Bill Text: IA SSB1197 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to matters under the purview of the economic development authority, including tax credit programs, incentives for manufacturers to invest in smart technologies, an energy infrastructure revolving loan program, and making appropriations, and including applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-02-16 - Subcommittee: Dawson, Bolkcom, and Sinclair. [SSB1197 Detail]
Download: Iowa-2021-SSB1197-Introduced.html
Senate
Study
Bill
1197
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
1
economic
development
authority,
including
tax
credit
2
programs,
incentives
for
manufacturers
to
invest
in
3
smart
technologies,
an
energy
infrastructure
revolving
4
loan
program,
and
making
appropriations,
and
including
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
HIGH
QUALITY
JOBS
AND
OTHER
TAX
CREDITS
2
Section
1.
Section
15.119,
subsection
2,
paragraph
a,
3
subparagraph
(3),
subparagraph
division
(a),
Code
2021,
is
4
amended
to
read
as
follows:
5
(a)
In
allocating
tax
credits
pursuant
to
this
subsection
6
for
the
fiscal
year
beginning
July
1,
2021,
and
ending
June
30,
7
2022,
the
authority
shall
not
allocate
more
than
one
hundred
8
five
eighty
million
dollars
for
purposes
of
this
paragraph
9
if
the
aggregate
amount
of
renewable
chemical
production
tax
10
credits
under
section
15.319
that
were
awarded
on
or
after
11
July
1,
2018,
but
before
July
1,
2021,
equals
or
exceeds
12
twenty-seven
million
dollars.
13
Sec.
2.
Section
15.119,
subsection
2,
paragraph
h,
Code
14
2021,
is
amended
to
read
as
follows:
15
h.
The
renewable
chemical
production
tax
credit
program
16
administered
pursuant
to
sections
15.315
through
15.322
.
In
17
allocating
tax
credits
pursuant
to
this
subsection
for
the
18
fiscal
year
beginning
July
1,
2021,
and
for
each
fiscal
year
19
thereafter
,
the
authority
shall
not
allocate
more
than
ten
five
20
million
dollars
for
purposes
of
this
paragraph.
This
paragraph
21
is
repealed
July
1,
2030.
22
Sec.
3.
Section
15.333,
subsection
2,
Code
2021,
is
amended
23
to
read
as
follows:
24
2.
An
eligible
business
may
claim
a
tax
credit
equal
to
25
a
percentage
of
the
new
investment
directly
related
to
new
26
jobs
created
or
retained
by
the
project.
The
tax
credit
27
shall
be
amortized
equally
over
five
calendar
years.
The
tax
28
credit
shall
be
allowed
against
taxes
imposed
under
chapter
29
422,
subchapter
II,
III,
or
V
,
and
against
the
moneys
and
30
credits
tax
imposed
in
section
533.329
.
If
the
business
is
31
a
partnership,
S
corporation,
limited
liability
company,
32
cooperative
organized
under
chapter
501
and
filing
as
a
33
partnership
for
federal
tax
purposes,
or
estate
or
trust
34
electing
to
have
the
income
taxed
directly
to
the
individual,
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an
individual
may
claim
the
tax
credit
allowed.
The
amount
1
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
2
share
of
the
individual’s
earnings
of
the
partnership,
S
3
corporation,
limited
liability
company,
cooperative
organized
4
under
chapter
501
and
filing
as
a
partnership
for
federal
5
tax
purposes,
or
estate
or
trust.
The
percentage
shall
be
6
determined
as
provided
in
section
15.335A
.
Any
tax
credit
in
7
excess
of
the
tax
liability
for
the
tax
year
may
be
credited
8
to
the
tax
liability
for
the
following
seven
years
or
until
9
depleted,
whichever
occurs
first.
Any
tax
credit
in
excess
10
of
the
tax
liability
is
refundable.
In
lieu
of
claiming
a
11
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
12
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
13
liability
for
the
following
tax
year.
14
Sec.
4.
Section
15.333A,
subsection
2,
Code
2021,
is
amended
15
to
read
as
follows:
16
2.
