Senate
Study
Bill
3129
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
the
administration
of
programs
by
the
1
economic
development
authority
by
modifying
the
high
quality
2
jobs
program,
creating
a
workforce
housing
tax
incentives
3
program
and
making
penalties
applicable,
and
repealing
the
4
enterprise
zone
program,
and
including
effective
date
and
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
5320XD
(9)
85
mm/sc
S.F.
_____
H.F.
_____
DIVISION
I
1
HIGH
QUALITY
JOBS
PROGRAM
2
Section
1.
Section
15.327,
Code
2014,
is
amended
by
adding
3
the
following
new
subsections:
4
NEW
SUBSECTION
.
3A.
“Brownfield
site”
means
the
same
as
5
defined
in
section
15.291.
6
NEW
SUBSECTION
.
12A.
“Grayfield
site”
means
the
same
as
7
defined
in
section
15.291.
8
NEW
SUBSECTION
.
17A.
“Project”
means
an
activity
or
set
9
of
activities
directly
related
to
the
start-up,
location,
10
modernization,
or
expansion
of
a
business,
and
proposed
11
in
an
application
by
a
business,
that
will
result
in
the
12
accomplishment
of
the
goals
of
the
program.
13
Sec.
2.
Section
15.327,
subsection
18,
Code
2014,
is
amended
14
to
read
as
follows:
15
18.
“Project
completion
assistance”
means
financial
16
assistance
or
technical
assistance
provided
to
an
eligible
17
business
in
order
to
facilitate
the
start-up,
location,
or
18
expansion
of
the
business
completion
of
a
project
in
this
state
19
and
provided
in
an
expedient
manner
to
ensure
the
successful
20
completion
of
the
start-up,
location,
or
expansion
project.
21
Sec.
3.
Section
15.329,
subsection
1,
paragraph
a,
Code
22
2014,
is
amended
to
read
as
follows:
23
a.
If
the
qualifying
investment
is
ten
million
dollars
or
24
more,
the
community
has
approved
by
ordinance
or
resolution
the
25
start-up,
location,
or
expansion
of
the
business
project
for
26
the
purpose
of
receiving
the
benefits
of
this
part.
27
Sec.
4.
Section
15.331A,
subsection
1,
Code
2014,
is
amended
28
to
read
as
follows:
29
1.
The
eligible
business
shall
be
entitled
to
a
refund
30
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
31
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
32
merchandise,
or
on
services
rendered,
furnished,
or
performed
33
to
or
for
a
contractor
or
subcontractor
and
used
in
the
34
fulfillment
of
a
written
contract
relating
to
the
construction
35
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28
S.F.
_____
H.F.
_____
or
equipping
of
a
facility
that
is
part
of
a
project
of
the
1
eligible
business.
Taxes
attributable
to
intangible
property
2
and
furniture
and
furnishings
shall
not
be
refunded.
However,
3
an
eligible
business
shall
be
entitled
to
a
refund
for
taxes
4
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
5
used
in
a
warehouse
or
distribution
center
subject
to
section
6
15.331C
.
7
Sec.
5.
Section
15.332,
subsection
1,
Code
2014,
is
amended
8
to
read
as
follows:
9
1.
The
community
may
exempt
from
taxation
all
or
a
portion
10
of
the
actual
value
added
by
improvements
to
real
property
11
directly
related
to
new
jobs
created
by
the
location
or
12
expansion
of
an
eligible
business
under
the
program
project
13
and
used
in
the
operations
of
the
eligible
business.
The
14
exemption
may
be
allowed
for
a
period
not
to
exceed
twenty
15
years
beginning
the
year
the
improvements
are
first
assessed
16
for
taxation.
17
Sec.
6.
Section
15.333,
subsection
1,
Code
2014,
is
amended
18
to
read
as
follows:
19
1.
An
eligible
business
may
claim
a
tax
credit
equal
to
a
20
percentage
of
the
new
investment
directly
related
to
new
jobs
21
created
or
retained
by
the
location
or
expansion
of
an
eligible
22
business
under
the
program
project
.
The
tax
credit
shall
be
23
amortized
equally
over
five
calendar
years.
The
tax
credit
24
shall
be
allowed
against
taxes
imposed
under
chapter
422,
25
division
II,
III,
or
V
,
and
against
the
moneys
and
credits
tax
26
imposed
in
section
533.329
.
If
the
business
is
a
partnership,
27
S
corporation,
limited
liability
company,
cooperative
organized
28
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
29
purposes,
or
estate
or
trust
electing
to
have
the
income
taxed
30
directly
to
the
individual,
an
individual
may
claim
the
tax
31
credit
allowed.
The
amount
claimed
by
the
individual
shall
32
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
33
of
the
partnership,
S
corporation,
limited
liability
company,
34
cooperative
organized
under
chapter
501
and
filing
as
a
35
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28
S.F.
_____
H.F.
_____
partnership
for
federal
tax
purposes,
or
estate
or
trust.
The
1
percentage
shall
be
determined
as
provided
in
section
15.335A
.
2
Any
tax
credit
in
excess
of
the
tax
liability
for
the
tax
year
3
may
be
credited
to
the
tax
liability
for
the
following
seven
4
years
or
until
depleted,
whichever
occurs
first.
5
Sec.
7.
Section
15.333,
subsection
2,
unnumbered
paragraph
6
1,
Code
2014,
is
amended
to
read
as
follows:
7
For
purposes
of
this
subsection
,
“new
investment
directly
8
related
to
new
jobs
created
by
the
location
or
expansion
of
an
9
eligible
business
under
the
program
project
”
means
the
cost
10
of
machinery
and
equipment,
as
defined
in
section
427A.1,
11
subsection
1
,
paragraphs
“e”
and
“j”
,
purchased
for
use
in
12
the
operation
of
the
eligible
business,
the
purchase
price
13
of
which
has
been
depreciated
in
accordance
with
generally
14
accepted
accounting
principles,
the
purchase
price
of
real
15
property
and
any
buildings
and
structures
located
on
the
real
16
property,
and
the
cost
of
improvements
made
to
real
property
17
which
is
used
in
the
operation
of
the
eligible
business.
“New
18
investment
directly
related
to
new
jobs
created
by
the
location
19
or
expansion
of
an
eligible
business
under
the
program
project
”
20
also
means
the
annual
base
rent
paid
to
a
third-party
developer
21
by
an
eligible
business
for
a
period
not
to
exceed
ten
years,
22
provided
the
cumulative
cost
of
the
base
rent
payments
for
that
23
period
does
not
exceed
the
cost
of
the
land
and
the
third-party
24
developer’s
costs
to
build
or
renovate
the
building
for
the
25
eligible
business.
The
eligible
business
shall
enter
into
a
26
lease
agreement
with
the
third-party
developer
for
a
minimum
27
of
five
years.
If,
however,
within
five
years
of
purchase,
28
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
29
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
30
existing
structures
for
which
tax
credit
was
claimed
under
this
31
section
,
the
tax
liability
of
the
eligible
business
for
the
32
year
in
which
all
or
part
of
the
property
is
sold,
disposed
of,
33
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
34
of
the
following
amounts:
35
-3-
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S.F.
_____
H.F.
_____
Sec.
8.
Section
15.333A,
subsection
1,
Code
2014,
is
amended
1
to
read
as
follows:
2
1.
An
eligible
business
may
claim
an
insurance
premium
tax
3
credit
equal
to
a
percentage
of
the
new
investment
directly
4
related
to
new
jobs
created
by
the
location
or
expansion
of
an
5
eligible
business
under
the
program
project
.
The
tax
credit
6
shall
be
amortized
equally
over
a
five-year
period.
The
tax
7
credit
shall
be
allowed
against
taxes
imposed
in
chapter
432
.
8
A
tax
credit
in
excess
of
the
tax
liability
for
the
tax
year
may
9
be
credited
to
the
tax
liability
for
the
following
seven
years
10
or
until
depleted,
whichever
occurs
first.
