible
for
the
tax
credit
within
two
4
years
after
the
date
the
authority
issued
the
tax
credit
to
the
5
eligible
business.
6
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
7
section
if
all
or
a
part
of
the
land,
buildings,
or
other
8
structures
for
which
the
tax
credit
was
claimed
under
this
9
section
cease
to
be
eligible
for
the
tax
credit
within
three
10
years
after
the
date
the
authority
issued
the
tax
credit
to
the
11
eligible
business.
12
d.
Forty
percent
of
the
tax
credit
claimed
under
this
13
section
if
all
or
a
part
of
the
land,
buildings,
or
other
14
structures
for
which
the
tax
credit
was
claimed
under
this
15
section
cease
to
be
eligible
for
the
tax
credit
within
four
16
years
after
the
date
the
authority
issued
the
tax
credit
to
the
17
eligible
business.
18
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
19
section
if
all
or
a
part
of
the
land,
buildings,
or
other
20
structures
for
which
the
tax
credit
was
claimed
under
this
21
section
cease
to
be
eligible
for
the
tax
credit
within
five
22
years
after
the
date
the
authority
issued
the
tax
credit
to
the
23
eligible
business.
24
Sec.
9.
NEW
SECTION
.
15.286B
Withholding
tax
credit.
25
1.
From
the
remittance
due
to
the
department
of
revenue
26
pursuant
to
section
422.16,
subsection
2,
an
eligible
business
27
may
withhold
an
amount,
pursuant
to
section
15.285,
subsection
28
1,
paragraph
“f”
,
of
the
gross
wages
paid
to
each
employee
in
a
29
created
job
that
pays
at
least
the
qualifying
wage
threshold
30
pursuant
to
the
agreement
under
section
15.285.
31
2.
If
the
amount
withheld
under
subsection
1
is
less
than
32
three
percent
of
the
gross
wages
paid
to
each
employee
in
a
33
created
job
that
pays
at
least
one
hundred
forty
percent
of
34
the
qualifying
wage
threshold,
the
eligible
business
shall
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receive
a
credit
against
the
remaining
withholding
taxes
due
1
from
the
eligible
business,
or
the
eligible
business
may
carry
2
the
credit
forward
up
to
five
consecutive
tax
years
or
until
3
depleted,
whichever
is
earlier.
4
3.
In
any
tax
year,
the
aggregate
amount
of
withholding
tax
5
credit
under
this
section
and
under
any
other
program
for
which
6
an
eligible
business
is
receiving
a
withholding
tax
credit
7
shall
not
exceed
the
amount
the
eligible
business
is
required
8
to
deduct
and
remit
to
the
department
of
revenue
under
section
9
422.16,
subsection
2,
for
that
tax
year.
10
Sec.
10.
NEW
SECTION
.
15.287
Foreign
businesses
——
11
acquisition
of
agricultural
land.
12
1.
If
a
foreign
business’s
proposed
project
is
located
on
a
13
mega
site
that
includes
agricultural
land,
the
requirements
of
14
section
9I.3,
subsection
3,
paragraph
“f”
,
must
be
satisfied
in
15
order
for
the
foreign
business
to
be
eligible
for
the
program.
16
2.
a.
A
foreign
business
under
subsection
1
that
is
17
approved
by
the
authority
to
participate
in
the
program
shall
18
enter
into
an
agreement
with
the
authority
pursuant
to
section
19
15.285.
The
agreement
shall
include
a
provision
that
requires
20
the
foreign
business
to
comply
with
chapter
9I,
and
specifies
21
that
failure
to
do
so
may
result
in
revocation
of
all
tax
22
incentives
issued
by
the
authority
to
the
foreign
business.
23
b.
The
authority
may
grant
the
foreign
business
one
or
24
more
one-year
extensions
in
which
the
foreign
business
must
25
comply
with
section
9I.4.
The
authority
shall
not
grant
26
more
than
five
one-year
extensions.
The
community
in
which
27
the
agricultural
land
is
located
must
approve
each
one-year
28
extension
by
ordinance
or
resolution
prior
to
the
authority
29
granting
each
extension.
The
foreign
business
shall
comply
30
with
the
remaining
provisions
of
chapter
9I
to
the
extent
the
31
provisions
do
not
conflict
with
this
section.
32
Sec.
11.
NEW
SECTION
.
15.288
Other
incentives.
33
1.
Except
for
the
high
quality
jobs
program
administered
34
by
the
authority
pursuant
to
sections
15.326
through
15.336,
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and
the
targeted
jobs
withholding
credit
pursuant
to
section
1
403.19A,
an
eligible
business
may
apply
for
and
be
eligible
to
2
receive
other
federal,
state,
and
local
incentives
in
addition
3
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
4
business
under
the
program.