An
eligible
business
may
claim
an
insurance
premium
tax
17
credit
equal
to
a
percentage
of
the
new
investment
directly
18
related
to
new
jobs
created
by
the
project.
The
tax
credit
19
shall
be
amortized
equally
over
a
five-year
period.
The
tax
20
credit
shall
be
allowed
against
taxes
imposed
in
chapter
21
432
.
A
tax
credit
in
excess
of
the
tax
liability
for
the
tax
22
year
may
be
credited
to
the
tax
liability
for
the
following
23
seven
years
or
until
depleted,
whichever
occurs
first.
The
24
percentage
shall
be
determined
as
provided
in
section
15.335A
.
25
Any
tax
credit
in
excess
of
the
tax
liability
is
refundable.
26
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
27
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
28
credited
to
the
tax
liability
for
the
following
tax
year.
29
Sec.
5.
APPLICABILITY.
The
following
apply
to
tax
credits
30
awarded
on
or
after
July
1,
2021:
31
1.
The
section
of
this
division
of
this
Act
amending
section
32
15.333,
subsection
2.
33
2.
The
section
of
this
division
of
this
Act
amending
section
34
15.333A,
subsection
2.
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DIVISION
II
1
MANUFACTURING
4.0
2
Sec.
6.
NEW
SECTION
.
15.371
Manufacturing
4.0
technology
3
investment
program.
4
1.
This
section
shall
be
known
as
and
may
be
cited
as
the
5
“Manufacturing
4.0
Technology
Investment
Program.”
6
2.
For
purposes
of
this
section
unless
the
context
otherwise
7
requires:
8
a.
“Financial
assistance”
means
the
same
as
defined
in
9
section
15.102.
10
b.
“Manufacturing
4.0
technology
investments”
means
projects
11
that
are
intended
to
lead
to
the
adoption
of,
and
integration
12
of,
smart
technologies
into
existing
manufacturing
operations
13
located
in
the
state
by
mitigating
the
risk
to
the
manufacturer
14
of
significant
technology
investments.
15
3.
a.
A
manufacturing
4.0
technology
investment
fund
16
is
created
within
the
state
treasury
under
the
control
of
17
the
authority
for
the
purpose
of
financing
manufacturing
4.0
18
technology
investments
as
described
in
this
section.
19
b.
The
fund
may
be
administered
as
a
revolving
fund
and
20
may
consist
of
any
moneys
appropriated
by
the
general
assembly
21
for
purposes
of
this
section
and
any
other
moneys
that
are
22
lawfully
available
to
the
authority.
Any
moneys
appropriated
23
to
the
fund
shall
be
used
for
purposes
of
the
manufacturing
24
4.0
technology
investment
program.
The
authority
may
use
all
25
other
moneys
in
the
fund,
including
interest,
earnings,
and
26
recaptures,
for
purposes
of
this
section.
27
c.
Notwithstanding
section
8.33,
moneys
appropriated
in
this
28
section
that
remain
unencumbered
or
unobligated
at
the
close
of
29
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
30
expenditure
for
the
purposes
designated
until
the
close
of
the
31
succeeding
fiscal
year.
32
d.
Notwithstanding
any
law
to
the
contrary,
the
authority
33
may
transfer
any
unobligated
and
unencumbered
moneys
in
the
34
fund,
except
for
moneys
appropriated
for
purposes
of
this
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section,
to
any
fund
created
pursuant
to
section
15.106A,
1
subsection
1,
paragraph
“o”
.
2
4.
The
authority
shall
establish
and
administer
a
3
manufacturing
4.0
technology
investment
program
and
shall
use
4
moneys
in
the
fund
to
award
financial
assistance
to
eligible
5
manufacturers
for
manufacturing
4.0
technology
investments.
6
5.
The
authority
shall
establish
by
rule
a
manufacturing
7
4.0
review
committee
that
shall
review
each
application
8
received
by
the
authority
for
the
program,
and
that
shall
make
9
recommendations
to
the
board
regarding
all
of
the
following:
10
a.
The
completeness
of
the
application.
11
b.
Whether
the
board
should
approve
or
deny
an
application.
12
c.