The
percentage
11
shall
be
determined
as
provided
in
section
15.335A
.
12
Sec.
9.
Section
15.333A,
subsection
2,
unnumbered
paragraph
13
1,
Code
2014,
is
amended
to
read
as
follows:
14
For
purposes
of
this
section
,
“new
investment
directly
15
related
to
new
jobs
created
by
the
location
or
expansion
of
an
16
eligible
business
under
the
program
project
”
means
the
cost
17
of
machinery
and
equipment,
as
defined
in
section
427A.1,
18
subsection
1
,
paragraphs
“e”
and
“j”
,
purchased
for
use
in
19
the
operation
of
the
eligible
business,
the
purchase
price
20
of
which
has
been
depreciated
in
accordance
with
generally
21
accepted
accounting
principles,
the
purchase
price
of
real
22
property
and
any
buildings
and
structures
located
on
the
real
23
property,
and
the
cost
of
improvements
made
to
real
property
24
which
is
used
in
the
operation
of
the
eligible
business.
“New
25
investment
directly
related
to
new
jobs
created
by
the
location
26
or
expansion
of
an
eligible
business
under
the
program
project
”
27
also
means
the
annual
base
rent
paid
to
a
third-party
developer
28
by
an
eligible
business
for
a
period
not
to
exceed
ten
years,
29
provided
the
cumulative
cost
of
the
base
rent
payments
for
that
30
period
does
not
exceed
the
cost
of
the
land
and
the
third-party
31
developer’s
costs
to
build
or
renovate
the
building
for
the
32
eligible
business.
The
eligible
business
shall
enter
into
a
33
lease
agreement
with
the
third-party
developer
for
a
minimum
34
of
five
years.
If,
however,
within
five
years
of
purchase,
35
-4-
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85
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4/
28
S.F.
_____
H.F.
_____
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
1
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
2
existing
structures
for
which
tax
credit
was
claimed
under
this
3
section
,
the
tax
liability
of
the
eligible
business
for
the
4
year
in
which
all
or
part
of
the
property
is
sold,
disposed
of,
5
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
6
of
the
following
amounts:
7
Sec.
10.
Section
15.335C,
Code
2014,
is
amended
to
read
as
8
follows:
9
15.335C
Economically
Wage
thresholds
for
brownfield
and
10
grayfield
projects
and
economically
distressed
areas.
11
1.
a.
Notwithstanding
section
15.329,
subsection
1
,
12
paragraph
“c”
,
the
authority
may
provide
tax
incentives
or
13
project
completion
assistance
under
this
part
to
an
eligible
14
a
business
paying
for
a
project
that
will
create
or
retain
15
jobs
that
will
pay
less
than
one
hundred
twenty
percent
of
the
16
qualifying
wage
threshold
if
that
business
project
is
located
17
at
a
brownfield
site,
a
grayfield
site,
or
in
an
economically
18
distressed
area.
19
b.
(1)
A
business
with
a
project
located
in
an
economically
20
distressed
area
or
at
a
grayfield
site
and
receiving
incentives
21
or
assistance
pursuant
to
this
section
shall
be
required
to
pay
22
at
least
one
hundred
percent
of
the
qualifying
wage
threshold
23
for
jobs
created
or
retained
by
the
project
.
24
(2)
A
business
with
a
project
located
at
a
brownfield
25
site
and
receiving
incentives
or
assistance
pursuant
to
this
26
section
shall
be
required
to
pay
at
least
ninety
percent
of
the
27
qualifying
wage
threshold
for
jobs
created
or
retained
by
the
28
project.
29
2.
For
purposes
of
this
section
,
“economically
distressed
30
area”
means
a
county
that
ranks
among
the
bottom
twenty-five
31
thirty-three
of
all
Iowa
counties,
as
measured
by
one
of
the
32
following:
33
a.
Average
monthly
unemployment
level
for
the
most
recent
34
twelve-month
period.
35
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5/
28
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_____
H.F.
_____
b.
Average
annualized
unemployment
level
for
the
most
recent
1
five-year
period.
2
Sec.
11.
APPLICABILITY.
This
division
of
this
Act
applies
3
to
high
quality
jobs
program
agreements
entered
into
by
an
4
eligible
business
and
the
economic
development
authority
on
or
5
after
the
effective
date
of
this
division
of
this
Act,
and
high
6
quality
jobs
program
agreements
entered
into
by
an
eligible
7
business
and
the
economic
development
authority
prior
to
the
8
effective
date
of
this
division
of
this
Act
shall
be
governed
9
by
sections
15.327,
15.329,
15.333,
15.333A,
and
15.335C,
Code
10
2014.
11
DIVISION
II
12
WORKFORCE
HOUSING
TAX
INCENTIVES
PROGRAM
13
Sec.
12.
Section
15.119,
subsection
2,
Code
2014,
is
amended
14
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
g.
The
workforce
housing
tax
incentives
16
program
administered
pursuant
to
sections
15.351
through
17
15.356.
In
allocating
tax
credits
pursuant
to
this
subsection,
18
the
authority
shall
not
allocate
more
than
twenty
million
19
dollars
for
purposes
of
this
paragraph.
20
Sec.
13.
NEW
SECTION
.
15.351
Short
title.
21
This
part
shall
be
known
and
may
be
cited
as
the
“Workforce
22
Housing
Tax
Incentives
Program”
.
23
Sec.
14.
NEW
SECTION
.
15.352
Definitions.
24
As
used
in
this
part,
unless
the
context
otherwise
requires:
25
1.
“Brownfield
site”
means
an
abandoned,
idled,
or
26
underutilized
property
where
expansion
or
redevelopment
is
27
complicated
by
real
or
perceived
environmental
contamination.
28
A
brownfield
site
includes
property
contiguous
with
the
site
29
on
which
the
property
is
located.
A
brownfield
site
does
30
not
include
property
which
has
been
placed,
or
is
proposed
31
for
placement,
on
the
national
priorities
list
established
32
pursuant
to
the
federal
Comprehensive
Environmental
Response,
33
Compensation,
and
Liability
Act,
42
U.S.C.
§9601
et
seq.
34
2.
“Community”
means
a
city
or
county.
35
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S.F.
_____
H.F.
_____
3.
“Grayfield
site”
means
a
property
meeting
all
of
the
1
following
requirements:
2
a.
The
property
has
been
developed
and
has
infrastructure
in
3
place
but
the
property’s
current
use
is
outdated
or
prevents
a
4
better
or
more
efficient
use
of
the
property.
Such
property
5
includes
vacant,
blighted,
obsolete,
or
otherwise
underutilized
6
property.
7
b.
The
property’s
improvements
and
infrastructure
are
at
8
least
twenty-five
years
old
and
one
or
more
of
the
following
9
conditions
exists:
10
(1)
Thirty
percent
or
more
of
a
building
located
on
the
11
property
that
is
available
for
occupancy
has
been
vacant
or
12
unoccupied
for
a
period
of
twelve
months
or
more.
13
(2)
The
assessed
value
of
the
improvements
on
the
property
14
has
decreased
by
twenty-five
percent
or
more.
15
(3)
The
property
is
currently
being
used
as
a
parking
lot.
16
(4)
The
improvements
on
the
property
no
longer
exist.
17
4.
“Housing
business”
means
a
business
that
is
a
housing
18
developer,
housing
contractor,
or
nonprofit
organization
that
19
completes
a
housing
project
in
the
state.
20
5.
“Housing
project”
means
a
project
located
in
this
state
21
meeting
the
requirements
of
section
15.353.
22
6.
“Multi-use
building”
means
a
building
whose
street-level
23
ground
story
is
used
for
a
purpose
that
is
other
than
24
residential,
and
whose
upper
story
or
stories
are
currently
25
used
for
a
residential
purpose,
or
will
be
used
for
a
26
residential
purpose
after
completion
of
the
housing
project
27
associated
with
the
building.
28
7.
