Bill Text: IA SF609 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the administration and implementation of state taxation matters and credits, including economic development and energy tax incentives and programs, and future tax contingencies, making appropriations, and including effective date provisions.(Formerly SSB 1269.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-01-19 - Subcommittee: Dawson, Goodwin, and Petersen. S.J. 120. [SF609 Detail]
Download: Iowa-2021-SF609-Introduced.html
Senate
File
609
-
Introduced
SENATE
FILE
609
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1269)
A
BILL
FOR
An
Act
relating
to
the
administration
and
implementation
of
1
state
taxation
matters
and
credits,
including
economic
2
development
and
energy
tax
incentives
and
programs,
and
3
future
tax
contingencies,
making
appropriations,
and
4
including
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
HIGH
QUALITY
JOBS
AND
RENEWABLE
CHEMICAL
PRODUCTION
TAX
CREDITS
2
Section
1.
Section
15.119,
subsection
2,
paragraph
a,
3
subparagraphs
(2)
and
(3),
Code
2021,
are
amended
to
read
as
4
follows:
5
(2)
In
allocating
tax
credits
pursuant
to
this
subsection
6
for
each
fiscal
year
of
the
fiscal
period
beginning
July
1,
7
2016,
and
ending
June
30,
2021
the
fiscal
year
beginning
July
8
1,
2021,
and
for
each
fiscal
year
thereafter
,
the
authority
9
shall
not
allocate
more
than
one
hundred
five
seventy
million
10
dollars
for
purposes
of
this
paragraph.
This
subparagraph
(2)
11
is
repealed
July
1,
2021.
12
(3)
(a)
In
allocating
tax
credits
pursuant
to
this
13
subsection
for
the
fiscal
year
beginning
July
1,
2021,
and
14
ending
June
30,
2022,
the
authority
shall
not
allocate
more
15
than
one
hundred
five
million
dollars
for
purposes
of
this
16
paragraph
if
the
aggregate
amount
of
renewable
chemical
17
production
tax
credits
under
section
15.319
that
were
awarded
18
on
or
after
July
1,
2018,
but
before
July
1,
2021,
equals
or
19
exceeds
twenty-seven
million
dollars.
20
(b)
As
soon
as
practicable
after
June
30,
2021,
the
21
authority
shall
notify
the
general
assembly
of
the
aggregate
22
amount
of
renewable
chemical
production
tax
credits
awarded
23
under
section
15.319
on
or
after
July
1,
2018,
but
before
24
July
1,
2021,
and
whether
or
not
the
tax
credit
allocation
25
limitation
described
in
subparagraph
division
(a)
is
26
applicable.
27
(c)
This
subparagraph
(3)
is
repealed
July
1,
2022.
28
Sec.
2.
Section
15.119,
subsection
2,
paragraph
h,
Code
29
2021,
is
amended
to
read
as
follows:
30
h.
The
renewable
chemical
production
tax
credit
program
31
administered
pursuant
to
sections
15.315
through
15.322
.
In
32
allocating
tax
credits
pursuant
to
this
subsection
for
the
33
fiscal
year
beginning
July
1,
2021,
and
for
each
fiscal
year
34
thereafter
,
the
authority
shall
not
allocate
more
than
ten
five
35
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million
dollars
for
purposes
of
this
paragraph.
This
paragraph
1
is
repealed
July
1,
2030.
2
Sec.
3.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
3
deemed
of
immediate
importance,
takes
effect
upon
enactment.
4
DIVISION
II
5
HIGH
QUALITY
JOBS
——
ELIGIBILITY
REQUIREMENTS
6
Sec.
4.
HIGH
QUALITY
JOBS
——
REDUCTIONS
IN
OPERATIONS.
7
1.
Notwithstanding
section
15.329,
subsection
1,
paragraph
8
“b”,
subparagraph
(2),
the
economic
development
authority
shall
9
not
presume
that
a
reduction
in
operations
is
a
reduction
in
10
operations
while
simultaneously
applying
for
assistance
with
11
regard
to
a
business
that
submits
an
application
on
or
before
12
June
30,
2022,
if
the
business
demonstrates
to
the
satisfaction
13
of
the
authority
all
of
the
following:
14
a.
That
the
reduction
in
operations
occurred
after
March
1,
15
2020.
16
b.
That
the
reduction
in
operations
was
caused
by
the
17
COVID-19
pandemic.
18
2.
The
economic
development
authority
shall
consider
19
whether
the
benefit
of
the
project
proposed
by
a
business
20
under
subsection
1
outweighs
any
negative
impact
related
to
21
the
business’s
reduction
in
operations.
The
business
shall
22
remain
subject
to
all
other
eligibility
requirements
pursuant
23
to
section
15.329.
24
3.
This
section
is
repealed
July
1,
2022.
25
DIVISION
III
26
MANUFACTURING
4.0
27
Sec.
5.
NEW
SECTION
.
15.371
Manufacturing
4.0
technology
28
investment
program.
29
1.
This
section
shall
be
known
as
and
may
be
cited
as
the
30
“Manufacturing
4.0
Technology
Investment
Program”
.
31
2.
For
purposes
of
this
section
unless
the
context
otherwise
32
requires:
33
a.
“Financial
assistance”
means
the
same
as
defined
in
34
section
15.102.
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b.
“Manufacturing
4.0
technology
investments”
means
projects
1
that
are
intended
to
lead
to
the
adoption
of,
and
integration
2
of,
smart
technologies
into
existing
manufacturing
operations
3
located
in
the
state
by
mitigating
the
risk
to
the
manufacturer
4
of
significant
technology
investments.
Projects
may
include
5
investments
in
specialized
hardware,
software,
or
other
6
equipment
intended
to
assist
a
manufacturer
in
increasing
the
7
manufacturer’s
productivity,
efficiency,
and
competitiveness.
8
3.
a.