If
an
application
is
approved,
the
type
and
amount
of
13
financial
assistance
to
be
awarded
to
the
applicant.
14
6.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
15
necessary
to
implement
and
administer
this
section.
16
Sec.
7.
NEW
SECTION
.
15.372
Additional
first-year
17
depreciation.
18
1.
Overview.
The
authority
may
approve
a
manufacturing
19
business
located
in
this
state
to
claim
additional
first-year
20
depreciation
for
certain
investments
made
by
the
business
to
21
transition
to
a
smart
manufacturing
environment
that
leverages
22
joint
capabilities
of
hardware,
software,
and
workers
in
an
23
integrated
way.
24
2.
Eligibility.
To
claim
additional
first-year
25
depreciation,
a
business
must
make
an
eligible
investment.
26
For
purposes
of
this
section,
“eligible
investment”
means
27
an
investment
in
smart
manufacturing
equipment
that
is
28
digitized
and
interconnected,
and
that
modernizes
a
business’s
29
operations
by
supporting
interconnectivity,
decision
support,
30
customization,
and
flexibility
of
production
runs,
or
that
31
decentralizes
low-level
decision
making.
32
3.
Application
and
agreement.
33
a.
A
business
seeking
approval
to
claim
additional
34
first-year
depreciation
for
an
eligible
investment
shall
make
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application
to
the
authority
in
the
manner
prescribed
by
the
1
authority
by
rule.
The
application
must
include
all
of
the
2
following:
3
(1)
A
description
of
the
investment
the
business
proposes
4
to
make
and
a
statement
describing
how
the
investment
will
5
transition
the
business
to
a
smart
manufacturing
environment.
6
(2)
The
projected
amount
of
the
eligible
investment.
7
(3)
The
projected
date
that
the
eligible
investment
will
be
8
placed-in-service.
9
b.
Completed
applications
shall
be
reviewed
pursuant
to
10
rules
adopted
by
the
authority.
Upon
review
of
an
application,
11
the
board
shall
determine
if
the
proposed
investment
is
an
12
eligible
investment
and
shall
determine
the
maximum
amount
of
13
the
eligible
investment
the
business
is
eligible
to
claim
for
14
additional
first-year
depreciation.
15
c.
If
an
application
is
approved
the
authority
shall
notify
16
the
business.
The
notification
shall
include
the
maximum
17
amount
of
the
eligible
investment
the
business
is
eligible
to
18
claim
for
additional
first-year
depreciation
after
all
terms
19
and
conditions
imposed
by
the
agreement
entered
into
pursuant
20
to
paragraph
“d”
have
been
satisfied.
21
d.
After
receipt
of
the
notification
under
paragraph
“c”
,
22
the
business
shall
enter
into
an
agreement
with
the
authority
23
that
specifies
the
terms
and
conditions
that
must
be
satisfied
24
for
the
business
to
claim
additional
first-year
depreciation
25
on
its
eligible
investment.
The
agreement
must
include
all
of
26
the
following:
27
(1)
A
description
of
the
business’s
eligible
investment.
28
(2)
The
maximum
amount
of
the
eligible
investment
the
29
business
is
allowed
to
claim
for
additional
first-year
30
depreciation.
31
(3)
The
projected
placed-in-service
date
for
the
business’s
32
eligible
investment.
33
(4)
The
date
by
which
the
business
must
file
a
written
34
report
with
the
authority
that
provides
all
of
the
following:
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(a)
The
actual
date
of
completion
of
the
business’s
eligible
1
investment.
2
(b)
The
actual
dollar
amount
of
the
business’s
eligible
3
investment.
4
(c)
The
actual
placed-in-service
date
for
the
business’s
5
eligible
investment.
6
e.
Upon
review
of
the
report
submitted
under
paragraph
“d”
,
7
subparagraph
(4),
and
verification
by
the
authority
of
the
8
actual
dollar
amount
of
the
business’s
eligible
investment,
the
9
authority
shall
notify
the
business
of
the
amount
of
eligible
10
investment
the
business
may
claim
as
additional
first-year
11
depreciation.