“Program”
means
the
workforce
housing
tax
incentives
29
program
administered
under
this
part.
30
8.
a.
“Qualifying
new
investment”
means
costs
that
are
31
directly
related
to
the
acquisition,
repair,
rehabilitation,
or
32
redevelopment
of
a
housing
project
in
this
state.
33
b.
“Qualifying
new
investment”
includes
costs
that
are
34
directly
related
to
new
construction
of
dwelling
units
if
the
35
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S.F.
_____
H.F.
_____
new
construction
occurs
in
a
distressed
workforce
housing
1
community.
2
c.
The
amount
of
costs
that
may
be
used
to
compute
3
“qualifying
new
investment”
shall
not
exceed
the
costs
used
for
4
the
first
one
hundred
fifty
thousand
dollars
of
value
for
each
5
dwelling
unit
that
is
part
of
a
housing
project.
6
d.
“Qualifying
new
investment”
does
not
include
the
7
following:
8
(1)
The
portion
of
the
total
cost
of
a
housing
project
9
that
is
financed
by
federal,
state,
or
local
government
tax
10
credits,
grants,
forgivable
loans,
or
other
forms
of
financial
11
assistance
that
do
not
require
repayment,
excluding
the
tax
12
incentives
provided
under
this
part.
13
(2)
If
a
housing
project
includes
the
rehabilitation,
14
repair,
or
redevelopment
of
an
existing
multi-use
building,
15
the
portion
of
the
total
acquisition
costs
of
the
multi-use
16
building,
including
a
proportionate
share
of
the
total
17
acquisition
costs
of
the
land
upon
which
the
multi-use
building
18
is
situated,
that
are
attributable
to
the
street-level
19
ground
story
that
is
used
for
a
purpose
that
is
other
than
20
residential.
21
Sec.
15.
NEW
SECTION
.
15.353
Housing
project
requirements.
22
1.
To
receive
workforce
housing
tax
incentives
pursuant
to
23
the
program,
a
proposed
housing
project
shall
meet
all
of
the
24
following
requirements:
25
a.
The
project
includes
at
least
one
of
the
following:
26
(1)
Four
or
more
single-family
dwelling
units.
27
(2)
One
or
more
multiple
dwelling
unit
buildings
each
28
containing
three
or
more
individual
dwelling
units.
29
(3)
Two
or
more
dwelling
units
located
in
the
upper
story
of
30
an
existing
multi-use
building.
31
b.
The
project
consists
of
any
of
the
following:
32
(1)
The
rehabilitation,
repair,
or
redevelopment
of
33
dwelling
units
at
a
brownfield
or
grayfield
site.
34
(2)
The
rehabilitation,
repair,
or
redevelopment
of
35
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28
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_____
H.F.
_____
dilapidated
dwelling
units.
1
(3)
The
rehabilitation,
repair,
or
redevelopment
of
2
dwelling
units
located
in
the
upper
story
of
an
existing
3
multi-use
building.
4
(4)
(a)
The
new
construction,
rehabilitation,
repair,
5
or
redevelopment
of
dwelling
units
in
a
distressed
workforce
6
housing
community.
7
(b)
The
determination
as
to
whether
a
community
is
8
considered
a
distressed
workforce
housing
community
shall
be
9
within
the
discretion
of
the
authority
after
considering
all
10
of
the
following:
11
(i)
Whether
or
not
the
community
has
a
severe
housing
12
shortage
relative
to
demand,
low
vacancy
rates,
or
rising
13
housing
costs
combined
with
low
unemployment.
14
(ii)
The
relative
merits
of
all
applications
for
15
designation
as
a
distressed
workforce
housing
community.
16
(iii)
The
demand
for
projects
applying
under
this
17
subparagraph
compared
to
the
demand
for
projects
applying
under
18
subparagraphs
(1)
through
(3).
19
c.
(1)
Except
as
provided
in
subparagraph
(2),
the
average
20
dwelling
unit
cost
does
not
exceed
two
hundred
thousand
dollars
21
per
dwelling
unit.
22
(2)
The
average
dwelling
unit
cost
does
not
exceed
two
23
hundred
fifty
thousand
dollars
per
dwelling
unit
if
the
24
project
involves
the
rehabilitation,
repair,
redevelopment,
or
25
preservation
of
eligible
property,
as
that
term
is
defined
in
26
section
404A.1,
subsection
2.
27
d.
The
dwelling
units,
when
completed
and
made
available
28
for
occupancy,
meet
the
United
States
department
of
housing
29
and
urban
development’s
housing
quality
standards
and
all
30
applicable
local
safety
standards.
31
Sec.
16.
NEW
SECTION
.
15.354
Housing
project
application
32
and
agreement.
33
1.
Application.
34
a.
A
housing
business
seeking
workforce
housing
tax
35
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28
S.F.
_____
H.F.
_____
incentives
provided
in
section
15.355
shall
make
application
to
1
the
authority
in
the
manner
prescribed
by
the
authority.
The
2
authority
may
accept
applications
on
a
continuous
basis.
3
b.
The
application
shall
include
all
of
the
following:
4
(1)
The
following
information
establishing
local
5
participation
for
the
housing
project:
6
(a)
A
resolution
in
support
of
the
housing
project
by
the
7
community
where
the
housing
project
will
be
located.
8
(b)
Documentation
of
local
matching
funds
pledged
for
the
9
housing
project
in
an
amount
equal
to
at
least
one
thousand
10
dollars
per
dwelling
unit,
including
but
not
limited
to
11
a
funding
agreement
between
the
housing
business
and
the
12
community
where
the
housing
project
will
be
located.
For
13
purposes
of
this
paragraph,
local
matching
funds
shall
be
in
14
the
form
of
cash
or
cash
equivalents,
or
in
the
form
of
a
local
15
property
tax
exemption,
rebate,
refund,
or
reimbursement.
16
(2)
A
report
that
meets
the
requirements
and
conditions
of
17
section
15.330,
subsection
9.
18
(3)
Information
showing
the
total
costs
and
funding
sources
19
of
the
housing
project
sufficient
to
allow
the
authority
to
20
adequately
determine
the
financing
that
will
be
utilized
for
21
the
housing
project,
the
actual
cost
of
the
dwelling
units,
and
22
the
amount
of
qualifying
new
investment.
23
(4)
Any
other
information
deemed
necessary
by
the
authority
24
to
evaluate
the
eligibility
and
financial
need
of
the
housing
25
project
under
the
program.
26
2.
Registration.
27
a.
Upon
review
of
the
application,
the
authority
may
28
register
the
housing
project
under
the
program.
If
the
29
authority
registers
the
housing
project,
the
authority
shall
30
make
a
preliminary
determination
as
to
the
amount
of
tax
31
incentives
for
which
the
housing
project
qualifies.
32
b.
After
registering
the
housing
project,
the
authority
33
shall
notify
the
housing
business
of
successful
registration
34
under
the
program.
The
notification
shall
include
the
amount
35
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85
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28
S.F.
_____
H.F.
_____
of
tax
incentives
under
section
15.355
for
which
the
housing
1
business
has
received
preliminary
approval
and
a
statement
2
that
the
amount
is
a
preliminary
determination
only.
The
3
amount
of
tax
credits
included
on
a
tax
credit
certificate
4
issued
pursuant
to
this
section,
or
a
claim
for
refund
of
sales
5
and
use
taxes,
shall
be
contingent
upon
completion
of
the
6
requirements
in
subsection
3.
7
3.
Agreement
and
fees.
8
a.
Upon
successful
registration
of
the
housing
project,
9
the
housing
business
shall
enter
into
an
agreement
with
the
10
authority
for
the
successful
completion
of
all
requirements
of
11
the
program.
12
b.
The
compliance
cost
fees
imposed
in
section
15.330,
13
subsection
12,
shall
apply
to
all
agreements
entered
into
14
under
this
program
and
shall
be
collected
by
the
authority
in
15
the
same
manner
and
to
the
same
extent
as
described
in
that
16
subsection.