A
manufacturing
4.0
technology
investment
fund
9
is
created
within
the
state
treasury
under
the
control
of
10
the
authority
for
the
purpose
of
financing
manufacturing
4.0
11
technology
investments
as
described
in
this
section.
12
b.
The
fund
may
be
administered
as
a
revolving
fund
and
13
may
consist
of
any
moneys
appropriated
by
the
general
assembly
14
for
purposes
of
this
section
and
any
other
moneys
that
are
15
lawfully
available
to
the
authority.
Any
moneys
appropriated
16
to
the
fund
shall
be
used
for
purposes
of
the
manufacturing
17
4.0
technology
investment
program.
The
authority
may
use
all
18
other
moneys
in
the
fund,
including
interest,
earnings,
and
19
recaptures,
for
purposes
of
this
section.
20
c.
Notwithstanding
section
8.33,
moneys
appropriated
in
this
21
section
that
remain
unencumbered
or
unobligated
at
the
close
of
22
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
23
expenditure
for
the
purposes
designated
until
the
close
of
the
24
succeeding
fiscal
year.
25
d.
Notwithstanding
any
law
to
the
contrary,
the
authority
26
may
transfer
any
unobligated
and
unencumbered
moneys
in
the
27
fund,
except
for
moneys
appropriated
for
purposes
of
this
28
section,
to
any
fund
created
pursuant
to
section
15.106A,
29
subsection
1,
paragraph
“o”
.
30
4.
The
authority
shall
establish
and
administer
a
31
manufacturing
4.0
technology
investment
program
and
shall
use
32
moneys
in
the
fund
to
award
financial
assistance
to
eligible
33
manufacturers
for
manufacturing
4.0
technology
investments.
34
5.
To
be
eligible
for
a
financial
assistance
award
under
the
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manufacturing
4.0
technology
investment
program,
a
manufacturer
1
must
do
all
of
the
following:
2
a.
Manufacture
goods
at
a
facility
located
in
this
state.
3
b.
Have
a
North
American
industry
classification
system
4
number
within
the
manufacturing
sector
range
of
31-33.
5
c.
Have
been
an
established
business
for
a
minimum
of
three
6
years
prior
to
the
date
of
application
to
the
program.
7
d.
Derive
a
minimum
of
fifty-one
percent
of
the
8
manufacturer’s
overall
revenue
from
the
sale
of
manufactured
9
goods.
10
e.
Employ
a
minimum
of
three
full-time
employees
and
no
11
more
than
seventy-five
full-time
employees
across
all
of
the
12
manufacturer’s
locations.
13
f.
Have
an
assessment
of
the
manufacturer’s
proposed
14
manufacturing
4.0
technology
investment
completed
by
the
center
15
for
industrial
research
and
service
at
Iowa
state
university
of
16
science
and
technology.
17
g.
Demonstrate
the
ability
to
provide
matching
financial
18
support
for
the
manufacturer’s
manufacturing
4.0
technology
19
investment
on
a
one-to-one
basis.
The
matching
financial
20
support
must
be
obtained
from
private
sources.
21
6.
Eligible
manufacturers
shall
submit
applications
to
the
22
manufacturing
4.0
technology
investment
program
in
the
manner
23
prescribed
by
the
authority
by
rule.
24
7.
a.
The
authority
may
accept
applications
during
one
25
or
more
application
periods
each
fiscal
year
as
determined
by
26
the
authority.
All
completed
applications
shall
be
reviewed
27
and
scored
on
a
competitive
basis
pursuant
to
rules
adopted
by
28
the
authority.
The
authority
may
engage
an
outside
technical
29
review
panel
to
complete
technical
reviews
of
applications.
30
The
board
shall
review
the
recommendations
of
the
authority
31
and
of
the
technical
review
panel,
if
applicable,
and
shall
32
approve,
defer,
or
deny
each
application.
33
b.
In
making
recommendations
to
the
board,
the
authority
and
34
the
technical
review
panel,
if
applicable,
shall
consider
all
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of
the
following:
1
(1)
The
completeness
of
the
manufacturer’s
application.
2
(2)
Whether
the
board
should
approve
or
deny
an
application.
3
(3)
If
the
board
approves
an
application,
the
type
and
4
amount
of
financial
assistance
that
should
to
be
awarded
to
the
5
applicant.
6
(4)
The
percentage
of
the
manufacturer’s
overall
revenue
7
that
is
derived
from
the
sale
of
manufactured
goods
pursuant
8
to
subsection
5,
paragraph
“d”
.
9
(5)
Whether
the
manufacturer’s
proposed
manufacturing
10
4.0
technology
investment
is
consistent
with
the
assessment
11
completed
by
the
center
for
industrial
research
and
service
at
12
Iowa
state
university
of
science
and
technology
pursuant
to
13
subsection
5,
paragraph
“f”
.
14
c.
The
board
shall
not
approve
an
application
for
financial
15
assistance
for
a
manufacturing
4.0
technology
investment
that
16
was
made
prior
to
the
date
of
the
application.
17
8.
The
maximum
amount
of
financial
assistance
awarded
to
an
18
eligible
manufacturer
under
the
manufacturing
4.0
technology
19
investment
program
shall
not
exceed
seventy-five
thousand
20
dollars.
21
9.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
22
necessary
to
implement
and
administer
this
section.
23
DIVISION
IV
24
ENERGY
INFRASTRUCTURE
REVOLVING
LOAN
PROGRAM
25
Sec.
6.
Section
476.10A,
subsection
2,
Code
2021,
is
amended
26
to
read
as
follows:
27
2.
Notwithstanding
section
8.33
,
any
unexpended
moneys
28
remitted
to
the
treasurer
of
state
under
this
section
shall
be
29
retained
for
the
purposes
designated.
Notwithstanding
section
30
12C.7,
subsection
2
,
interest
or
earnings
on
investments
or
31
time
deposits
of
the
moneys
remitted
under
this
section
shall
32
be
retained
and
used
for
the
purposes
designated,
pursuant
to
33
section
476.46
.