The
authority
shall
notify
the
department
of
12
revenue
of
the
amount
of
eligible
investment
the
business
may
13
claim
as
additional
first-year
depreciation
and
shall
submit
a
14
list
to
the
department
of
the
assets
deemed
to
be
part
of
the
15
business’s
eligible
investment.
16
4.
Benefit.
Notwithstanding
section
422.7,
subsection
17
39
or
39A,
or
section
422.35,
subsection
19
or
19A,
for
a
18
business
that
is
approved
by
the
authority
for
an
eligible
19
investment,
section
168(k)
of
the
Internal
Revenue
Code
applies
20
for
the
computing
of
net
income
of
the
business
for
state
tax
21
purposes
up
to
the
amount
of
eligible
investment
approved
by
22
the
authority.
23
5.
Compliance.
If
a
business
fails
to
complete
the
24
installation
of
its
eligible
investment
or
fails
to
comply
with
25
terms
and
conditions
of
the
agreement
entered
under
subsection
26
3,
paragraph
“d”
,
the
authority
shall
revoke,
reduce,
27
terminate,
or
rescind
the
additional
first-year
depreciation
28
the
business
may
claim.
If
a
business
has
already
filed
a
29
tax
return
in
which
the
business
computed
its
net
income
by
30
applying
section
168(k)
of
the
Internal
Revenue
Code,
the
31
business
shall
file
an
amended
return
with
the
department
of
32
revenue
without
applying
section
168(k).
33
6.
Rules.
The
authority
and
the
department
of
revenue
34
shall
adopt
rules
as
necessary
for
the
implementation
and
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administration
of
this
section.
1
DIVISION
III
2
ENERGY
INFRASTRUCTURE
REVOLVING
LOAN
PROGRAM
3
Sec.
8.
Section
476.10A,
subsection
2,
Code
2021,
is
amended
4
to
read
as
follows:
5
2.
Notwithstanding
section
8.33
,
any
unexpended
moneys
6
remitted
to
the
treasurer
of
state
under
this
section
shall
be
7
retained
for
the
purposes
designated.
Notwithstanding
section
8
12C.7,
subsection
2
,
interest
or
earnings
on
investments
or
9
time
deposits
of
the
moneys
remitted
under
this
section
shall
10
be
retained
and
used
for
the
purposes
designated,
pursuant
to
11
section
476.46
.
12
Sec.
9.
Section
476.46,
subsection
2,
paragraph
e,
13
subparagraph
(3),
Code
2021,
is
amended
to
read
as
follows:
14
(3)
Interest
on
the
fund
shall
be
deposited
in
the
fund.
15
A
portion
of
the
interest
on
the
fund,
not
to
exceed
fifty
16
percent
of
the
total
interest
accrued,
shall
be
used
for
17
promotion
and
administration
of
the
fund.
18
Sec.
10.
Section
476.46,
Code
2021,
is
amended
by
adding
the
19
following
new
subsections:
20
NEW
SUBSECTION
.
3.
The
Iowa
energy
center
shall
not
21
initiate
any
new
loans
under
this
section
after
June
30,
2021.
22
NEW
SUBSECTION
.
4.
Loan
payments
received
under
this
23
section
on
or
after
July
1,
2021,
and
any
other
moneys
in
the
24
fund
on
or
after
July
1,
2021,
shall
be
deposited
in
the
energy
25
infrastructure
revolving
loan
fund
created
in
section
476.46A.
26
Sec.
11.
NEW
SECTION
.
476.46A
Energy
infrastructure
27
revolving
loan
program.
28
1.
a.
An
energy
infrastructure
revolving
loan
fund
is
29
created
in
the
office
of
the
treasurer
of
state
and
shall
be
30
administered
by
the
Iowa
energy
center
established
in
section
31
15.120.
32
b.
The
fund
may
be
administered
as
a
revolving
fund
and
may
33
consist
of
any
moneys
appropriated
by
the
general
assembly
for
34
purposes
of
this
section
and
any
other
moneys
that
are
lawfully
35
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directed
to
the
fund.
1
c.