17
c.
A
housing
business
shall
complete
its
housing
project
18
within
three
years
from
the
date
the
housing
project
is
19
registered
by
the
authority.
20
d.
Upon
completion
of
a
housing
project,
an
audit
of
21
the
project,
completed
by
an
independent
certified
public
22
accountant
licensed
in
this
state,
shall
be
submitted
to
the
23
authority.
24
e.
Upon
review
of
the
audit
and
verification
of
the
amount
25
of
the
qualifying
new
investment,
the
authority
may
issue
a
tax
26
credit
certificate
to
the
housing
business
stating
the
amount
27
of
workforce
housing
investment
tax
credits
under
section
28
15.355
the
eligible
housing
business
may
claim.
29
4.
Maximum
tax
incentives
amount.
30
a.
The
maximum
aggregate
amount
of
tax
incentives
that
may
31
be
awarded
under
section
15.355
to
a
housing
business
for
a
32
housing
project
shall
not
exceed
one
million
dollars.
33
b.
If
a
housing
business
qualifies
for
a
higher
amount
34
of
tax
incentives
under
section
15.355
than
is
allowed
by
35
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28
S.F.
_____
H.F.
_____
the
limitation
imposed
in
paragraph
“a”
,
the
authority
and
1
the
housing
business
may
negotiate
an
apportionment
of
the
2
reduction
in
tax
incentives
between
the
sales
tax
refund
3
provided
in
section
15.355,
subsection
2,
and
the
workforce
4
housing
investment
tax
credits
provided
in
section
15.355,
5
subsection
3,
provided
the
total
aggregate
amount
of
tax
6
incentives
after
the
apportioned
reduction
does
not
exceed
the
7
amount
in
paragraph
“a”
.
8
c.
The
authority
shall
issue
tax
incentives
under
the
9
program
on
a
first-come,
first-served
basis
until
the
maximum
10
amount
of
tax
incentives
allocated
pursuant
to
section
15.119,
11
subsection
2,
is
reached.
The
authority
shall
maintain
a
list
12
of
registered
housing
projects
under
the
program
so
that
if
13
the
maximum
aggregate
amount
of
tax
incentives
is
reached
in
14
a
given
fiscal
year,
registered
housing
projects
that
were
15
completed
but
for
which
tax
incentives
were
not
issued
shall
16
be
placed
on
a
wait
list
in
the
order
the
registered
housing
17
projects
were
completed
and
shall
be
given
priority
for
18
receiving
tax
incentives
in
succeeding
fiscal
years.
19
5.
Termination
and
repayment.
The
failure
by
a
housing
20
business
in
completing
a
housing
project
to
comply
with
any
21
requirement
of
this
program
or
any
of
the
terms
and
obligations
22
of
an
agreement
entered
into
pursuant
to
this
section
may
23
result
in
the
reduction,
termination,
or
recision
of
the
24
approved
tax
incentives
and
may
subject
the
housing
business
25
to
the
repayment
or
recapture
of
tax
incentives
claimed
under
26
section
15.355.
The
repayment
or
recapture
of
tax
incentives
27
pursuant
to
this
section
shall
be
accomplished
in
the
same
28
manner
as
provided
in
section
15.330,
subsection
2.
29
Sec.
17.
NEW
SECTION
.
15.355
Workforce
housing
tax
30
incentives.
31
1.
A
housing
business
that
has
entered
into
an
agreement
32
pursuant
to
section
15.354
is
eligible
to
receive
the
tax
33
incentives
described
in
subsections
2
and
3.
34
2.
A
housing
business
may
claim
a
refund
of
the
sales
and
35
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85
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28
S.F.
_____
H.F.
_____
use
taxes
paid
under
chapter
423
that
are
directly
related
1
to
a
housing
project.
The
refund
available
pursuant
to
this
2
subsection
shall
be
as
provided
in
section
15.331A
to
the
3
extent
applicable
for
purposes
of
this
program.
4
3.
a.
A
housing
business
may
claim
a
tax
credit
in
5
an
amount
not
to
exceed
ten
percent
of
the
qualifying
new
6
investment
of
a
housing
project.
7
b.
The
tax
credit
shall
be
allowed
against
the
taxes
imposed
8
in
chapter
422,
divisions
II,
III,
and
V,
and
in
chapter
432,
9
and
against
the
moneys
and
credits
tax
imposed
in
section
10
533.329.
11
c.
An
individual
may
claim
a
tax
credit
under
this
12
subsection
of
a
partnership,
limited
liability
company,
13
S
corporation,
estate,
or
trust
electing
to
have
income
14
taxed
directly
to
the
individual.
The
amount
claimed
by
the
15
individual
shall
be
based
upon
the
pro
rata
share
of
the
16
individual’s
earnings
from
the
partnership,
limited
liability
17
company,
S
corporation,
estate,
or
trust.
18
d.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
19
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
20
tax
liability
for
the
following
five
years
or
until
depleted,
21
whichever
is
earlier.
22
e.
(1)
To
claim
a
tax
credit
under
this
subsection,
a
23
taxpayer
shall
include
one
or
more
tax
credit
certificates
with
24
the
taxpayer’s
tax
return.
25
(2)
The
tax
credit
certificate
shall
contain
the
taxpayer’s
26
name,
address,
tax
identification
number,
the
amount
of
the
27
credit,
the
name
of
the
eligible
housing
business,
any
other
28
information
required
by
the
department
of
revenue,
and
a
place
29
for
the
name
and
tax
identification
number
of
a
transferee
and
30
the
amount
of
the
tax
credit
being
transferred.
31
(3)
The
tax
credit
certificate,
unless
rescinded
by
the
32
authority,
shall
be
accepted
by
the
department
of
revenue
as
33
payment
for
taxes
imposed
pursuant
to
chapter
422,
divisions
34
II,
III,
and
V,
and
in
chapter
432,
and
for
the
moneys
and
35
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5320XD
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85
mm/sc
13/
28
S.F.
_____
H.F.
_____
credits
tax
imposed
in
section
533.329,
subject
to
any
1
conditions
or
restrictions
placed
by
the
authority
upon
2
the
face
of
the
tax
credit
certificate
and
subject
to
the
3
limitations
of
this
program.
4
(4)
Tax
credit
certificates
issued
under
section
15.354,
5
subsection
3,
paragraph
“e”
,
may
be
transferred
to
any
person.
6
Within
ninety
days
of
transfer,
the
transferee
shall
submit
the
7
transferred
tax
credit
certificate
to
the
department
of
revenue
8
along
with
a
statement
containing
the
transferee’s
name,
tax
9
identification
number,
and
address,
the
denomination
that
each
10
replacement
tax
credit
certificate
is
to
carry,
and
any
other
11
information
required
by
the
department
of
revenue.
However,
12
tax
credit
certificate
amounts
of
less
than
the
minimum
amount
13
established
by
rule
of
the
authority
shall
not
be
transferable.
14
(5)
Within
thirty
days
of
receiving
the
transferred
15
tax
credit
certificate
and
the
transferee’s
statement,
the
16
department
of
revenue
shall
issue
one
or
more
replacement
tax
17
credit
certificates
to
the
transferee.
Each
replacement
tax
18
credit
certificate
must
contain
the
information
required
for
19
the
original
tax
credit
certificate
and
must
have
the
same
20
expiration
date
that
appeared
on
the
transferred
tax
credit
21
certificate.
22
(6)
A
tax
credit
shall
not
be
claimed
by
a
transferee
23
under
this
section
until
a
replacement
tax
credit
certificate
24
identifying
the
transferee
as
the
proper
holder
has
been
25
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
26
transferred
against
the
taxes
imposed
in
chapter
422,
divisions
27
II,
III,
and
V,
and
in
chapter
432,
and
against
the
moneys
and
28
credits
tax
imposed
in
section
533.329,
for
any
tax
year
the
29
original
transferor
could
have
claimed
the
tax
credit.