34
Sec.
7.
Section
476.46,
subsection
2,
paragraph
e,
35
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subparagraph
(3),
Code
2021,
is
amended
to
read
as
follows:
1
(3)
Interest
on
the
fund
shall
be
deposited
in
the
fund.
2
A
portion
of
the
interest
on
the
fund,
not
to
exceed
fifty
3
percent
of
the
total
interest
accrued,
shall
be
used
for
4
promotion
and
administration
of
the
fund.
5
Sec.
8.
Section
476.46,
Code
2021,
is
amended
by
adding
the
6
following
new
subsections:
7
NEW
SUBSECTION
.
3.
The
Iowa
energy
center
shall
not
8
initiate
any
new
loans
under
this
section
after
June
30,
2021.
9
NEW
SUBSECTION
.
4.
Loan
payments
received
under
this
10
section
on
or
after
July
1,
2021,
and
any
other
moneys
in
the
11
fund
on
or
after
July
1,
2021,
shall
be
deposited
in
the
energy
12
infrastructure
revolving
loan
fund
created
in
section
476.46A.
13
Sec.
9.
NEW
SECTION
.
476.46A
Energy
infrastructure
14
revolving
loan
program.
15
1.
a.
An
energy
infrastructure
revolving
loan
fund
is
16
created
in
the
office
of
the
treasurer
of
state
and
shall
be
17
administered
by
the
Iowa
energy
center
established
in
section
18
15.120.
19
b.
The
fund
may
be
administered
as
a
revolving
fund
and
may
20
consist
of
any
moneys
appropriated
by
the
general
assembly
for
21
purposes
of
this
section
and
any
other
moneys
that
are
lawfully
22
directed
to
the
fund.
23
c.
Moneys
in
the
fund
shall
be
used
to
provide
financial
24
assistance
for
the
development
and
construction
of
energy
25
infrastructure,
including
projects
that
support
electric
or
gas
26
generation
transmission,
storage,
or
distribution;
electric
27
grid
modernization;
energy-sector
workforce
development;
28
emergency
preparedness
for
rural
and
underserved
areas;
the
29
expansion
of
biomass,
biogas,
and
renewable
natural
gas;
30
innovative
technologies;
and
the
development
of
infrastructure
31
for
alternative
fuel
vehicles.
32
d.
Notwithstanding
section
8.33,
moneys
appropriated
in
this
33
section
that
remain
unencumbered
or
unobligated
at
the
close
of
34
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
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expenditure
for
the
purposes
designated
until
the
close
of
the
1
succeeding
fiscal
year.
2
e.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
3
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
4
2.
a.
The
Iowa
energy
center
shall
establish
and
administer
5
an
energy
infrastructure
revolving
loan
program
to
encourage
6
the
development
of
energy
infrastructure
within
the
state.
7
b.
An
individual,
business,
rural
electric
cooperative,
or
8
municipal
utility
located
and
operating
in
this
state
shall
be
9
eligible
for
financial
assistance
under
the
program.
With
the
10
approval
of
the
Iowa
energy
center
governing
board
established
11
under
section
15.120,
subsection
2,
the
economic
development
12
authority
shall
determine
the
amount
and
the
terms
of
all
13
financial
assistance
awarded
to
an
individual,
business,
rural
14
electric
cooperative,
or
municipal
utility
under
the
program.
15
All
agreements
and
administrative
authority
sha11
be
vested
in
16
the
Iowa
energy
center
governing
board.
17
c.
The
economic
development
authority
may
use
not
more
than
18
five
percent
of
the
moneys
in
the
fund
at
the
beginning
of
each
19
fiscal
year
for
purposes
of
administrative
costs,
marketing,
20
technical
assistance,
and
other
program
support.
21
3.
For
the
purposes
of
this
section:
22
a.
“Energy
infrastructure”
means
land,
buildings,
physical
23
plant
and
equipment,
and
services
directly
related
to
the
24
development
of
projects
used
for,
or
useful
for,
electricity
or
25
gas
generation,
transmission,
storage,
or
distribution.
26
b.
“Financial
assistance”
means
the
same
as
defined
in
27
section
15.102.
28
Sec.
10.
ALTERNATE
ENERGY
REVOLVING
LOAN
FUND
——
MONEYS
29
TRANSFERRED
AND
APPROPRIATED.
Any
unencumbered
or
unobligated
30
moneys
remaining
after
June
30,
2021,
in
the
alternate
energy
31
revolving
loan
fund
created
pursuant
to
section
476.46,
are
32
transferred
and
appropriated
to
the
energy
infrastructure
33
revolving
loan
fund
created
pursuant
to
section
476.46A,
to
be
34
used
for
purposes
of
the
energy
infrastructure
revolving
loan
35
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program.
1
DIVISION
V
2
WORKFORCE
HOUSING
TAX
INCENTIVES
3
Sec.
11.
Section
15.119,
subsection
2,
paragraph
g,
Code
4
2021,
is
amended
to
read
as
follows:
5
g.
(1)
The
workforce
housing
tax
incentives
program
6
administered
pursuant
to
sections
15.351
through
15.356
.
7
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
8
authority
shall
not
allocate
more
than
twenty-five
thirty
9
million
dollars
for
purposes
of
this
paragraph.
Of
the
moneys
10
allocated
under
this
paragraph,
ten
fifteen
million
dollars
11
shall
be
reserved
for
allocation
to
qualified
housing
projects
12
in
small
cities,
as
defined
in
section
15.352
,
that
are
13
registered
on
or
after
July
1,
2017.
14
(2)
(a)
Notwithstanding
subparagraph
(1),
in
allocating
15
tax
credits
pursuant
to
this
subsection
for
the
fiscal
year
16
beginning
July
1,
2021,
and
ending
June
30,
2022,
the
authority
17
shall
not
allocate
more
than
forty
million
dollars
for
the
18
purposes
of
this
paragraph.