5
2.
The
authority,
in
its
discretion,
may
prohibit
an
6
eligible
business
that
has
been
issued
tax
incentives
under
7
the
program
from
receiving
any
additional
tax
incentive,
tax
8
credit,
grant,
loan,
or
other
financial
assistance
under
any
9
program
administered
by
the
authority.
10
Sec.
12.
NEW
SECTION
.
15.289
Property
tax
exemption.
11
1.
A
community
in
which
an
eligible
business’s
project
12
is
located
may
grant
the
eligible
business
a
property
13
tax
exemption
for
a
portion
of
the
actual
value
added
by
14
improvements
to
real
property
directly
related
to
the
eligible
15
business’s
created
jobs.
The
community
may
allow
a
property
16
tax
exemption
for
a
period
not
to
exceed
twenty
years
beginning
17
the
year
that
the
improvements
to
real
property
are
first
18
assessed
for
taxation.
19
2.
For
purposes
of
this
section,
“improvements”
means
new
20
construction,
and
rehabilitation
of
and
additions
to
existing
21
structures.
22
3.
A
property
tax
exemption
granted
under
subsection
1
shall
23
apply
to
all
taxing
districts,
except
for
school
districts,
in
24
which
the
real
property
is
located.
25
Sec.
13.
NEW
SECTION
.
15.290
Restrictions
on
board.
26
The
board
shall
not
authorize
tax
incentives
available
under
27
the
program,
or
an
exemption
to
restrictions
on
agricultural
28
land
holdings
pursuant
to
section
9I.3,
subsection
3,
paragraph
29
“f”
,
for
more
than
two
eligible
businesses,
or
on
or
after
30
January
1,
2026,
whichever
occurs
first.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
establishes
a
major
economic
growth
attraction
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program
(program)
to
be
administered
by
the
economic
1
development
authority
(authority).
2
To
be
eligible
to
receive
tax
incentives
(incentives)
under
3
the
program,
a
business’s
proposed
project
(project)
must
be
4
located
on
a
certified
site
greater
than
250
acres
that
the
5
authority
has
determined
is
suitable
for
the
project,
and
the
6
business’s
qualifying
investment
in
the
project
must
exceed
$1
7
billion.
Other
requirements
for
a
business
to
be
eligible
for
8
the
program
are
detailed
in
the
bill.
“Qualifying
investment”
9
is
defined
in
the
bill
as
a
capital
investment
in
real
property
10
located
on
a
certified
site,
including
the
purchase
price
11
of
the
land,
site
preparation,
infrastructure,
and
building
12
construction
for
use
in
the
operation
of
an
eligible
business.
13
“Qualifying
investment”
also
means
a
capital
investment
in
14
depreciable
assets
for
use
in
the
operation
of
an
eligible
15
business.
“Certified
site”
is
defined
as
a
site
that
has
been
16
issued
a
certificate
of
readiness
by
the
authority
pursuant
to
17
Code
section
15E.18.
“Tax
incentives”
and
“project”
are
also
18
defined
in
the
bill.
19
In
determining
if
a
business
is
eligible
to
participate
20
in
the
program,
the
authority
shall
consider
a
variety
of
21
factors,
including
but
not
limited
to
whether
the
jobs
created
22
by
the
business’s
project
are
high
wage,
low
turnover,
provide
23
comprehensive
benefits,
and
expose
employees
to
minimal
24
occupational
hazards;
the
impact
of
the
project
on
businesses
25
that
compete
with
the
business
applying
to
the
program;
and
26
the
project’s
economic
impact
on
the
state.
The
bill
requires
27
the
authority
to
place
greater
emphasis
on
businesses
that
28
have
a
high
proportion
of
in-state
suppliers
and
few
in-state
29
competitors;
and
on
projects
that
diversify
the
state
economy
30
and
have
the
potential
to
create
jobs
on
an
ongoing
basis.
31
Applications
for
the
program
shall
be
submitted
in
the
32
form
and
manner
prescribed
by
the
authority
by
rule
and
be
33
accompanied
by
an
application
fee
in
an
amount
determined
by
34
the
authority
by
rule.
In
determining
a
business’s
eligibility
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for
the
program,
the
authority
may
engage
outside
experts
1
to
complete
a
technical,
financial,
or
other
review
of
an
2
application
if
such
review
is
outside
the
expertise
of
the
3
authority.
The
authority
and
the
authority’s
board
(board)
4
may
negotiate
with
an
eligible
business
regarding
the
terms
5
of,
and
the
aggregate
value
of,
the
incentives
the
eligible
6
business
may
receive
under
the
program.