Any
30
consideration
received
for
the
transfer
of
the
tax
credit
shall
31
not
be
included
as
income
under
chapter
422,
divisions
II,
32
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
tax
33
credit
shall
not
be
deducted
from
income
under
chapter
422,
34
divisions
II,
III,
and
V.
35
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_____
H.F.
_____
f.
For
purposes
of
the
individual
and
corporate
income
1
taxes
and
the
franchise
tax,
the
increase
in
the
basis
of
the
2
property
that
would
otherwise
result
from
the
qualifying
new
3
investment
shall
be
reduced
by
the
amount
of
the
tax
credit
4
computed
under
this
subsection.
5
Sec.
18.
NEW
SECTION
.
15.356
Rules.
6
The
authority
and
the
department
of
revenue
shall
adopt
7
rules
as
necessary
for
the
implementation
and
administration
8
of
this
part.
9
Sec.
19.
NEW
SECTION
.
422.11C
Workforce
housing
investment
10
tax
credit.
11
The
taxes
imposed
under
this
division,
less
the
credits
12
allowed
under
section
422.12,
shall
be
reduced
by
a
workforce
13
housing
investment
tax
credit
allowed
under
section
15.355,
14
subsection
3.
15
Sec.
20.
Section
422.33,
Code
2014,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
15.
The
taxes
imposed
under
this
division
18
shall
be
reduced
by
a
workforce
housing
investment
tax
credit
19
allowed
under
section
15.355,
subsection
3.
20
Sec.
21.
Section
422.60,
Code
2014,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
12.
The
taxes
imposed
under
this
division
23
shall
be
reduced
by
a
workforce
housing
investment
tax
credit
24
allowed
under
section
15.355,
subsection
3.
25
Sec.
22.
NEW
SECTION
.
432.12G
Workforce
housing
investment
26
tax
credit.
27
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
28
workforce
housing
investment
tax
credit
allowed
under
section
29
15.355,
subsection
3.
30
Sec.
23.
Section
533.329,
subsection
2,
Code
2014,
is
31
amended
by
adding
the
following
new
paragraph:
32
NEW
PARAGRAPH
.
k.
The
moneys
and
credits
tax
imposed
under
33
this
section
shall
be
reduced
by
a
workforce
housing
investment
34
tax
credit
allowed
under
section
15.355,
subsection
3.
35
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DIVISION
III
1
TERMINATION
AND
TRANSITION
OF
ENTERPRISE
ZONE
PROGRAM
2
Sec.
24.
INVESTMENT
TAX
CREDITS
ISSUED
TO
ELIGIBLE
3
HOUSING
BUSINESSES
UNDER
THE
ENTERPRISE
ZONE
PROGRAM
——
4
TRANSFERABILITY.
Notwithstanding
the
requirement
in
section
5
15E.193B,
subsection
8,
Code
2014,
that
not
more
than
three
6
million
dollars
worth
of
tax
credits
for
housing
developments
7
located
in
a
brownfield
site
or
a
blighted
area
shall
be
8
eligible
for
transfer
in
a
calendar
year
unless
the
eligible
9
housing
business
is
also
eligible
for
low-income
housing
tax
10
credits
authorized
under
section
42
of
the
Internal
Revenue
11
Code,
and
notwithstanding
the
requirement
in
section
15E.193B,
12
subsection
8,
Code
2014,
that
the
economic
development
13
authority
shall
not
approve
more
than
one
million
five
hundred
14
thousand
dollars
in
tax
credit
certificates
for
transfer
to
15
any
one
eligible
housing
business
located
on
a
brownfield
16
site
or
in
a
blighted
area
in
a
calendar
year,
all
investment
17
tax
credits
determined
under
section
15E.193B,
subsection
6,
18
paragraph
“a”,
Code
2014,
for
housing
developments
located
on
19
a
brownfield
site
or
in
a
blighted
area
may
be
approved
by
20
the
economic
development
authority
for
transfer
in
calendar
21
year
2014,
or
any
subsequent
calendar
year,
provided
the
22
eligible
housing
business
was
awarded
the
investment
tax
credit
23
before
the
effective
date
of
this
section
of
this
division
24
of
this
Act
and
notifies
the
economic
development
authority,
25
in
writing,
before
July
1,
2014,
of
its
intent
to
transfer
26
such
tax
credits,
and
provided
the
eligible
housing
business
27
and
the
related
housing
development
meet
all
other
applicable
28
requirements
under
section
15E.193B,
Code
2014.
29
Sec.
25.
Section
2.48,
subsection
3,
paragraph
e,
30
subparagraph
(9),
Code
2014,
is
amended
by
striking
the
31
subparagraph.
32
Sec.
26.
Section
15.106B,
subsection
5,
paragraph
c,
Code
33
2014,
is
amended
to
read
as
follows:
34
c.
Fees
collected
by
the
authority
pursuant
to
this
35
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_____
H.F.
_____
subsection
shall
be
deposited
in
a
fund
within
the
state
1
treasury
created
pursuant
to
section
15.106A,
subsection
1
,
2
paragraph
“o”
,
and
are
appropriated
to
the
authority
for
the
3
purposes
set
out
in
section
15.106A,
subsection
1
,
paragraph
4
“o”
.
However,
fees
collected
by
the
authority
pursuant
to
5
section
15.330,
subsection
12
,
and
section
15E.198
,
Code
2014,
6
and
section
15.354,
subsection
2,
paragraph
“f”
,
shall
be
used
7
exclusively
for
costs
associated
with
the
administration
of
due
8
diligence
and
compliance.
9
Sec.
27.
Section
15.119,
subsection
2,
paragraph
b,
Code
10
2014,
is
amended
to
read
as
follows:
11
b.
The
enterprise
zones
program
administered
pursuant
to
12
sections
15E.191
through
15E.197
,
Code
2014
.
13
Sec.
28.
Section
15A.1,
subsection
5,
paragraph
c,
Code
14
2014,
is
amended
by
striking
the
paragraph.
15
Sec.
29.
Section
15H.5,
subsection
2,
Code
2014,
is
amended
16
to
read
as
follows:
17
2.
The
Iowa
summer
youth
corps
program
is
established
18
to
provide
meaningful
summer
enrichment
programming
to
19
Iowa
youth.
The
program
shall
be
administered
by
the
Iowa
20
commission
on
volunteer
service
using
a
competitive
grant
21
process
to
implement
projects
in
accordance
with
program
22
requirements.
The
commission
shall
adopt
administrative
rules
23
for
the
program,
including
but
not
limited
to
incentives,
grant
24
criteria,
and
grantee
selection
processes.
A
percentage
of
the
25
grants
shall
be
designated
by
the
commission
to
address
the
26
needs
of
city
enterprise
zones
that
meet
the
distress
criteria
27
outlined
in
section
15E.194
economically
distressed
areas
as
28
defined
in
section
15.335C
.
29
Sec.
30.
Section
15H.5,
subsection
5,
paragraph
c,
Code
30
2014,
is
amended
to
read
as
follows:
31
c.
The
commission
shall
give
priority
consideration
to
32
approving
those
projects
that
target
communities
that
have
33
disproportionately
high
rates
of
juvenile
crime
or
low
rates
34
of
high
school
graduation
or
that
have
been
designated
as
city
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_____
H.F.
_____
enterprise
zones
that
meet
the
distress
criteria
outlined
in
1
section
15E.194
economically
distressed
areas
as
defined
in
2
section
15.335C
.
3
Sec.
31.
Section
15J.4,
subsection
1,
paragraph
b,
Code
4
2014,
is
amended
to
read
as
follows:
5
b.
The
area
is
was
in
whole
or
in
part
either
an
a
6
designated
economic
development
enterprise
zone
designated
7
under
chapter
15E,
division
XVIII
,
Code
2014,
immediately
prior
8
to
the
effective
date
of
this
Act,
or
the
area
is
in
whole
or
in
9
part
an
urban
renewal
area
established
pursuant
to
chapter
403
.