Of
the
moneys
allocated
under
19
this
paragraph
for
the
fiscal
year
beginning
July
1,
2021,
and
20
ending
June
30,
2022,
twelve
million
dollars
shall
be
reserved
21
for
allocation
to
qualified
housing
projects
in
small
cities,
22
as
defined
in
section
15.352,
that
are
registered
on
or
after
23
July
1,
2017.
24
(b)
This
subparagraph
is
repealed
July
1,
2022.
25
Sec.
12.
Section
15.354,
subsection
3,
paragraph
d,
Code
26
2021,
is
amended
to
read
as
follows:
27
d.
Upon
completion
of
a
housing
project,
an
a
housing
28
business
shall
submit
all
of
the
following
to
the
authority:
29
(1)
An
examination
of
the
project
in
accordance
with
the
30
American
institute
of
certified
public
accountants’
statements
31
on
standards
for
attestation
engagements,
completed
by
a
32
certified
public
accountant
authorized
to
practice
in
this
33
state
,
shall
be
submitted
to
the
authority
.
34
(2)
A
statement
of
the
final
amount
of
qualifying
new
35
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investment
for
the
housing
project.
1
(3)
Any
information
the
authority
deems
necessary
to
ensure
2
compliance
with
the
agreement
signed
by
the
housing
business
3
pursuant
to
paragraph
“a”
,
the
requirements
of
this
part,
4
and
rules
the
authority
and
the
department
of
revenue
adopt
5
pursuant
to
section
15.356.
6
Sec.
13.
Section
15.354,
subsection
3,
paragraph
e,
7
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
8
(1)
Upon
review
of
the
examination
,
and
verification
of
9
the
amount
of
the
qualifying
new
investment,
and
review
of
10
any
other
information
submitted
pursuant
to
paragraph
“d”
,
11
subparagraph
(3),
the
authority
may
notify
the
housing
business
12
of
the
amount
that
the
housing
business
may
claim
as
a
refund
13
of
the
sales
and
use
tax
under
section
15.355,
subsection
2
,
14
and
may
issue
a
tax
credit
certificate
to
the
housing
business
15
stating
the
amount
of
workforce
housing
investment
tax
credits
16
under
section
15.355
,
subsection
3
,
the
eligible
housing
17
business
may
claim.
The
sum
of
the
amount
that
the
housing
18
business
may
claim
as
a
refund
of
the
sales
and
use
tax
and
19
the
amount
of
the
tax
credit
certificate
shall
not
exceed
the
20
amount
of
the
tax
incentive
award.
21
Sec.
14.
Section
15.354,
subsection
6,
paragraphs
b
and
c,
22
Code
2021,
are
amended
to
read
as
follows:
23
b.
Notwithstanding
subsection
1
,
the
authority
may
accept
24
applications
for
disaster
recovery
housing
projects
on
a
25
continuous
basis
establish
a
disaster
recovery
application
26
period
following
the
declaration
of
a
major
disaster
by
the
27
president
of
the
United
States
for
a
county
in
Iowa
.
28
c.
Notwithstanding
subsection
2
,
paragraphs
“a”
,
“b”
,
and
29
“d”
,
upon
Upon
review
of
a
housing
business’s
application
,
30
and
scoring
of
all
applications
received
during
a
disaster
31
recovery
application
period,
the
authority
may
make
a
tax
32
incentive
award
to
a
disaster
recovery
housing
project.
The
33
tax
incentive
award
shall
represent
the
maximum
amount
of
tax
34
incentives
that
the
disaster
recovery
housing
project
may
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qualify
for
under
the
program.
In
determining
a
tax
incentive
1
award,
the
authority
shall
not
use
an
amount
of
project
costs
2
that
exceeds
the
amount
included
in
the
application
of
the
3
housing
business.
Tax
incentive
awards
shall
be
approved
by
4
the
director
of
the
authority.
5
Sec.
15.
Section
15.355,
subsection
2,
Code
2021,
is
amended
6
to
read
as
follows:
7
2.
A
housing
business
may
claim
a
refund
of
the
sales
and
8
use
taxes
paid
under
chapter
423
that
are
directly
related
to
9
a
housing
project
and
specified
in
the
agreement.
The
refund
10
available
pursuant
to
this
subsection
shall
be
as
provided
in
11
section
15.331A
,
excluding
subsection
2
,
paragraph
“c”
,
of
12
that
section.
For
purposes
of
the
program,
the
term
“project
13
completion”
,
as
used
in
section
15.331A
,
shall
mean
the
date
14
on
which
the
authority
notifies
the
department
of
revenue
that
15
all
applicable
requirements
of
an
the
agreement
entered
into
16
pursuant
to
section
15.354
,
subsection
3,
paragraph
“a”
,
and
17
all
applicable
requirements
of
this
part,
including
the
rules
18
the
authority
and
the
department
of
revenue
adopted
pursuant
to
19
section
15.356,
are
satisfied.
20
DIVISION
VI
21
BROWNFIELDS
AND
GRAYFIELDS
22
Sec.
16.
Section
15.293A,
subsection
8,
Code
2021,
is
23
amended
to
read
as
follows:
24
8.
This
section
is
repealed
on
June
30,
2021
2031
.
25
Sec.
17.
Section
15.293B,
Code
2021,
is
amended
by
adding
26
the
following
new
subsection:
27
NEW
SUBSECTION
.
5A.
a.
Tax
credits
revoked
under
28
subsection
3
including
tax
credits
revoked
up
to
five
years
29
prior
to
the
effective
date
of
this
division
of
this
Act,
and
30
tax
credits
not
awarded
under
subsection
4
or
5,
may
be
awarded
31
in
the
next
annual
application
period
established
in
subsection
32
1,
paragraph
“c”
.
33
b.
Tax
credits
awarded
pursuant
to
paragraph
“a”
shall
not
34
be
counted
against
the
limit
under
section
15.119,
subsection
35
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3.