Moneys
in
the
fund
shall
be
used
to
provide
financial
2
assistance
for
the
development
and
construction
of
energy
3
infrastructure,
including
projects
that
support
electric
or
gas
4
generation
transmission,
storage,
or
distribution;
electric
5
grid
modernization;
energy-sector
workforce
development;
6
emergency
preparedness
for
rural
and
underserved
areas;
the
7
expansion
of
biomass,
biogas,
and
renewable
natural
gas;
8
innovative
technologies;
and
the
development
of
infrastructure
9
for
alternative
fuel
vehicles.
10
d.
Notwithstanding
section
8.33,
moneys
appropriated
in
this
11
section
that
remain
unencumbered
or
unobligated
at
the
close
of
12
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
13
expenditure
for
the
purposes
designated
until
the
close
of
the
14
succeeding
fiscal
year.
15
e.
Notwithstanding
section
12C.7,
subsection
2,
interest
16
or
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
17
fund.
A
percentage
of
the
total
interest
credited
to
the
fund,
18
not
to
exceed
fifty
percent,
shall
be
used
for
promotion
of
19
the
energy
infrastructure
revolving
loan
program
and
for
the
20
administration
of
the
fund.
21
2.
a.
The
Iowa
energy
center
shall
establish
and
administer
22
an
energy
infrastructure
revolving
loan
program
to
encourage
23
the
development
of
energy
infrastructure
within
the
state.
24
b.
An
individual,
business,
rural
electric
cooperative,
or
25
municipal
utility
located
and
operating
in
this
state
shall
be
26
eligible
for
financial
assistance
under
the
program.
With
the
27
approval
of
the
Iowa
energy
center
governing
board
established
28
under
section
15.120,
subsection
2,
the
economic
development
29
authority
shall
determine
the
amount
and
the
terms
of
all
30
financial
assistance
awarded
to
an
individual,
business,
rural
31
electric
cooperative,
or
municipal
utility
under
the
program.
32
All
agreements
and
administrative
authority
sha11
be
vested
in
33
the
Iowa
energy
center
governing
board.
34
c.
The
economic
development
authority
may
use
not
more
than
35
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five
percent
of
the
moneys
in
the
fund
at
the
beginning
of
each
1
fiscal
year
for
purposes
of
administrative
costs,
marketing,
2
technical
assistance,
and
other
program
support.
3
3.
For
the
purposes
of
this
section:
4
a.
“Energy
infrastructure”
means
land,
buildings,
physical
5
plant
and
equipment,
and
services
directly
related
to
the
6
development
of
projects
used
for,
or
useful
for,
electricity
or
7
gas
generation,
transmission,
storage,
or
distribution.
8
b.
“Financial
assistance”
means
the
same
as
defined
in
9
section
15.102.
10
Sec.
12.
ALTERNATE
ENERGY
REVOLVING
LOAN
FUND
——
MONEYS
11
TRANSFERRED
AND
APPROPRIATED.
Any
unencumbered
or
unobligated
12
moneys
remaining
after
June
30,
2021,
in
the
alternate
energy
13
revolving
loan
fund
created
pursuant
to
section
476.46,
are
14
transferred
and
appropriated
to
the
energy
infrastructure
15
revolving
loan
fund
created
pursuant
to
section
476.46A,
to
be
16
used
for
purposes
of
the
energy
infrastructure
revolving
loan
17
program.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
matters
under
the
purview
of
the
22
economic
development
authority.
The
bill
is
divided
into
23
divisions.
24
DIVISION
I
——
HIGH
QUALITY
JOBS
AND
OTHER
TAX
CREDITS.
25
Division
I
changes
the
maximum
amount
of
tax
credits
that
the
26
economic
development
authority
(authority)
may
allocate
to
the
27
high
quality
jobs
program
for
the
fiscal
year
beginning
July
28
1,
2021,
and
ending
June
30,
2022,
from
$105
million
to
$80
29
million.
The
maximum
amount
of
tax
credits
that
the
authority
30
may
allocate
to
the
renewable
chemical
production
tax
credit
31
program
for
the
fiscal
year
beginning
July
1,
2021,
and
ending
32
June
30,
2022,
and
for
each
fiscal
year
thereafter
is
changed
33
from
$10
million
to
$5
million.