10
Sec.
32.
Section
403.19A,
subsection
3,
paragraph
j,
Code
11
2014,
is
amended
to
read
as
follows:
12
j.
An
employer
may
participate
in
a
new
jobs
credit
from
13
withholding
under
section
260E.5
,
or
a
supplemental
new
jobs
14
credit
from
withholding
under
section
15E.197
,
Code
2014,
15
or
under
section
15.331
,
Code
2005,
at
the
same
time
as
the
16
employer
is
participating
in
the
withholding
credit
under
this
17
section
.
Notwithstanding
any
other
provision
in
this
section
,
18
the
new
jobs
credit
from
withholding
under
section
260E.5
,
and
19
the
supplemental
new
jobs
credit
from
withholding
under
section
20
15E.197
,
Code
2014,
or
under
section
15.331
,
Code
2005,
shall
21
be
collected
and
disbursed
prior
to
the
withholding
credit
22
under
this
section
.
23
Sec.
33.
Section
422.11F,
subsection
2,
Code
2014,
is
24
amended
to
read
as
follows:
25
2.
The
taxes
imposed
under
this
division
,
less
the
credits
26
allowed
under
section
422.12
,
shall
be
reduced
by
investment
27
tax
credits
authorized
pursuant
to
sections
section
15.333
and
28
section
15E.193B
,
subsection
6
,
Code
2014
.
29
Sec.
34.
Section
422.16A,
Code
2014,
is
amended
to
read
as
30
follows:
31
422.16A
Job
training
withholding
——
certification
and
32
transfer.
33
Upon
the
completion
by
a
business
of
its
repayment
34
obligation
for
a
training
project
funded
under
chapter
260E
,
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_____
H.F.
_____
including
a
job
training
project
funded
under
section
15A.8
1
or
repaid
in
whole
or
in
part
by
the
supplemental
new
jobs
2
credit
from
withholding
under
section
15A.7
or
section
15E.197
,
3
Code
2014,
the
sponsoring
community
college
shall
report
to
4
the
economic
development
authority
the
amount
of
withholding
5
paid
by
the
business
to
the
community
college
during
the
6
final
twelve
months
of
withholding
payments.
The
economic
7
development
authority
shall
notify
the
department
of
revenue
8
of
that
amount.
The
department
shall
credit
to
the
workforce
9
development
fund
account
established
in
section
15.342A
10
twenty-five
percent
of
that
amount
each
quarter
for
a
period
11
of
ten
years.
If
the
amount
of
withholding
from
the
business
12
or
employer
is
insufficient,
the
department
shall
prorate
the
13
quarterly
amount
credited
to
the
workforce
development
fund
14
account.
The
maximum
amount
from
all
employers
which
shall
be
15
transferred
to
the
workforce
development
fund
account
in
any
16
year
is
four
million
dollars.
17
Sec.
35.
Section
422.33,
subsection
12,
paragraph
b,
Code
18
2014,
is
amended
to
read
as
follows:
19
b.
The
taxes
imposed
under
this
division
shall
be
reduced
by
20
investment
tax
credits
authorized
pursuant
to
section
15.333
21
and
section
15E.193B,
subsection
6
,
Code
2014
.
22
Sec.
36.
Section
422.60,
subsection
5,
paragraph
b,
Code
23
2014,
is
amended
to
read
as
follows:
24
b.
The
taxes
imposed
under
this
division
shall
be
reduced
by
25
investment
tax
credits
authorized
pursuant
to
sections
15.333
26
and
15E.193B
,
subsection
6
,
Code
2014
.
27
Sec.
37.
Section
432.12C,
subsection
2,
Code
2014,
is
28
amended
to
read
as
follows:
29
2.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
30
investment
tax
credits
authorized
pursuant
to
section
15.333A
31
and
section
15E.193B,
subsection
6
,
Code
2014
.
32
Sec.
38.
REPEAL.
Sections
15E.191,
15E.192,
15E.193,
33
15E.193B,
15E.194,
15E.195,
15E.196,
15E.197,
and
15E.198,
Code
34
2014,
are
repealed.
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_____
H.F.
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Sec.
39.
EFFECTIVE
UPON
ENACTMENT.
The
following
provision
1
or
provisions
of
this
division
of
this
Act,
being
deemed
of
2
immediate
importance,
take
effect
upon
enactment:
3
1.
The
section
of
this
division
of
this
Act
allowing
4
the
transfer
of
certain
investment
tax
credits
issued
to
5
eligible
housing
businesses
under
the
enterprise
zone
program,
6
notwithstanding
the
requirements
limiting
transfer
of
such
7
credits
under
section
15E.193B,
subsection
8.
8
Sec.
40.
APPLICABILITY.
9
1.
On
or
after
the
effective
date
of
this
division
of
this
10
Act,
a
city
or
county
shall
not
create
an
enterprise
zone
under
11
chapter
15E,
division
XVIII,
or
enter
into
a
new
agreement
or
12
amend
an
existing
agreement
under
chapter
15E,
division
XVIII.
13
2.
a.
Agreements
entered
into
under
chapter
15E,
division
14
XVIII
before
the
effective
date
of
this
division
of
this
15
Act
between
an
eligible
business
and
a
city,
county,
or
16
the
economic
development
authority
or
between
an
eligible
17
business
and
the
department
of
revenue
and
a
community
college
18
or
between
an
eligible
housing
business
and
the
economic
19
development
authority
shall
remain
in
effect
until
they
expire
20
under
their
own
terms
and
except
as
otherwise
provided
in
this
21
division
of
this
Act,
such
agreements
shall
be
governed
by
22
chapter
15E,
division
XVIII,
Code
2014.
23
b.
The
elimination
of
the
enterprise
zone
program
under
this
24
Act
shall
not
constitute
grounds
for
recision
or
modification
25
of
agreements
entered
into
under
the
program,
except
as
26
otherwise
provided
in
this
division
of
this
Act.
27
3.
Except
as
otherwise
provided
in
this
division
of
this
28
Act,
this
division
of
this
Act
is
not
intended
to
and
shall
not
29
limit,
modify,
or
otherwise
adversely
affect
any
tax
credit
30
certificate
or
related
tax
credit
issued
before
the
effective
31
date
of
this
Act
or
limit,
modify,
or
otherwise
adversely
32
affect
the
redemption
or
transfer
of
any
tax
credit
or
tax
33
credit
certificate
issued
before
the
effective
date
of
this
34
division
of
this
Act.
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_____
H.F.
_____
EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
the
administration
of
programs
by
4
the
economic
development
authority
(EDA)
by
modifying
the
5
high
quality
jobs
program,
creating
a
workforce
housing
tax
6
incentives
program,
and
repealing
the
enterprise
zone
program.
7
DIVISION
I
——
HIGH
QUALITY
JOBS
PROGRAM.
Division
I
modifies
8
the
high
quality
jobs
program
administered
by
the
EDA.
The
9
division
adds
a
definition
for
“project”
for
purposes
of
the
10
program
and
strikes
language
that
references
the
start-up,
11
location,
or
expansion
of
an
eligible
business,
and
replaces
12
it
with
reference
to
a
“project”.
“Project”
is
defined
as
an
13
activity
or
set
of
activities
directly
related
to
the
start-up,
14
location,
modernization,
or
expansion
of
a
business,
and
15
proposed
in
an
application
by
a
business,
that
will
result
in
16
the
accomplishment
of
the
goals
of
the
program.
17
The
division
amends
the
requirements
for
claiming
the
sales
18
and
use
tax
refund
under
the
program
for
the
construction
or
19
equipping
of
a
facility
of
the
eligible
business
to
require
20
that
the
facility
also
be
part
of
a
project.
21
The
division
modifies
the
type
of
projects
that
will
qualify
22
for
tax
incentives
or
project
completion
assistance
under
23
the
program.