1
Sec.
18.
Section
15.293B,
subsection
7,
Code
2021,
is
2
amended
to
read
as
follows:
3
7.
This
section
is
repealed
on
June
30,
2021
2031
.
4
Sec.
19.
EFFECTIVE
DATE.
The
following,
being
deemed
of
5
immediate
importance,
take
effect
upon
enactment:
6
1.
The
section
of
this
division
of
this
Act
amending
section
7
15.293A,
subsection
8.
8
2.
The
section
of
this
division
of
this
Act
amending
section
9
15.293B,
subsection
7.
10
DIVISION
VII
11
FEDERAL
PAYCHECK
PROTECTION
PROGRAM
12
Sec.
20.
FEDERAL
PAYCHECK
PROTECTION
PROGRAM.
13
Notwithstanding
any
other
provision
of
the
law
to
the
contrary,
14
for
any
tax
year
ending
after
March
27,
2020,
Division
N,
Tit.
15
II,
subtit.
B,
§276
and
§278(a),
of
the
federal
Consolidated
16
Appropriations
Act,
2021,
Pub.
L.
No.
116-260,
applies
in
17
computing
net
income
for
state
tax
purposes
under
section
422.7
18
or
422.35.
19
Sec.
21.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
20
deemed
of
immediate
importance,
takes
effect
upon
enactment.
21
DIVISION
VIII
22
FUTURE
TAX
CHANGES
23
Sec.
22.
2018
Iowa
Acts,
chapter
1161,
section
133,
is
24
amended
by
striking
the
section
and
inserting
in
lieu
thereof
25
the
following:
26
SEC.
133.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
27
effect
January
1,
2023.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
relates
to
the
administration
and
implementation
32
of
state
taxation
matters
and
credits,
including
economic
33
development
and
energy
tax
incentives
and
programs,
and
future
34
tax
contingencies.
The
bill
is
divided
into
divisions.
35
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DIVISION
I
——
HIGH
QUALITY
JOBS
AND
RENEWABLE
CHEMICAL
1
PRODUCTION
TAX
CREDITS.
Division
I
reduces
the
maximum
2
amount
of
tax
credits
that
the
economic
development
authority
3
(authority)
may
allocate
to
the
high
quality
jobs
program
for
4
the
fiscal
year
beginning
July
1,
2021,
and
for
each
fiscal
5
year
thereafter,
from
$105
million
to
$70
million.
The
maximum
6
amount
of
tax
credits
that
the
authority
may
allocate
to
the
7
renewable
chemical
production
tax
credit
program
for
the
fiscal
8
year
beginning
July
1,
2021,
and
ending
June
30,
2022,
and
for
9
each
fiscal
year
thereafter
is
reduced
from
$10
million
to
$5
10
million.
11
DIVISION
II
——
HIGH
QUALITY
JOBS
——
ELIGIBILITY
12
REQUIREMENTS.
To
be
eligible
to
receive
incentives
or
13
assistance
under
the
high
quality
jobs
program,
a
business
14
cannot
be
in
the
process
of
reducing
operations
in
one
15
community
while
simultaneously
apply
for
assistance
under
the
16
program.
Under
current
law,
a
reduction
in
operations
within
17
12
months
before
or
after
a
business
submits
an
application
to
18
the
high
quality
jobs
program
is
presumed
to
be
a
reduction
19
in
operations
while
simultaneously
applying
for
assistance
20
under
the
program.
Under
the
bill,
the
economic
development
21
authority
(authority)
cannot
presume
that
a
reduction
in
22
operations
is
a
reduction
while
simultaneously
applying
for
23
assistance
under
the
program
with
regard
to
a
business
that
24
submits
an
application
on
or
before
June
30,
2022,
if
the
25
business
demonstrates
to
the
satisfaction
of
the
authority
that
26
the
reduction
in
operations
occurred
after
March
1,
2020,
and
27
that
it
was
a
result
of
the
COVID-19
pandemic.
The
authority
28
must
consider
whether
the
benefit
of
the
project
proposed
by
29
the
business
outweighs
any
negative
impact
related
to
the
30
reduction
in
operations.
The
business
remains
subject
to
all
31
other
eligibility
requirements.
This
division
of
the
bill
is
32
repealed
July
1,
2022.
33
DIVISION
III
——
MANUFACTURING
4.0.
The
division
establishes
34
the
manufacturing
4.0
technology
investment
program
(program)
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and
creates
the
manufacturing
4.0
technology
investment
1
fund
(fund).
“Manufacturing
4.0
technology
investments”
2
(investments)
is
defined
as
projects
that
are
intended
to
lead
3
to
the
adoption
of,
and
integration
of,
smart
technologies
4
into
existing
manufacturing
operations
located
in
the
state
5
by
mitigating
the
risk
to
the
manufacturer
of
significant
6
technology
investments.
Projects
may
include
investments
in
7
specialized
hardware,
software,
or
other
equipment
intended
8
to
assist
a
manufacturer
in
increasing
the
manufacturer’s
9
productivity,
efficiency,
and
competitiveness.
10
The
fund
may
be
administered
as
a
revolving
fund
and
may
11
consist
of
any
moneys
appropriated
for
purposes
of
the
program
12
and
any
other
moneys
that
are
lawfully
available
to
the
13
authority.
The
authority
must
use
moneys
in
the
fund
to
award
14
financial
assistance
to
eligible
manufacturers
for
investments.
15
Financial
assistance
may
include
but
is
not
limited
to
16
grants,
loans,
and
forgivable
loans.
The
requirements
for
a
17
manufacturer
to
be
eligible
for
financial
assistance
under
the
18
program
are
outlined
in
the
bill.
19
Eligible
manufacturers
must
submit
an
application
to
the
20
program
in
the
manner
prescribed
by
the
economic
development
21
authority
(authority)
by
rule.
The
authority
may
accept
22
applications
during
one
or
more
application
periods
during
a
23
fiscal
year
as
determined
by
the
authority.