The
board
may
7
authorize
any
combination
of
incentives
available
under
the
8
program
for
an
eligible
business.
The
board
may
authorize
an
9
exemption
to
restrictions
on
agricultural
land
holdings
for
a
10
foreign
business
that
qualifies
for
the
program
pursuant
to
11
the
requirements
detailed
in
the
bill.
“Foreign
business”
is
12
defined
in
the
bill.
13
The
bill
requires
an
eligible
business
that
is
approved
to
14
participate
in
the
program
to
enter
into
an
agreement
with
15
the
authority
(agreement)
that
specifies
the
criteria
for
the
16
successful
completion
of
all
requirements
of
the
program.
17
The
agreement
shall
contain,
at
a
minimum,
the
provisions
18
as
detailed
in
the
bill.
The
business
shall
satisfy
all
19
applicable
terms
of
the
agreement
by
the
project
completion
20
date;
however,
the
board
may
for
good
cause
extend
the
project
21
completion
date
or
otherwise
amend
the
terms
of
the
agreement.
22
The
board
shall
not
amend
the
terms
of
the
agreement
to
allow
23
an
increase
in
the
maximum
aggregate
value
of
the
incentives
24
authorized
by
the
board.
“Project
completion
date”
is
defined
25
in
the
bill.
The
bill
permits
the
authority
to
enforce
the
26
terms
of
the
agreement
as
necessary
and
appropriate.
27
An
eligible
business
that
has
been
issued
a
certificate
28
under
the
program
shall
be
entitled
to
a
refund
of
the
sales
29
and
use
taxes
(refund)
paid
under
Code
chapter
423
for
gas,
30
electricity,
water,
and
sewer
utility
services,
tangible
31
personal
property,
or
on
services
rendered,
furnished,
or
32
performed
to
or
for
a
contractor
or
subcontractor
and
used
33
in
the
fulfillment
of
a
written
contract
relating
to
the
34
construction
or
equipping
of
a
facility
that
is
part
of
the
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eligible
business’s
project.
Taxes
attributable
to
intangible
1
property
and
furniture
and
furnishings
shall
not
be
refunded.
2
The
procedure
for
the
business
to
receive
the
refund
is
3
detailed
in
the
bill.
The
refund
shall
be
remitted
by
the
4
department
of
revenue
(department)
to
the
eligible
business
5
equally
over
five
tax
years.
Interest
shall
not
accrue
on
6
any
part
of
the
refund
not
yet
remitted
by
the
department
to
7
the
eligible
business.
A
contractor
or
subcontractor
that
8
willfully
makes
a
false
report
of
tax
paid
is
guilty
of
an
9
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
10
tax
and
any
applicable
penalty
and
interest.
An
aggravated
11
misdemeanor
is
punishable
by
confinement
for
no
more
than
two
12
years
and
a
fine
of
at
least
$855
but
not
more
than
$8,540.
13
The
authority
may
authorize
a
tax
credit
for
an
eligible
14
business
that
is
up
to
5
percent
of
the
business’s
qualifying
15
investment
in
a
certified
site.
The
authority
shall
not
16
issue
a
tax
credit
certificate
until
the
eligible
business’s
17
project
has
been
placed
in
service,
and
at
least
50
percent
18
of
the
created
jobs
the
eligible
business
agreed
to
in
the
19
agreement,
and
that
pay
at
least
140
percent
of
the
qualifying
20
wage
threshold,
have
been
added
to
the
eligible
business’s
21
payroll.
“Created
job”
and
“qualifying
wage
threshold”
are
22
defined
in
the
bill.
The
department
shall
remit
the
tax
credit
23
to
the
eligible
business
equally
over
five
tax
years.
The
24
tax
credit
shall
be
allowed
against
taxes
imposed
under
Code
25
chapter
422,
subchapter
II,
III,
or
V,
and
against
the
moneys
26
and
credits
tax
imposed
in
Code
section
533.329.
Any
tax
27
credit
in
excess
of
the
eligible
business’s
tax
liability
for
28
the
tax
year
may
be
refunded
or,
at
the
eligible
business’s
29
election,
credited
to
the
eligible
business’s
tax
liability
30
in
each
of
the
following
five
consecutive
tax
years
or
until
31
depleted,
whichever
occurs
first.
The
eligible
business
32
shall
make
such
election
prior
to
the
authority
issuing
a
33
tax
credit
certificate
to
the
eligible
business,
and
the
34
eligible
business’s
election
shall
be
noted
on
the
tax
credit
35
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certificate.