Under
current
law,
the
EDA
only
provides
tax
24
incentives
or
project
completion
assistance
to
businesses
25
creating
jobs
if
the
business
will
pay
at
least
120
percent
of
26
the
qualifying
wage
threshold,
unless
the
business
is
located
27
in
an
economically
distressed
area,
in
which
case
the
business
28
must
pay
at
least
100
percent
of
the
qualifying
wage
threshold.
29
Economically
distressed
areas
include
the
25
lowest-ranked
Iowa
30
counties
by
average
monthly
or
annual
unemployment.
31
The
division
amends
the
definition
of
“economically
32
distressed
area”
by
increasing
to
33
from
25
the
number
of
Iowa
33
counties
that
will
qualify
as
an
economically
distressed
area.
34
The
division
also
permits
businesses
creating
or
retaining
35
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_____
H.F.
_____
jobs
as
part
of
a
project
at
a
grayfield
site
or
a
brownfield
1
site,
as
currently
defined
in
statute,
to
qualify
for
tax
2
incentives
or
project
completion
assistance
if
the
business
3
will
pay
at
least
100
percent
or
90
percent,
respectively,
of
4
the
qualifying
wage
threshold.
5
The
division
applies
to
high
quality
jobs
program
agreements
6
entered
into
on
or
after
the
effective
date
of
the
division,
7
and
high
quality
jobs
program
agreements
entered
into
prior
to
8
the
effective
date
of
the
division
shall
be
governed
by
current
9
law.
10
DIVISION
II
——
WORKFORCE
HOUSING
TAX
INCENTIVES
PROGRAM.
11
Division
II
creates
a
workforce
housing
tax
incentives
program
12
(program)
that
will
be
administered
by
the
EDA
and
that
will
13
provide
tax
incentives
to
housing
businesses
that
complete
14
housing
projects
in
the
state.
A
“housing
business”
means
a
15
business
that
is
a
housing
developer,
housing
contractor,
or
16
nonprofit
organization
that
completes
a
housing
project
in
the
17
state.
In
order
to
qualify
for
the
tax
incentives
under
the
18
program,
a
housing
project
must
meet
several
requirements.
19
First,
the
housing
project
must
consist
of
a
certain
type
20
and
number
of
dwelling
units.
The
project
must
include,
at
21
a
minimum,
four
or
more
single-family
dwelling
units,
one
or
22
more
multiple
dwelling
unit
buildings
that
each
contain
three
23
or
more
individual
dwelling
units,
or
two
or
more
dwelling
24
units
located
in
the
upper
story
of
an
existing
multi-use
25
building.
“Multi-use
building”
is
defined
as
a
building
26
whose
street-level
ground
story
is
used
for
a
purpose
that
is
27
other
than
residential,
and
whose
upper
story
or
stories
are
28
currently
used
for
a
residential
purpose,
or
will
be
used
for
29
a
residential
purpose
after
completion
of
the
housing
project
30
associated
with
the
building.
31
Second,
the
housing
project
must
involve
a
certain
type
of
32
development
in
a
certain
geographic
location.
The
project
may
33
involve
the
rehabilitation,
repair,
or
redevelopment
of
any
34
dwelling
unit
if
it
occurs
at
a
brownfield
or
grayfield
site,
35
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_____
H.F.
_____
as
those
terms
are
defined
in
the
bill,
or
in
a
distressed
1
workforce
housing
community.
The
project
may
involve
the
2
rehabilitation,
repair,
or
redevelopment
anywhere
in
the
state
3
of
a
dilapidated
dwelling
unit
or
a
dwelling
unit
located
in
4
the
upper
story
of
an
existing
multi-use
building.
The
project
5
may
involve
the
new
construction
of
a
dwelling
unit
if
it
is
in
6
a
distressed
workforce
housing
community,
but
shall
not
include
7
the
new
construction
of
a
multi-use
building.
8
The
designation
of
a
community
as
a
distressed
workforce
9
housing
community
shall
be
within
the
discretion
of
the
EDA
10
after
it
considers
the
merits
of
all
applications
for
such
a
11
designation
and
the
demand
for
projects
in
distressed
workforce
12
housing
communities
compared
to
the
demand
for
all
other
13
projects
and
after
considering
whether
or
not
a
particular
14
community
has
a
severe
housing
shortage
relative
to
demand,
15
low
vacancy
rates,
or
rising
housing
costs
combined
with
low
16
unemployment.
“Community”
means
a
city
or
county.
17
Third,
the
average
dwelling
unit
cost
of
a
housing
project
18
must
not
exceed
$200,000
per
dwelling
unit,
or
$250,000
per
19
dwelling
unit
if
the
project
involves
the
rehabilitation,
20
repair,
redevelopment,
or
preservation
of
“eligible
property”,
21
which
means
the
same
as
defined
for
purposes
of
the
historic
22
preservation
and
cultural
and
entertainment
district
tax
credit
23
in
Code
chapter
404A
and
includes
property
listed
or
eligible
24
for
listing
on
the
national
register
of
historic
places
or
25
property
designated
or
eligible
for
designation
as
of
historic
26
significance
to
a
district
listed
in
the
national
register
of
27
historic
places
or
property
or
a
district
designated
a
local
28
landmark
by
a
city
or
county
ordinance
or
property
that
is
a
29
barn
constructed
prior
to
1937.
30
Fourth,
the
dwelling
units
that
are
part
of
the
housing
31
project
must
meet
the
United
States
Department
of
Housing
and
32
Urban
Development’s
housing
quality
standards
and
applicable
33
local
safety
standards.
34
A
housing
business
seeking
tax
incentives
for
a
housing
35
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_____
H.F.
_____
project
under
the
program
is
required
to
apply
to
the
EDA.
1
The
application
must
include
a
resolution
in
support
of
the
2
housing
project
by
the
community
where
the
housing
project
will
3
be
located,
documentation
of
local
matching
funds
pledged
of
4
$1,000
or
more
per
dwelling
unit,
a
funding
agreement
between
5
the
housing
business
and
the
community,
a
report
describing
all
6
violations
of
environmental
law
or
worker
safety
law
within
the
7
last
five
years,
and
any
other
information
deemed
necessary
by
8
the
EDA
to
evaluate
the
eligibility
and
financial
need
of
the
9
housing
project
under
the
program.
The
EDA
is
not
required
to
10
accept
applications
on
a
continuous
basis.
Upon
review
of
an
11
application,
the
EDA
may
register
a
housing
project
under
the
12
program.
The
EDA
is
required
to
notify
a
housing
business
of
13
successful
registration
and
the
amount
of
tax
incentives
for
14
which
the
EDA
preliminarily
determines
it
qualifies
for.
A
15
housing
business
is
then
required
to
enter
into
an
agreement
16
with
the
EDA
for
the
successful
completion
of
its
housing
17
project
within
three
years
from
the
date
it
was
registered
by
18
the
EDA.
A
compliance
cost
fee
equal
to
0.5
percent
of
the
19
value
of
the
tax
incentives
claimed
pursuant
to
an
agreement
20
will
be
imposed
upon
all
agreements
with
an
aggregate
tax
21
incentive
value
of
$100,000
or
greater.
22
A
housing
business
that
fails
to
comply
with
the
23
requirements
of
the
program
or
the
terms
of
an
agreement
with
24
the
EDA
may
have
its
tax
incentives
reduced,
terminated,
or
25
rescinded,
and
may
be
subject
to
the
repayment
or
recapture
of
26
claimed
tax
incentives.
27
Upon
completion
of
a
registered
housing
project,
a
28
housing
business
must
have
its
housing
project
audited
by
29
an
independent
certified
public
accountant
licensed
in
this
30
state.
The
EDA
will
then
review
the
audit,
verify
the
amount
31
of
workforce
investment
tax
credits
the
eligible
business
may
32
claim,
and
issue
a
tax
credit
certificate
for
that
amount.
33
The
maximum
amount
of
tax
incentives
that
may
be
awarded
34
by
the
EDA
to
a
housing
business
for
a
housing
project
shall
35
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_____
H.F.