All
completed
24
applications
must
be
reviewed
and
scored
on
a
competitive
basis
25
pursuant
to
rules
adopted
by
the
authority.
The
authority
may
26
engage
an
outside
technical
review
panel
(panel)
to
complete
a
27
technical
review
of
applications.
The
authority
board
members
28
appointed
by
the
governor
must
review
the
recommendations
29
of
the
authority
and
of
the
panel,
if
applicable,
and
30
shall
approve,
defer,
or
deny
each
application.
In
making
31
recommendations
to
the
board,
the
authority
and
the
panel
must
32
consider
the
factors
detailed
in
the
bill.
33
The
board
cannot
approve
an
application
for
financial
34
assistance
for
an
investment
that
was
made
prior
to
the
date
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of
the
application.
1
The
maximum
amount
of
financial
assistance
awarded
to
an
2
eligible
manufacturer
under
the
program
cannot
exceed
$75,000.
3
The
authority
must
adopt
rules
as
necessary
to
implement
and
4
administer
the
program.
5
DIVISION
IV
——
ENERGY
INFRASTRUCTURE
REVOLVING
LOAN
PROGRAM.
6
The
division
modifies
Code
section
476.46,
alternate
energy
7
revolving
loan
program,
to
prohibit
the
Iowa
energy
center
from
8
initiating
any
new
loans
after
June
30,
2021.
The
division
9
also
requires
that
all
loan
payments
received
after
June
30,
10
2021,
be
deposited,
and
any
moneys
remaining
in
the
alternate
11
energy
revolving
loan
fund
after
June
30,
2021,
be
transferred,
12
to
the
newly
created
energy
infrastructure
revolving
loan
fund.
13
The
division
creates
an
energy
infrastructure
revolving
14
fund
(fund)
in
the
office
of
the
treasurer
of
state
to
be
15
administered
by
the
Iowa
energy
center
(center).
Moneys
in
16
the
fund
are
to
be
used
to
provide
financial
assistance
for
17
the
development
and
construction
of
energy
infrastructure,
18
including
projects
that
support
electric
or
gas
generation
19
transmission,
storage,
or
distribution;
electric
grid
20
modernization;
energy-sector
workforce
development;
emergency
21
preparedness
for
rural
and
underserved
areas;
the
expansion
22
of
biomass,
biogas,
and
renewable
natural
gas;
innovative
23
technologies;
and
the
development
of
infrastructure
for
24
alternative
fuel
vehicles.
“Energy
infrastructure”
is
defined
25
as
land,
buildings,
physical
plant
and
equipment,
and
services
26
directly
related
to
the
development
of
projects
used
for,
27
or
useful
for,
electricity
or
gas
generation,
transmission,
28
storage,
or
distribution.
“Financial
assistance”
is
also
29
defined
in
the
bill.
30
The
center
is
required
to
establish
and
administer
an
energy
31
infrastructure
revolving
loan
program
(program)
to
encourage
32
the
development
of
energy
infrastructure
within
the
state.
An
33
individual,
business,
rural
electric
cooperative,
or
municipal
34
utility
located
and
operating
in
this
state
is
eligible
for
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financial
assistance
under
the
program.
With
the
approval
1
of
the
center’s
governing
board,
the
economic
development
2
authority
(authority)
must
determine
the
amount
and
the
terms
3
of
all
financial
assistance
awarded
to
an
individual,
business,
4
rural
electric
cooperative,
or
municipal
utility
under
the
5
program.
All
agreements
and
administrative
authority
are
6
vested
in
the
center’s
governing
board.
The
authority
may
7
use
not
more
than
5
percent
of
the
moneys
in
the
fund
at
the
8
beginning
of
each
fiscal
year
for
purposes
of
administrative
9
costs,
marketing,
technical
assistance,
and
other
program
10
support.
11
DIVISION
V
——
WORKFORCE
HOUSING
TAX
INCENTIVES.
Code
12
section
15.119
sets
an
aggregate
tax
credit
amount
limit
for
13
certain
economic
development
programs.
Under
current
law,
the
14
workforce
housing
tax
incentives
program
administered
under
15
Code
sections
15.351
through
15.356
shall
not
be
allocated
16
more
than
$25
million
in
tax
credits,
and
of
the
tax
credits
17
allocated
to
this
program,
$10
million
is
reserved
for
18
allocation
to
qualified
housing
projects
in
small
cities.
19
This
division
increases
the
workforce
housing
tax
credit
20
allocations
from
$25
million
to
$40
million
for
FY
2021-2022.
21
Of
the
moneys
allocated
to
workforce
housing
tax
credits
in
22
FY
2021-2022,
the
bill
increases
the
tax
credits
reserved
for
23
qualified
housing
projects
in
small
cities
from
$10
million
24
to
$12
million.
Beginning
with
FY
2022-2023
and
each
fiscal
25
year
thereafter,
the
bill
sets
the
workforce
housing
tax
credit
26
allocations
at
$30
million,
of
which
$15
million
shall
be
27
reserved
for
small
cities.
28
Currently,
upon
completion
of
a
housing
project,
a
housing
29
business
(housing
developer,
contractor,
or
nonprofit
that
30
completes
a
housing
project)
submits
an
examination
of
the
31
project
in
accordance
with
the
American
institute
of
certified
32
public
accountants
to
the
authority.
In
addition
to
an
33
examination
by
certified
public
accountants,
the
bill
requires
34
the
housing
business
to
submit
the
following
to
the
authority
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upon
completion
of
a
housing
project:
a
statement
of
the
1
final
amount
of
the
qualifying
new
investment
for
the
housing
2
project
and
any
information
the
authority
deems
necessary
to
3
ensure
compliance
with
the
agreement
between
the
authority
and
4
the
housing
business
including
any
rules
the
authority
and
the
5
department
of
revenue
adopt
pursuant
to
Code
section
15.356.