A
tax
credit
shall
not
be
carried
back
to
a
tax
1
year
prior
to
the
tax
year
in
which
the
tax
credit
is
first
2
claimed
by
the
eligible
business.
If
within
five
years
of
the
3
date
the
authority
issues
an
eligible
business
a
qualifying
4
investment
tax
credit
the
eligible
business
sells,
disposes
5
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
of
the
6
land,
buildings,
or
other
structures
for
which
the
tax
credit
7
was
claimed,
the
tax
liability
of
the
eligible
business
for
8
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
9
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
10
rendered
unusable
shall
be
increased
by
an
amount
as
detailed
11
in
the
bill.
12
From
the
remittance
due
to
the
department
pursuant
to
Code
13
section
422.16(2),
an
eligible
business
may
withhold
the
14
amount
specified
in
the
agreement,
not
to
exceed
3
percent,
of
15
the
gross
wages
paid
to
each
employee
in
a
created
job
that
16
pays
at
least
the
qualifying
wage
threshold
specified
in
the
17
agreement.
The
withholding
may
occur
for
the
time
period,
18
not
to
exceed
the
term
of
the
agreement,
specified
in
the
19
agreement.
If
the
amount
withheld
is
less
than
3
percent
of
20
the
gross
wages
paid
to
each
employee
in
a
created
job,
the
21
eligible
business
shall
receive
a
credit
against
the
remaining
22
withholding
taxes
due
from
the
business,
or
the
business
may
23
carry
the
credit
forward
up
to
five
consecutive
tax
years
or
24
until
depleted,
whichever
is
earlier.
In
any
tax
year,
the
25
aggregate
amount
of
withholding
tax
credit
under
this
program,
26
and
any
other
program
for
which
an
eligible
business
is
27
receiving
a
withholding
tax
credit,
shall
not
exceed
the
amount
28
the
eligible
business
is
required
to
deduct
and
remit
to
the
29
department
under
Code
section
422.16(2)
for
that
tax
year.
30
If
a
foreign
business’s
proposed
project
is
located
on
a
31
mega
site
that
includes
agricultural
land,
the
requirements
as
32
detailed
in
the
bill
must
be
satisfied
for
the
foreign
business
33
to
be
eligible
for
the
program.
“Mega
site”
is
defined
in
the
34
bill
as
a
certified
site
greater
than
1,000
acres.
A
foreign
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business
that
is
approved
by
the
authority
to
participate
in
1
the
program
shall
enter
into
an
agreement
with
the
authority
2
that
includes
a
provision
that
requires
the
foreign
business
3
to
comply
with
Code
chapter
9I,
and
specifies
that
failure
to
4
do
so
may
result
in
revocation
of
incentives
issued
by
the
5
authority
to
the
foreign
business.
The
authority
may
grant
the
6
foreign
business
one
or
more
one-year
extensions
in
which
the
7
foreign
business
must
come
into
compliance
with
Code
section
8
9I.4.
The
authority
shall
not
grant
a
business
more
than
five
9
one-year
extensions.
The
community
in
which
the
agricultural
10
land
is
located
must
approve
each
extension
by
ordinance
or
11
resolution
prior
to
the
authority
granting
each
extension.
12
Except
for
the
high
quality
jobs
program,
and
the
targeted
13
jobs
withholding
credit,
an
eligible
business
may
apply
14
for
and
be
eligible
to
receive
other
federal,
state,
and
15
local
incentives
in
addition
to
the
incentives
the
authority
16
issues
to
the
business
under
the
program.
The
authority,
in
17
its
discretion,
may
prohibit
an
eligible
business
that
has
18
been
issued
incentives
under
the
program
from
receiving
any
19
additional
tax
incentive,
tax
credit,
grant,
loan,
or
other
20
financial
assistance
under
any
program
administered
by
the
21
authority.
22
The
bill
allows
a
community
in
which
an
eligible
business’s
23
project
is
located
to
grant
the
eligible
business
a
property
24
tax
exemption
(exemption)
for
a
portion
of
the
actual
value
25
added
by
improvements
to
real
property
directly
related
26
to
the
eligible
business’s
created
jobs.
The
community
27
may
allow
an
exemption
for
a
period
not
to
exceed
20
years
28
beginning
the
year
that
the
improvements
are
first
assessed
29
for
taxation.
“Improvements”
is
defined
as
new
construction,
30
and
rehabilitation
of
and
additions
to
existing
structures.
31
An
exemption
granted
by
a
community
shall
apply
to
all
taxing
32
districts,
except
for
school
districts,
in
which
the
real
33
property
is
located.
34
The
board
shall
not
authorize
incentives
available
under
the
35
-20-
LSB
1228SV
(2)
90
ko/jh
20/
21