Current
law
allows
investment
34
tax
credits
and
insurance
premium
tax
credits
that
are
in
35
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excess
of
an
eligible
business’s
tax
liability
for
a
tax
year
1
to
be
credited
to
the
business’s
tax
liability
for
the
next
2
seven
years,
or
until
depleted.
The
division
modifies
both
3
tax
credits
to
make
the
credits
refundable
and
this
applies
4
to
investment
tax
credits
and
insurance
premium
tax
credits
5
awarded
on
or
after
July
1,
2021.
6
DIVISION
II
——
MANUFACTURING
4.0.
The
division
establishes
7
the
manufacturing
4.0
technology
investment
program
(program)
8
and
creates
the
manufacturing
4.0
technology
investment
fund
9
(fund).
“Manufacturing
4.0
technology
investments”
is
defined
10
as
projects
that
are
intended
to
lead
to
the
adoption
of,
and
11
integration
of,
smart
technologies
into
existing
manufacturing
12
operations
located
in
the
state
by
mitigating
the
risk
to
the
13
manufacturer
of
significant
technology
investments.
14
The
fund
may
be
administered
as
a
revolving
fund
and
15
may
consist
of
any
moneys
appropriated
for
purposes
of
the
16
program
and
any
other
moneys
that
are
lawfully
available
to
17
the
authority.
The
authority
must
use
moneys
in
the
fund
18
to
award
financial
assistance
to
eligible
manufacturers
for
19
manufacturing
4.0
technology
investments.
Financial
assistance
20
may
include
but
is
not
limited
to
grants,
loans,
and
forgivable
21
loans.
The
authority
must
establish
by
rule
a
manufacturing
22
4.0
review
committee.
The
committee
must
review
each
23
application
received
by
the
authority
and
make
recommendations
24
to
the
members
of
the
authority
appointed
by
the
governor
25
and
in
whom
the
powers
of
the
authority
are
vested
(board),
26
whether
the
board
should
approve
or
deny
an
application,
and
27
the
type
and
amount
of
financial
assistance
to
be
awarded
to
28
an
applicant.
The
authority
must
adopt
rules
as
necessary
to
29
implement
and
administer
the
program.
30
The
division
permits
the
authority
to
approve
a
31
manufacturing
business
located
in
this
state
to
claim
32
additional
first-year
depreciation
(depreciation)
for
certain
33
investments
made
by
the
business
to
transition
to
a
smart
34
manufacturing
environment
that
leverages
joint
capabilities
of
35
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hardware,
software,
and
workers
in
an
integrated
way.
To
claim
1
depreciation,
a
business
must
make
an
eligible
investment.
2
“Eligible
investment”
is
defined
as
an
investment
in
smart
3
manufacturing
equipment
that
is
digitized
and
interconnected,
4
and
that
modernizes
a
business’s
operations
by
supporting
5
interconnectivity,
decision
support,
customization,
and
6
flexibility
of
production
runs,
or
that
decentralizes
low-level
7
decision
making.
8
The
application
process
and
the
process
for
the
authority
to
9
notify
the
applicant
of
its
eligibility
for
depreciation
are
10
detailed
in
the
division.
An
eligible
business
is
required
11
to
enter
into
an
agreement
with
the
authority
that
specifies
12
the
terms
and
conditions
that
must
be
satisfied
for
the
13
business
to
claim
depreciation
on
its
eligible
investment.
14
An
eligible
business
is
required
to
file
a
written
report
15
with
the
authority
that
states
the
actual
date
of
completion
16
of
the
business’s
eligible
investment,
the
actual
dollar
17
amount
of
the
business’s
eligible
investment,
and
the
actual
18
placed-in-service
date
for
the
business’s
eligible
investment.
19
After
reviewing
the
report
and
verifying
the
actual
dollar
20
amount
of
the
business’s
eligible
investment,
the
authority
21
must
notify
the
business
of
the
amount
of
eligible
investment
22
the
business
may
claim
as
depreciation.