6
The
bill
also
requires
the
authority
to
review
the
information
7
submitted
by
the
housing
business
prior
to
notifying
the
8
housing
business
of
tax
incentive
awards.
9
The
bill
permits
the
authority
to
establish
a
disaster
10
housing
recovery
period
following
the
declaration
of
a
major
11
disaster
by
the
president
of
the
United
States.
Currently,
the
12
authority
may
accept
applications
for
disaster
recovery
housing
13
projects
on
a
continuous
basis.
14
Moneys
available
for
the
program
may
consist
of
moneys
15
appropriated
for
use
in
the
program,
and
any
other
moneys
that
16
are
lawfully
available
to
the
economic
development
authority,
17
including
moneys
transferred
or
deposited
from
other
funds
18
created
pursuant
to
Code
section
15.106A(1)(o).
19
DIVISION
VI
——
BROWNFIELDS
AND
GRAYFIELDS.
Current
law
20
provides
that
the
economic
development
authority
(authority)
21
may
allocate
not
more
than
$10
million
in
tax
credits
in
22
a
fiscal
year
to
the
brownfield
redevelopment
program
23
(brownfields).
The
division
provides
that
tax
credits
that
are
24
not
awarded
or
that
are
revoked
(including
revoked
within
the
25
previous
five
years)
under
brownfields
may
be
awarded
during
26
the
next
annual
application
period,
and
those
tax
credits
do
27
not
count
against
the
$10
million
tax
credit
maximum.
Under
28
current
law,
Code
section
15.293A,
redevelopment
tax
credits,
29
is
repealed
on
June
30,
2021.
The
division
changes
the
repeal
30
date
to
June
30,
2031,
and
the
repeal
date
is
effective
upon
31
enactment
of
the
division.
Under
current
law,
Code
section
32
15.293B,
related
to
the
application,
review,
registration,
33
and
authorization
of
projects
awarded
tax
credits
under
34
brownfields,
is
repealed
on
June
30,
2021.
The
division
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changes
the
repeal
date
to
June
30,
2031,
and
the
repeal
date
1
is
effective
upon
enactment
of
the
division.
2
DIVISION
VII
——
FEDERAL
PAYCHECK
PROTECTION
PROGRAM.
Under
3
current
law,
for
the
tax
year
2020
and
later,
Iowa
law
fully
4
conforms
with
the
federal
treatment
of
forgiven
paycheck
5
protection
program
loans
and
excludes
such
amounts
from
net
6
income
and
allows
certain
deductions
for
business
expenses
7
paid
using
those
loans.
For
fiscal-year
filers
who
received
8
paycheck
protection
program
loans
during
the
2019
tax
year,
9
current
law
excludes
such
amounts
from
net
income,
but
does
10
not
allow
certain
deductions
for
business
expenses
paid
using
11
those
loans.
The
bill
fully
conforms
with
federal
law
for
12
those
fiscal-year
filers
who
previously
were
excluded
from
such
13
conformity
and
allows
such
filers
to
take
business
expense
14
deductions
using
federal
paycheck
protection
program
loan
15
proceeds
that
were
forgiven.
16
This
division
of
the
bill
takes
effect
upon
enactment.
17
DIVISION
VIII
——
FUTURE
TAX
CHANGES.
The
bill
amends
2018
18
Iowa
Acts,
chapter
1161,
section
133
(trigger),
by
striking
19
the
two
conditions
necessary
for
the
trigger
to
occur,
and
20
specifies
the
provisions
in
2018
Iowa
Acts,
chapter
1161,
21
sections
99
through
132,
take
effect
January
1,
2023.
22
Currently,
the
two
conditions
are
necessary
for
the
trigger
23
to
occur
include
net
general
fund
revenues
for
the
fiscal
year
24
ending
June
30,
2022,
equaling
or
exceeding
$8.3146
billion,
25
and
also
equaling
or
exceeding
104
percent
of
the
net
general
26
fund
revenues
for
the
fiscal
year
ending
June
30,
2021.
If
27
these
two
conditions
are
not
satisfied,
current
law
institutes
28
the
changes
for
tax
years
beginning
on
or
after
the
January
1
29
following
the
first
fiscal
year
for
which
the
two
conditions
30
do
occur.
By
striking
the
“trigger”,
the
bill
sets
in
motion
31
numerous
tax
changes
for
tax
years
beginning
on
or
after
32
January
1,
2023,
described
below.
33
The
tax
changes
include
reducing
the
number
of
individual
34
income
tax
brackets
from
nine
to
four,
and
modifying
the
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taxable
income
amounts
and
tax
rates
as
follows:
1
Income
over:
But
not
over:
Tax
Rate:
2
1)
$0
$6,000
4.40%
3
2)
$6,000
$30,000
4.82%
4
3)
$30,000
$75,000
5.70%
5
4)
$75,000
6.50%
6
For
a
married
couple
filing
a
joint
return,
the
taxable
7
income
amounts
in
each
bracket
above
are
doubled.
Also,
the
8
taxable
income
amounts
in
each
bracket
above
will
be
indexed
to
9
inflation
and
increased
in
future
tax
years,
beginning
in
the
10
tax
year
following
the
2023
tax
year.
11
Under
current
law,
the
starting
point
for
computing
the
12
Iowa
individual
income
tax
is
federal
adjusted
gross
income
13
before
the
net
operating
loss
deduction,
which
is
generally
a
14
taxpayer’s
gross
income
minus
several
deductions.
From
that
15
point,
Iowa
requires
several
adjustments
and
then
provides
16
taxpayers
with
a
deduction
for
federal
income
taxes
paid,
17
and
the
option
to
deduct
a
standard
deduction
or
itemized
18
deductions.
The
bill
changes
the
starting
point
for
computing
19
the
individual
income
tax
to
federal
taxable
income,
which
20
includes
all
deductions
and
adjustments
taken
at
the
federal
21
level
in
computing
tax,
including
a
standard
deduction
22
or
itemized
deductions,
and
the
qualified
business
income
23
deduction
allowed
for
certain
income
earned
from
a
pass-through
24
entity.