_____
not
exceed
$1
million.
In
the
event
a
housing
business
1
qualifies
for
tax
incentives
in
excess
of
$1
million,
the
2
housing
business
and
EDA
may
negotiate
an
apportionment
of
the
3
reduction
between
the
program’s
two
tax
incentives.
4
The
program
provides
two
different
tax
incentives.
The
5
first
is
a
refund
of
the
sales
and
use
taxes
paid
that
are
6
directly
related
to
the
housing
project.
The
bill
provides
7
that
the
willful
making
of
a
false
report
in
connection
with
8
the
sales
and
use
tax
refund
is
a
simple
misdemeanor.
A
simple
9
misdemeanor
is
punishable
by
confinement
for
no
more
than
30
10
days
or
a
fine
of
at
least
$65
but
not
more
than
$625,
or
by
11
both.
The
second
is
a
workforce
housing
investment
tax
credit
12
in
an
amount
not
to
exceed
10
percent
of
the
qualifying
new
13
investment
of
the
housing
project.
“Qualifying
new
investment”
14
means
the
costs
directly
related
to
the
acquisition,
repair,
15
rehabilitation,
or
redevelopment
of
the
housing
project.
16
“Qualifying
new
investment”
also
includes
costs
that
are
17
directly
related
to
new
construction
of
dwelling
units
if
the
18
new
construction
occurs
in
a
distressed
workforce
housing
19
community.
However,
“qualifying
new
investment”
does
not
20
include
the
portion
of
the
total
costs
financed
by
federal,
21
state,
or
local
government
tax
credits,
grants,
forgivable
22
loans,
or
other
forms
of
nonrepayable
financial
assistance,
23
excluding
the
tax
incentives
provided
under
the
program.
Also,
24
if
the
housing
project
includes
the
rehabilitation,
repair,
or
25
redevelopment
of
an
existing
multi-use
building,
“qualifying
26
new
investment”
does
not
include
the
portion
of
the
total
27
acquisition
costs
of
the
multi-use
building
that
is
used
for
a
28
purpose
that
is
other
than
residential.
29
The
workforce
housing
investment
tax
credit
may
be
claimed
30
against
the
individual
income
tax,
the
corporate
income
31
tax,
the
franchise
tax,
the
insurance
companies
tax,
and
the
32
moneys
and
credits
tax.
To
claim
a
tax
credit,
a
taxpayer
33
must
include
a
tax
credit
certificate
with
the
taxpayer’s
34
tax
return.
The
credit
is
nonrefundable
but
may
be
credited
35
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S.F.
_____
H.F.
_____
to
the
tax
liability
for
five
years.
The
tax
credit
may
1
be
transferred
to
any
person
or
entity,
and
the
division
2
establishes
procedures
for
the
proper
transfer
of
the
tax
3
credit.
For
purposes
of
the
individual
and
corporate
income
4
taxes
and
the
franchise
tax,
when
the
tax
basis
of
property
is
5
increased
as
a
result
of
qualifying
new
investment,
that
tax
6
basis
shall
be
reduced
by
the
amount
of
the
workforce
housing
7
investment
tax
credit
issued
under
the
program.
8
The
division
provides
that
the
program
is
part
of
the
EDA’s
9
maximum
aggregate
tax
credit
cap
of
$170
million
per
fiscal
10
year,
and
not
more
than
$20
million
per
fiscal
year
may
be
11
issued
by
the
EDA
under
the
program.
The
EDA
is
required
12
to
issue
tax
incentives
under
the
program
on
a
first-come,
13
first-served
basis
until
the
maximum
amount
of
$20
million
14
per
fiscal
year
is
reached.
If
the
amount
of
tax
incentives
15
exceeds
this
amount
in
a
fiscal
year,
the
EDA
is
required
to
16
establish
a
wait
list
and
give
priority
in
subsequent
years
to
17
the
registered
housing
projects
on
the
wait
list.
18
The
EDA
and
the
department
of
revenue
are
required
to
adopt
19
rules
as
necessary
for
the
joint
administration
of
the
program.
20
DIVISION
III
——
ENTERPRISE
ZONE
PROGRAM.
Division
III
21
repeals
the
enterprise
zone
program
administered
by
the
EDA
22
and
makes
conforming
changes
to
references
in
the
Code
to
the
23
enterprise
zone
program
and
its
corresponding
tax
incentives.
24
The
division
amends
the
distribution
criteria
for
grants
and
25
projects
under
the
Iowa
summer
youth
corps
program
to
provide
26
that
a
percentage
of
grants,
and
certain
priority
consideration
27
for
projects,
shall
be
given
to
economically
distressed
areas,
28
as
defined
in
Code
section
15.335C,
instead
of
enterprise
29
zones.
30
The
division
amends
the
qualification
that
an
area
be
part
of
31
an
enterprise
zone
in
order
to
be
designated
as
a
reinvestment
32
district
under
the
Iowa
reinvestment
Act
in
Code
chapter
15J
to
33
require
that
an
area
be
part
of
an
enterprise
zone
that
existed
34
immediately
prior
to
the
effective
date
of
the
division.
35
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28
S.F.
_____
H.F.
_____
Under
current
law,
investment
tax
credits
issued
to
1
eligible
housing
businesses
under
the
enterprise
zone
program
2
are
transferrable
if
the
housing
development
is
located
on
3
a
brownfield
site
or
in
a
blighted
area,
or
if
the
housing
4
development
is
receiving
low-income
housing
tax
credits
under
5
section
42
of
the
Internal
Revenue
Code
(IRC).
However,
under
6
current
law,
the
EDA
may
not
approve
for
transfer
in
any
one
7
calendar
year
more
than
$3
million
worth
of
such
tax
credits
8
for
those
housing
projects
not
receiving
low-income
housing
tax
9
credits
under
section
42
of
the
IRC.
The
division
notwithstands
10
those
current
Code
provisions
and
permits
investment
tax
11
credits
already
issued
or
that
will
be
issued
to
an
eligible
12
housing
business
under
an
existing
enterprise
zone
agreement
13
with
the
EDA
for
housing
developments
located
on
a
brownfield
14
site
or
in
a
blighted
area
to
be
eligible
for
transfer
in
15
calendar
year
2014,
or
any
subsequent
calendar
year,
provided
16
the
eligible
housing
business
was
awarded
the
investment
tax
17
credit
before
the
effective
date
of
this
section
of
the
bill
18
and
notifies
the
authority,
in
writing,
before
July
1,
2014,
of
19
its
intent
to
transfer
such
tax
credits.
This
section
of
the
20
bill
takes
effect
upon
enactment.
21
The
division
prohibits
a
city
or
county
from
creating
an
22
enterprise
zone,
entering
into
a
new
enterprise
zone
agreement,
23
or
amending
an
existing
enterprise
zone
agreement,
on
or
after
24
the
effective
date
of
the
division.
25
The
division
provides
that
existing
enterprise
zone
26
agreements
between
an
eligible
business
or
an
eligible
housing
27
business
and
a
city,
county,
or
the
EDA,
including
existing
28
supplemental
new
jobs
credit
from
withholding
agreements
29
between
an
eligible
business
and
the
department
of
revenue
and
30
a
community
college,
shall
remain
in
effect
until
they
expire
31
under
their
own
terms
and
shall
be
governed
by
chapter
15E,
32
division
XVIII,
Code
2014.
The
elimination
of
the
enterprise
33
zone
program
under
the
division
shall
not
constitute
grounds
34
for
recision
or
modification
of
enterprise
zone
agreements.
35
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85
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28
S.F.
_____
H.F.
_____
Except
as
provided
in
the
division,
tax
credit
certificates
1
or
related
tax
credits
issued
before
the
effective
date
of
2
the
division
are
not
intended
to
and
shall
not
be
limited,
3
modified,
or
otherwise
adversely
affected
by
the
division.
4
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5320XD
(9)
85
mm/sc
28/
28