The
authority
must
23
also
notify
the
department
of
revenue
of
the
amount
of
eligible
24
investment
the
business
may
claim
as
depreciation
and
submit
a
25
list
to
the
department
of
the
assets
deemed
to
be
part
of
the
26
business’s
eligible
investment.
27
A
business
that
is
approved
by
the
authority
for
an
eligible
28
investment
may
compute
its
net
income
in
the
same
manner
as
29
depreciation
is
calculated
under
section
168(k)
of
the
Internal
30
Revenue
Code
notwithstanding
contradictory
provisions
in
Code
31
sections
422.7
and
422.35.
If
a
business
fails
to
complete
32
the
installation
of
its
eligible
investment
or
to
comply
with
33
the
terms
and
conditions
of
the
agreement,
the
authority
may
34
revoke,
reduce,
terminate,
or
rescind
the
depreciation
the
35
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business
may
claim,
or
if
the
business
has
already
filed
a
tax
1
return
in
which
the
business
computed
net
income
under
section
2
168(k),
require
the
business
to
file
an
amended
return
with
net
3
income
computed
without
the
application
of
section
168(k).
4
The
authority
and
the
department
of
revenue
must
adopt
rules
5
as
necessary
for
the
implementation
and
administration
of
the
6
program.
7
DIVISION
III
——
ENERGY
INFRASTRUCTURE
REVOLVING
LOAN
8
PROGRAM.
The
division
modifies
Code
section
476.46,
alternate
9
energy
revolving
loan
program,
to
prohibit
the
Iowa
energy
10
center
from
initiating
any
new
loans
after
June
30,
2021.
The
11
division
also
requires
that
all
loan
payments
received
after
12
June
30,
2021,
be
deposited,
and
any
moneys
remaining
in
the
13
alternate
energy
revolving
loan
fund
after
June
30,
2021,
14
be
transferred,
to
the
newly
created
energy
infrastructure
15
revolving
loan
fund.
16
The
division
creates
an
energy
infrastructure
revolving
17
fund
(fund)
in
the
office
of
the
treasurer
of
state
to
be
18
administered
by
the
Iowa
energy
center
(center).
Moneys
in
19
the
fund
are
to
be
used
to
provide
financial
assistance
for
20
the
development
and
construction
of
energy
infrastructure,
21
including
projects
that
support
electric
or
gas
generation
22
transmission,
storage,
or
distribution;
electric
grid
23
modernization;
energy-sector
workforce
development;
emergency
24
preparedness
for
rural
and
underserved
areas;
the
expansion
25
of
biomass,
biogas,
and
renewable
natural
gas;
innovative
26
technologies;
and
the
development
of
infrastructure
for
27
alternative
fuel
vehicles.
“Energy
infrastructure”
is
defined
28
as
land,
buildings,
physical
plant
and
equipment,
and
services
29
directly
related
to
the
development
of
projects
used
for,
30
or
useful
for,
electricity
or
gas
generation,
transmission,
31
storage,
or
distribution.
“Financial
assistance”
is
also
32
defined
in
the
bill.
33
The
center
is
required
to
establish
and
administer
an
energy
34
infrastructure
revolving
loan
program
(program)
to
encourage
35
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the
development
of
energy
infrastructure
within
the
state.
An
1
individual,
business,
rural
electric
cooperative,
or
municipal
2
utility
located
and
operating
in
this
state
is
eligible
for
3
financial
assistance
under
the
program.
With
the
approval
4
of
the
center’s
governing
board,
the
economic
development
5
authority
(authority)
must
determine
the
amount
and
the
terms
6
of
all
financial
assistance
awarded
to
an
individual,
business,
7
rural
electric
cooperative,
or
municipal
utility
under
the
8
program.
All
agreements
and
administrative
authority
are
9
vested
in
the
center’s
governing
board.
The
authority
may
10
use
not
more
than
5
percent
of
the
moneys
in
the
fund
at
the
11
beginning
of
each
fiscal
year
for
purposes
of
administrative
12
costs,
marketing,
technical
assistance,
and
other
program
13
support.
14
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13