Because
the
starting
point
changes
to
federal
taxable
25
income,
and
federal
law
does
not
provide
for
the
filing
status
26
of
married
filing
separately
on
a
combined
return,
the
bill
27
repeals
that
filing
status
option
for
Iowa
tax
purposes.
28
Because
net
operating
loss
is
no
longer
calculated
at
the
state
29
level,
the
bill
requires
a
taxpayer
to
add
back
any
federal
30
net
operating
loss
deduction
carried
over
from
a
taxable
year
31
beginning
prior
to
the
2023
tax
year,
but
allows
taxpayers
32
to
deduct
any
remaining
Iowa
net
operating
loss
from
a
prior
33
taxable
year.
The
bill
repeals
the
individual
alternative
34
minimum
tax
(AMT),
allows
an
individual
to
claim
any
remaining
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AMT
credit
against
the
individual’s
regular
tax
liability
for
1
the
2023
tax
year,
and
then
repeals
the
AMT
credit
in
the
2
tax
year
following
the
2023
tax
year.
The
bill
repeals
most
3
Iowa-specific
deductions,
exemptions,
and
adjustments
currently
4
available
when
computing
net
income
and
taxable
income
under
5
Iowa
law,
including
the
Iowa
optional
standard
deduction
and
6
all
itemized
deductions,
and
the
ability
to
deduct
federal
7
income
taxes,
except
for
a
one-year
phase
out
in
the
2023
tax
8
year
for
taxes
paid,
or
refunds
received,
that
relate
to
a
9
prior
year.
The
bill
maintains
the
add-back
for
income
from
10
securities
that
are
federally
exempt
but
not
state-exempt,
and
11
for
bonus
depreciation
amounts.
The
bill
maintains
the
general
12
pension
exclusion
and
the
deduction
for
income
from
federal
13
securities.
The
bill
maintains
the
deduction
for
contributions
14
to
the
Iowa
529
plan,
the
Iowa
ABLE
plan,
a
first-time
15
homebuyer
savings
account,
and
an
individual
development
16
account.
The
bill
also
maintains
the
deductions
for
military
17
pension
income,
military
active
duty
pay,
social
security
18
retirement
benefits,
certain
payments
received
for
providing
19
unskilled
in-home
health
care,
certain
amounts
received
from
20
the
veterans
trust
fund,
victim
compensation
awards,
biodiesel
21
production
refunds,
certain
wages
paid
to
individuals
with
22
disabilities
or
individuals
previously
convicted
of
a
felony,
23
certain
organ
donations,
and
Segal
AmeriCorps
education
award
24
payments.
The
bill
modifies
the
existing
deduction
for
health
25
insurance
payments
in
Code
section
422.7(29)
to
make
the
26
deduction
only
applicable
to
taxpayers
who
are
at
least
65
27
years
old
and
who
have
net
income
below
$100,000.
The
bill
28
also
modifies
the
existing
capital
gain
deduction
in
Code
29
section
422.7(21)
to
restrict
the
deduction
to
the
sale
of
30
real
property
used
in
farming
businesses
by
permitting
the
31
taxpayer
to
take
the
deduction
if
either
of
the
following
32
apply:
the
taxpayer
materially
participated
in
the
farming
33
business
for
at
least
10
years
and
held
the
real
property
for
34
at
least
10
years;
or
the
taxpayer
sold
the
real
property
to
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a
relative.
The
bill
expands
the
definition
of
“relative”
to
1
include
an
entity
in
which
a
relative
of
the
taxpayer
has
a
2
legal
or
equitable
interest
in
the
entity
as
an
owner,
member,
3
partner,
or
beneficiary.
The
bill
provides
a
new
deduction
4
for
any
income
of
an
employee
resulting
from
the
payment
by
5
an
employer,
whether
paid
to
the
employee
or
a
lender,
of
6
principal
or
interest
on
the
employee’s
qualified
education
7
loan.
The
bill
also
modifies
the
calculation
of
net
income
8
for
purposes
of
the
alternate
tax
calculation
in
Code
section
9
422.5(3)
and
(3B),
and
the
tax
return
filing
thresholds
in
10
Code
section
422.13,
to
require
that
any
amount
of
itemized
11
deduction,
standard
deduction,
personal
exemption
deduction,
12
or
qualified
business
income
deduction
that
was
allowed
in
13
computing
federal
taxable
income
shall
be
added
back.
14
Under
current
law,
the
starting
point
for
calculating
the
15
corporate
income
tax
and
franchise
tax
is
federal
taxable
16
income
before
the
net
operating
loss
deduction,
because
net
17
operating
loss
is
calculated
at
the
state
level.
The
bill
18
repeals
the
separate
calculation
of
net
operating
loss
at
the
19
state
level.
As
a
result,
the
bill
requires
taxpayers
to
add
20
back
any
federal
net
operating
loss
deduction
carried
over
from
21
a
taxable
year
beginning
prior
to
the
trigger
year,
but
allows
22
taxpayers
to
deduct
any
remaining
Iowa
net
operating
loss
from
23
a
prior
taxable
year.
The
bill
also
repeals
most
Iowa-specific
24
deductions,
exemptions,
and
adjustments
currently
available
25
when
computing
net
income
and
taxable
income
under
Iowa
law.
26
The
bill
maintains
the
add-back
for
income
from
securities
27
that
are
federally
exempt
but
not
state
exempt,
and
for
bonus
28
depreciation
amounts.
The
bill
maintains
the
deductions
for
29
income
from
federal
securities,
for
foreign
dividend
and
30
subpart
F
income,
for
certain
wages
paid
to
individuals
with
31
disabilities
or
individuals
previously
convicted
of
a
felony,
32
and
for
biodiesel
production
refunds.
33
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